Invest Europe

• Invest Europe’s Venture Capital Forum takes place in Paris on 16 & 17 October
• Experts to discuss next steps for expanding European VC industry

Investors, VC fund managers and entrepreneurs will meet in Paris next week to discuss how to encourage more investment into Europe’s booming start-up scene in order to create more European champions.

In 2018, European venture capital raised €11.4 billion and invested €8.2 billion into companies, both record amounts for an industry that goes from strength to strength. It was also a stand-out year for exits, as the listings of music streaming market leader Spotify and Dutch payment processor Adyen cemented European VC’s position on the global stage. Activity has continued strongly in 2019 with the recent IPO of Germany’s BionTech, a pioneer in cancer immunotherapy treatments, and the sale of rare diseases specialist Therachon to Pfizer.

To mark the step-change in the industry, Invest Europe, the association representing the European VC industry and its global investors, is returning to Paris for its annual Venture Capital Forum, which will be held at the Verso Conference Centre in the heart of the city on 16 and 17 October. The Venture Capital Forum is for investors and VC fund managers and focuses on how to support an evolving European VC industry that is creating larger funds, making bigger investments and generating improved performance.

The packed programme is designed to encourage knowledge and best practice sharing among industry participants. It includes discussions on hot topics for the VC industry and investors, such as:

• France as a Blueprint for European VC Evolution – With French VC fundraising tripling over the last five years, experts identify the reasons behind the success, as well as the lessons that can be applied to other countries and regions around Europe.
• LPs on VC: Capitalising on the Momentum – A group of experienced investors discuss the evolution of European VC and ways to sustain growth and performance in the future.
• Industry Transformation: Increasing Ticket Sizes and New Models – The debate tackles ways of driving growth equity and other funding sources that can provide later-stage support for European start-ups.

Attendees at the Venture Capital Forum will hear about European VC performance from Uli Grabenwarter, Director for Equity Investments at the European Investment Fund, Europe’s leading VC investor. They will also receive insights into European and US VC trends from Ross Morrison, Partner at Adams Street Partners, one of the world’s oldest private markets investment management services firms.

Pascal Cagni, French Ambassador for International Investment and Chairman of the Board of Business France, and Lionel Assant, Senior Managing Director and European Head of Private Equity at Blackstone, will deliver keynote speeches.

“European venture capital goes from strength to strength,” said Thierry Baudon, Invest Europe’s Chair. “With top companies like Spotify, Adyen and Therachon hitting the headlines, investors are realising this is an opportunity they can’t afford to miss. Ensuring that more investor capital can flow into innovative start-ups to support them throughout their growth journeys is a top priority.”

In addition to informative speeches and panels, Invest Europe’s Venture Capital Forum provides great opportunities for industry networking. During the conference, Invest Europe has organised a number of events to bring investors, fund managers and entrepreneurs together, including the LP/VC Rotating Networking Dinner, and a cocktail reception at the Hôtel de Matignon, hosted by French Prime Minister Édouard Philippe.

For more details on Invest Europe’s Venture Capital Forum, visit the official website.

A limited number of free press passes are available for the event. Members of the press should contact the Invest Europe media team.

Private equity fundraising for Central and Eastern Europe (CEE) hit the highest annual level in a decade in 2018 with €1.8 billion, according to new data from Invest Europe.

Buyout funds in CEE raised €1.1 billion, while the region’s venture capital funds attracted over €500 million for the second year in a row, reveals Invest Europe’s 2018 Central and Eastern Europe Private Equity Statistics report, released today.

Private equity investment into companies across CEE reached €2.7 billion in 2018, the second-highest amount ever achieved, following 2017’s record €3.5 billion. The number of companies backed increased by 50% year-on-year to almost 400, also the second-highest level on record. This was driven by a sharp increase in CEE companies supported by venture capital.

The number of private equity and venture capital-backed exits in CEE reached an all-time high of 128 companies divested in 2018. This represented a total value of over €1 billion for the fifth year running, measured at historical investment cost. Poland accounted for over half of this total exit value with €575 million.

“The strong levels of private equity fundraising, investment and exit activity in Central and Eastern Europe in 2018 demonstrate that the region continues to develop as an attractive investment destination,” said Robert Manz, Chair of Invest Europe’s Central and Eastern Europe Task Force. “Global investors see that private equity and venture capital investment is one of the best ways to access the region’s robust markets and high-growth companies.”

All countries in the CEE region covered by Invest Europe’s report surpassed the European Union’s 2.1% GDP growth rate in 2018, according to data from the International Monetary Fund (IMF). Eight of the countries achieved annual growth above 4%, with Poland, Hungary and Latvia experiencing particularly high growth rates, reaching 5.1%, 4.9% and 4.8% respectively.

Poland saw CEE’s highest amount of private equity investment with its companies receiving €850 million in total last year. The Czech Republic was close behind with €767 million invested into its companies via private equity and venture capital funds. Hungary had the highest number of companies receiving investment with over 190 backed last year, almost half of the regional total.

The biotech and healthcare sector took the highest share of CEE’s private equity investment with 32% of the total value in 2018, while consumer goods and services companies received 27% of funding. The region also has strong technology start-up credentials, including Czech cyber-security group Avast which was 2018’s largest tech initial public offering (IPO) on the London Stock Exchange at a valuation of £2.4 billion. Meanwhile, Romania’s robotic process automation firm UiPath achieved a $7 billion valuation during a funding round earlier this year, making it one of the world’s most valuable artificial intelligence companies.

Invest Europe is the non-profit association representing European private equity, venture capital and their global investors. Its research database is the most robust and authoritative in the industry. The 2018 Central and Eastern Europe Private Equity Statistics report is free to download from the association’s website, investeurope.eu.

• Founder and former Managing Partner of Mid Europa Partners becomes Invest Europe Chair
• Baudon succeeds Nenad Marovac, Founder and CEO of DN Capital

Thierry Baudon, Founder of Mid Europa Partners, has become Chair of Invest Europe, the association representing European private equity, venture capital and their global investors.

Baudon, a representative of Invest Europe’s platform of mid-market private equity fund managers, succeeds Nenad Marovac, Managing Partner and CEO of venture capital firm DN Capital. The appointment is for one year and is effective immediately.

“The European private equity industry goes from strength to strength and I am delighted to have the opportunity to lead Invest Europe over the coming 12 months,” said Baudon. “It will be my priority to make sure that all our members can continue to raise and invest capital as freely as possible, to the benefit of companies across the continent and investors globally.”

European private equity funds raised more than €97 billion in 2018, the highest level in over a decade, and invested a record of over €80 billion into some 7,800 companies throughout Europe.

Baudon’s appointment as Chair of Invest Europe comes at the start of a period of change in European institutions, with incoming policymakers expected to set out new objectives for Capital Markets Union and implement the action plan for financing sustainable growth, while also commencing a review of the Alternative Investment Fund Managers Directive in 2020. At the same time, Brexit continues to create political uncertainty in the UK and across the EU for investment managers, institutional investors and companies.

“It has been my privilege to Chair Invest Europe over the last 12 months when, in the face of persistent uncertainty, it has achieved so much, including the roll-out of the VentureEU fund of funds programme and a new, lower risk-weight category for long-term equity under Solvency II,” said outgoing Chair Marovac. “I welcome Thierry into the role and look forward to further Invest Europe success under his stewardship.”

In addition to ensuring Invest Europe members’ voices are heard on key topics affecting private equity, Baudon wants to foster even greater understanding of the industry’s benefits to the broader economy among policymakers.

“Private equity and venture capital investment can have significant impact on job creation, talent development and growth, as well as innovation and entrepreneurship. I want to use my tenure as Chair to help the association to produce more high-quality data and research that demonstrates our positive impact on employment and the broader economy,” Baudon said.

Invest Europe has begun to collect employment data for the 15,000 companies backed by its members across Europe. The information supplements annual private equity and venture capital activity data to help provide a comprehensive picture of the industry’s reach and its benefits for European businesses and workers.

In the coming year, Invest Europe will update its Professional Standards Handbook for members with latest best practice guidelines. The association is also planning a climate change guide that will help the industry address risks associated with global warming.

Baudon’s career in private equity spans more than 20 years. He established Mid Europa Partners in 1998 and grew the firm into one of the largest and most respected private equity groups operating in Central and Eastern Europe. He served as Managing Partner until 2016 and Executive Chairman until the end of 2018.

Prior to forming Mid Europa Partners, Baudon headed the International Finance Division of the Suez Group. He also held senior management positions in the World Bank/IFC Group and in the European Bank for Reconstruction and Development (EBRD) between 1981 and 1995.

Baudon holds a BSc and MSc in Engineering from AgroParisTech, an MA in Economics and Finance from the Sorbonne University, and an AMP from INSEAD.

– European private equity investments increase 7% to €80.6bn in 2018
– Fundraising remains strong with €97bn committed by investors
– Nearly half of funds raised come from investors outside Europe
– Venture capital sets records with €11.4bn in fundraising and €8.2bn invested  

Private equity investment in European companies reached a new record of €80.6 billion in 2018, a 7% year-on-year increase, according to data released today by Invest Europe. Private equity funds invested in over 7,800 companies, also a new record, with 86% of the total made up by small and medium-sized enterprises (SMEs).

Invest Europe’s 2018 European Private Equity Activity Report is the most comprehensive and authoritative source of fundraising and investment data available. It reveals that investment increased across all segments of private equity, including larger buyouts, mid-market investments and growth capital, with venture capital backing for European companies hitting an all-time high at €8.2 billion.

“Record investment levels show that private equity and venture capital can identify attractive companies with the capacity to grow whatever the broader political and economic climate,” said Michael Collins, Chief Executive of Invest Europe. “Europe is packed with high-potential and innovative businesses, and private equity is increasingly seen as a supportive partner for companies looking to expand.”

Fundraising remained strong in 2018, as €97.3 billion was committed to European private equity, the highest total since the financial crisis. Investors from outside Europe contributed 46% of total fundraising, reflecting the findings of last November’s Global Investment Decision Makers Survey, in which 78% of participants said they expected increased investment in Europe in the next five years. Pension funds remained the largest investor group, accounting for almost one-third of total fundraising.

Total private equity exit activity declined in 2018, with divestments at cost [1] down 28% to €32 billion. The number of private equity-backed companies that were exited remained steady at 3,750.

Write-offs across all segments (buyout, growth and venture) fell to their lowest levels in ten years, underlining the industry’s resilience in 2018.

European venture capital fundraising reached a new high of €11.4 billion, up 11% from 2017. Private investor interest increased with family offices and private individuals accounting for 20% of capital raised, closely followed by funds of funds and other asset managers on 19%. The proportion contributed by government agencies fell to 18%, the lowest share in a decade.

“European venture capital has truly come of age thanks to a combination of strong returns, a growing band of billion-euro-plus tech and life sciences start-ups, and a string of high-profile exits, including the listing of music streaming service Spotify and the sale of mobile payments platform iZettle. There are eager strategic buyers and open markets around the world for Europe’s top-quality start-ups” said Nenad Marovac, Invest Europe’s Chair. “The result is increasing appetite among global institutional investors who see European venture as the way to invest in some of the world’s most dynamic and entrepreneurial companies.”

The 2018 European Private Equity Activity report covers activity on over 1,400 firms, directly verified by the fund managers via the European Data Cooperative (EDC). Working together with national private equity associations from across Europe to collate robust and comparable statistics, Invest Europe has developed the industry’s most comprehensive database. The EDC holds data from over 3,300 European private equity firms on 9,000 funds, 75,000 portfolio companies and 255,000 transactions since 2007.

Invest Europe is the association representing European private equity and venture capital, and their global investors. The full report is free to download from the website, investeurope.eu.

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– 78% of investors expect increased investment in Europe over next five years
– Europe’s perceived stability and commitment to sustainability declines

Europe’s attractiveness as an investment destination is on the rise compared to 2017, as the majority of global investors are more likely to invest in both the EU and the UK after Brexit, according to new survey findings.

Nearly 90% of investors said Europe has become a more attractive investment destination over the last five years, according to Invest Europe’s Global Investment Decision Makers Survey 2018, which the association will present at a high-level European Commission conference today.

Following last year’s inaugural survey, global investors still rank Europe above China and the USA for its highly skilled workforce, transport infrastructure and regulatory climate. They now perceive Europe to have moved ahead of the USA as the leader on innovation and entrepreneurship, taxation levels and access to global markets. However, Europe lags the USA on IT infrastructure and level of economic growth. Almost eight out of ten investors (78%) expect increased investment in Europe over the next five years, as they become more positive on investing in both the EU and the UK post-Brexit.

“Global investors are increasingly looking towards Europe,” said Michael Collins, CEO, Invest Europe. “The continent is now outshining China and the USA in many areas, from its skilled workforce to its open markets and thriving innovation. While Europe isn’t immune to the political and social strain being felt around the world, if policymakers focus on regulatory stability, investment in innovation and better capital markets integration, Europe can be on top in the years to come.”

Nine out of ten investors from the USA and China (both 91%) view Europe as more attractive than five years ago, up from approximately seven out of ten in last year’s survey (71% and 78% respectively). Around two in five investors from China (38%) say their view of Europe has improved because of a decline in the USA’s attractiveness, more than the 25% of respondents overall who said the same.

A clear majority of investors (82%) — especially those in China (97%) — state that a stable regulatory environment is important when making investment decisions, with 47% of investors rating Europe as a top performer on regulatory climate compared with the USA (32%) and China (22%). European policymakers can ensure the continent’s continued attractiveness by launching new investment incentives, investing in innovation and reviewing competition policy.

Global investors are most likely to consider Europe a global leader in finance and insurance, energy and the environment, and biotech and healthcare, while those from China see Europe as a global leader in most of the sectors tested.

However, investor confidence in Europe’s political stability fell from 50% to 40% year-on-year, while social stability dropped from 50% to 39%. Europe’s perceived commitment to sustainability and the environment — an important issue for 80% of investors — has also declined, from 74% to 50%. 

Invest Europe will present its survey findings today at the European Commission’s conference The Single Market as a Driver of Investment in Europe, where Commission President Jean-Claude Juncker will speak. The event is part of Invest Week 2018, a collaboration of over 30 organisations with events exploring investment into Europe’s sustainable growth.

Invest Europe is the association representing European private equity and venture capital, and their global investors. It commissioned ComRes, the independent research consultancy, to survey 360 investment decision makers at companies from the USA, China, Germany, the UK and France in October 2018. The full report is free to download from Invest Europe’s website, investeurope.eu.