Non US & Secondary Investing Finding Alpha in a Dynamic And
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ASP PE Perspectives: Non US & Secondary Investing Finding Alpha in a Dynamic and Volatile Market May 2019 Presented by: Michael Taylor and John Gray, CFA Confidentiality Statement and Other Important Considerations Adams Street Partners has provided this presentation (the “Presentation”) to the recipient on a confidential and limited basis. This Presentation is not an offer or sale of any security or investment product or investment advice. Offerings are made only pursuant to a private offering memorandum containing important information regarding risk factors, performance and other material aspects of the applicable investment; the information contained herein should not be used or relied upon in connection with the purchase or sale of any security. No subscriptions are currently being sought, solicited or accepted from prospective investors in the EEA. A subscription of interests in a fund is currently not possible. Subscriptions to any fund will only be made and accepted on the basis of the final confidential private placement memorandum (“PPM”) and final subscription documents of the relevant fund. The PPM and subscription documents may be made available at Adams Street’s discretion and only after all necessary notifications are made and approvals are obtained for marketing of the interests in the relevant fund in the prospective investor’s jurisdiction. Within the EEA, this presentation is only directed at investors that are professional investors within the meaning of the AIFM Directive. Statements in the Presentation are made as of the date of the Presentation unless stated otherwise, and there is no implication that the information contained herein is correct as of any time subsequent to such date. All information with respect to primary and secondary investments of Adams Street Partners funds (the “Funds”) or Adams Street Partners’ managed accounts (collectively, the “Investments”), the Investments’ underlying portfolio companies, Fund portfolio companies, and industry data has been obtained from sources believed to be reliable and current, but accuracy cannot be guaranteed. The Presentation contains highly confidential information. In accepting the Presentation, each recipient agrees that it will (i) not copy, reproduce or distribute the Presentation, in whole or in part, to any person or party (including any employee of the recipient other than an employee or other representative directly involved in evaluating the Funds) without the prior written consent of Adams Street Partners, (ii) keep permanently confidential all information not already public contained herein, and (iii) use the Presentation solely for the purpose set forth in the first paragraph. The Presentation is not intended to be relied upon as investment advice. The contents herein are not to be construed as legal, business or tax advice, and each investor should consult its own attorney, business advisor and tax advisor as to legal, business and tax advice. The internal rate of return (IRR) data and multiples provided in the Presentation are calculated as indicated in the applicable notes to the Presentation, which notes are an important component of the Presentation and the performance information contained herein. IRR performance data may include unrealized portfolio investments; there can be no assurance that such unrealized investments will ultimately achieve a liquidation event at the value assigned by Adams Street Partners or the General Partner of the relevant Investment, as applicable. References to the Investments and their underlying portfolio companies and to the Funds should not be considered a recommendation or solicitation for any such Investment, portfolio company, or Fund. Past performance is not a guarantee of future results. References to outperformance are by comparison to PME or the benchmark indicated herein since-inception (January 2004) on a historical, composite basis that does not reflect performance of any Adams Street Partners fund. References to positive performance achieved by investors in Asia private equity are historical in nature and are not intended to suggest that similar performance will be achieved going forward. Projections or forward looking statements contained in the Presentation are only estimates of future results or events that are based upon assumptions made at the time such projections or statements were developed or made. There can be no assurance that the results set forth in the projections or the events predicted will be attained, and actual results may be significantly different from the projections. Also, general economic factors, which are not predictable, can have a material impact on the reliability of projections or forward looking statements. Private equity funds involve a high degree of risk and, therefore, should be undertaken only by prospective investors capable of evaluating and bearing the risks such an investment represents. Interests in private equity funds should be considered as long-term, illiquid investments, and investors must be willing to bear the economic risk of an investment in the Fund for an indefinite period of time, with no certainty of return or repayment of the invested amount. In the United Kingdom, this presentation is directed only at persons who have professional experience in matters relating to investments, falling within article 19(5) (“investment professionals”) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Order”), persons falling within article 49(2)(a) to (d) (“high net worth companies, unincorporated associations etc.”) of the Order, or persons to whom this presentation may otherwise lawfully be directed (together, “Relevant Persons”). The contents of this presentation must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this presentation relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. 2 Introduction Michael Taylor John Gray, CFA Principal, Primary Investments Partner, Investor Relations Amherst College, BA Education: DePaul University, BS, MBA University of Pennsylvania, The Years of Investment/ Wharton School, MBA, with honors Operational Experience: 34 Years of Investment/ Operational Experience: 9 3 A Premier Global Private Markets Platform Adams Street Partners is a global private markets investment manager with over $36 billion of assets under management across five dedicated strategies: primaries, secondaries, co-investments, venture/growth equity, and private credit. Privately held and independent, Adams Street has partnered with venture capital and private equity sponsors for over 45 years and is one of the leading sources of capital to the sponsor community. Global Private 10 offices across Asia, US and Europe employees and investment professionals globally Markets Platform 195+ 75+ 100% Employee-owned LONDON BOSTON 1997 2016 BEIJING MUNICH 2011 NEW 2017 MENLO CHICAGO YORK SEOUL TOKYO PARK 1972 2016 2017 2014 2006 SINGAPORE 2006 As of September 30, 2018 4 Over Four Decades of Private Markets Experience 1970s 1980s 1990s 2000s 2010s 1972: 1984: 1992: 2000: 2011: Began direct investing First separate account Helped establish Inducted into Private Opened Beijing office AIMR/CFA performance Equity Hall of Fame guidelines for the industry 1979: 1985: 2014: Established industry’s first Established first private 2001: Opened Tokyo office fund of funds equity performance 1996: Became independent, benchmarks with Began annual fundraising employee-owned firm Venture Economics process 2016: (predecessor to the 2004: Established dedicated Thomson Reuters Private 1997: First commitment to India Private Credit Team Equity Fund Performance Opened London office Opened New York office Survey) (began international 2005: investing program) First commitment to China Opened Boston office 1986: Began secondary investing 1999: 2006: 2017: Began dedicated research Opened Menlo Park and 45 Years in Private Equity 1988: in Asia Singapore offices Helped NVCA establish Opened Munich office valuation guidelines for 2007: PE industry Opened Seoul office First commitment to Russia Established one of first dedicated secondary funds 2009: First commitment to Latin 1989: America Formalized buyout co-investment program 5 Global Private Equity Landscape 6 Deep Expertise Around the World Jeff Diehl Bon French Managing Partner & Chairman Head of Investments Chicago Chicago FUND INVESTMENTS DIRECT INVESTMENTS PRIMARY Mark Ross SECONDARY CO-INVESTMENTS GROWTH EQUITY PRIVATE CREDIT Hourihan Morrison Kelly Meldrum Boston London Jeff Akers Dave Brett Terry Gould Bill Sacher Head of Primary Head of Head of Head of Head of Investments Secondary Co-Investments Growth Equity Private Credit Menlo Park Yimin Calum Investments Chicago Investments New York Huang Paterson Chicago Chicago Beijing London Matthew Troy Pinal Paul TJ Robin Shahab Jim Sergey Auran Barnett Nicum Cappelli Biegger Murray Rashid Korczak Sheshuryak Menlo Park Chicago London Chicago Chicago Menlo Park New York Chicago London Matt Brijesh Brandon Jason Kristof Alex Tom Luke Michael Autrey Jeevarathnam Shirk Frank Van Kessel Bremner Prioleau Allen Chicago Menlo Park Chicago Chicago Overloop Chicago Chicago Menlo Park New York London Kushal Carol Alex Alex Yar-Ping Samuel Jeff Sam Fred Shah Rusin Bozoglou Lesch Soo Gage Diehl Shanley Chung London London London Chicago Singapore Chicago Chicago Chicago New York Jeff Alexander Marcus Joe Alexander Sachin Brian