European Private Equity Outlook 2011

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SHORT-TERM TRENDS 2011 Increase in Asian bidders expected – Capital markets environment likely to be used for more dual tracks Key trends in the 2011 PE environment (2/2) TREND 5 6 INCREASE IN ASIAN BIDDERS Domestic Intra-European Intercontinental MORE DUAL-TRACK AUCTIONS Private equity DUAL TRACK EXITS Public equity ASSESSMENT > Increase in activity from Asian and Middle Eastern buyers expected in Europe – particularly from Chinese strategic buyers > Also, securing access to Chinese markets is a key issue for many European companies > While the stock market may provide windows of opportunity for corporates in search of financing, high volatility may prove a serious obstacle for some > In search of increased transaction security, we expect Private Equity investors to increasingly opt for dual track processes European Private Equity Outlook 2011_Final_010411.PPTX 30
MEDIUM-TO-LONG-TERM TRENDS 2012+ In the medium/long term, solving refinancing issues will become more complex – We also expect more business model innovation Key trends in the 2012 PE environment and beyond TREND 8 COMPLEX REFINANCINGS Noncomplex 9 INCREASING BUSINESS MODEL INNOVATION Product / marketcombination Revenue model Status quo Value chain Complex ASSESSMENT > Balance sheet constraints in portfolio companies support the need for refinancing > Increasing complexity in refinancing, driven by the restrained behavior of debt providers > Enhanced focus on operational improvement within the portfolio companies because the value added based on financial engineering is limited > Return to the performance level of the original business plan > Closer look on new technology/market combinations > PE should try to bring their portfolio company to a new phase in its life-cylce European Private Equity Outlook 2011_Final_010411.PPTX 31
Page 1 and 2: European Private Equity Outlook 201
Page 3 and 4: While PE regains momentum after a d
Page 5 and 6: Challenges for the mid and long ter
Page 7 and 8: PE investments are gaining momentum
Page 9 and 10: M&A volumes remain low, average dea
Page 11 and 12: B. A look at the European real econ
Page 13 and 14: Growth in Europe is sluggish and fa
Page 15 and 16: Public budgets are falling into dis
Page 17 and 18: Uncertainty about how the financial
Page 19 and 20: The capital market environment has
Page 21 and 22: High-yield bond market still no alt
Page 23 and 24: Current leverage levels are around
Page 25 and 26: After almost no activity in 2009, t
Page 27 and 28: D. Outlook for 2011 and beyond Situ
Page 29: SHORT-TERM TRENDS 2011 In 2011, we
Page 33 and 34: 2 COMEBACK OF STRATEGIC BUYERS Grea
Page 35 and 36: 4 FOCUS ON MID-SIZE DEALS Focus on
Page 37 and 38: 6 MORE DUAL TRACKS As the capital m
Page 39 and 40: 8 INCREASE IN BUSINESS MODEL INNOVA

European Private Equity Outlook 2011

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