Publications
& Policy

The Invest Europe Annual Report provides an overview of Invest Europe's activities during the 12 months to June 2018 in fields including public affairs, data & research, events and communications. The report includes a financial statement.

This consultation response explains that problems may arise as under the new standard, unrealised gains/losses would be immediately reflected in the Profit and Loss Statement (P&L). We propose flexibility to allow recycling for investors, i.e. to recognize unrealized gains and losses in Other Comprehensive Income and then recycle to the P&L, or if it wished to recognize unrealized gains and losses in the P&L straight away, then this would avoid unrealised gains/losses being immediately reflected in the P&L while not enabling the investor to use recycling as an earnings management tool.

McKinsey & Company: For years, bond financing was largely favored only by the largest US corporations. But over the past ten years, companies around the world have joined in, giving corporate bond markets outside of the United States new life. This is a long-awaited development that indicates a welcome diversification of global corporate funding and the potential for more financial stability. But the bull market in bonds has also brought some risks. The fact that corporate debt has grown nearly as much as government debt over the past decade is cause for closer scrutiny of the sustainability of the market, if not concern. Our analysis shows that some borrowers with little capacity for a downturn in their finances have accessed the market; we may see a rise in defaults in the coming years as a result. The question remains whether the corporate bond market will continue to grow deeper and broader as interest rates rise and investors bear the cost of more corporate defaults. There is significant scope for further growth in corporate bond markets outside the United States, but our analysis clearly points to bumps in the road ahead.

This position paper raises the concerns of private equity firms holding MiFID license regarding the new prudential regime proposed by the European Commission. It suggests that the new regime will lead to a significant increase in capital requirements for these investment firms, which is not proportionate to the risk they pose.

In this position paper, we welcome the European Commission's targeted amendments to AIFMD, ELTIF and EuVECA to reduce regulatory barriers to the cross-border distribution of investment funds in the EU but stress that the proposed Directive and Regulation are insufficiently tailored to the private equity and venture capital asset class, in particular regarding the definition of pre-marketing.

The most comprehensive source of European private equity and venture capital fundraising, investment and divestment data. With statistics on more than 1,250 firms, the 2017 report covers 89% of the €640bn of private equity capital under management in Europe.

L’étude France Invest/EY sur la performance des acteurs français du capital-investissement est la référence sur le marché français depuis 1994. Elle est réalisée à partir des informations déclarées par les membres de France Invest via une plateforme de collecte de données européenne (European Data Cooperative), et revues par EY, ce qui permet d’assurer l’exactitude et la robustesse des statistiques publiées.

Mercator Institute for China Studies: In this report, we first explain what reciprocity means and what role it has played in creating today’s institutional environment for global trade and investment. Then we describe why the emergence of China as a global investor is challenging those principles. Finally, we discuss the negative impacts for Europe from this reciprocity gap and illustrate the urgent need to address the existing gap. We conclude by offering recommendations to European policymakers.

A comprehensive and up-to-date set of standards and guidelines for the private equity industry.

The H1 2017 activity data report provides a review of semi-annual trends of European private equity and venture capital activity (Fundraising, investment and divestment) since 2007. Please note that this data is preliminary and subject to change.

This letter stresses the importance for the private equity industry of transitional arrangements between the United Kingdom and the European Union after March 2019. It calls for a transition period that would guarantee the continuity of investment into the EU economy, avoid any cliff edge and allow the industry to adapt properly to new long-term arrangements.

A summary document of Invest Europe 2017 highlights and achievements across public affairs, professional standards, communications, data & research and events.

When investors commit capital to a private equity fund, the money is not immediately invested but is called by the fund manager throughout an investment period of up to five years. This business model allows private equity fund managers to invest the committed capital at their own dis-cretion, which gives them the flexibility to time the markets. Based on 5,366 private equity deals, which are benchmarked against around 11,000 transaction market multiples and 170,000 trading market multiples, we find evidence that on average private equity funds are able to add value by timing the markets. Throughout the holding period, private equity funds achieve on average a 0.5 EBITDA market multiple expansion. Market timing ability is not captured by performance measures such as the PME, yet it is a potential source of returns for investors.

This consultation response has been written from a pure AIFMD perspective, outlining in great detail the issues private equity fund managers are facing with the Directive’s requirements in the field of registration, notification and supervisory reporting. Special attention is paid to the divergent application and implementation of the Annex IV requirements.

This Europe Economics report commissioned by Invest Europe shows the impact that the Alternative Investment Fund Managers Directive (AIFMD) has had on private equity fund managers, their investors and the real economy since its entry into force in July 2013.