Executive summary - Udo Bullmann

(€12bn raised) and Germany is third with 4% (€3bn raised). Among the 7 biggest MemberStates in terms of funds raised by management location, the ranking is the following:funds raised by management location(2005)5045403530€ bn2520funds raised by management location151050UKFranceGermanyThe NetherlandsItalySpainDenmarkSource: EVCA/PWC/Thomson Financial2.6 LBOs become dominantLooking at the total funds raised for private equity funds it is striking to see the dominanceof LBOs. In Europe the proportion of buy-out investment made has continued to increase inrecent years, reaching over 68% of amounts invested in 2005. In contrast the amount ofventure capital investments only represents 5 %. This is more worrying bearing in mind ourneed for long-term investments to realise the Lisbon goals.PE: Stage Distribution of Investments byAmount Invested in 20055,2%21,8%4,8%68,2%Buy-out CapitalExpansion CapitalReplacment CapitalVenture CapitalAnd it highlights the comparatively difficult position of venture capital managers in recentyears, caused by the ‘bubble’ of 2000, and the wider downturn in the EU economy at thattime. Although the top European venture capital funds have performed at a similar level totheir US counterparts (where the market is more mature), a wider recovery may take some45