abvcap conference: brazil post-crisis, even better! april 12 /13, 2010 – sofitel – rio de...

ABVCAP Conference: Brazil Post-Crisis, even better!April 12 /13, 2010 – Sofitel – Rio de Janeiro

Overview of the Brazilian Private Equity andVenture Capital Industry

Prof. Cláudio Vilar FurtadoGVcepe – Private Equity and Venture Capital Research Center at FGV – EAESPGraduate School of Business

Special Thanks to our Special Thanks to our Sponsors and PartnersSponsors and Partners

Founding Members Strategic and Institutional Partnerships

Institutional Sponsorship

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Research Structured in 3 Modules:

PE&VC 2010 CensusInvestors Inv. Vehicles Portf. Companies

Managers

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Managers

• Managers: profile, investment thesis and legal nature and human resources

• Investments Vehicles: Fundraising, LP’s and Investments and Exits

•Invested companies: Stage, Sector, Location, Size, Turnover, Employment, etc.

RESEARCH MODULE 1

PE&VC in Brazil – Dec/2009

InvestorsInvestors

Managing Organizations


Portfolio Companies

Portfolio Companies

US$ 34 bnCommitted Capital

140 PE&VC Firms

236 Investment Vehicles

1,747 Professionals and Staff

554 Portfolio Companies

From 2005 to 2009: • 489 new/follow-on investments• 37 backed IPO’s (R$31.3bn)

180PE&VC


180PE&VC


140surveyed

140surveyed

Research Universe

78%of the industry

surveyed

Increasing Presence of Global Players

Global, Regional and Emerging Markets Investment Vehicles

DLJ

AAI GlobalAdventAIG CartesianCartica CapitalDarby OverseasEconergy BrasilGeneral AtlanticIntel CapitalOne Equity PartnersPaul CapitalThe Carlyle Group

ActisAutonomySpinnaker

AIG Private Equity (EUA)

Darby Overseas (EUA)

Electra Capital Partners (Cayman)

Franklin Templeton (EUA)

Intel Capital (EUA)

Itacaré (Ilh Vir)

Santander (ESP)

Standard Bank (SAF)

The Carlyle Group (EUA)

Vita Bioenergia (SUI)

Global, Regional and Emerging Markets Fund Managers with vehicles strictly dedicated to Brazil

Southern Cross

GP Investments

Committed Capital Allocated to Brazil

current US$ bn

NOTE: Allocated committed capital excludes fully divested vehicles and includes REAL appreciation effect on dec/08 base.

21%

increase: 2009/2008

Significant Expansion of the PE Asset Class in Brazil

Source: BACEN, GVcepe

2x since 2004

Committed Capital as % of GDP

Fundraising 2009 US$ 4.6bn: Domestic R$ 3.3bn (US$1.7bn) and Foreign US$ 2.9bn

current US$ bn

Broad Diversification of Investor Base, notably Pension Funds, Parent Orgs., GPs, Family Offices, etc.

Origin of Investors as % of Committed Capital 2009: high concentration in Brazil, U.S. and E.U

Sample: 255 reporting vehicles, ¾ of Committed Capital

Increasing Span of GP activity into both Private Equity and Venture Capital

Distribution of Investment Vehicles by Type

Obs: Venture Capital includes Seed, Early Stage and Later Stage VC. Private Equity includes Growth Capital and Later Stage Sample: 224 vehicles, 88% of population

Strong Expansion of Portfolio Companies, predominantly SMEs

14%p.a. CAGR 2005-2009

Nr. of Portfolio Companies

Portfolio Companies 2009 by Sector of Economic Activity

Innovative and Technology based sectors predominate

Spread in Traditional industries2.

1.

Industry 2009

Nr. %IT and Electronics 108 19,5 Energy and Oil 54 9,7 Civil Construction 52 9,4 Communications 34 6,1 Retail 28 5,1 Agribusiness 25 4,5 Food and Beverages 21 3,8 Transportation and Logistics Services 21 3,8 Pharmaceuticals, Medical and Aesthetics 20 3,6 Financial Services 18 3,2 Biotechnology 15 2,7 Infrastructure 15 2,7 Education 13 2,3 Entertainment/Tourism 11 2,0 Services (Other) 11 2,0 Real Estate 9 1,6 Metallurgy, Mechanical and Electrical Material Industries 7 1,3 Extractive Industries 6 1,1 Chemical Industries 3 0,5 Other Industrial and ServicesUnidentified Sector

5132

9,2 5,8

TOTAL 554 100%

Mobilizers programs in strategic areas

Complexo Industrial da

Saúde

Nuclear Energy

Tecnologias de Informação e Comunicação

Industrial ComplexDefense

Nanotecnologia Biotecnologia

Programs to strengthen the competitiveness

ComplexAutomotive

Capital goodsTextile and

ClothingMadeira

and Mobile

Higiene,Perfumaria

e CosméticosConstrução Civil

Complexo deServiços

BiodieselIndustry

Naval and CabotageLeather, Footwear and

ArtifactsAgroindústrias Plastics OUTROS

Programs to consolidate and expand the leadership

ComplexoAeronáutico

Mineração Steel Pulp and PaperPetróleo,

Gás naturale Petroquímica

MeatBioetanol

Complexo Industrial da

Saúde


NanotecnologiaComplexo

Industrial da Saúde


BiotecnologiaNanotecnologiaComplexo







Petróleo,Gás natural

e Petroquímica





BioetanolPetróleo,






MineraçãoBioetanolPetróleo,






Higiene,Perfumaria

e Cosméticos







Construção CivilHigiene,

Perfumaria e Cosméticos
















Agroindústrias










BiodieselAgroindústrias










Education and OTHERS

BiodieselAgribusiness

ComplexServices

BuildingHygiene,

Perfumeryand Cosmetics

MiningBioethanolOil,

Natural gas and Petrochemicals

ComplexAeronautical

BiotechnologyNanotechnologyIndustrial Complex

Health

TechnologyInformation andCommunication

4/6

7/7

13/13

PE & VC PORTFOLIO COMPANIES IN 24/26 SECTORS

Source: GVcepe and ABDI - Productive Development Policy (PDP)

Private Equity and Venture Capital Investment Activity leverages Industrial Development Policy: presence in 90% of priority government programs

Brazilian PE&VC on the Radar Screen of Global Investors

*Preqin**GVcepe

Global Fundraising (US$bn)*

Region 2005 2006 2007 2008 2009 Total

North America 187 315 383 366 144 1,397

Europe 110 136 162 157 73 640

Asia and ROW 47 84 100 112 27 371

Global 345 535 646 636 246 2,408

Brazil** 2.3 5.3 7.2 4.6 4,6 24

as % of Asia and ROW 4,8% 6,4% 7,2% 4,1% 17,6% 6,5%

Brazilian PE&VC on the Radar Screen of Global Investors: Employment

Source: Preqin, Gvcepe

Country Estimated Total Employment US 38.500UK 7.700France 2.300Brazil (GVcepe correction) 1.700Germany 1.500Australia 1.400Canada 1.400Japan 1.100India 1.000Hong Kong 900Switzerland 900China (ex. Hong Kong) 800Italy 800Sweden 800Israel 600Netherlands 600Other 8.800Total 69.100

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Managers

• Legal structure and LP agreements

• Investors an LPs: resources origin and category

•GP: Legal structure and remuneration

• Performance by Investment Vehicle Vintage, Exits, etc.

RESEARCH MODULE 2

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Managers

RESEARCH MODULE 3

• Growth and value creation, jobs and intangibles

• Patents and Innovation

• Corporate governance and financial contracts

•Social and Enviromental Sustainability

•Exits and Capital Markets Impact

ABVCAP Conference: Brazil Post-Crisis, even better!April 12 /13, 2010 – Sofitel – Rio de Janeiro

Your cooperation is crucial to our joint success!!!

Thank youThank you

Prof. Cláudio Vilar FurtadoGVcepe – Private Equity and Venture Capital Research Center at FGV – EAESPGraduate School of Business

abvcap conference: brazil post-crisis, even better! april 12 /13, 2010 – sofitel – rio de...

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