Sociedade de Capital de Risco, SA
Sociedade de Capital de Risco, SA
January 25th, 2010
Sociedade de Capital de Risco, SA
Market Position
Caixa Capital is the Private Equity/Venture Capital industry leader and part of Portugal’s largest
financial group.
• State owned
• Portugal’s largest financial group (Banking & Insurance)
• Long-term debt risk rating of AA- by Fitch, Aa2 by Moody’s and A+ by S&P
• Investment banking arm
• Ranked “Best Investment Bank in Portugal” by Euromoney (2007 and 2008)
Sociedade de Capital de Risco, SA
• The CGD Group’s Private Equity/Venture Capital (PE/VC) arm
• Industry leader with Assets under Management of € 515 million and 36 portfolio
companies
Source: 2007 CMVM (Portuguese Securities and Exchange Commission) Report (latest available as of September 2009)
Sociedade de Capital de Risco, SA
Corporate Strategy
Providing necessary capital and financing to support strategic initiatives aimed at creating
competitive advantages in participated companies.
• Sponsor entrepreneurship, M&A, growth and internationalisation
Corporate
• Expanding offering and presence in complementary business segments
Strategy
• Target of € 1 billion Assets under Management in the medium term
Core Business
Caixa
Desenvolvimento
• Generalist SPV
• Net assets:
€ 29 million
CGD Group Fund
• Generalist Fund
• Net assets:
€ 340 million
Private Equity
2009
Future
Renewable
Energies Fund
• Renewable
Energies Fund
Caixa Empreender+
VC Fund
• Innovation and
Entrepreneurship
Caixa Mezzanine
PE Fund
• SMEs
• Net assets:
€53 million
• Net assets:
€ 25 million
• Net assets:
€ 100 million
Venture Capital
Promotion of
competitive
advantages
Fund of PE/VC
Funds
Golden Assets
Mezzanine
Clean Tech
…
New Initiatives
Sociedade de Capital de Risco, SA
Governance Structure
Governance structure consists of 3 levels with clearly defined responsibilities for each functional
area.
Board of Directors
Executive Board
• Alfredo Antas Teles (CEO)
• José Manuel Carrilho
• José Furtado
• Alcides Aguiar (Chairman)
• Vasco d’Orey
• + Members of the Executive Board
Deal Teams
Private Equity
• Pedro Rangel
•
•
•
•
Faria de Oliveira (CGD Chairman)
Francisco Bandeira (CGD V. Pres.)
Jorge Tomé (CGD Board Member)
+ Members of the Board of Directors
Portfolio Team
Venture Capital
• Walter Palma
Investment Committee
Mezzanine
• Carlos Cruz
Support Services
• Hugo Silva
Sociedade de Capital de Risco, SA
Fund Portfolio
CGD Group Fund
Caixa
Empreender+ VC
Fund
Caixa Mezzanine
PE Fund
Renewable energy
producers
Early stage
investments
• Medium-sized
enterprizes
• Growth
1995
2005
March 2009
June 2009
Capital
340 M€
50M€
25M€
100 M€
Avg. Investment
Amount
> 10M€
> 5M€
50k€ - 1M€
3M€ - 5M€
Avg. Holding
Period
4 - 6 years
4- 8 years
3 – 5 years
5 – 7 years
Equity
Component
Up to 25%
Up to 25%
Up to 30%
Up to 20%
CGD (100%)
CaixaBI (91%)
FEI CG En.Renov. (9%)
CGD (100%)
CGD (100%)
Focus
Launch Date
Fund
Participants
• All sectors
• Expansion and
business
development
Renewable Energy
Fund
Sociedade de Capital de Risco, SA
Sociedade de Capital de Risco, SA
Fund Overview
The Caixa Empreender+ VC Fund is dedicated towards financing emerging and recently created
businesses (early stage investments), with a particular emphasis on knowledge-based and applied
technology companies.
Capital
€ 25 million
Term
10 years
Fund
Participants
Currently 100% held by Caixa Geral Depósitos, but with the possibility of being opened
up to other investors
Investment Selection Criteria:
Investment Amount : 20k€ - 1M€
Investment
Policy
Holding Period : 3-5 years
Equity Component : up to 30%
• Portuguese origin
• Global reach
• Satisfaction of a clear market need in an original
and innovative manner
• Motivated and competent management team
Sociedade de Capital de Risco, SA
Activities
Origination
• Caixa Empreender+
Challenge
• Business Angel Sidecar
• Corporate Venturing
Partnering
• Specialized Funds
Investment
• Individual
investments
• Investment
syndicates
• Investments in
specialized funds
Exit
Monitoring
“Coaching & Control”:
• Specialized Funds
• Management
reporting systems
• Trade Sale / M&A
• IPO
• Interim executives /
Controller
• MBO
• Partnerships w/ BA’s
• Liquidation
Sociedade de Capital de Risco, SA
Deal Flow
Early Stage Investment Phases
Seed
Start-up
Caixa Empreender+ Challenge
Origination
Sources
Business Angels Side-Car
Corporate Venturing Partners
Specialized Funds
Follow-on
Sociedade de Capital de Risco, SA
Strategic Partnerships
• Public Agencies (ex. INPI, AdI, IAPMEI)
• Technology Tranfer Accelerators (ex. Cotec)
• Business Angel Networks (FNABA, APBA)
• Universities
• Other VC Operators
• Corporate Venturing Units (ex. Critical Software)
Sociedade de Capital de Risco, SA
The Caixa Empreender+ Challenge
Objectives
• Promote the regular flow of investment opportunities in an efficient and
effective manner;
• Stimulate the entrepreneurial spirit of young entrepreneurs and qualified
managers, through the provision of start-up and development capital at
reasonable terms;
• Strengthen the CGD Group’s institutional presence within innovation and
entrepreneurship community.
Sociedade de Capital de Risco, SA
The Caixa Empreender+ Challenge
Opportunity Screening and Investment Process
Proposal Gathering
Opportunity Screening
GO
Gathering of project
summary proposals
from CE+ mini-site
Due Diligence and Deal Structuring
Presentation
of detailed
business plan
Due diligence
MOU
Submission
of investment
proposal
Pre-screening by
Caixa Capital’s
analyst team
NO
GO
Reply letter to
promotor(s)
communicating
CxCap’s
decision
10 days
+ 20 days
+ 90 – 120 days
INVESTMENT
DECISION
Sociedade de Capital de Risco, SA
Current Status
Origin
40
35
34
31
# of projects
30
25
22
20
13
15
10
5
0
CE+ Challenge
Spontaneous
Referenced
Total =100 projects (2009)
13
Co-Investment
Sociedade de Capital de Risco, SA
Current Status
Status
70
69
# of projects
60
50
40
30
20
14
10
10
5
2
To be realized
Realized
0
Not accepted
Opportunities
Under analysis
Sociedade de Capital de Risco, SA
Current Status
Sector Distribution of Projects under Analysis
Agricultural/Food
5%
Financial
3%
IT/Communications
32%
Biotech/Health
11%
Cleantech
15%
Retail
9%
Services
25%
15
Manufacturing
3%
Sociedade de Capital de Risco, SA
Current Status
By Deal Type
60
55
# of projects
50
40
30
20
11
10
11
11
10
2
0
Seed
Start-up
Follow-on
16
Expansion
Reestructuring
Funds