Private Equityspotlight

Spotlight Private Equity www.preqin.com May 2010 / Volume 6 - Issue 5

Welcome to the latest edition of Private Equity Spotlight, the monthly newsletter from Preqin providing insights into private equity performance, investors and fundraising. Private Equity Spotlight combines information from our online products Performance Analyst, Investor Intelligence, Fund Manager Profi les, Funds in Market, Secondary Market Monitor and Deals Analyst. Secondaries in 2010

Feature Spotlight Fundraising Spotlight page 3 page 13

Secondaries in 2010 This month’s Fundraising Spotlight looks at buyout, venture and cleantech fundraising. There was expectation across the industry that there would be heightened activity on the secondary market in 2009. This month’s Feature Article examines why this never materialized Secondaries Spotlight page 16 and looks at what 2010 has in store for the secondary market. We look at statistics from Preqin’s industry-leading product, Secondary Market Monitor, and uncover the latest secondaries news. Performance Spotlight page 6

Secondaries Funds of Funds Investor Spotlight page 17 This month’s Performance Spotlight looks at private equity secondaries funds. This month’s Investor Spotlight examines investors’ attitudes towards the secondary market.

Fund Manager Spotlight page 8 Conferences Spotlight page 19 This month’s Fund Manager Spotlight reveals which US states This month’s Conferences Spotlight includes details of upcoming have the most private equity fi rms and capital. events in the private equity world.

Deals Spotlight Investor News page 10 page 21 This month’s Deals Spotlight looks at the latest buyout deals and Preqin’s latest product - Deals Analyst. All the latest news on private equity investors including

• Abu Dhabi Investment Authority What would you like to see in Private Equity Spotlight? Email us at: [email protected]. • Franklin Park Venture Fund

London: Scotia House, 33 Finsbury Square, London, EC2A 1BB You can now download all the data in +44 (0)20 7065 5100 this month’s Spotlight in Excel.

New York: 230 Park Avenue, 10th Floor, New York, NY 10169 +1 212 808 3008 OUT NOW www.preqin.com The 2010 Preqin Follow us on: www.twitter.com/preqin Private Equity Secondaries Review

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Private Equity Secondaries: The Market in 2010

Following the onset of the fi nancial crisis, late 2008 and early 2009 bringing them into alignment with other asset classes, thus saw a number of institutional investment portfolios enter a state alleviating the denominator effects for many investors. With of disharmony and distress. With public markets falling, many continued uncertainty surrounding the market, neither buyers nor found themselves over-allocated to private equity as a result of sellers were able to fi nd a centre ground and the market stalled. the denominator effect. The expectation felt across the industry was that this would lead to a period of heightened activity on the 2010: A Potentially Record Year? secondary market, with distressed institutions such as endowment Although the economic outlook has improved since 2009, there funds being forced to offl oad private equity interests where they are still a large number of investors seeking to sell fund interests would no longer be able to meet call-up obligations. However, on the secondaries market. As Fig. 1 shows, our latest research as 2009 unfolded, these expectations failed to materialize in the indicates that 2% of institutional investors are looking to defi nitely market. sell, with a further 11% possibly selling in the next 24 months. This is an increase from last year, due to the lack of activity on the The Bid to NAV Chasm secondary market causing a backlog of potential sellers. As Preqin research conducted at the time revealed, the lack of deal-fl ow was certainly not due to a shortfall in the number of Investors are seeking to exit investments for a number of reasons. potential buyers or sellers in the market. A survey of investors Although the denominator effect is now far less pronounced, showed that 1% were highly likely to be selling fund interests, with capital calls far exceeded distributions from existing investments a further 9% considering a sale – not especially high numbers, but in 2009, and many investors are overcommitted to private equity within the context of a $2.5tn industry, still indicative of a signifi cant as a result – especially those with aggressive overcommitment level of activity. The market was not short on demand either, with strategies. 63% of sellers state liquidity as a driving factor in wishing fundraising by secondary specialists at historic highs, and with a to sell. Other important factors include portfolio rebalancing (40%) number of investors previously focused on primary transactions and exiting poorly performing funds (18%) (Fig. 2). now considering secondaries activities. The number of potential buyers in the market is also high. While The major factor restricting the fl ow of activity was the wide gap the rest of the private equity market had a torrid time in 2009 in between bid prices and fund NAVs. As public equities improved terms of new fundraising, secondaries funds actually had a record dramatically throughout 2009, institutional investors found year, with 19 vehicles reaching a fi nal close with $23bn raised themselves at a reduced level of distress, and consequently many in total. Goldman Sachs closed a $5.5bn fund in April 2009, were less inclined to sell off their private equity investments at which is the biggest dedicated secondaries fund closed to date. such a discount. Private equity fund valuations (running on a Normal institutional investors are also displaying a preference delay to public market investments) saw downward adjustments for secondary transactions, with 6% highly likely to buy, and a

Fig. 1: Fig. 2:

Likelihood of Institutional Investors Selling Fund Interests on Motivations for Selling Fund Interests on the Secondary the Secondary Market over the Next 24 Months Market 70% 63% 60% 50% 40% 40% 30% 20% 18% 10% 8% 0% Liquidity Portfolio Exit Poor Reduction in Rebalancing Performing Administrative Funds Burden Source: Preqin Source: Preqin

further 24% of those interviewed indicating an active interest in the market. Fig. 3:

With an increase in the number of buyers and sellers, activity in Listed Private Equity Discount/Premium by Type 2010 has the potential to exceed that of 2009. However, activity in the market will again be dictated by the ability of buyers and 0 -10 Buyout sellers to reach a consensus on fair pricing. Median -20 -30 The Bid Ask Ratio is Closing -40 Venture Median Fig. 3 shows the discount / premium to fund NAV for listed private -50 equity vehicle pricing. This acts as an excellent proxy for the -60 Fund of level of bids forward by buyers for unlisted vehicles, and is well -70 Funds correlated to the bids being seen on Preqin’s Secondary Market -80 Median Monitor Online marketplace. The graph shows a signifi cant rise -90 in the discount to NAV following the onset of the fi nancial crisis, Apr-2008 Apr-2009 Oct-2008 Oct-2009 Jun-2008 Jun-2009 Feb-2008 Feb-2009 Feb-2010 Dec-2007 Dec-2008 Dec-2009 with an especially big discount increase in the early part of 2009. Aug-2008 Aug-2009 As discussed, this discount proved too great for many sellers, and Source: Preqin prevented the number of transactions from increasing to expected levels. With secondary transactions requiring plenty of negotiation and time, it will still be some time before the market truly explodes into Since mid-2009, prices have been steadily improving, and the action, but we are expecting the latter half of 2010 and especially market is now sitting at just below a 20% discount to NAV. These 2011 to exhibit record levels of activity for the secondaries industry. levels will prove far more palatable for potential sellers, and as the gap continues to close, the number of sellers that will be willing to exit their investments will rise accordingly. Tim Friedman As a result, sellers are currently enthusiastic about the market, with buyers also optimistic towards secondaries. It appears that This article features information take from a viable equilibrium in terms of supply and demand and pricing is The 2010 Preqin Private Equity Secondaries Review. close to being achieved. For more information about this publication, to view sample pages or to order a copy, please visit: Timescale for the Secondaries Boom This potential is already translating into action - Preqin’s Secondary www.preqin.com/secondariesreview Market Monitor has seen a fl urry of activity in recent months, with LPs putting a number of signifi cant portfolios forward for valuation.

“This is THE CEE private equity industry event of the Year Business Information In A Global Context and a permanent ﬁ xture in the PE calendar” Witold Radwanski, Krokus PE 15th Forum on Private CEE Equity Cutting Deals in the Post-Lehman Era 10–11 June, 2010 | Hotel Ambassador – Zlata Husa, Prague, Czech Republic

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This year’s Review is the most comprehensive guide to the sector ever produced, featuring 350 pages of detailed information:

• Covers all private equity fund types, including private equity real estate • Detailed analysis examining the history and development of the industry, historic NAV vs. trading price premiums and discounts, performance of secondaries funds, fund of funds activity in secondaries, institutional investor buyers and sellers, intermediaries, placement agents and more. • Proﬁ les for 74 specialist secondary fund of funds managers, 106 fund of funds managers with secondaries allocations, 51 institutional investor buyers and 26 sellers, 54 intermediary ﬁ rms and placement agents, plus details for over 600 investors in secondaries funds. Order by Friday 14th May and receive • Results of surveys conducted with GPs, LPs and fund of funds managers. a complimentary copy of the 2010 • Listings of 77 secondaries funds closed historically since 2005, 34 funds currently in Preqin Global Private Equity Report the market, individual net to LP fund performance for 300 funds including secondaries vehicles and funds of funds with a secondaries allocation. www.preqin.com/secondariesreview ------------2010 Preqin Private Equity Secondaries Review Order Form - Please complete and return via fax, email or post I would like to purchase the 2010 Secondaries Review and receive a complimentary copy of the 2010 PE Report £795 + £10 Shipping $1,345 + $40 Shipping €895 + €25 Shipping

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Performance Spotlight: Secondaries Fund of Funds

Preqin has recently introduced a new performance benchmark in their life cycle and are therefore unable to produce fully for secondaries funds, aiming to bring increased transparency meaningful IRRs. to the private equity market. With about 200 funds raised historically, secondaries is a relatively small but growing As the ﬁ nancial markets recover, and secondary market pricing sector within the private equity industry. Holding performance improves, there should be a notable increase in activity across data for 120 secondaries funds, accounting for 79% of the the secondary market. Many secondaries funds are currently aggregate capital raised by such funds, we have been able to sitting on a large amount of dry powder and will be looking to calculate comprehensive benchmarks for this sector. deploy such capital when the right opportunities arise.

As shown in Fig. 1, secondaries funds of vintages 2000-2003 Bronwyn Williams have produced the highest returns with multiples in excess of 1.50X. Funds of vintage 2006 and 2007 have fared the worst showing negative median returns at this point. Such funds will have completed secondaries transactions at the height of the market, when stakes in private equity funds were Preqin’s Performance Benchmark module is exchanged at a premium to net asset value but these funds available free to industry professionals and are still relatively recent so have plenty of time to push back now includes benchmarks for secondaries into positive territory. Funds of the most recent 2008 and 2009 funds. To ﬁ nd out more about this service, orr vintages have only called 22% and 8% respectively, reﬂ ecting to sign up, please visit: the relatively modest levels of transactions that have taken place over the last couple of years. www.preqin.com/benchmarks

Fig. 2 shows the median IRRs and the top and bottom quartile Preqin currently holds transparent net-to-LP performance data for over 120 private equity IRR boundaries for secondaries funds of vintages 1998- secondaries funds. In terms of aggregate 2006. IRRs have generally increased for each vintage year value, this represents around 79% of all from 1998 to 2003, with vintage 2003 secondaries funds capital raised by such funds. requiring an IRR of at least 34% to be ranked top quartile. The median IRR for each vintage year since has decreased. For For more information on Performance the vintages shown, the bottom quartile IRR boundary only Analyst, or to register for a demo, please visit: falls into negative territory for funds of vintage 2005 and 2006. Funds of vintage 2006 have both their bottom and top quartile www.preqin.com/pa boundaries in the red. These funds are still relatively early

Fig. 1: Fig. 2:

Median Called-Up, Distributed and Remaining Value Ratios of Median Net IRRs and Quartile Boundaries of Secondaries Secondaries Funds Funds by Vintage Year 180 40 35 Top 160 Remaining Quartile 140 Value to 30 IRR Boundary 120 Paid-In (%) 25

100 20

% Distributed 80 Median to Paid-In 15 IRR 60 (%) 10 40 5 20 Called-Up Net IRR (%) since Inception 0 to 0 Bottom Committed 1998 1999 2000 2001 2002 2003 2004 2005 2006 Quartile -5 IRR Capital (%) Boundary -10 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Vintage Vintage Source: Preqin -15 Source: Preqin

© 2010 Preqin Ltd. / www.preqin.com You can now download all the data in this month’s Spotlight in Excel. As well as Ewan McGregor the event is supported by Eddie I]]ard as a patron. Eddie ran 43 marathons in 51 days in 2009 and is a real inspiration.

NEVER RUN A MARATHON? All are welcome and all will be able to particpate regardless of ability or To celebrate the 2,500th anniversary of experience. Pheidippides’ run from Marathon to Athens, Former Olympic athlete and European 250 members of the private equity and champion %ruce Tulloh will be helping nonrunners to prepare. :e also have infrastructure communities are coming together an allocation of 50 places in the official to participate in the original marathon, aiming walking marathon for non-runners. to raise €2,500,000 for children’s charities ITINERAR< FOR ATHEN6 including UNICEF, Impetus Trust and the Private :e will be staying at two of the best Equity Foundation. Join them at the starting line hotels in Athens, the Grande %retagne Hotel and the NJV Athens Hotel. There on 31 October 2010. will be drinks on arrival on Friday 29 October and a lunch on 6aturday with Ewan McGregor says “what challenge to private the marathon registration and a short equity and infrastructure professionals in 2010 talk on the history of the marathon and Pheidippides. The marathon takes could be more fulfilling?” To see his video place on 6unday 31 October and in the message and register your interest visit the evening there will be a Gala 'inner to celebrate the achievement of everyone website at www.marathonofmarathons.org or taking part. call +44 (0) 20 7439 7191.

Mark O’Hare will be there carrying the flag for Preqin /ending their support from the private equity and infrastructure communities as patrons are: George Anson HarbourVest Partners /eo de %ever Alberta Investment Management 'avid %lit]er %lackstone Group Jeremy Coller Coller Capital 6ir 'avid Cooksey chairman of UKFI and former chairman of the EVCA and the %VCA Thierry 'pau Meridiam Infrastructure Javier Echarri EVCA Todd Fisher Kohlberg Kravis Roberts Peter Kulloi Richard /aing Commonwealth 'evelopment Corporation (C'C Group) Javier /oi]aga Mercapital 'wight Poler %ain Capital Jonathan Russell 3i Nikos 6tathopoulos %C Partners Oliver 6tocken chairman of the MCC Maarten Vervoort AlpInvest Urs :ietlisbach Partners Group 'avid :ilton the International Finance Corporation and :orld %ank Pension Fund 8 ◄ Fund Manager Spotlight May 2010

Fund Manager Spotlight: Prominent US States within the Private Equity Universe

There are over 2,600 private equity fi rms headquartered in the US and Fig. 1: over two-thirds of these are located within six states. New York, California, Massachusetts, Texas, Illinois and Number and Aggregate Capital Raised by US-Based Private Equity Firms by State Connecticut are the biggest states in 1000 terms of number of private equity fi rms 900 861 and the amount of capital raised by such 800 fi rms over the last 10 years (Fig. 1). 700 631 Firms primarily based in these six states 577 Aggregate Capital have raised over $1.4tn in aggregate 600 535 Raised over Last 10 Years ($bn) capital over the last decade, over 85% 500 400 343 of the total funds raised by primarily 219 US-based private equity fi rms during 300 233 213 Number of Private 200 163 156 that period. With more than 570 fi rms 104 113 Equity Firms headquartered in the state, California is 100 74 63 home to the largest number of private 0 equity fi rms in the US and these fi rms have raised the second-largest amount Texas of capital. Illinois California New York Rest of US Connecticut

New York is the second-most populated Massachusetts state in terms of private equity fi rms Source: Preqin and its 535 fi rms have raised the largest amount of capital over the last in either New York or California account for 59% of this, or 10 years. The $630bn raised by private equity fi rms in New $974bn. The state of Massachusetts is home to 213 private York is equivalent to 38% of the aggregate capital raised by all primarily US-based private equity fi rms in the last decade (Fig. 2). Primarily US-based fi rms are responsible for raising

Built on the success of a series of highly acclaimed 13 – 15 June, 2010 approximately $1.7tn over the past 10 years and ﬁ rms based marcus evans investment events, the Emerging Le Meridien Beach Plaza emi summit Market Investments Summit 2010 presents a perfect Monte-Carlo, Monaco emerging market investments opportunity to explore investment challenges. [email protected] www.emisummit.com/Preqin Fig. 2:

Breakdown of Aggregate Capital Raised by US-based Private Equity Firms by State I really need a one-to-one meeting to discuss business challenges

John Simmons – Chief Investment Officer (Would benefit from attending this marcus evans’ summit)

The intelligence behind the world's leading business events www.marcusevans.com Source: Preqin

Fig. 3:

The Largest Private Equity Firms Primarily Based in the US Firm Name Headquarters by State Total Funds Raised over Last 10 Years ($bn) Goldman Sachs Private Equity Group New York 91.9 Carlyle Group Washington DC 51.0 TPG Texas 49.9 Kohlberg Kravis Roberts New York 46.7 Blackstone Group New York 46.0

Oaktree Capital Management California 44.1 Bain Capital Massachusetts 38.2 Apollo Management New York 34.2 Siobhan Brewster Warburg Pincus New York 30.8 HarbourVest Partners Massachusetts 26.3 Source: Preqin equity fi rms. Texas, Illinois and Connecticut are home to 163, representing about 49% of all the fi rms based in the state. 156 and 113 private equity fi rms respectively and together Venture-focused fund managers are the most populous in the have raised funds totalling $241bn over the last decade. six biggest states, and they outnumber buyout fi rms by almost 2:1 over the US as a whole. There are 503 buyout-focused fi rms The Largest Private Equity Firms in the US located within the US, with the largest majority concentrated in New York-based Goldman Sachs Private Equity Group is the the state of New York where there are 146 fi rms, representing largest private equity fi rm in the world, having raised over 29% of the total number of US-based buyout fi rms. Together, $90bn in the last 10 years. Carlyle Group, headquartered the states of California, Illinois, Massachusetts, Connecticut in Washington DC, has raised $51bn over the last decade and Texas are home to 42% of all US buyout fi rms, while the and is the second-largest US-based fi rm. Another large US- other 44 states account for the remaining 29%. based private equity fi rm is the Texas-based TPG, which was established in 1992 and has raised $49.9bn in the last 10 years (Fig. 3). Siobhan Brewster

Main Investment Strategy There are approximately 922 venture fi rms primarily based in the US and 30% of such fi rms are based in the state of California, mainly in areas such as Menlo Park, Palo Alto and San Francisco. Over 281 private equity fi rms based in California focus their investments on venture opportunities,

Fig. 4:

Number of US-Based Buyout and Venture Firms by State

700 584 600 Number of 478 500 Buyout Firms

400 304 300 247 254 164 Number of 200 139 76 101 74 91 Venture Firms 100 5658 51 0 Texas Illinois California New York Rest of US Connecticut

Massachusetts Source: Preqin

Deals Spotlight

Fig. 1: Fig. 2:

Number and Aggregate Value of Global Buyouts: Aggregate Deal Value by Region: H1 2008 - 2010 YTD Q1 2008 - 2010 YTD 600 80 70.0

500 70 Aggregate Deal Value ($bn) 60.0 60 50.0 400 50 40.0 300 40 30.0 30 200 20.0 20

No. of Deals 10.0 100 10 0.0

0 0 ($bn) Aggregate Deal Value H1 2008 H2 2008 H1 2009 H2 2009 H1 2010 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 TD 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 TD North America Europe Asia and Rest of World No. of Deals Aggregate Deal Value ($bn) Source: Preqin Source: Preqin

Over 3,400 buyout deals were announced globally between 2008 Signifi cant deals announced this year include Warburg Pincus and 2010 YTD, with the 135 buyout deals announced so far this and Silver Lake’s announced $3.4bn acquisition of Interactive quarter, representing an aggregate value of $16.8bn Date Corporation, and Bain Capital’s announced acquisition of Dow Chemical’s Styron Unit in a deal valued at $1.63bn. Deal-fl ow fell sharply in 2009 compared to the previous year: $84bn was raised in 2009, a 59% decrease from the $204.6bn Deal-Flow by Region raised in 2008. However, towards the end of 2009 the buyout Buyout activity in 2010 reveals North America to be the most industry experienced a marked increase in deal-fl ow, with active region, with 240 deals completed to date at a total value $39.6bn in aggregate deal value in Q4 2009, more than double of $25.4bn, almost double the aggregate deal value seen in this that in the previous quarter, and more than the aggregate deal region during H1 2009 and close to the $30.9bn seen during H2 value reported during the whole of the fi rst half of 2009. 2009. European deal-fl ow shows a similar trend, with the $13.2bn in deal value during 2010 to date approaching the $17.9bn In 2010, there have been 464 buyout deals announced globally, recorded during the second half of last year, and almost three with an aggregate value of $43.8bn. During Q1 2010, 329 deals times the $5.2bn total from H1 2009. There has been $5.4bn in were announced with an aggregate value of $27bn, which aggregate buyout deal value announced so far this year in Asia represents a 30% decrease in deal value from the previous and Rest of World, which looks likely to approach the $7.1bn in quarter. However, it is important to note that deal value in Q1 deal value announced in the region during H1 2009. 2010 was higher than during the fi rst three quarters of 2009.

Fig. 3: Fig. 4:

Number and Aggregate Value of Global Buyouts by Industry: Number of Deals by Type: 2008 - 2010 YTD 2010 100% 90% 80% 70% 60% 50% 40% 30%

Proportion of Deals 20% 10% 0% 2008 2009 2010 YTD Buyout Add-on Growth Capital

Source: Preqin Recapitalization Public to Private PIPE Source: Preqin

Fig. 5: Fig. 6:

Number and Aggregate Value by Deal Value Band: 2010 YTD Global Number of PE-backed Exits by Type and Aggregate Exit Value: 2008 - 2010 YTD 100% 7% 140 60 90% Aggregate Exit Value ($bn) 12% 120 80% 38% 50 11% 100 70% 40 60% 18% 80 30 50% 31% 60 40% 20 40 30% No. of Exits

Proportion of Deals 52% 14% 20 10 20% 10% 10% 0 0 6% Q1 Q2 Q3 Q4 Q1 Q1 Q3 Q4 Q1 Q2 0% 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 No. of Deals Aggregate Deal Value ($bn) YTD

Less than $100m $100-249mn $250-499mn $500-999mn $1bn or More IPO Restructuring Sale to GP Trade Sale Aggregate Exit Value ($ bn) Source: Preqin Source: Preqin

Deal-Flow by Industry Deal-Flow by Value Band During 2010 to date, the industrial sector has seen the most Deals valued at less than $100mn continue to represent the activity in terms of number of deals, with almost a quarter of majority of buyout transactions announced globally, with 52% of all buyout deals announced globally performed in the sector, buyouts valued within this size range during 2010 to date. Deals representing 17% of the global aggregate value of deals. The valued at over $1bn represent 38% of the aggregate deal value largest industry sector in relation to aggregate deal value in 2010 announced globally in 2010 to date; however, this is a much so far is business services, with 22% of the global aggregate deal smaller proportion in comparison to two years ago, when deals value attributed to deals announced in the sector. valued at over $1bn represented 62% of aggregate buyout deal value globally. Deal-Flow by Type While leveraged buyout deals have continued to be the most Manuel Carvalho & Adam Palmer numerous deal type so far this year, there has been an increased focus on add-on deals in comparison to recent years, as fund managers seek to consolidate their investments. During 2010 to date, almost a quarter of buyout deals have been add-on investments, a signiﬁ cant increase from 2008 when 15% of buyout deals were of this type.

Fig. 7:

10 Largest Buyout Deals Globally Name Location Type Deal Value Date Buyer Industry Interactive Data Corporation US Public to Private USD 3.4bn May-10 Silver Lake, Warburg Pincus Financial Services

Dow Chemical Styron Unit US Buyout USD 1.63bn Mar-10 Bain Capital Chemicals

DynCorp International US Public to Private USD 1.5bn Apr-10 Cerberus Capital Business Services Management Pets at Home UK Buyout GBP 955mn Jan-10 Kohlberg Kravis Roberts Retail American Tire Distributors US Buyout USD 1.3bn Apr-10 TPG Distribution

RCN Corporation US Public to Private USD 1.2bn Mar-10 ABRY Partners Telecoms

SkillSoft PLC US Public to Private USD 1.2bn Feb-10 Advent International, Bain Education / Training Capital, Berkshire Partners Ambea Sweden Buyout EUR 850mn Feb-10 Kohlberg Kravis Roberts, Healthcare Triton Sedgwick CMS US Buyout USD 1.1bn Apr-10 Hellman & Friedman, Stone Business Services Point Capital InVentiv Health Inc US Public to Private USD 1.1bn May-10 THL Partners Healthcare

Source: Preqin

Included as part of Preqin’s integrated 360° online private equity database, or available as a separate module, Deals Analyst provides detailed and extensive information on private equity backed buyout deals globally. The product has in-depth data for over 9,000 buyout deals across the globe, including information on deal value, buyers, sellers, debt ﬁ nancing providers, ﬁ nancial and legal advisors, exit details and more.

Key features of this powerful database include:

• Buyout Deals: View detailed information on over 9,000 deals globally, including comprehensive data on all buyouts from 2008-present, and 10 year buyout data for the largest 100 global buyout ﬁ rms.

• Market Overview: Allows users to view quarterly and annual dealﬂ ow, plus details on global exit activity. Filter results by region, deal type, location, value band and industry.

• Search for Portfolio Companies: View extensive information regarding private equity investments made, including key ﬁ nancial data relating to the company.

• Search for Fund Managers: View current and historical investment data for private equity ﬁ rms, including comprehensive data on buyout investments, most frequently used advisors and debt ﬁ nancing providers, average investment sizes, preferred deal industries, number and value of deals by location, value band, deal type and much more.

• Access League Tables: Largest deals, most active fi rms by investment size and number of deals, fi nancial advisors, debt fi nancing providers, legal advisors.

• Search for Service Providers: View details on ﬁ nancial and legal advisors in deals, including information on whether they acted on behalf of the buyer or the seller on the transaction.

• Search for Debt Financing and Mezzanine Providers: View details including amount of debt provided in the transaction.

• Recent Deals and Exits: View recently announced deals and recently realized exits.

• Advanced Search: Use our powerful search tool to access information on buyout deals globally, including searching by company and investor location, industry, deal size, date, deal status, deal type, investment stake and key company ﬁ nancials.

To ﬁ nd out more about Deals Analyst, or to register for a demo, please visit: www.preqin.com/da

London: Scotia House, 33 Finsbury Square, London. EC2A 1BB +44 (0)20 7065 5100

New York: 230 Park Avenue, 10th ﬂ oor, New York, NY 10169 +1 212 808 3008 www.preqin.com www.preqin.com 13 ◄ Fundraising Spotlight May 2010

Fundraising Spotlight: Venture Funds

Final Close Barometer Venture Funds on the Road 140 120 Funds on the Road US Europe RoW Total No. Funds 100 Raised Number of Funds 173 99 175 447 80 Aggregate Target 60 33 13 31 78 ($bn) Aggregate 40 Commitments Average Size ($mn) 193 132 179 168 20 ($bn) 0 January to January to January to April 2008 April 2009 April 2010

Fund Manager Type Size (mn) Manager Location Invention Investment Fund II Intellectual Ventures Early Stage: Seed 2,500 USD US Oak Investment Partners XIII Oak Investment Partners Venture (All Stages) 1,500 USD US Shanghai Financial Development Investment Jinpu Industrial Investment Venture (All Stages) 8,000 CNY China Fund Fund Management ECP Africa Fund III Emerging Capital Partners Expansion 1,000 USD US Hospitality Development Fund Abu Dhabi Investment House Expansion 1,000 USD United Arab Emirates Millennium Private Equity Media & Millennium Private Equity Venture (All Stages) 1,000 USD United Arab Emirates Telecommunication Sequoia Capital 2010 Sequoia Capital Early Stage 1,000 USD US Robeco TEDA Sustainable Private Equity Fund SAM Private Equity Venture (All Stages) 6,000 CNY Switzerland Yucaipa Corporate Initiatives Fund II Yucaipa Companies Expansion 800 USD US Celtic Pharma Holdings II Celtic Pharma Venture (All Stages) 750 USD Bermuda

Recently Closed Venture Funds

New Enterprise Associates XIII System, Los Angeles City Employees’ SAIF Partners IV Manager: New Enterprise Associates Retirement System, Nebraska Investment Manager: SAIF Partners Target Size (mn): 2,500 USD Council, New Mexico Public Employees’ Target Size (mn): 1,500 USD Hard Cap (mn): 2,700 USD Retirement Association, Pennsylvania Closings (mn): Final Close: 1,250 USD Closings (mn): Final Close: 2,480 USD State University Endowment, San (Mar-2010) (Jan-2010) Francisco City & County Employees’ Geographic Focus: China, India Geographic Focus: North America Retirement System, Teacher Retirement Industry Focus: Technology, Telecoms, Industry Focus: Technology, System of Texas Healthcare, Consumer Products, Pharmaceuticals, Healthcare, Consumer Services, Manufacturing, Communications, IT, Biotechnology, 3i Growth Fund Media, Financial Services, Leisure Electronics, Hardware, Energy, Manager: 3i Sample Investors: California Public Biomedical, Clean Technology, Renewable Target Size (mn): 1,200 EUR Employees’ Retirement System Energy Closings (mn): Final Close: 1,200 EUR (CalPERS), Michigan State University Sample Investors: Alameda County (Feb-2010) Endowment, New York State Common Employees’ Retirement Association, Geographic Focus: North America, Retirement Fund California State Teachers’ Retirement Europe, Asia System (CalSTRS), Fort Washington Industry Focus: Any Capital Partners, Franklin Park, Indiana Law Firm: Clifford Chance State Teachers’ Retirement Fund, Kansas Public Employees’ Retirement

FundraisingFig. 3 Spotlight: Buyout Funds

Buyout Funds on the Road Final Close Barometer

Funds on the Road US Europe RoW Total 120 100 No. Funds Number of Funds 105 45 74 224 80 Raised Aggregate Target 75 17 40 131 ($bn) 60 Average Size ($mn) 710 379 535 541 40 Aggregate Commitments 20 ($bn) 0 January to January to January to April 2008 April 2009 April 2010

Fund Manager Size (mn) Fund Focus Blackstone Capital Partners VI Blackstone Group 20,000 USD US Morgan Stanley Capital Partners V Morgan Stanley Private Equity 6,000 USD US Metalmark Capital Partners II Metalmark Capital 3,000 USD US GP Capital GP Capital 20,000 CNY China African Agricultural Land Fund Emergent Asset Management 2,000 EUR UK Lion Capital Fund III Lion Capital 2,000 EUR UK Trident Fund V Stone Point Capital 2,250 USD US Abraaj Buyout Fund IV Abraaj Capital 2,000 USD United Arab Emirates Aquiline Financial Services Fund II Aquiline Capital Partners 2,000 USD US Avista Capital Partners II Avista Capital Partners 2,000 USD US

Recently Closed Buyout Funds

Madison Dearborn Capital Partners VI Target Size (mn): 1,800 GBP Carlyle Asia Partners III Manager: Madison Dearborn Partners Closings (mn): First Close: 1,200 GBP Manager: Carlyle Group Target Size (mn): 4,100 USD (Jan-2009), Second Close: 1,500 GBP Target Size (mn): 5,000 USD Closings (mn): First Close: 3,200 USD (Dec-2009), Final Close: 1,850 USD (Jan- Hard Cap (mn): 2,700 USD (Apr-2008), Final Close: 4,100 USD (May- 2010) Closings (mn): First Close: 1,927 USD 2010) Geographic Focus: Europe (Mar-2009), Final Close: 2,550 USD (Apr- Geographic Focus: North America Industry Focus: Technology, 2010) Industry Focus: Any Pharmaceuticals, Telecoms, Healthcare, Geographic Focus: Australia, China, Sample Investors: Conversus Asset Consumer Products, Communications, India, South Korea Management, Harvard Management Media, Software, Internet, Hardware, Industry Focus: Any Company, Illinois State Board of Computer Services, Medical Instruments, Law Firm: Simpson, Thacher and Bartlett Investment, Los Angeles County Medical Devices, Renewable Energy Sample Investors: California Public Employees’ Retirement Association, Sample Investors: AGF Private Equity, Employees’ Retirement System Maryland State Retirement and Pension Altamar Private Equity, Amundi Private (CalPERS), CDIB Capital, Dancap Bank System, Mesirow Financial, Montana Equity Funds, Asda Group Pension (Barbados), Maine Public Employees Board of Investments, New Mexico Public Scheme, Avadis Anlagestiftung, Aviva Retirement Employees’ Retirement Association, New Investors, Bank of Ireland Staff Pension York State Teachers’ Retirement System Fund, BBC Pension Trust, BMB Investment Bank, Cadbury Pension Trust, HgCapital VI Central Pension Fund Manager: HgCapital

Fundraising Spotlight: Cleantech Funds

Final Close Barometer Cleantech Funds on the Road 35 30 Funds on the Road US Europe RoW Total No. Funds 25 Raised Number of Funds 26 25 19 70 20 Aggregate Target 15 58417 Aggregate ($bn) 10 Commitments Average Size ($mn) 210 305 199 574 5 ($bn) 0 January to January to January to April 2008 April 2009 April 2010

Fund Manager Type Size (mn) Manager Location ECP Renewable Energy Fund I Earth Capital Partners Infrastructure 750 EUR UK USRG Power and Biofuels Fund III US Renewables Group Infrastructure 1,000 USD US Robeco TEDA Sustainable Private Equity Fund SAM Private Equity Venture 6,000 CNY Switzerland European Kyoto Fund Natixis Environnement & Natural Resources 500 EUR France Infrastructures Eurazeo Croissance Fund Eurazeo Venture 500 EUR France Fortis Clean Energy Fund Fortis Investments Infrastructure 450 EUR UK Macquarie Clean Technology Fund II Macquarie Funds Group Fund of Funds 600 USD Australia Invicta Biomass Fund Invicta Capital Infrastructure 390 GBP UK Southeast Europe Energy Efﬁ ciency Fund Oppenheim Asset Management Venture 400 EUR Luxembourg Services Beehive Water & Waste Fund Beehive Capital Infrastructure 400 EUR UK

Recently Closed Cleantech Funds

Hudson Clean Energy Partners Green Power Partners European Renewable Energy Fund Manager: Hudson Clean Energy Partners Manager: Proark Energy Manager: Platina Partners Target Size (mn): 1,000 USD Target Size (mn): 101 EUR Target Size (mn): 250 EUR Closings (mn): First Close: 60 USD (Mar- Closings (mn): Final Close: 101 EUR Hard Cap (mn): 300 EUR 2009), Final Close: 1,024 USD (Dec-2009) (Feb-2010) Closings (mn): First Close: 75 EUR (Dec- Geographic Focus: Global Geographic Focus: Bulgaria, France, 2007), Second Close: 103 EUR (Oct- Industry Focus: Infrastructure, Clean Ireland, Italy, Spain 2008), Final Close: 209 EUR (Mar-2009) Technology, Renewable Energy Industry Focus: Clean Technology, Geographic Focus: Europe Placement Agents: C.P. Eaton Partners, Renewable Energy Industry Focus: Environmental Services, Credit Suisse Private Fund Group Sample Investors: AP Pension, PBU, Energy, Infrastructure Law Firm: Mayer Brown PensionDanmark Placement Agents: Campbell Lutyens Sample Investors: ATP Private Law Firm: PricewaterhouseCoopers Equity Partners, Credit Suisse Asset Legal Management, Dallas Police & Fire Sample Investors: Access Capital Pension System, Macquarie Funds Group, Partners, Mutual Energy, Said Holdings New York State Common Retirement Limited Fund, Wolfson Group

Adam Counihan

Secondaries Spotlight

Preqin’s Secondary Market Monitor (SMM) comprises a comprehensive database of secondary market players. Included are both traditional and non-traditional buyers of private equity fund interests, potential sellers of fund interests, and secondary market intermediaries.

Fig. 1 Fig. 2

Breakdown of Secondaries Fund Managers by Total Number of Proportion of Secondary Market Intermediaries Representing Secondaries Funds Managed Various Client Types 40% 35% 30% 25% 20% 15% 10% 5% 0% Private Family Banks & Endowment Public Corporate Private Fund of Equity Firms Offices & Investment Plans Pension Investors Sector Funds Foundations Banks Funds Pension Managers Funds Source: Preqin

Source: Preqin The various clients that are represented by secondary market intermediaries are illustrated in Fig. 2. Private equity fi rms are the most common client type amongst intermediaries, with 35% Fig. 1 shows the breakdown of secondaries fund managers by of groups serving fund managers. 31% of intermediaries count the total number of secondaries funds managed. 36% of active family offi ces and foundations amongst their clients, while 28% managers are managing or raising their fi rst dedicated secondaries represent banks, one-fi fth serve endowment plans and the same fund. A signifi cant 11% of secondaries fund managers have raised proportion represent public pension funds. Fund of funds managers eight or more such vehicles, demonstrating that a number of are represented by just 15% of intermediaries, as many such fi rms have a large amount of experience in this specialist sector. managers have considerable experience in secondary transactions.

According to Preqin’s unique pricing model, a $10,000,000 commitment to the median 2009 buyout fund - which would have called $1,010,000 and has a reported net asset value (NAV) of $879,205 - would today fetch $858,957 on the secondary market, or approximately 98% of its NAV.

Secondaries News

AXA Private Equity has purchased a portfolio of funds Private Equity Investment Fund V has held a ﬁ nal close. interests from Bank of America. Secondary fund of funds manager Private Equity Investors The French fund of funds manager bought a USD 1.9bn portfolio has closed its latest secondaries fund with USD 203mn in of private equity fund interests from Bank of America, which commitments. The vehicle follows the ﬁ rm’s long-standing represents one of the largest secondary market transactions to strategy of buying mature interests in venture, growth equity, ever take place. The transaction involved a mature portfolio as buyout and mezzanine funds, and portfolios of direct private approximately 60% of commitments had already been called investments. The fund targets, but is not limited to, US down. 90% of the portfolio are buyout funds, of which 30% investments and transactions ranging from USD 1mn to USD are considered large funds. The transaction is in line with AXA 50mn. Private Equity’s secondary market strategy, which consists of offering liquidity to institutions looking to liquidate their private equity investments. Bank of America decided to sell the portfolio Antonia Lee of fund interests in order to reduce its private equity fund investments and unfunded commitments, and to manage its risk-weighted capital over the long term, while also permitting Secondary Market Monitor (SMM) is a service available free the bank’s private equity team to focus on its core investment of charge to accredited LPs. For more information, please visit business. The investment bank is reported to have begun speaking with potential buyers 18 months ago. www.preqin.com/smm

Investor Spotlight: Investor Attitudes Towards the Private Equity Secondary Market

For the 2010 Preqin Private Equity Secondaries Review, Preqin purchase fund interests on the secondary market immediately, and surveyed 56 institutional investors to determine their current 64% will look at buying within the next 12 months. attitudes towards the secondary market and to gain an indication of the future growth potential of the market. Over the past year, Preqin Motivations of LPs Looking to Buy on the Secondary Market has also been in continuous contact with institutional investors in As there is considerable interest in the secondary market among private equity and private equity real estate across the globe in order LPs, it is interesting to consider the factors that are motivating to establish their appetite for secondary market transactions over institutional investors to make secondary market purchases. the next 12-24 months. Preqin’s survey asked participants what they thought were the main benefi ts of purchasing fund interests on the secondary market. As As shown in Fig. 1, Preqin’s survey found that 7% of investors illustrated by Fig. 3, there are several key factors that are infl uencing feel the secondary market forms a core part of their overall private LPs to buy fund interests on the secondary market. equity investment strategies, and a considerable 48% feel that the secondary market is becoming an increasingly important component The most common motivation for LPs to purchase fund stakes on of their strategies. This demonstrates that a notable proportion the secondary market is mitigation of the J-curve effect, as 53% of of investors are likely to include some form of secondary market respondents cited this as a benefi t. Buying a stake in a fairly mature activity within their investment strategies going forward. The survey fund enables investors to avoid the negative returns in the early also found that 52% of respondents are considering activity on the years of investment and take advantage of the gains in the later secondary market, either as a buyer or seller of fund interests, over stages as the underlying portfolios of companies mature. the next 24 months, and 45% are considering gaining exposure to the secondary market through secondaries funds or primary funds Another signifi cant advantage of buying fund interests on the of funds with an allocation to secondary investments. secondary market, as indicated by 38% of respondents, is the potential for purchasing funds at a signifi cant discount to net asset Institutional Investors’ Appetite for Secondary Market value (NAV). As a result of the fi nancial downturn, a number of Purchases investors were looking to offl oad some fund stakes quickly in order The past few years have seen the secondary market attract an to free up capital and were consequently willing to consider selling increasing amount of attention from institutional investors. Fig. these stakes at considerable discounts to their current value. As 2 shows that 6% of the LPs we surveyed over the past year are drawdowns pick up in the coming months, further LPs with liquidity highly likely to buy fund interests on the secondary market during issues may fi nd themselves in the position of needing to offl oad the next 24 months, and a further 24% felt such investments were a stakes in funds, presenting LP buyers with the opportunity of possibility. Of those investors that maintain an interest in secondary purchasing such interests at attractive discounts. One investor that market purchases, 8% are either highly likely or possibly going to

Fig. 1: Fig. 2:

Importance of the Secondary Market within Investors’ Private Breakdown of Likelihood of Institutional Investors Buying Fund Equity Investment Strategy Interests on the Secondary Market over Next 24 Months

Source: Preqin Source: Preqin

Fig. 3: Fig. 4:

Institutional Investors’ Views on the Most Important Beneﬁ ts of Investor Selling Preferences by Fund Type Buying Fund Interests on the Secondary Market 60% 57% 60% 53% 50% 50%

40% 40% 38%

29% 29% 30% 30% 26% 23% 20% 15% 15% 20% Proportion of Buyers 10% 10%

0% Mitigation of the Good Value (as Access to Top Vintage Year Other 0% J-curve Effect a % of NAV) Performing Diversification Real Estate Venture Buyout Other Managers Source: Preqin Preferences Type Proportion of Sellers with Fund Source: Preqin said it would be looking to take advantage of fund interests being them to purchase on the secondary market. Throughout the past sold at discount to NAV over 2010 is Rallye, a French investment year, when speaking with investors, Preqin asked whether there are company. any speciﬁ c fund types or fund vintages investors are looking to exit.

15% of survey respondents stated that buying fund interests on the A considerable 46% of potential secondary market sellers stated secondary market allows them to further diversify their investment particular fund types which they are considering selling on the portfolios, particularly by fund vintage. The secondary market also secondary market. As illustrated by Fig. 4, private equity real estate enables investors to gain further exposure to funds and managers funds are the most common fund type that investors are looking to they have already invested with. In addition, purchasing fund sell, with 57% of investors that stated selling preferences naming interests on the secondary market can provide investors’ portfolios this fund type. Venture and buyout funds are also common fund with exposure to top performing managers and give them the chance types investors are considering selling; 29% stated a desire to sell to establish relationships with them. interests in venture funds and 26% are interested in selling stakes in buyout funds. What Are Institutional Investors Looking to Sell on the Secondary Market? The secondary market can be used to sell off not only poor performing While it is clear there is signiﬁ cant appetite amongst the investor fund types but also funds of poor performing vintage years. While community for buying fund stakes on the secondary market, it is only 9% of possible secondary market sellers stated a particular interesting to consider what fund types are likely to be available for vintage of fund they are looking to exit via a secondary market sale, 77% of them said they would like to sell their interests in funds with a 2006 vintage. Furthermore, 62% of possible sellers are looking to sell 2005 vintage funds, and 46% are looking to reduce their exposure to funds with a 2007 vintage.

Summary Preqin’s research into investors’ current attitudes towards the secondary market demonstrates that, due to several motivational factors, investors remain interested in buying private equity fund interests on the secondary market and consider it as an area of growing importance within their overall investment strategies. As a considerable portion of investors are also considering placing portfolios of fund interests for sale on the secondary market, the market has the potential for signiﬁ cant growth over the next 12-24 months. Despite the relatively small number of deals taking place in 2009, investors have remained positive about the secondary market and expect an increase in activity over the next 12-24 months.

Antonia Lee

Conferences Spotlight: Forthcoming Events

Funding Renewables- Bringing Finance & Projects Super Return US 2010 ESSEC Private Equity Chair Together Date: 10-11 June 2010 Date: 2-4 June 2010 Date: 1 June 2010 Location: Novotel Paris-La Défense, Location: The Westin Boston Location: Allen & Overy, ONE France Waterfront, Boston, MA Bishops Square, London Organiser: ESSEC Private Equity Organiser: ICBI & IIR Organiser: Energy & Utility Forum Chair

Now in its third year, SuperReturn U.S. Engage with Major Investors, Developers brings together the biggest names in The ESSEC Private Equity Chair & Advisors, network and discuss the private equity and venture capital along organizes its 2nd annual conference. The critical issues affecting the sector. with 100s of LPs sourced from all over the conference will last one-and-a-half days Speakers include: Utilities: EON, world. And to reﬂ ect the changing times, during which academics from around the ESB, Vattenfall Funders: RBS, Matrix in 2010 there will be a focus on the rising world will present state-of-the-art research Corporate Capital, Augusta & Co stars in private equity. on major issues regarding, and related to, Renewable Technologies: ECO2, Ceres Private Equity and Venture Capital. Power, Gaia Power, Waste2Tricity Advisors:A KPMG UK, WSP Environment Information: & Energy, Datamonitor. Information: www.icbi-events.com/srusa/ www.essec-private-equity.com Information: www.fundingrenewables.co.uk

Global Secondary Market Marcus Evans Investment Investing Conference Consultants

Date: 6-8 June 2010 Date: 20 May 2010 Location: Le Motreux Palace, Location: Millennium Hotel, New Montreaux, Switzerland York, NY Organiser: Marcus Evans Organiser: Thunderbird School of Exposed to investment losses, institutional Global Management & IBF Media investors across Europe emerged from the crisis in the need of stronger and Learn critical industry trends such as more reliable partners. As the paradigm the latest pricing trends, who’s buying of investment consulting is undergoing a LP interests, information on preparing metamorphosis, consultants must learn to for going to market, types of deal combine strong core competencies with structures, marketing strategies and carefully selected value added services. legal considerations. The conference will The Investment Consultants Summit be an in-depth learning experience for 2010 gathers the leading investment GPs and LPs that will allow ﬁ rms to best consultants and ﬁ duciary managers position themselves in the secondaries across Europe to discuss the industry’s market. way forward.

Information: Information: www.ibfmedia.com/ www. investmentconsultantseurope. secondaries2010.php com/PreqinEL

Conferences Spotlight: Forthcoming Events

CONFERENCE/EVENT DATES LOCATION ORGANISER SuperReturn US 2010 2-4 June 2010 Boston ICBI Investment Consultants Summit 6-8 June 2010 Montreux Marcus Evans Vietnam Investment Summit 2010 7-9 June 2010 Vietnam Terrapin Managing Insurance Assets 8-9 June 2010 New York Pensions & Investments China Institutional Investment Conference 9-10 June 2010 New York China Capital Advisors Private Equity Convention Russia & CIS 10-11 June 2010 London Global Directors Forum ESSEC Private Equity Conference 10-11 June 2010 Paris ESSEC CEE Private Equity Forum 10-11 June 2010 Prague C5 Emerging Markets Investments Summit 13-15 June 2010 Monte Carlo Marcus Evans Limited Partners Summit New York 2010 22-23 June 2010 New York Dow Jones Events

SUPERRETURN GLOBAL SERIES 3rd Annual 15% Discount In Boston SUPER Priority Code U2505PREQAD For 2010! 2010 RETURN For latest program or to register, please visit: www.superreturnus.com • Pre Conference Investor Summit • Pre Conference Opportunities In Asia Summit - Wednesday June 2 • Main Conference - Thursday June 3 - Friday June 4 Westin Boston Waterfront, BOSTON, MA Private Equity & Venture Capital Summit Successfully Navigating Private Equity Portfolios In A New Decade 150+ Hear From 80+ LPs Including: Brand New Pre-Event Outstanding Speakers Networking Tool 80+ LPs & FoFs My SuperReturn U.S. ● MassPRIM ● Paul Capital Investments Set up meetings prior to the event from two ● Temasek Holdings Advisors, India ● Caisse Des Dépôts Et Consignations ● PSP Investments ● Morgan Stanley Investment weeks out through My ● Robert Wood Johnson Foundation Management Wayne Smith Jim Pittman Ashbel C. “Ash” Mark Shoberg John Powers SuperReturn U.S. e-Networker ● AlpInvest Partners ● Asia Alternatives MASSPRIM PSP Williams, FLORIDA UTIMCO STANFORD ● Caisse De Dépôt Et Placement Du ● Northern Trust Global Advisors INVESTMENTS STATE BOARD OF MANAGEMENT ● Québec International Finance Corporation ADMINISTRATION COMPANY ● Dupont Capital Management ● ATP Private Equity Partners ● ● New For 2010! LGT Capital Partners Squadron Capital ● The Guardian Life Insurance Company ● Bimcor ● Industry Titans Discuss The Next Decade Of America Capital Dynamics Rising Stars In Private ● ● Adams Street Partners PCGI PARTNERS ● Stanford Management Company ● Blackrock Private Equity Partners ● Forida State Board of Administrators ● City Of Boston Retirement Fund Equity Showcase ● Boston University Investment Office ● CDC Group ● UTIMCO ● BAML Capital Access Funds Hear from the winners of our informal LP poll ● University Of Cambridge ● Macquarie Funds Group ● Sentry Insurance ● Invesco Private Capital ● MetLife ● Fondinvest Capital ● Harbourvest Partners ● Allstate Investments Special Guest ● Piper Jaffray Private Capital ● SL Capital Partners ● PCG Asset Management ● Abbott Capital Management Sandra A. Urie Mark Gallogly Jonathan Nelson Greg Brenneman Michael Psaros ● ● Hamilton Lane Adveq Management CAMBRIDGE CENTERBRIDGE PROVIDENCE CCMP CAPITAL KPS CAPITAL Speakers ● Siguler Guff ASSOCIATES PARTNERS EQUITY ADVISORS PARTNERS Industry Leaders: "I thought you guys did a great job and the conference was very topical. ..I ● Centerbridge Partners ● Walden International look forward to hearing about next year’s event." ● WL Ross & Co ● CITIC Private Equity ● ● Providence Equity Partners Technology Crossover Ventures John Desisto, Boston University Investment Office ● Fortress Investment Group ● Azla Advisors ● Avenue Capital Group ● KPMG ● Cambridge Associates ● Crestview Partners Sponsors Supporting Partner ● Apollo Management ● Kaixin Investment ● The Carlyle Group ● Quantum Energy Partners Josh Lerner Jeffrey Frankel ● KPS Capital Partners ● MatlinPatterson Global Advisors HARVARD KENNEDY SCHOOL ● Lincolnshire Management ● Avigo Capital Partners ● BNY Mellon Alternative Investment ● Bain Capital BUSINESS OF GOVERNMENT, Services ● Sun Capital Partners SCHOOL HARVARD ● CCMP Capital Advisors ● EMAlternatives ● Prophet Equity Partners ● Probitas Partners UNIVERSITY ● Park Square Capital ● Silver Lake ● Pfingsten Capital ● WestView Capital Partners ● Founders Equity ● ChrysCapital ● Sentinel Capital Partners ● State Street Alternative Investment ICBI ● Advent International Solutions ● Affinity Equity Partners ● Wilshire Private Markets

Investor Spotlight: LP News

Public Employees’ Retirement System weeks, BCERS has been fi nalizing Scottish Borders Council Pension of Nevada (NVPERS) plans to increase two more commitments, one to US Fund will look to make its maiden its exposure to private equity during mezzanine fund Newstone Capital II commitment to a private equity fund in 2010. and one to Siguler Guff Distressed H2 2010. The USD 21.5bn public pension fund is Opportunities Fund IV. The pension fund The pension fund, based in Melrose, stepping up its private equity investments does not anticipate making any further Roxburghshire, had total assets of this year. It anticipates committing new private equity fund commitments in GBP 315mn at year-end 2009 and USD 100-150mn to between 5 and 10 2010, and will resume activity in 2011. will look to invest a proportion of this new funds. Most of the capital will be BCERS typically invests between USD capital in private equity in 2010. It is allocated to follow-on funds from existing 1mn and USD 7mn in each new fund. currently fi nalizing an RFP from fund of managers in NVPERS’s portfolio, but the It currently has a private equity portfolio funds managers to manage its maiden pension fund will also look to invest with of 11 funds, and is slightly below its 5% investments in the asset class. Although some new managers. NVPERS invests target allocation. New England Pension the pension fund has not yet set a globally and in a broad range of fund Consultants provides BCERS with strategy for private equity investments, types, including buyout funds of all sizes, comprehensive private equity consulting it has set an allocation to alternative venture funds, special situations vehicles, services, including manager search and investments, including private equity, of and funds of funds. It has 2.5% of its selection. 5% of total assets. total assets currently allocated to private equity investments and has a target allocation of 3.25%. Pathway Capital Praktikerinvest has recently appointed Emma Dineen Management, with which it has had a 20- a new head of private equity. year relationship, provides the pension Bjorn Svanstrom became the new head fund with discretionary private equity of private equity for Praktikerinvest in investment advice. February 2010. The SEK 5bn corporate investor has a target allocation to Telstra Superannuation Scheme is private equity of 30% of total assets, looking to invest with new managers with only 20% of its assets currently in 2010. allocated to the asset class. It will invest The AUD 9bn Melbourne-based scheme in a range of private equity funds with plans to make commitments totalling a European focus, but it favours funds AUD 100mn this year. This is the same that are focused on the Nordic region. In amount of capital as it set aside for the coming 12 months, Praktikerinvest new private equity investments in 2009. expects to invest in two to three new Telstra Super expects to invest between private equity vehicles, allocating a total AUD 10mn and AUD 30mn of its private of SEK 40-120mn. equity allocation for 2010 in funds managed by fi rms with which it has no Each month Spotlight provides prior relationship. It is seeking investment TrustCapital is considering re-entering a selection of the recent news on opportunities with US and regional the private equity asset class in H2 institutional investors in private equity. European managers (as opposed to pan- 2010. More news and updates are available European managers), and favours mid- The EUR 100mn asset manager currently online for Investor Intelligence and market buyout, special situations, and has over 50% of its total assets allocated Secondary Market Monitor subscribers. turnaround funds. Telstra Super’s typical to private equity investments. It has a bite size is between AUD 12mn and AUD preference for European-focused venture In the last month, Preqin analysts 30mn. It is advised on its investments by funds and funds of funds. TrustCapital have added 35 new investors its general consultant, JANA Investment stopped investing in new private equity Advisers. funds in March 2009 due to a change in and updated 621 existing investor strategy, and is now looking to re-enter profi les. Employees’ Retirement System of the asset class in the second half of Baltimore County (BCERS) is slowing 2010. For more information, or to register for a commitments after a busy 2009. demo, please visit: The USD 1.7bn public pension fund made several new commitments to www.preqin.com/II private equity funds in 2009 and during the fi rst quarter of 2010. In the last few