The document summarizes the findings of the Second Census of the Brazilian Private Equity and Venture Capital Industry from 2009. It finds that the industry has $36.1 billion in committed capital, up from $28.9 billion in 2008. Over 500 portfolio companies were identified across various industries such as IT, construction, and energy. The census also examined investments, fundraising, exits, and the geographic distribution of companies.

1. Brazilian Private Equity and
Venture Capital Industry
Second Census_2009
Prof. Adalberto Brandão
COO of GVcepe
adalberto.brandao@fgv.br Nov/2011
Copyright @2011. Fundação Getúlio Vargas - GVcepe

2. The Second Census Project
The Second Census Project
Gather and interpret data to reflect the reality of the Brazilian PE&VC
industry and its impact on the economy.
80%
of industry
participants surveyed
180 144
PE&VC
Managing Surveyed
Organizations
Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 2

3. Industry Overview as of December 2009
• US$ 36.1 bn Committed Capital
• Main LPs: Pensions 22%, Parent Orgs.
Investors
18%, Endowments 10%, GP Orgs 9%,
Family Offices 9%
• 144 PE&VC Firms
General Partners
• 258 Investment Vehicles
• Est. 1,593 Professionals & Staff
• 502 portfolio cos., Dec 09
• 2005-2009 Period:
Portfolio Companies
• 414 new investments
• 103 total exits
• 39 IPOs
Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 3

4. Expansion of the Asset Class
Committed Capital allocated to Brazil (US$ Bn). Committed Capital as % of GDP
40 2.3% 2.5%
36
35 2%
2%
30
15% p.a
25
27 1.5%
20 1.2%
1% 2x
15 1%
10 13
2x 0.5%
5
6
0 0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
The evolution of committed capital is impressive, increasing more than 6 times since 2004
and 2 fold as percentage of GDP.
Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 4

5. Committed Capital
December 2009 (US$ MM)
Types Private Govt. Total % Committed Capital Dec. 2008 28,984
Traditional * 27.168 935 28.103 78%
Fundraising (Vehicles in US$) 3.093
Corporate Venture ** 350 - 350 1%
Fundraising (Vehicles in R$) 2.979
Infrastructure *** 3.955 - 3.955 11%
Reductions (Vehicles in US$) -1.531
Real Estate 2.734 - 2.734 8%
Reductions (Vehicles in R$) -732
Timber 970 - 970 3%
Exchange Rate Effect 3.318
Total 35.177 935 36.112 100% Committed Capital Dec. 09 36.112
* Investment vehicles with focus on manufacturing, trade, services, agriculture and traditional businesses.
** Subsidiaries of industrial corporations.
*** Investment vehicles dedicated exclusively to oil & gas, energy and self defined infrastructure funds.
NOTE: Reductions refer to discontinued operations, termination of funds, allocation to Brazil changes and reductions of committed capital
by investors.
Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry 5

7. Investment and Fundraising (US$ bn.)
Estimate of US$ 17.8 bn. of ”Dry Powder” ready to be invested as of December 2009
Notes: Fundraising based on sample of 258 investment vehicles by 144 PE&VC Managing Organisations.
Investment based on Sample of 394 and 95 Investments made by 144 and 45 PE&VC Managing Organisations in 2005-2008 and 2009 respectively.
Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 7

8. Investments by Sectors of Economic Activity (US$ MM)
2005-2008 (Includes New and Follow-on Investments)
Food and Beverages 24%
Various Industries* 14%
Civil Construction/Real Estate 13%
Retail 12%
Financial Services 11%
Energy and Oil 4%
Education 4%
Communication 4%
Agribusiness 3%
IT and Electronics 3%
Pharmaceutical/Medical/Aesthetics 3%
Entertainment/Tourism 2%
Extractive Industries 2%
Infrastructure - other 1% * Various Industries: E.g.:
Chemicals, Mechanic, Electric, Metallurgic, Packaging, Te
Sample 2005-2008: 394 investments by 144 PE&VC Orgs. xtiles.
Sample 2009: 95 investments by 45 PE&VC Orgs. ** Various Services: E.g.: Call Center, Consulting.
Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 8

9. Investments by Sectors of Economic Activity (US$ MM)
2009 (Includes New and Follow-on Investments)
Energy and Oil 54%
39%
10%
Financial Services 14%
9%
Entertainment/Tourism 11%
6%
Extractive Industries 8%
5%
Transportation and Logistics Services 7%
5% Including all investments
Education 6%
3%
Agribusiness 4%
Excluding one US$ 0.765bn
Infrastructure - other 2% investment in energy transmission
Various Services** 2%
Pharmaceutical/Medical/Aesthetics 1%
Food and Beverages 1%
Retail 1%
* Various Industries: E.g.:
Various Industries* 1%
Chemicals, Mechanic, Electric, Metallurgic, Packaging, Textile
IT and Electronics 1% s.
** Various Services: E.g.: Call Center, Consulting.
1% Sample 2005-2008: 394 investments by 144 PE/VC Orgs.
Civil Construction/Real Estate Sample 2009: 95 investments by 45 PE&VC Orgs.
Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 9

10. Number of Investments by Sectors of Economic Activity
2005-2008 vs. 2009 (Includes New and Follow-on Investments)
15%
IT and Electronics 18%
Energy and Oil 15%
11%
Pharmaceutical/Medical/Aesthetics 14%
8%
Agribusiness 11%
7%
Various Industries* 9%
6%
Various Services** 8%
Transportation and Logistics Services 6%
Biotechnology 5%
3% 2009
Retail 4%
4% 2005-2008
Financial Services
Entertainment/Tourism 4%
Civil Construction/Real Estate 4%
Education 3%
Extractive Industries 2%
* Various Industries: E.g.:
Food and Beverages 2% Chemicals, Mechanicals, Electric, Metallurgic, Packagin
g, Textiles.
Infrastructure - other 1% ** Various Services: E.g.: Call Center, Consulting.
1% Sample 2005-2008: 394 investments
Communication
Sample 2009: 95 investments
Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 10

11. Investments by Stage and Type 2009
Number of Investments Average Ticket
(Includes New and Follow-on Investments) (US$ MM)
3% 1% Private Equity Stage Average Ticket
5% Seed/Start-up 0.42
4% 41%
Venture Venture Capital 4.41
15% Capital Greenfield 46.64
Seed/Start-up Mezzanine 50.22
Distressed 64.37
Greenfield Private Equity 73.41
PIPE 91.77
31%
Mezanino Total 39.39
Sample: 95 investments Sample: 77 investments
Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 11

12. New Investment Vehicles Raised
50 47
45
40 37
35 31
30
25
19
20
15 11 13
9 10 8
10 7 7 7 7
5 1 3
0
95 and 1997 1999 2001 2003 2005 2007 2009
before
30 to 50 new investment vehicles raised p.a. since 2008, vigorous entry and expansion in the
industry.
Sample: 215 Investment Vehicles reported by 120 PE/VC Orgs.
Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 12

13. Portfolio Companies
By Sector of Economic Activity 2009
Sector No. of Companies % Cumulative %
IT and Electronics 103 20.5% 20.5%
Civil Construction/Real Estate 69 13.7% 34.3%
Energy and Oil 56 11.2% 45.4%
Various Industries 55 11.0% 56.4%
Communications 33 6.6% 62.9%
Retail 26 5.2% 68.1%
Agribusiness 25 5.0% 73.1%
Transportation and Logistics Services 20 4.0% 77.1%
Food and Beverages 19 3.8% 80.9%
Infrastructure - other 19 3.8% 84.7%
Financial Services 16 3.2% 87.8%
Pharmaceuticals, Medicals and Aesthetics 15 3.0% 90.8%
Biotechnology 14 2.8% 93.6%
Various Services 10 2.0% 95.6%
Education 8 1.6% 97.2%
Entertainment / Tourism 7 1.4% 98.6%
Extractive Industries 7 1.4% 100.0%
Total 502 100.0%
* Various Industries: E.g.: Chemicals, Mechanicals, Electric, Metallurgic, Packaging, Textiles. Sample of 502 companies in 2009.
** Various Services: E.g.: Call Center, Consulting.
Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 13

14. Frequency of Portfolio Companies
by Stage 2009
Overview PE - Growth 36.5%
VC 47.0%
VC - Early Stage 20.9%
PE Growth 36.5%
Start-up 13.1%
PE Later Stage 6.9%
Other 10.1% Seed 7.6%
PE - Later Stage 6.9%
PIPE 6.2%
VC - Later stage 5.0%
Mezzanine 2.1%
Greenfield 1.6%
Distressed 0.2%
Sample: 436 companies in 2009 .
Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 14

15. Closing the Gap: Potential for PE/VC
investment in innovative opportunities
PE/VC Portfolio Companies
Geographic Distribution Incubators and Tech Parks
Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 15

16. Exits & Divestitures
70 Divestitures 2005 - 2009 (Including Total & Partial)
61
60 2
48 15
50
42 4
3 37
40 3
4
24 12 4
6 Write-off
30 27
8
1
10 Buyback
5 12
20 11
Trade Sale
4
10 6 Secondary
17 19 16 10 Sale
8 IPO
4
0 1
2005 2006 2007 2008 2009
NOTE: the sample contains 151 divestitures (107 total & 44 partial) from 2005 to 2008 & 37 divestitures (30 total & 7 partial) in 2009 with information about the
exit mechanism.
Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 16

17. Contact
Copyright @2011. Fundação Getúlio Vargas - GVcepe Source:2nd Census of the Brazilian PE&VC Industry – ABDI/FGV 17

18. Thanks for your attention
Copyright @2011. Fundação Getúlio Vargas - GVcepe 18