Press Release – For Immediate Release 7th January 2019 ______2018 Proves a Bumper Year for Buyout Deals 5,106 deals were announced through 2018 – the second consecutive record-breaking year

2018 has continued the strong deal making seen in 2017, and has even surpassed it to become the most active year the industry has ever recorded. A total of 5,106 private equity-backed buyout deals were announced through the year, an all-time record, building from the previous record of 4,829 seen in 2017. The total value of these deals also rose to reach $456bn – this is close to the $460bn seen in 2015, and may surpass it given that Preqin expects these figures to rise by up to 5% as more information becomes available. Nonetheless, 2018 remains some way off the all-time record deal values seen immediately prior to the Global Financial Crisis: 2007 recorded $700bn in deal making from 3,877 deals.

For more information, see the full Preqin 2018 Private Equity-Backed Buyout Deals and Exits factsheet here: http://docs.preqin.com/reports/Preqin-Buyout-Deals-and-Exits-Q4-2018.pdf

Christopher Elvin, Head of Private Equity: “If 2017 was a year marked by record levels of fundraising, then 2018 was a year marked by record levels of deal making. With dry powder breaking the $1tn barrier in 2017, some feared that there was too much available capital that might overheat the market and deter deal making. In fact, we have seen the opposite occur, but some doubt remains: dry powder has kept climbing to $1.2tn, and fund managers and investors both still say that asset pricing is a concern. However, strong activity in 2018 may dampen these concerns, and 2019 seems poised to see deal activity climb further rather than slackening.”

Key Private Equity-Backed Buyout Deals and Exits Facts: • There were 5,106 private equity-backed buyout deals announced in 2018, an all-time high. This surpasses the previous record of 4,829 deals seen in 2017. • Deals announced in 2018 had a combined deal value of $456bn, the second-highest total since the Global Financial Crisis. It remains some way off the $700bn in deals recorded in 2007, though. • North America saw 2,787 deals announced worth a total of $264bn, while Europe saw 1,779 deals worth an aggregate $137bn. • Add-ons accounted for 42% of the number of deals in 2018, as firms acquired additions to their existing assets. The 54 public-to-private deals announced in the year accounted for 17% of deal value, despite representing just 1% of deals. • Deal activity was diversified: industrials and information technology accounted for 14% and 15% of deal value respectively, while healthcare (13%), telecoms (12%) and business services (12%) all represented substantial portions of deal value. • Buyout-backed exit activity was also strong, remaining broadly on par with 2017. 2018 saw 1,958 exits announced worth a combined $326bn, compared to 1,977 exits worth $297bn the previous year. • Trade sales accounted for 58% of the number of exits and of exit value. Sales to GPs, also known as secondary buyouts, accounted for almost a third (31%) of the number of exits. • The largest deal of the year was the $21bn formation of Keurig Dr Pepper, Inc. in January. The largest exit was the $8.3bn sale of BMC Software, Inc. to KKR, which was also the sixth largest acquisition of 2018. ______

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DOWNLOAD THE DATA PACK 2018 BUYOUT DEALS AND EXITS 7 January 2019

Fig. 1: Annual Global Private Equity-Backed Buyout Deals, 2009 - 2018 Fig. 2: Private Equity-Backed Buyout Deals in 2018 by Region Fig. 3: Private Equity-Backed Buyout Deals in 2018 by Type

3,000 100% 6,000 600 2,787 3% 1% 1% 2% 5,106 4,829 90% 17% Aggregate Deal Value ($bn) 15% 5,000 4,343 4,663 500 2,500 Recapitalization 4,275 80% 5% 3,961 3,979 4,000 3,748 400 2,000 5% Public-to-Private

l 70% 3,333 1,779 60% 37% 3,000 300 1,500 PIPE 2,298 50% No. of Deals 47% 2,000 200 1,000 40% Proportion of Tota 1,000 100 500 30% Buyout 264 284 256 137 20% 42% 0 0 39 16 Add-on 0 10% 24%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 North America Europe Asia Rest of World 0% No. of Deals Aggregate Deal Value ($bn) No. of Deals Aggregate Deal Value ($bn) No. of Deals Aggregate Deal Value Source: Preqin Pro Source: Preqin Pro Source: Preqin Pro

Fig. 5: Proportion of Number of Private Equity-Backed Buyout Deals in Fig. 4: Private Equity-Backed Buyout Deals in 2018 by Value Band 2018 by Industry KEY FACTS

100% 25% 22% 13% 21% 90% l 20% 5,106 private equity-backed buyout deals were announced 80% 8% 14% 15% 14% $1bn or More 15% 13%13% in 2018, the highest number ever recorded. 9% 12% 12% 12% l 70% 10% 8% 7% 74% $500-999mn 7% 6% 60% 19% 6% 5% 6% Proportion of Tota 5% 3% 2% 3% 50% $250-499mn $21bn 0% Value of the largest deal announced in 2018: the 40% $100-249mn acquisition of Keurig Dr Pepper, Inc. in January. Proportion of Tota 30% Other Utilities Services Energy & Business Food &

51% Cleantech Industrials Agriculture Healthcare Technology Consumer 11% Less than $100mn Information

20% Discretionary 6% Telecoms, Media

10% Communications & 6% $ 42% 0% 3% of deals announced in 2018 were add-ons, the No. of Deals Aggregate Deal Value No. of Deals Aggregate Deal Value largest proportion of any deal type. Source: Preqin Pro Source: Preqin Pro

1 ©Preqin Ltd. / www.preqin.com DOWNLOAD THE DATA PACK 2018 BUYOUT DEALS AND EXITS 7 January 2019

Fig. 6: Largest Private Equity-Backed Buyout Deals Globally in 2018

Investment Deal Size Portfolio Company Deal Date Deal Status Investor(s) Bought from/Exiting Company Location Primary Industry Type (mn) BDT Capital Partners, Dr Pepper/Seven Up Bottling Keurig Dr Pepper, Inc. Merger Jan-18 21,000 USD Completed Group*, JAB Holding Company, Keurig Green Mountain, - US Beverages Inc.*, Mondelez International Blackstone Group*, Canson Capital Partners, CPP Refinitiv Buyout Jan-18 17,000 USD Completed Thomson Reuters Corporation UK Information Services Investment Board, GIC Johnson Controls’ Power Solutions business Buyout Nov-18 13,200 USD Announced Brookfield Business Partners*, CDPQ Johnson Controls, Inc. US Cleantech Akzo Nobel's Specialty Chemicals Buyout Mar-18 10,100 EUR Completed Carlyle Group, GIC Akzo Nobel N.V. Belgium Chemicals Envision Healthcare Corporation Public-to-Private Jun-18 9,900 USD Completed KKR Clayton Dubilier & Rice US Healthcare Ventures, Elliott Management Corporation, BMC Software, Inc. Buyout May-18 8,300 USD Completed KKR US Software GIC, Golden Gate Capital, Insight Venture Partners ARRIS International plc Add-on Nov-18 7,400 USD Announced Carlyle Group, CommScope, Inc.* - US Telecoms Magneti Marelli S.p.A. Add-on Oct-18 6,200 EUR Announced Calsonic Kansei Corporation*, KKR Fiat Chrysler Automobiles N.V. Italy Transportation Black Knight Financial Services, Cannae Holdings*, CC Dun & Bradstreet, Inc. Public-to-Private Aug-18 6,900 USD Announced - US Information Services Capital*, Thomas H Lee Partners* Sedgwick Claims Management Services, Inc. Buyout Sep-18 6,700 USD Announced Carlyle Group - US Source: Preqin Pro Fig. 7: Global Quarterly Private Equity Buyout-Backed Exits, 2009 - 2018 Fig. 8: Private Equity Buyout-Backed Exits in 2018 by Region Fig. 9: Private Equity Buyout-Backed Exits in 2018 by Type

2,500 600 1,000 928 100% 2% 0.1% 7% 11% 2,120 2,125 900 90% 2,044 1,977 1,958 500 Aggregate Exit Value ($bn) 796 2,000 1,892 800 80% 1,706 32% 31% Restructuring 1,610 400 700 70% 1,500 600 1,289 60% IPO & Follow-on 300 500 50%

No. of Exits 1,000 400 Sale to GP 753 200 40%

300 Proportion of Total 30% 58% 58% 500 Trade Sale 100 200 178 105 128 106 20% 100 10% 0 0 27 15 0 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 North America Europe Asia Rest of World No. of Exits Aggregate Exit Value No. of Exits Aggregate Exit Value ($bn) No. of Exits Aggregate Exit Value ($bn) Source: Preqin Pro Source: Preqin Pro Source: Preqin Pro *Denotes lead investor.

2 ©Preqin Ltd. / www.preqin.com DOWNLOAD THE DATA PACK 2018 BUYOUT DEALS AND EXITS 7 January 2019

Fig. 10: Largest Private Equity Buyout-Backed Exits in 2018

Investment Investment Investment Exit Value Primary Portfolio Company Investor(s) (Entry) Exit Date Exit Type Acquiror (Exit) Location Date Type Size (mn) (mn) Industry Bain Capital Ventures**, Elliott Management BMC Software, Inc. May-13 Public-to-Private 6,900 USD Corporation, GIC, Golden Gate Capital**, May-18 Sale to GP 8,300 USD KKR US Software Insight Venture Partners Blue Buffalo Co. Ltd. Dec-06 Growth Capital - Invus Group Feb-18 Trade Sale 7,927 USD General Mills US Food Sedgwick Claims Management Services, Inc.* Jan-14 Buyout 2,400 USD KKR, Stone Point Capital Sep-18 Sale to GP 6,700 USD Carlyle Group US Insurance StandardAero, Inc. May-15 Buyout 2,100 USD Veritas Capital Dec-18 Sale to GP 5,000 USD Carlyle Group US Aerospace Advent International, Connolly**, Goldman Verscend Technologies, Cotiviti, LLC Apr-14 Merger - Sachs Merchant Banking Division, iHealth Jun-18 Trade Sale 4,900 USD US Software Inc. Technologies**, Oak Investment Partners Marketo, Inc. May-16 Public-to-Private 1,790 USD Vista Equity Partners Sep-18 Trade Sale 4,750 USD Adobe Systems US Software Bonne Terre Limited Dec-14 Buyout 800 GBP CVC Capital Partners Apr-18 Trade Sale 4,700 USD The Stars Group Inc. UK Gambling Wingtech Technology Nexperia B.V. Jun-16 Buyout 2,750 USD JAC Capital, Wise Road Capital Oct-18 Trade Sale 3,600 USD Netherlands Semiconductors Co., Ltd. DJO Global Inc. Jun-06 Public-to-Private 887 USD Blackstone Group Nov-18 Trade Sale 3,150 USD Colfax Corp. US Healthcare SRS Distribution, Inc.* Feb-13 Buyout 1,930 USD Apr-18 Sale to GP 3,000 USD Leonard Green & Partners US Distribution Source: Preqin Pro *Denotes a partial exit. **Denotes lead investor.

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