Venture capital investments reach rock bottom

EVCA Statistics: Total invested in the first nine months of 2010, € 26 billion of equity capital in European companies

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European private equity investments in expansion projects in the third quarter of 2010 increased by 32 percent over the second quarter. € 1.9 billion was invested in growth capital with which this segment is at its highest level since the end of the private equity boom (Q2 2008). This shows the quarterly statistics of the European Private Equity and Venture Capital Association (EVCA).



The buyout sector was dominated by small and medium-sized transactions: they represent 65 percent of the total buyout volume and 96 percent of funded companies. The total number of buyouts has fallen, particularly in the larger deals, the invested capital was about eleven percent to 5.2 billion euros.

Venture capital investment fell by 16 percent over the previous quarter, reaching their lowest point. The investment amounted to € 640 million invested in 679 companies in Europe.

The sale of investments (other than total losses) increased in the third quarter of 2010, up 36 percent from the previous quarter to 3.1 billion euros. The number of exits increased 6 percent to 393rd The main exit channel were secondary exits, ie sales to other private equity firms: they rose by more than double to 1.5 billion € and combine half the capital divested at cost. Another 29 percent were trade sales, which rose by 15 percent to 910 million euros. Total losses decreased greatly compared with Q2 of 2.2 billion euros to 318 million euros.

The collected capital of associated companies decreased by 37 percent over the second quarter to 2.4 billion euros. Nevertheless, designed the first nine months of 2010 in fundraising positive because it could be € 13 billion raised - that already meets 83 percent of the total fundraising in 2009.
Total period Q1-Q3
Total net inflows in the first nine months of 2010, € 26 billion of equity capital in European companies. This is already up 14 percent from the year 2009. The consumer goods / trade benefited the most with 4.9 billion euros (FY 2009: € 3 billion). In second and third place Life Sciences (4.1 billion euros) and Communications (3 billion euros).

Exits reached in the first three calendar quarter 2010, a level of 8.8 billion euros (total losses excluded) - 25 percent more than in 2009 total (7 billion €). This shows a slow recovery of the exit event. The proceeds of secondaries tripled to 3.4 billion euro trade sales fell by a quarter to 2.6 billion euros.