Professional Documents
Culture Documents
PRIVATE
EQUITY
ANNUAL
REPORT
2009
This document contains information, including details of investment performance, in respect of funds which are closed to new investors.
Past performance is not necessarily indicative of future returns on these or other funds. The value of investments may fall as well as rise.
Private equity investments are illiquid and there is no guarantee that they can be sold at valuation levels.
It shall not be viewed as investment advice, and does not constitute an offer to sell, a solicitation of any offer to buy, or the basis
for any contact for the purchase or sale of any investment.
The portfolio companies financial data are issued by the companies.
Unless otherwise mentioned, figures are as of December 31, 2009 and the exchange rate that applies is €1 = US$1.43.
AXA Private Equity
Global Investments, the European Way
Private Equity AXA Private Equity is among the leading global private equity firms with
$25 billion of assets managed or advised for major international investors.
Firm of the Year Since 1996, its constant focus on the long-term growth of its investments has
generated sustained and stable returns.
Financial Times
Mergermarket European With 230 employees and eight offices in Paris, Frankfurt, London, New
M&A Awards 2009 York, Singapore, Milan, Zurich and Vienna, AXA Private Equity offers its
partners - companies management and investors - access to a broad and solid
network across Europe, North America and Asia.
Mezzanine Infrastructure
Arranger Brownfield
Acquisition financing Greenfield
$3 billion $2 billion
* As of December 31, 2009
summary
Corporate review
32_ A story of sustained growth
33_ Our story
34_ A cohesive management team
36_ Best-in-class reporting
37_ A loyal and diversified investor base
38_ Client-oriented support
39_ Rigorous internal governance
40_ Corporate social responsibility
44_ Promoting excellence
Investment review
48_ Infrastructure
52_ Funds of funds
58_ Direct funds
60_ Mid cap
62_ Small cap
64_ Venture capital
67_ Co-investment
72_ Mezzanine
Glossary
foreword of
the CEO
/5
company profile
We are cautious and highly disciplined in the investments we make, having reasonable
recourse to external leverage. Yet it is also within our ability to move fast to seize the right
opportunities which has resulted in consistent returns and an enviable track record during
the last 14 years. Our teams take a long-term view and are committed to creating operational
value and sustainable growth. We believe we are successful because of the close ties we
develop with the management of our portfolio companies and partner funds.
Co-investment Infrastructure
Minority interests Brownfield and
in major transactions greenfield
€20–100m per transaction
Small cap
Investments
in medium-sized
Funds of funds
companies with Primary, early secondary
a valuation and secondary
of under €100m
Venture capital
Innovation and growth financing
€2m to €5m investment in IT,
internet and energy sector
/7
we maintain
performance
thanks to a
high level
of discipline
What’s new in 2009?
Key facts and figures
Investments
Divestments
New partnerships
key facts and figures
2009: a year of solid returns
AXA Secondary Funds ranked n° 6 most influential investor in The Wall Street Journal
(March 17, 2009)
Direct funds
AXA LBO Fund II (vintage 2000) 33.0% net IRR
AXA LBO Fund III (vintage 2005) 9.4% net IRR
AXA LBO Fund III ranked n°3 in terms of performance in the Financial Times
(April 15, 2009)
* Past performance is no guarantee of future performance. Valuations may move up or down over time.
The above figures do not cover the entirety of all funds managed and/or advised by AXA Private Equity.
Only the performance of certain major funds is presented here. All the figures are presented after
management fees and carried interest.
500 funds
in portfolio 165 investors
7,500
2.6 funds
underlying
per investor
companies
in funds of funds portfolio on average
In 2009, we strengthened
and grew our companies.
15 investments
in 2009
2009 was not just about stabilizing
a n d st re n g t h e n i n g o u r co m p a n i e s ’ 5 divestments
fundamentals. Keen to capitalize upon in 2009
opportunities presented by the downturn,
we created value by initiating and securing
several bolt-on acquisitions for companies 3 build-ups
within our portfolio. Three build-ups took in portfolio companies in 2009*
place in 2009. Unipex acquired Codibel
in March, Löwen Play acquired Vrakas in
April, and Gerflor acquired Ketonen during 3x net Debt / EBITDA**
the course of the year.
KALLISTA
Renewable energy
Why did you choose to partner Tre & Partners. It will use Kallista as How would you characterize
with axa Private Equity? a platform for all of its renewable the potential for green energies?
A few months ago, a competitive energy activities. Last but not least, There is a growing demand for
bid was organized and AXA Private having a shareholder that is as well more environmentally-friendly
Equity was chosen to acquire 100% established as AXA Private Equity energies across Europe. Moreover,
of the shares of the company. in the European market is extremely because wind and other renewable
Its reputation of reliability and reassuring and favors our long-term energies are available naturally,
professionalism played a key role development. and thus to some extent, are
in the decision. Having personally i n ex h a u s t i b l e , t h ey p r e s e n t
met with many investors, I was What does your growth strategy good business opportunities in
also able to appreciate the team’s depend on? the coming years. In the context
a c u t e u n d e r st a n d i n g o f t h e As of today, Kallista owns wind of rising oil prices, developing
company’s industrial vision. Finally, farms. We would like to expand our the capabilities in such fields
its commitment and its capacity to activities to evolve in the coming helps secure countries’ energy
support our growth strategy helped years into a more comprehensive independence and international
make the difference. and lucrative business which competitiveness. Compared to its
includes project development, neighbors, France is still behind and
What kind of resources does o p e ra t i n g a n d m a i n te n a n ce, there is an obvious need to catch
the team provide you with? and reporting. Building on our up. Now is the time to seize the
With 15 wind farms mainly situated expertise, we also plan to expand opportunity and fully benefit from
within a 300 km radius of Paris, and o u r i n f ra s t r u c t u re b a s e a n d the growth potential.
a total capacity of 163 MW, Kallista develop new projects in wind
is one of the most important wind and solar energy across Europe.
farm platforms in France. Our Although capital intensive in the
objective is to reinforce our position first stages of development, such
in the French and European wind infrastructure projects traditionally
market and open it up to new exhibit low correlation to economic
technologies. The AXA Private cycles and generate stable and
Equity infrastructure team has the recurrent returns.
capacity to create synergies via its
existing portfolio assets, such as
Saur, Sanef, Tozzi Wind Farms and
Wind farm in Breteuil-Paillart (Picardie region).
AXA Private Equity has acquired 100% of Kallista AXA Private Equity and the industrial company, Tozzi
Energies Renouvelables and Kallista France, which is Group, have established a joint venture to invest in
held through Holding Energies Renouvelables (“HER”), the Italian renewable energy sector. The joint venture,
a holding company dedicated to renewable energy TRE & Partners S.p.a, acts as a holding company and
investments in France and with which the firm plans comprises investments in wind farms, hydroelectric
to make further investments. The assets represent one and solar projects in Italy. TRE & Partners consists of
of the most important wind farm platforms in France Tozzi Group assets – wind farms and hydroelectric
and comprise 15 wind farms with a total capacity of projects already in operation - as well as projects
163 MW, mainly situated 300 km from Paris. Synergies currently under development or construction with
arising from AXA Private Equity’s existing portfolio a total gross capacity above 400 MW. Tozzi Group
will help boost Kallista’s growth and reinforce its owns 55% of TRE & Partners, with AXA Private Equity
position in France. holding the remaining shareholding.
Newrest is a global catering company created in 1995 HSE 24 is Germany’s second TV home-shopping
in Toulouse. Today it is present in 32 countries. channel and number one in Austria and German-
In this transaction, AXA Private Equity acquired 22.5% speaking Switzerland. It offers 24-hour programming
of the shares of the company and the management produced at three studios in Ismaning near Munich.
increased its shareholding from 61.3% to 67.5%, other With 500 employees, mainly dedicated to customer
financial investors completing the shareholding order processing through call centers, the company
structure. offers customers a product catalogue of about 22,000
The company serves diversified markets such as different products in the areas of beauty, wellness,
Airlines (58% of total revenues), Retail and Business, jewelry, home and living, household goods, fashion,
Catering and Support Services. AXA Private Equity’s sports, house and garden as well as home electronics,
international network and resources will support half of which are new to the market. AXA Private
the Group’s growth and reinforce its diversification Equity’s involvement will provide the company with a
strategy. solid foundation for the future.
*Closing March 2010
Interview
with Olivier Sadran and
Jonathan Stent-Torriani
(co-CEOs)
Investment Date_ December 2009
Country_ France
Sales 2009_ €408m
Employees_ 12,200
NEWREST
Multi-sector catering
Why did Newrest look How would you define Newrest’s strategy is aimed at
for a new shareholder? your collaboration t a k i n g f u l l a d va n t a g e o f t h e
C re a te d i n 1 9 9 5 , N ew re s t i s with AXA Private Equity? numerous opportunities in the
a m a t u re co m p a ny t h a t wa s Newrest is a dynamic company booming food industry. We plan
about to enter a new phase of which is present in 32 countries to consolidate our international
i t s d eve l o p m e n t . D u r i n g t h e and has doubled revenues since reach and expand our services into
previous 15 years, the Group had 1995. We believe entrepreneurial untapped sectors. Having access
regularly evolved: after five years spirit and initiative are key to our to AXA Private Equity’s worldwide
of operations, Newrest joined the success. The management and network is a clear advantage for
Compass group in 2000 and then employees of Newrest hold the us. Our focus is to consolidate
regained its independence through majority of the company’s capital. our positions in Europe and in the
a management buyout in 2005. AXA Private Equity is our chosen Middle East and to improve our
In early 2009, it was clear that partner and we have regular penetration of the South American
some of its shareholders wished to interaction. The team efficiently market. We are one of the few
exit. At the same time, Newrest was challenges us and demonstrates global players in the industry. To
looking to meet new challenges a perspective and proactivity that ensure continuous growth, we
and needed additional means to are in line with the way we work. will focus on markets, such as oil
fuel its growth strategy. Under exploration and production fields,
the agreement, achieved with What is Newrest’s where we see good potential.
no leverage, AXA Private Equity growth strategy?
acquired 22.5% of the equity, the Over the years, the Group has
management and employees extended its range of food services
increased their stake from 61.3% to through a multi-sector catering
67.5%, 10% remained with existing model. Inflight catering generates
shareholders. The transaction was 58% of total revenues, Retail and
designed to allow shareholders to Business Solutions (catering
fully focus on creating operational concepts), along with Catering and
value. Support Services (management of
restaurants, cafeteria and reception
rooms) make up the rest.
School cafeteria - French Polynesia
Aviccia designs and installs turn-key solar panels Founded in 1999, Lusis is both a software and a
on large roofs for customers due to its combined consulting company. Lusis delivers mission critical
expertise in construction and photovoltaic facilities. systems to banks, finance transport and services
It is also developing a business producing renewable companies. With a workforce of 100 employees
energies based on rented roofs, which it equips and based in France and Luxembourg, the company has
operates. a healthy cash position and has experienced double-
digit growth since it was founded.
Reinvestments
Investment Date_ July 2009
Activity_ Domain name operator
Investment Date_ March 2009 Founded in 2000, eBuyClub acts as a social network
Activity_ Software producer of purchasers and offers various services to facilitate
on-line purchases and create savings.
Goto Software is an emailing software publisher.
The company runs three businesses: anti-spam
te c h n o l o g i e s ( Va d e Re t ro) , e - m a i l s o f t wa re
(Sarbacane) and games applications (bridge
software). GOTO Software is profitable and has
Investment Date_ June 2009
secured dynamic growth since 2004. AXA Private
Activity_ Project portfolio management software
Equity will provide resources and expertise to take
advantage of the booming market and help expand Founded in 1996, Planisware is a leading software
the company’s client base. company specialising in project and product
management software.
CHARLOIS
Stave-wood and barrel maker
Why did you open your company That is where AXA Private Equity The expertise and resources
to a financial partner like came in. It demonstrated a true provided by AXA Private Equity,
AXA Private Equity? understanding of our sector, which has been regularly dealing
Six generations of Charlois have and the quality of its network of w i t h s i m i l a r s i t u a t i o n s , wa s
run this company. As a family partners clinched it: one of its truly beneficial to us. Our group
business, we managed to grow at investors had previously been organization is now fully adapted
a decent pace, recently acquiring involved in a deal with Saury to meet new challenges and
two firms: Berthomieu in 2006 and and understood our needs and sustain accelerated growth. Our
Malviche in 2008. As we opened concerns. We benefited from its sector is likely to consolidate and
to new markets and diversified input on strategic guidance, during we are well positioned to reinforce
our client base, sustaining our and after the transaction. Now, our market shares through build-
growth implied a change of scale. the merged group stands out as ups. Charlois’s goal is to expand
We were looking for a financial the first completely integrated its presence internationally. AXA
boost, one that would help us high quality barrel maker, going Private Equity’s global reach will
secure new acquisitions. Teaming upstream from wood processing help us identify possible build-up
up with a financial partner like AXA to barrel making. Both the Charlois targets.
Private Equity, used to dealing with and Saury brands retain their
family-owned companies facing separate identities, production
similar issues as ours, was a clear materials and sales operations, 75%
advantage. of which are realized abroad.
How would you describe AXA Tell us more about your growth
Private Equity’s contribution plans?
during the merger with Saury? With the merger and the change
As a family-owned firm, it is of scale, Charlois had to evolve:
paramount for us to preserve our we re o rg a n i ze d o u r i n te r n a l
identity. But, at the same time, we processes, introduced new reporting
need to open ourselves to external procedures and rationalized our
expertise and knowledge. When corporate governance rules and
we discussed a possible merger mechanisms.
with Saury, it became obvious we
could not complete such a sizeable
acquisition without external help.
Barrels at the Berthomieu cooperage.
Less than 1% of the global wine production matures in French oak barrels in the most prestigious cellars of France and the whole world.
Mezzanine investment
Initial Investment Date_ December 2005
Activity_ Automative applier
Country_ Germany
Commitment_ €10m
Investment Date_ June 2009
Activity_ Commercial and strategic
analysis for the oil and gas industry Neumayer holds a leading position as an automotive
Country_ UK supplier in Germany and operates seven plants -
Commitment_ €19m one in the US, one in Italy, one in Brazil and four in
Germany. The company’s performance sharply
In June 2009, AXA Private Equity invested €19m in deteriorated in 2009 as a result of the worldwide
the mezzanine facility for the acquisition of Wood crisis and its impact on the automotive industry.
Mackenzie by Charterhouse. Wood Mackenzie is A consensual restructuring solution was reached in
a global leader specializing in the collection and June 2009 through which AXA Private Equity was able
dissemination of information for the energy industry, to achieve a satisfactory solution with a mezzanine
primarily focused on oil and gas. The company and senior debt haircut. AXA Private Equity invested
also conducts third party research and provides €3m in super senior debt, transferred part of its
consultancy services. mezzanine to senior debt, and will be entitled to some
equity.
2009 divestments
Venture Co-investment
PIRIOU
Shipyard
Why did you decide to team up How did AXA Private Equity Throughout this period, its team
with a private equity investor? help with Piriou’s corporate acted as allies, but also challenged
Af te r 4 0 ye a r s o f r u n n i n g a governance? us in a constructive way. The
successful 100% family-owned AXA Private Equity had a good firm’s solid network in Asia helped
business, the company was understanding of our rationale and expand our global presence and
facing two major challenges. our future needs. It helped stabilize enabled us to get closer to our
Some of our family shareholders issues around our ownership customers. The opening of our
wanted to exit and we needed to and came up with solutions Vietnamese shipyard in 2006
secure the company during and to consolidate our corporate provided us with access to one of
after this period of transition. governance structure. We set up a the busiest shipping areas in the
At the same time, the company Supervisory Board, implemented world. With AXA Private Equity’s
was undergoing rapid industrial better reporting rules and put support, Piriou moved from a
changes and it was necessary to together a Group organization family company mainly focused
find sustainable means to finance compatible with our growth plans. on building fishing boats into an
our international expansion. We A great deal was achieved in the international diversified group.
looked for a financial partner able four years AXA Private Equity Sales have increased from €65m
to provide strategic guidance and partnered with us. In 2009, the to € 1 5 0 m a n d we n ow h ave a
fuel our accelerating growth. In time was right for the management 930 strong workforce.
2006, we had already launched to resume control of the capital
the Mauritius subsidiary and had and for AXA Private Equity to exit
just opened another one in Nigeria. on good terms.
Those were large investments
and Piriou was not organized to How would you describe the
manage that industrial conversion collaboration with AXA Private
on its own. We chose AXA Private Equity?
Equity because of its moderately- AXA Private Equity held 40%
leveraged financial offering and o f t h e s h a re s a n d p o s i t i ve l y
its proposed solutions for our contributed to the development
governance issues. of the company during four years.
“ Franche Terre ” 90 meter fishing boat built by Piriou.
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CAD 131.6bn
as of December 31, 2009
In May 2009, AXA Private Equity became one of the first private equity signatories to
the Principles for Responsible Investment issued by the United Nations (“UN PRI”),
demonstrating its renewed commitment towards responsible investment.
AN ACTIVE ADVOCATE
The objective of the Principles for Responsible Investment is to ensure that investors
take account of Environmental, Social and Governance (“ESG”) issues in their investment
decisions and practices as shareholders. The code also proposes ways in which to
implement these principles. AXA Private Equity has been active in putting those actions
into practice and is keen to act as a leading proponent of ethical and responsible
investment in the private equity community and beyond.
We are committed
to responsible behavior,
not only for ethical reasons
but also because we believe
that this will have a positive
impact on the growth of
the companies in which
we are shareholders.
Dominique Senequier, CEO
How we apply the six UN Principles for Responsible Investment.
6 UN PRI PRINCIPLES OUR ACTIONS
•B
e active owners and • Companies of our last mid cap fund are subject to a
incorporate ESG issues into our yearly ESG evaluation, which is conducted with the help
ownership policies and practices of a specialized consultant.
• We promote an active policy consisting in sharing
capital gains with all employees when existing from
our portfolio companies.
•S
eek appropriate disclosure •O
ur fund of funds team has compiled a questionnaire
on ESG issues by the entities which will encourage the entities in which we invest
in which we invest (primary commitments) to disclose their ESG-related
actions.
•P
romote acceptance and • We were closely involved with the first
implementation of the conference in France on ESG matters in the
Principles within the private equity industry.
investment industry • As a member of its Steering Committee, we take
an active part in the Private Equity workplan
of the UN PRI.
•W
ork together to •W e have issued our own Corporate
enhance effectiveness in Responsibility Charter which sets out our
implementing the Principles commitment to investors, investments,
employees, society and the environment.
• An internal multi-disciplinary working group
is dedicated to the CSR policy, including ESG
criteria promotion and implementation.
•R
eport on activities and • This report, and the forthcoming corporate and social
progress towards implementing responsibility section of our website, are part of our
the Principles commitment to demonstrate the incorporation of
the Principles into our business.
Since its creation in 1996, AXA Private Equity has managed sustained, consistent growth
in assets under management, which stands at $25 billion in 2009. Over the years,
we have diversified our activities, which now range from direct investments to funds of
funds, infrastructure and mezzanine. AXA Private Equity has demonstrated top quartile
returns since inception in all its areas of expertise.
26 25
23
14
8
0.1 0.2 6
0.2 0.8 1.9 2.6
3.1 4.5
6
199 97
19 98
19 99
19 00
20 01
20 02
20 03
20 04
20 05
20 06
20 07
20 08
20 09
20
our story
230 employees
Vincent Gombault, Dominique Senequier, Stephan Illenberger, Dominique Gaillard, Christophe Florin (from left to right).
Since 1996, throughout the different generations of funds, investors have regularly
renewed their commitment to AXA Private Equity. The client base is diverse, including
private and public pension funds, family offices, high-net-worth individuals, insurance
companies, funds of funds and government agencies. More than 80% of AXA Private
Equity’s 165 investors are based outside France and more than 46% outside Europe.
6%
Funds of
54% funds
Europe
52%
7% Pension
Asia-Australia funds
Middle-East 9%
Government
agencies
14%
Insurance
companies
9%
39% Others 10%
Family Offices/
North America
High-Net-Worth Individuals
165 investors
90% re-up(1)
for our main funds
80% of investors
based outside France
International network of
Investor Relations Managers
14 people in the Investor Relations team clear and strict policies on personal trading
develop the product line offered to of securities, control and use of non-public
clients and are in charge of relations with information, gift policy and handling
investors. Nine regional correspondents employee complaints (whistle blowing).
are specifically responsible for providing
i n fo r m a t i o n re g a rd i n g t h e re g i o n s Diligent management of
where they operate: North America, investment vehicles
Continental Europe, Switzerland, United Among the 50 people in the Finance &
Kingdom, Asia and the Middle East. Administration Department, 30 financial
Every day, they are supported by the controllers are in charge of 210 investment
Client Servicing team for reporting vehicles and assess production, valuation
issues and by the Product Management and performance calculations, fund
te a m fo r d u e d i l i g e n ce p ro ce ss e s . launching analysis and integration of new
They are backed by a professional activities. Each controller is dedicated to
communications team in charge of one product line without overlaps and
organizing client events and sharing key all are organized into eight dedicated
information with the investors on a regular teams: LBO, co-investment, infrastructure,
basis. retail, secondary funds, primary funds,
mezzanine and mandates.
Dedicated risk management, The legal team consists of ten professionals
control and compliance teams who manage the structuring and follow-
F i ve p e o p l e a re f u l l y d e d i c ate d to up of the investment vehicles and advise
Internal Controls, Risk Management and investment teams on investments and
Compliance issues. AXA Private Equity’s divestments.
Compliance Standards and Policies include
PROMOTING CSR
ACTIONS AT PORTFOLIO LEVEL
Our responsible approach extends to the initial investment stage, we carry out
our portfolio companies. When we are environmental due diligence in portfolio
a majority shareholder, we share up companies with industrial operations
to 5% of capital gains realized with all and support initiatives aimed at reducing
employees when unwinding successful LBO the ecological impact of their activities.
transactions. This helps in aligning interests This year, we commissioned an external
of all stakeholders. Employees contribute consultant to provide independent ratings
to the creation of the value in a company. for each of the portfolio companies in our
Prior to each new investment we make, latest mid cap fund. We will repeat the
ESG criteria are assessed within our exercise on an annual basis.
investment memoranda, both for our direct
funds and primary funds of funds. Beyond
before investing
•a
ssessment
> •during investment > communication
external consultant
• to investors:
of ESG criteria consolidates newsletter
and action plan information and
in investment provides independent • t o employees:
memoranda ratings on AXA LBO presentation at
Fund IV companies seminar, internal
newsletter
• t o public: annual
report, website,
conferences,
associations
Diana Ingredients
Diana Ingredients specializes in diploma. A diverse workforce
producing and commercializing is important to the business.
natural ingredients for the food Women represent more than one
industries (pet food, aromas, third of the workforce and 51%
culinary ingredients and natural of the management. Moreover,
extracts). AXA Private Equity Diana Ingredients has partnered
invested in the company in 2007. with Atlas, a company which
Since then, Diana Ingredients has places people with disabilities in
reinforced its position and its employment.
international presence. It has 19 In 2009, the compensation system
production sites and markets its was overhauled and now includes
products in Europe, America, a profit sharing policy for all
Australia and Asia. The company employees.
employs 1,300 people and
generated €322m of revenues in Strict Health
2009. Its development strategy and Safety policies
and its business model include Health & Safety issues are closely
solid and concrete social monitored. Strict regulations and
responsibility commitments. policies have been implemented:
regular reporting procedures
Responsible human help prevent accidents and rapi-
resources management dly manage potential incidents.
Diana Ingredients has worked A Director for Operational Excellence
hard to create an attractive and is responsible for supporting health
efficient working environment for and safety best practices; he is
its employees. It has implemented a backed by a network of dedicated
training program for non-qualified correspondents in the Group’s
employees, enabling them to certify different entities.
their skills through a recognized
Maisons trecobat
AXA Private Equity invested in
Trecobat, the house builder, in
such as passive solar building
design, insulation and careful site
At the 2009
2007. Trecobat builds about 1,000 selection and placement. Innovative Houses
houses per year. The company
expanded its range of products, Trecobat is currently building Challenge, held
such as wooden houses, and 90 houses as part of the French in Copenhagen,
invested heavily in innovation. Housing Ministry project “A house
for 15 euros per day”. Partly Trecobat was
Building
positive energy houses
financed by local municipalities,
these homes will have a minimum
awarded the
Trecobat recently developed area of 85 m2 and will be equipped Golden Medal
the Positive Energy House, an with a heating pump.
innovative home that produces in the “ Positive
more energy from renewable
energy sources than it imports
Trecobat also built 12 HQE certified Energy House”
(High Quality Environmental
from external sources. The standard) individual houses in a test category and the
company was able to develop such
a product using a combination of
zone as part of the “ Brest Métro-
pole Océane ” municipal initiative.
Jury’s Special Price
microgeneration technology and for all categories.
low-energy building techniques,
Foreword review
What’s new in 2009? / Corporate review / Investment of ceo / 43
promoting excellence
committed to education
Sofia, a Fratelli
mentee, was Created in 2004 by young professionals
concerned with promoting equal
admitted at HEC opportunities, Frateli’s objective is to
€1.3 billion
At A X A P r i va te E q u i t y, we h ave a
strong track record in infrastructure.
As an asset class, it has an attractive managed and/or advised by AXA
r i s k /r e t u r n p r o f i l e . I n f ra s t r u c t u r e Private Equity’s Infrastructure team
investments are equity or quasi-equity
$41 trillion
products displaying low correlation
with other asset classes and business
cycles and offering inflation protection. global infrastructure needs by 2030
They are long-term (usually 20 years)
Source: AXA Private Equiy
investments associated with limited risk of
capital loss and strong visibility, generating
regular and sustained yield and returns. AXA Private Equity’s strengths lie in our
solid institutional and financial network,
Active since 2005, the infrastructure team our expert knowledge of regulated sectors,
of 12 professionals has committed more and our proven experience in working
than €860 million and manages and/or with the public and private sectors. We
advises €1.3 billion of assets in sectors have a well established, high performing
including water, waste, motorways and track record, market recognition and
energy. international presence. Our financial
capabilities and valuation, reporting and
The team primarily focuses on the legal structuring provide our partners with
European market and brownfield projects the tools they need to operate effectively
(i.e. acquisition of an operating company and continue to grow.
through privatization, buyout or private
placement), with an opportunistic stance
on greenfield projects (i.e. new infrastruc-
ture development).
300
200 200
153
60
60
40
pe
Eu
ro ina ia
Ch As 10
a ca
C hi n
m eri ssi
a
- st
No
n h A Ru Ea
r t ca
N o
dd
l e eri
M i A m rica
tin Af
La
Source: CIBC World Markets Research (2009): ‘Capitalizing on the Upcoming infrastructure Stimulus’
Estimated 2009
Company Investment Date Sector Country Revenues in €m
Active for the past 12 years in funds of funds, AXA Private Equity has developed
an in-depth knowledge of the market and offers worldwide investors a complete
range of products: primary, early secondary and secondary funds.
$1.2 billion
our deep knowledge of the market, on our
efficient and careful pricing evaluation
method and backed by our unique in-
distributed since 2007
house monitoring system, which covers
more than 500 funds. Out of the 90
opportunities studied, the funds of funds
team realized two major investments in
$20 billion
early secondary funds of funds in the last assessed in 2009 : Secondary funds
quarter of 2009. of funds market deal flow
The early secondary and secondary markets
should remain active in 2010 and 2011,
so AXA Private Equity will seek the best 500 funds
opportunities at reasonable entry levels. As in portfolio
investors regain trust in the economy, new
funds should be raised. We will therefore
look into opportunistic timing for primary 7,500
investments. With an investment capability
of $2.5 billion on the secondary and early underlying
secondary markets, AXA Private Equity is
well positioned to rapidly seize the best- companies
performing investment opportunities.
Performance of secondary funds among the best on the market
(as of December 31, 2009)
AXA Early Secondary Fund III 2005 n.a. 0.94 x 25.3% 1.3 x
Past performance is no guarantee of future performance. Valuations may move up or down over time. These figures do not cover the entirety of the funds
managed and/or advised by AXA Private Equity. Only the performances of certain major funds are presented here.
2,854
4 generations of secondary funds
(in million USD)
1,040
220 480
99
19
FI
- 01
20
AS I- 4
FI 00
AS -2 7
II 00
FI -2
AS V
FI
AS
Secondary funds
Amounts committed (in million USD)
and number of transactions completed as of December 31, 2009
800 10
730
9
700 9
8
600 7 8
7 7
500
474 501 7
400
5
5 5
300 4 6
298 307
200 5
100 84
Amounts 67 77 4
0 81 3
committed 120
3
99
19 00 001
20 2 02 2
20 03
20 04 5
20 00 0 1
2 06
20 07 Number of
20 08
0
0 transactions
20
09
20
Early Secondary funds
Amounts committed (in million EUR)
and number of transactions completed as of December 31, 2009
300
264 275 12
250 10
200 218 10
150 6
7 8
5
100 107
5
53 6
50
Amounts 87
committed 0 3
4
44
2
03
20 04 2
20 05
20 6
2 00 07
20 Number of
08 0 transactions
20 9
200
funds of funds
primary
68%
Buyout 8% 48%
Asia, Australia North America
1%
Distressed funds
7%
Others 24% 44%
Venture Europe
43
41
36
28 28 30
15 21 22
17
11
15
8
99
<1 19
98
99
19 00
20 01
20 02
20 03
20 04 1
20 05
20 6
00
2 07
20 08
20 09
20
Best-in-class An innovative
monitoring system archiving project
During the past 24 months, AXA Private Following the creation of the Electronic
Equity has developed its own monitoring Database and Monitoring tools by the
system that enables us to collect detailed fund of funds team, AXA Private Equity
information on funds in which we invest. launched an Archiving Solution, which
The team analyzes and monitors the allows the company to define which funds
majority of the underlying companies of of funds documents must be legally stored,
these funds on a regular basis. what their shelf life should be, and the
duration of legal conservation.
Meetings and calls with the funds’
managers are held on a quarterly basis, AXA Private Equity stands as the first
providing opportunities to exchange private equity player to implement
information about significant events and such an Archiving System, which is
value creation strategies, comparing our certified compliant with both regulatory
own assumptions with those developed requirements and archiving standards.
by the fund managers. Since this year,
our internally-developed database, which
consolidates the transaction and market The database
data collected over the past ten years,
can be accessed by our 33 investment today covers
500 underlying
professionals within our eight offices
worldwide.
AXA Private Equity’s direct funds team invests in companies of all sizes in a variety of
sectors across Europe. We have developed a diverse set of investment vehicles, including
small and mid cap, venture and co-investment. The direct funds team is composed
of 40 professionals based in Paris, Frankfurt, Milan, Vienna and Singapore.
BELGIUM
BULG
AUSTRIA
DE
NM
ARIA
FIN ANC
AR
LA
FR
GE
K
ND
RM
AN
E
HUN Y
GAR
Y
ITALY
LITHUANIA
S
NETHERLAND
W AY
NOR
D
LAN
PO IN CHINA
A
SP EN KOREA
ED
M
SW
DO
NG
CANADA
KI
UNITED STATES
ED
IT
UN
INDIA
Sector diversification
2%
Aerospace and Defence
7%
Construction and 43%
Building Materials Industrials
29%
Consumer Goods
and Services
19%
Technology,
Media
and Telecom
direct funds
mid cap portfolio
Estimated 2009
Company Investment Date Sector Country Revenues in €m
(1)
November 09 TV home-shopping channel Germany 379
June 07 Natural ingredients for pet food, human food, France 322
beverages & pharmaceuticals
January 07 Specialty chemicals Germany 294
(1)
Closing March 2010
5%
Construction and
Building Materials
17% 32%
Healthcare and Industrials
Life Sciences
28%
18% Business Services
Technology,
Media and Telecom
direct funds
small cap portfolio
Estimated 2009
Company Investment Date Sector Country Revenues in €m
December 09 Professional training France 168
December 09 Equipment for air and water quality measurement (1) France
(1)
Listed companies
December 06 Rich media and web TV content publisher and producer France
(1)
Listed companies
life sciences
Company Investment Date Sector Country
December 06 Development of oncology cell therapies France
(1)
Listed companies
direct funds
co-investment
Sector diversification
4%
Energy
& Utilities 39%
Technology,
6% Media & Telecom
Healthcare & Life Sciences
12%
Business Services
22%
17% Consumer Goods & Services
Industrials
Estimated 2009
Company Investment Date Sector Country Revenues in €m
Estimated 2009
Company Investment Date Sector Country Revenues in €m
2 billion KEOLIS
Passenger transport operator
people KEOLIS is a private passenger transport company, the sixth
use Keolis transport facilities
largest in Europe. The Group operates bus, metro and tram
every year
n e t wo r k s a n d ra i l syste m s , b a s e d o n l o n g - te r m co n t ra c t s
30,000 drivers
45,500 employees. AXA Private
Equity, together with the Caisse
full control of strategic companies
in which it has a minority stake or is
de dépôt et placement du Québec, in a joint venture.
provide advice on and contacts Expanding its international
for acquisitions abroad, as well as presence is a priority. Keolis
knowledge of regulated markets. plans to build upon its standing
in interurban coach transport in
AXA Private Equity helped Keolis France, but also in the UK and
broaden its understanding of the in German railways. In 2010, it
business by opening its network is actively looking to boost its
to the company and facilitating presence in North America through
access to sector experts, such as opportunistic acquisitions.
Michel Derbesse, the former CEO
of Bouygues Holding company,
today President of Keolis Group’s
Supervisory Board. Keolis signi-
ficantly reinforced its market
position in 2009 by securing major
contracts in Bordeaux, London,
and Melbourne.
AXA Private Equity is a dedicated shareholder,
providing us with the right incentives on management
processes and financial discipline. It brought us truly
valuable insights on our build-up strategy.
Michel Bleitrach, CEO, Keolis
a dynamic team
Mezzanine is a source of subordinated The mezzanine activity at AXA Private
financing, between equity and senior Equity benefits from a strong inter-
debt, which is used in leveraged buyouts national reach and synergies with other
b u t a l s o f o r f i n a n c i n g ex p a n s i o n teams within the firm. The funds have a
projects, acquisitions and shareholder ¤1.2 billion investment capacity to deploy.
reorganizations. The team consists of Through a cautious approach, three main
11 people based in Paris, New York, London priorities will guide investments in the year
and Milan. to come: opportunistically targeting high-
Our diversified portfolio of 51 companies performing buyout transactions, providing
worldwide provides the team with good resources to companies looking into
visibility on market trends and allows for acquisitions and acting as an alternative
benchmarks. Through close and proactive solution to banks, selectively participating
monitoring, we are in general able to in refinancings to extend and amend
anticipate major difficulties and secure our existing maturities on existing debt.
positions.
Sector diversification
2%
Aerospace and Defence
2%
Energy & Utilities
7%
Construction and Building 23%
Materials Consumer Goods
and Services
11%
Technology Media
and Telecom
23%
Healthcare &
Life Sciences
15%
Industrials
17%
Business services
mezzanine
portfolio
Estimated 2009
Company Investment Date Sector Country Revenues in €m
Estimated 2009
Company Investment Date Sector Country Revenues in €m
August 07 Retail chain for home and office storage solutions United States 382
April 06 Cleaning and rental of flat linen and working France 142
apparel
April 06 Claims collection services France 35
Graphic Design
RESEARCH STUDIOS PARIS
credits
p.4, 12, 35 ©Richard Cogne p.17 ©Denis Rillardon p.42 ©Diana Ingredients
p.13, 14 ©Kallista p.18 ©Cegos p.43 ©Trecobat
p.14 ©Enel Rete Gas p.18 ©CCC p.44 ©Vincent Girier Dufournier
p.14 ©Tre & Partners p.18, 21 ©Olivier Chatelain p.51 ©Fernand Burger
p.15 ©Elias Badras p.20 ©Christophe Deschanel p.71 ©Keolis
p.15 ©HSE 24 p.24 ©Piriou
p.16 ©Newrest p.25 ©M. Mochet (AFP)
glossary
www.axaprivateequity.com