t epeat efaa st atdts epese

1
? ????? t?? ep??e???µat???? ?efa?a??? st?
???µat?d?t?s? ???? ep??e???se??

• ?e??a???
• 4 ?e?eµß???? 2007
• ????? ?a?a??????
  

2
Contents
Contents

• Who we are
• PE/VC Overview
• PE/VC Industry trends
• NBGI Ventures and key takeaways

3
Profile
Who we are

• We are the Private Equity arm of the National
  Bank of Greece managing funds totaling over 640
  million for private equity and venture capital
  investments throughout Europe
• www.nbgiprivateequity.co.uk
• NBGI Ventures, a division of NBGI Private Equity,
  invests in early-stage technology ventures in
  Europe and Greece
• www.nbgiventures.com

4
Private Equity (PE) and Venture Capital (VC)
P/E and VC Overview

• Private Equity/Venture Capital invests equity
  capital to enterprises not quoted on a stock
  market
• The term PE usually refers to later stage
  investments (expansion and buy-outs) as apposed
  to the term VC usually referring to seed and
  early stage investments
• The European Venture Capital Association (EVCA)
  identified over 1,500 PE and VC firms in Europe
  in 2006
• In 2006, PE and VC firms invested around 50
  billion in 8,583 companies throughout Europe

5
Economic Growth and Job Creation
P/E and VC Overview

• The European PE and VC Industry is an active
  partner for sustainable economic growth and the
  competitiveness of European companies
• Since 2000 and up until the end of 2004, over
  140 billion of equity capital was invested by
  the PE and VC industry in over 40,000 companies
• These investments represent jobs for over 6.5
  million people, many of which are critically
  needed highly skilled jobs
• The European PE and VC Industry provides a
  virtuous financing cycle within the European
  economy

6
How do VC and PE firms work
P/E and VC Overview

• Venture Capital
• High risk for high return
• Companies with large growth potential
• Innovation and high margins
• Typical investment amounts 1m to 5m
• Value creation - hands on approach - syndication
• Private Equity
• Broad range of business sectors
• Better risk return relationship aims at 25 IRR
• Controlling stakes
• High margins management quality
• Opportunity to leverage

7
Industry trends
Source EVCA
8
Global Private Equity Funds Raised
Industry trends

• Fundraising highs also mirrored in the Americas

Source EVCA, Thomson Financial, PwC
9
European Private Equity and Venture Capital
Activity
Industry trends
Source EVCA
10
European Venture Capital Figures
Industry trends
Source EVCA
11
The Buyout bonanza
Industry trends

• A way-out of the stock-market slump during the
  post-bubble days
• Succession issues within family-run businesses
  throughout Europe
• More efficient in terms of capital allocation
• Low interest rates enabled aggressive leverage
• Dramatically better risk-return relationship

12
The Venture Blues
Industry trends

• European corporates are much less acquisitive
  than their US counterparts
• Europe as a puzzle of fragmented markets
• Delays corporate expansion
• Reduces size of potential opportunity
• Regulatory obstacles for entrepreneurship
• Engrained conservatism in accepting new players

13
Performance of EuropeanPE Funds
Industry trends

• European PE Funds Formed 1980-2006
• Net IRRs to Investors
• Investment Horizon Returns as of 31 Dec 2006

Source Thomson Financial / EVCA
14
The Greek VC Industry 2002-2005
Industry trends
Source Logotech S.A.
15
Greek Investments carried out during 2002-2005
Industry trends
Source Logotech S.A.
16
Technology Fund I
NBGI Ventures

• Formed in October 2001 to invest in early-stage
  technology, media and telecommunications
  businesses in Europe, including Greece
• Raised initial fund of EUR 60 million
• Team of 4 investment professionals based in
  London and in Athens
• Successful track record
• 8 portfolio companies including 2 Greek academic
  spin-offs
• 5 out of 8 portfolio companies are not Greek
  related

17
Technology Fund II
NBGI Ventures

• Formed in October 2007 to invest in early-stage
  medical technology businesses in Europe
• Raised initial fund of EUR 30 million from NBG
• Discussions with potential investors for further
  commitments up to a target fund size of 60
  million
• Already made two investments
• A German based ophthalmic surgery company
• A German based carotid artery stenting system
  company

18
Venture Capital Case Study
NBGI Ventures

• Fabless RF semiconductor company established in
  November 2001 developing RF ICs for WLAN market
• Total 10.8m invested to date with 2.6m from
  NBGI Ventures
• Attracted international VCs
• Reached profitability
• Now heading to a successful exit

19
Our investments
Romac Express UK BIMBO
Fintrust Greece Expansion
Red Herring US Expansion
Superglass Insulation UK MBO
Direct Energie France Expansion
Forth Photonics UK/Greece Early stage
Brambles UK IBO
Inform Lykos Romania Expansion
BTC Bulgaria MBO
LSUK UK MBO
Nationwide Autocentres UK MBI
Agris Greece Expansion
Walker Hamill UK MBO
InternetQ Greece Development
Doverie Brico Bulgaria Expansion
Theta Microelectronics Greece Early stage
Brownhills UK Secondary Buyout
Upfront Chromatography Denmark Early stage
Mountain Warehouse UK Secondary Buyout
Bone Support Sweden Early Stage
Hamworthy Heating UK IBO
SuperSonic Imagine France Early Stage
Dodoni S.A. Greece Secondary Buyout
Wraith Accommodation UK Development Capital
20
Our experience suggests
Key takeaways

• People and ideas matter more, money is not so
  much of an issue, can be found from local or
  foreign investors
• Ambitious business plans needed. Be extrovert,
  look beyond Greece
• Private equity opportunities exit in Greece
• Family succession
• Scale towards MA/roll-ups
• International orientation/expansion (Balkans)

21
Thank you