2013 Annual Report In 2013 alone, invested more than $400 billion 2013 IN ROUGHLY 2,000 U.S. COMPANIES.

PRIVATE EQUITY FIRMS DELIVERED more than $120 billion to in 2013.

Roughly 2,800 PRIVATE EQUITY FIRMS and more than 17,700 PRIVATE EQUITY-BACKED COMPANIES are headquartered in the U.S.

MORE THAN 7.5 MILLION PEOPLE WORLDWIDE ARE EMPLOYED by U.S.-based private equity businesses.

Private equity firms invest in a WIDE VARIETY OF INDUSTRIES:

Consumer Financial Information Services Technology

Energy Business Healthcare Materials & Services Resources

2 Private Equity Growth Capital Council | 2013 Annual Report Who We Are Our Mission Established in 2007 and based in Washington, D.C., The Private Equity Growth Capital Council is an the Private Equity Growth Capital Council is an association of firms committed to developing long-term advocacy, communications, and research organization value by investing in and building enduring companies representing leading private equity and growth capital through the alignment of interests between investors firms united by their commitment to growing and and management and providing financial, operational strengthening the businesses in which they invest. and strategic resources and direction. Through this approach, our member firms provide superior investment What We Do returns to pension plans, university endowments, The PEGCC advocates on behalf of the private equity charitable foundations and other investors. In addition and growth capital industry on Capitol Hill and before to delivering superior investment returns, our member regulatory agencies, educates the public about the value firms are committed to upholding the highest standards of private equity, develops new research highlighting the of integrity and acting in a way that enhances the critical role private equity and growth capital plays in the reputation of our industry. U.S. and global economies, and provides a vital forum for our members to discuss industry trends and challenges. The Private Equity Growth Capital Council represents the shared interests of our member firms. We seek to About Private Equity engage the public, policy makers, the media, and other Private equity is a critical source of capital investment stakeholders in our industry by developing information in the U.S. Our investment model is simple: we seek about the contribution of private equity and growth out companies that have significant potential for growth capital in the economy and by advocating policies that and invest capital, time and effort to improve their encourage responsible investment, access to capital, performance and increase their value. economic growth and job creation.

Private equity investment creates stronger, more valuable Table of Contents American businesses, and provides public and private From the President...... 4 pension funds, university endowments and charitable Public Affairs...... 6 foundations with superior returns. Government Affairs ...... 10 Research...... 14 Membership Services...... 17

Private Equity Growth Capital Council | 2013 Annual Report 3 From the President Welcome to the Private Equity Growth Capital Council’s 2013 Annual Report.

The focus on the private equity industry in 2013 began where the presidential election left off. Our year started with President Obama singling out the tax treatment of during a nationally televised interview before the Super Bowl. In addition to carried interest, the implementation of Dodd- Frank and the possibility of tax reform remained front and center throughout the year. In response to these challenges, the PEGCC spent much of 2013 working to shape the debate around these issues, and obtaining results that benefit our membership.

In 2013, we concentrated our work in several areas, including continuing our award winning Private Equity at Work public education campaign. We redoubled our efforts to educate the policy community about the value of private equity and growth capital. This included allocating considerable resources to connect policymakers with portfolio companies operating in their states and districts so that they could get a first- hand look at the benefits these companies bring to the community and the local economy.

We continued to make a valuable contribution to the public debate about our industry by producing and promoting unique research and analysis. Most notably, we released our annual comprehensive breakdown of of KKR who succeeds Mark as our new Chairman. Ken private equity investment by state and Congressional brings an unrivaled blend of public policy and private district, and our second annual analysis and ranking of equity experience to the position. As a member of the large public allocations and returns from PEGCC’s Board of Directors, Ken has long been a private equity investments. driving force behind our major initiatives, and we are very fortunate to have him as our new Chairman. The Council successfully defended renewed attacks on the tax treatment of carried interest. We also continued In sum, private equity and growth capital have a to make progress with the House passage of H.R. 1105, compelling story to tell, and the Council will continue a bill exempting advisers to private equity funds from to push hard to educate policymakers and the public SEC registration requirements, and helped organize about the industry. By strengthening companies a coalition of industries and businesses to push for and delivering superior investment returns to public retaining the full deductibility of interest expenses in pension funds, university endowments and charitable tax reform proposals. foundations, our industry makes a positive difference in people’s lives every day. The PEGCC also welcomed a new class of members this year. Our Associate Members are comprised of As we reflect on the year just passed and look to 2014, leading law and accounting firms. They bring a unique we thank you for supporting our efforts. Please enjoy perspective about the industry and diverse skillsets our 2013 Annual Report. into the association that will strengthen our ability to advocate for private equity and growth capital. Their expertise and participation has already been felt throughout the Council, including our submission of two amicus briefs, numerous regulatory comment letters, and their participation in our General Sincerely, Counsels’ Day and Chief Compliance Officers’ Steve Judge, President & CEO Working Group.

Lastly, the end of 2013 marked a transition in the Council’s leadership on the Board of Directors. Our Chairman of the Board, Mark Tresnowski of Madison Dearborn Partners, stepped aside after four years of exceptional leadership. From our many legislative battles over carried interest and the Dodd-Frank Act, to the 2012 presidential election that brought our industry into the national spotlight, Mark guided the Council with equanimity and the friendly demeanor that became his trademark. There is no doubt that we are a more robust and effective advocacy organization as a result of his hard work and dedication to the PEGCC and the entire private equity and growth capital industry. In 2014, we welcome Ken Mehlman

Private Equity Growth Capital Council | 2013 Annual Report 5 Section 1

Public Affairs The PEGCC entered 2013 with a continued focus on telling the broader private equity story in an effort to build on the reputational gains made during the election year. The year started just where 2012 left off, with a flurry of press coverage surrounding President Obama’s calls to change the tax treatment of carried interest in a pre-Super Bowl interview.

Private equity faced a new set of challenges in 2013. The interest deductibility. The PEGCC will continue to work debate around tax reform began in earnest, and long- with the BUILD Coalition to emphasize the importance standing policies important to the private equity business of interest deductibility for businesses of all sizes and how model stood at risk. Keeping pace with its 2012 efforts, detrimental it would be to the economy if it were limited the PEGCC Public Affairs department kicked off 2013 in any manner. with a focus on communicating and demonstrating the Private Equity at Work industry’s value proposition for the U.S. economy, while ramping up aggressive issue advocacy for legislative and The PEGCC’s Private Equity at Work campaign was regulatory priorities. active throughout the 2012 election to balance the flow of information about the private equity industry to the The PEGCC worked with the BUILD (Businesses general public, the press, and policymakers. In recognition United for Interest and Loan Deductibility) Coalition of this work, the PEGCC and its agency of record, The to shape public discussion about the issue of interest Glover Park Group, won a PRSA Silver Anvil Award deductibility in tax reform. Unlike other tax reform of Excellence, received an Honorable Mention from the groups, the Coalition’s strategy was to engage early and Bulldog Media Relations Awards, and were finalists for a educate Members of Congress during their decision- SABRE Award. making process. The Coalition, which launched on May 22, has continued to produce and distribute reliable Though the 2012 election has come to a close, the research and policy arguments for maintaining full Private Equity at Work campaign remained in full force throughout 2013. The campaign’s website

6 Private Equity Growth Capital Council | 2013 Annual Report (www.PrivateEquityAtWork.com) continues to serve as a hub of educational information, regularly updated with illustrative videos, compelling infographics and featured news content demonstrating the critical role that private equity plays in the U.S. economy.

New Educational Videos Video case studies remained a core component of the Private Equity at Work campaign, highlighting companies engaged in successful private equity partnerships. During 2013, the PEGCC produced video case studies showcasing Berry Plastics, Entrust, and a carried Berry Plastics video case study interest whiteboard video.

■■ Based in Evansville, Indiana, Berry Plastics is a leading provider of value-added plastic consumer packaging and engineered materials. Berry Plastics benefitted from operational expertise and guidance from , increasing net sales and more than doubling employee headcount between 2005 and 2012.

■■ Entrust is a trusted provider of identity-based security solutions based in Dallas, Texas. With help from private equity firm , Entrust Entrust video case study innovated their product line to better protect their customer base, which includes banking institutions and U.S. government agencies. Since 2009, Entrust has increased revenues dramatically.

■■ Increasing its focus on tax reform during 2013, the Council continued to use educational whiteboard videos to explain issues that are often misunderstood or mischaracterized. The Council’s latest “What is Carried Interest?” video concisely explains what carried interest is and why it’s appropriately taxed as a capital gain. The video was viewed nearly 7,000 times during 2013. ’What is Carried Interest?’ whiteboard video

Private Equity Growth Capital Council | 2013 Annual Report 7 Media Outreach In recognition of its While the PEGCC has increased its use of new and interactive communications tactics, traditional media Private Equity at Work remains the core of its efforts. campaign, the PEGCC The compelling data produced by the PEGCC Research team earned significant coverage during won a PRSA Silver Anvil 2013. The Council’s investment report, “Private Award of Excellence. Equity: Top States and Districts,” quantified private equity investment in the U.S., ranking top states and Congressional districts that received private equity investment. With proactive press outreach and an illustrative infographic, the “Top States and Districts” The PEGCC’s second annual Public Pension Fund report was covered by 40 regional and national news study was equally successful, proving that private outlets, including The Wall Street Journal, The Denver equity outperforms all other asset classes by ranking Post, the Miami Herald and Bloomberg TV. the top 10 pension funds by private equity performance and private equity allocation. The PEGCC’s pension report, accompanied by an infographic illustrating the Private Equity at Work data, was covered by 33 outlets, including Bloomberg, Private equity invests in a wide variety of industries. Pensions & Investments, the San Francisco Chronicle, The % Materials & Resources Includes approximately 2,800 3 U.S. based private equity firms, Information Business Technology Services Boston Globe and Politico. % 18% 16

Invests approximately $3.6T over the last Healthcare % ten years. 9 % 19 Consumer

18% Sponsors more than Financial % 17,700 Services 17 U.S. based companies that employ Energy 1 2 3 4 5 6 7 PEOPLE 7.5M WORLDWIDE (2012 Investments)

Top 20 Private Equity Investment by State (2012 Investments)

2012 U.S. Total: $347B in 2,083 portfolio companies

BY STATE NUMBER OF INVESTMENTS INVESTMENT VALUE (BIL)

TEXAS 222 $46.6 NORTH CAROLINA 64 $10.1

CALIFORNIA 255 $35.0 MICHIGAN 50 $9.6

COLORADO 67 $26.8 MASSACHUSETTS 71 $9.6

ILLINOIS 119 $19.1 WISCONSIN 47 $9.1

FLORIDA 115 $17.3 INDIANA 35 $8.5 NEW YORK 96 $15.6 WASHINGTON 39 $8.2 Steve Judge appearing on Bloomberg’s ‘Money Moves’ PENNSYLVANIA 88 $15.0 MISSOURI 30 $7.6

NEW JERSEY 67 $14.8 UTAH 26 $6.8

GEORGIA 77 $11.9 ARIZONA 37 $6.7

OHIO 66 $10.4 OKLAHOMA 29 $6.0 In addition to coverage earned by PEGCC research, the Council helped to place three opinion pieces during 2013. ’Private Equity: Top States and Districts’ infographic ■■ Pam Hendrickson, Chief Operating Officer at The Riverside Company, authored an op-ed published in The Wall Street Journal titled, “Think Twice Before Raiding Carried Interest.”

8 Private Equity Growth Capital Council | 2013 Annual Report ■■ Published in The New York Times DealBook blog, PEGCC President and CEO Steve Judge The Numbers wrote a guest column on the implications of the The Council’s efforts showed impressive results Sun Capital case entitled, “Why a Pension Case throughout 2013. will not Change Private Equity Tax Law.” Through media outreach, ■■ Again, in an opinion piece that ran both as a print 230 the PEGCC was mentioned in more than 230 news stories. letter in The New York Times, as well as in a longer form on the paper’s DealBook blog, Judge explained The PEGCC executed a “Why Carried Interest is a Capital Gain.” record 80 meetings between Mobilizing Portfolio Companies 80 Members of Congress and portfolio company CEOs. Connecting lawmakers with portfolio companies based in their districts is one of the most effective As of the end of 2013, the ways the PEGCC helps demonstrate the tangible Council’s Twitter page impact that private equity creates in communities (@PEGCCouncil) had more than across the country. The PEGCC executed a record 1,750 followers. PEGCC tweets 80 meetings between portfolio company CEOs and 1,750 are often retweeted by industry policymakers such as Sen. Tim Kaine (D-VA), Rep. stakeholders including private Jim Himes (D-CT), Sen. Dan Coats (R-IN), and equity executives, portfolio Rep. Erik Paulsen (R-MN). company CEOs and journalists.

This program has become essential to the PEGCC’s The Council continues Congressional outreach and lobbying efforts. The to share photos, videos Council has successfully organized nearly 200 meetings 3,100 and updates through its since beginning the program, and expects to redouble Facebook page, which has its efforts with the support of its membership. more than 3,100 “likes.”

The PEGCC executed a Looking Ahead 2014 promises to be a big year for the PEGCC. As record 80 meetings the debate over tax reform continues to take shape, the Council will continue to vigilantly defend policies between Members of that encourage investment in America’s economy. The Congress and portfolio PEGCC will focus its efforts on providing clarity and real-life application for industry tax issues that are company CEOs. often mischaracterized by the media, and therefore misunderstood by the general public. As it has done since 2007, the Council will continue to work tirelessly to demonstrate the vital role the private equity industry plays in growing and creating more valuable companies across the country every day.

Private Equity Growth Capital Council | 2013 Annual Report 9 Section 2

Government Affairs Early in 2013, the PEGCC recognized that it needed to dedicate substantial time and effort to ensure that the private equity industry remained well positioned on our three primary tax issues: carried interest and enterprise value; interest deductibility; and pass-through taxation. In addition, the PEGCC effectively engaged with Congress and regulators to advocate for appropriate policies that strengthen private equity and encourage investment. Ultimately, these efforts resulted in significant progress for PEGCC members on multiple fronts.

Tax Policy Carried Interest: The PEGCC continued to educate Members of Congress on why carried interest is – and always has been – appropriately taxed as capital gains income. In April, the Council filed a comment letter with the House Ways and Means Committee defending its current tax treatment. Since 2007, the PEGCC’s consistent outreach has helped expand the ranks of legislators who support the industry position on carried interest.

Interest Deductibility: As 2013 began, policy makers from both sides of the aisle indicated a Senate Republican Leader Mitch McConnell (R-KY) speaks at possible desire to limit interest deductibility as part the PEGCC’s Annual Meeting on September 19, 2013

10 Private Equity Growth Capital Council | 2013 Annual Report of comprehensive tax reform. The PEGCC strongly advocated for maintaining full interest deductibility and worked with many allies on the Hill and in the larger business community by becoming a founding member of the BUILD Coalition. Combined with a targeted communications and research strategy, the BUILD Coalition held more than 60 meetings with tax policy leaders in the House and Senate during 2013, advancing the cause of maintaining full interest deductibility. In 2014, both the PEGCC and the BUILD Coalition will continue their efforts on this important issue.

House Speaker John Boehner (R-OH) speaks at the PEGCC’s Annual Member Dinner on September 18, 2013

Pass-through Tax Treatment: The PEGCC continued to engage on Capitol Hill to prevent proposals that would tax pass-through businesses at the entity level. The PEGCC’s hard work paid off as bipartisan opposition to entity level taxes on pass-through businesses grew, and the Council expects that future debates on tax reform will continue to implicate pass- throughs and require the PEGCC’s attention.

The PEGCC's consistent outreach has helped

BUILD Coalition interest deductibility whiteboard video expand the ranks of legislators who support the industry position on carried interest.

Private Equity Growth Capital Council | 2013 Annual Report 11 Sen. Michael Bennet (D-CO) (left) and former Sen. Evan Bayh (D-IN), senior advisor at Apollo Global Management, speak at the PEGCC’s Annual Meeting on September 19, 2013

Investment Adviser Registration ■■ Joining the U.S. Chamber of Commerce to file The PEGCC worked to advance bipartisan legislation comments on the re-proposed risk retention rules; to remove unnecessary regulatory burdens imposed on ■■ Submitting a comment letter on the SEC’s private equity and growth capital by the Dodd-Frank proposed amendments to Regulation D, Form D Act. For the first time, the Small Business Capital and Rule 156 of the Securities Act; Access and Job Preservation Act (H.R. 1105) passed the full House of Representatives in 2013. In 2014, the ■■ Successfully convincing the SEC’s Division of Council’s Government Affairs department will focus Investment Management to issue revised guidance attention on advancing the proposal in the Senate. that addresses some of the industry’s concerns on Regulatory Policy the Custody Rule; and In 2013, the PEGCC filed five comment letters with ■■ Responding to interest by the SEC’s Division of multiple U.S. and foreign agencies, and conducted Trading and Markets regarding whether private several in-person meetings with key regulators. equity investment advisers should also have to register as broker-dealers in certain circumstances. The PEGCC Government Affairs department’s 2013 regulatory efforts included: Overall, the Council’s efforts have yielded positive results. For example, the final Volcker Rule regulations ■■ Aggressively advocating on behalf of the private equity clarified that insurance company general accounts and industry around the Volcker Rule and the CFTC’s separate accounts are not subject to the restrictions on new proposed rule on aggregation of positions; investing in private funds. In addition, final Volcker Rule regulations clearly state that a banking entity is not subject to the restrictions on investing in private

12 Private Equity Growth Capital Council | 2013 Annual Report funds where it is acting in a fiduciary or similar capacity on behalf of its customers. The final rules also preserve the ability of U.S. private equity firms to sponsor non-U.S. funds with investors that include non-U.S. banking entities and appear to preserve the flexibility of U.S. private equity firms to include such non-U.S. funds into parallel fund structures.

Legal Advocacy In 2013, the PEGCC responded quickly when the First Circuit Court of Appeals held in III, LP et al. v. New England Teamsters & Trucking Industry Pension Fund et. al., that a private equity fund sponsored by Sun Capital Partners constituted a “trade or business” for purposes of ERISA multi-employer pension withdrawal liability. The PEGCC filed two amicus curiae briefs – one with the First Circuit Court of Appeals and one with the U.S. Supreme Court – advocating that ERISA withdrawal liability under multi-employer pension plans should not apply to private equity funds. SEC Chair Mary Jo White speaks at the PEGCC’s Looking Ahead Annual Meeting on September 19, 2013 While the PEGCC made progress on many issues in 2013, the regulatory calendar remains busy for The PEGCC will remain 2014. The Council anticipates that regulators will issue several final rules within the next few months, actively engaged with including the CFTC aggregation rule and possibly incentive compensation rules. The PEGCC also regulators, agency expects that regulators will continue to examine other staffs and legislators issues of importance to the industry, including some of the square peg/round hole problems with Investment on Capitol Hill. Adviser Act applicability to private equity. Throughout this process, the PEGCC will remain actively engaged as appropriate with regulators, agency staffs and legislators on Capitol Hill.

The PEGCC expects that 2014 will be a year filled with political messaging more than legislative action due to the upcoming mid-term elections in November. There will likely be continuous discussions on job creation, income inequality, tax policy, and immigration reform, among many other topics.

Private Equity Growth Capital Council | 2013 Annual Report 13 Section 3

Research Research plays a critical role in illustrating how private equity and growth capital benefit the American economy, why it’s important to ensure that U.S. policies encourage investment, and how private equity performance benefits its investors. In 2013, research produced and promoted by the Council’s Research team focused on highlighting the role that private equity and growth capital plays in states and municipalities around the country, strengthening retirements for millions of Americans and growing businesses in communities of all sizes.

Public Pension Fund Analysis Massachusetts PRIT took the top spot, based on a The PEGCC’s second annual public pension fund 15.4 percent annualized return over the past 10 years. analysis, released in October, found that private equity The median pension fund received 10 percent from outperforms other asset classes, demonstrating the private equity annualized over 10 years, compared to industry’s role in strengthening the retirement security 5.8 percent for public equity and 6.6 percent for fixed for millions of Americans who rely on pension benefits. income during the same period.

The report examined 146 U.S. public pension funds Information about the investment allocation and with assets greater than $1 billion, analyzed the asset performance by asset class of the public pension funds allocation of these funds, and compared the performance used in the analysis is available to PEGCC members of their private equity investments to other asset classes. through the Council’s proprietary online database. The report then ranked the top 10 public pensions by Additionally, the PEGCC published a white paper – private equity investment performance. “Long-Term Commitments: The Interdependence of Pension Security and Private Equity” – based on the

14 Private Equity Growth Capital Council | 2013 Annual Report results of the first public pension study, highlighting In the 2013 report, Texas received the most the outperformance of private equity investment by investment from private equity (measured in dollars pension funds and its importance to the retirement invested) totaling $46.6 billion in 222 companies, security of pension recipients. followed by California, Colorado, Illinois and Florida. Colorado’s 6th Congressional District,

Private Equity at Work: Strengthening represented by Rep. Mike Coffman, received $17.2 Retirement for Millions of Americans billion and ranks as the top district for private equity Top 10 Pension Funds by Private Equity Return 1 investment. Congressional districts represented by Massachusetts Pension Reserves 6 Iowa Public Employees' 1 Investment Trust (PRIT) Fund Retirement System Reps. Sheila Jackson Lee (TX-18), Danny K. Davis Los Angeles County Employees San Francisco Employees' 2 7 Retirement Association Retirement System (IL-7), Rodney Frelinghuysen (NJ-11) and Kenny 3 Teacher Retirement System of Texas 8 Utah Retirement System

Houston Firefighters' Relief Pennsylvania Public School 4 and Retirement Fund 9 Employees' Retirement System Marchant (TX-24) rounded out the top five.

Minnesota State Board of Contra Costa County Employees' 5 Investment (Combined Funds) 10 Retirement Association The PEGCC’s interactive U.S. map also allows users to Pension funds’ investments in private equity outperform other asset classes based on median10-year annualized returns 2 learn about private equity’s investment in their regions as

10-YEAR PUBLIC EQUITY (STOCKS) 5.8% well as their state pensions’ investments in private equity. MEDIAN PRIVATE EQUITY 10.0% ANNUALIZED RETURN (%) FIXED INCOME (BONDS) 6.6% REAL ESTATE 6.7%

Asset Allocation by Total Dollars Invested on a Dollar-Weighted Basis

2.7% - Cash/Short-Term Investments 6.6% - Other 7.5% - Real Estate Pension Funds 10.3% - PRIVATE EQUITY invest 10.3% of their portfolio in private equity. 3 24.3% - Fixed Income

48.6% - Public Equity (Stocks)

This analysis is based on data collected from the financial reports of 146 large public pension funds (with $1 billion or more in assets), where data were available at the time of the study (August 2013). Return figures for marketable securities are reported both net and gross of management fees. Return figures for private equity and other illiquid assets are typically reported net of management fees and carry. 1 The ranking of pension funds by private equity returns is based on a composite of 5- and 10-year annualized returns for pensions with more than ten years of investment in private equity. Reporting dates vary between June 30, 2012 and December 31, 2012. 2 Asset class returns are based on pension funds that reported 10-year annualized returns as of June 30, 2012. 3 The analysis of investment allocation is based on financial statements with reporting dates between March 31, 2012 and July 31, 2013, with most statements as of June 30, 2012.

Public Pension Fund Analysis infographic

Investment in States and Districts Released in June 2013, the third annual “Private Equity:

Top States and Districts” report revealed that private Private Equity in Your State equity firms invested $347 billion in more than 2,000 U.S.-based companies last year. The analysis ranked the top 20 states and Congressional districts receiving private equity investment in 2012 by investment value and the number of investments.

The report highlights the magnitude of private equity investment nationwide, educating Members of Congress about how private equity drives growth in their local economy and illuminating the diverse industries and regions that receive investment from the industry.

Private Equity Growth Capital Council | 2013 Annual Report 15 Private Equity Trends & Performance To provide a snapshot of the private equity market, the PEGCC Research team tracks fundamental industry trends as well as the performance of fund investments Colorado Ranks Third in Private- through its quarterly reports. Equity Investment Value in 2012 The “PEGCC Trends Report” examines quarterly changes in key industry activities, such as investments, exits and fundraising.

The “PEGCC Performance Update” analyzes the Michigan Private Equity Gains Ranking outperformance of private equity compared to public equity, based on quarterly information from public pension funds and private equity benchmark providers.

Each analysis is regarded as a leading indicator by private equity industry participants, and generates consistent media coverage. What Housing Congressional District Pulled in the Most PE Dollars? The Results Designed to educate the Council’s key audiences and provide clarity for sometimes complex concepts, the PEGCC’s research consistently receives positive feedback from lawmakers, industry thought leaders, journalists and others. In 2013, more than 100 national and regional Equity Firms Boost Pension Fund outlets covered the PEGCC’s research, ensuring its visibility for an even wider audience.

Looking Ahead 2014 will be an exciting year for PEGCC research. With several studies, analyses and partnerships with These Pension Funds Made a other esteemed organizations currently in the works, Killing with Private Equity the PEGCC will continue to produce compelling and illustrative reports to further enhance efforts to communicate the valuable role the private equity industry plays in the American economy. Happ(ier) Returns

16 Private Equity Growth Capital Council | 2013 Annual Report Section 4

Membership Services Increased engagement from PEGCC members directly improves the Council’s ability to be at the forefront of its legislative, regulatory and public affairs advocacy work, while providing members with increased value by expanding their network and pool of resources. The Council’s ever-expanding membership services program is fundamental to providing its members with the highest level of service and benefit.

2013 Activities The Council achieved many notable accomplishments in the area of Membership Services in 2013:

Committee and Membership Activities: Activity levels for Committee functions and member calls have steadily increased. This includes more engagement of the CFOs’ Committee, Research- Relations’ Committee, CCOs’ Working Group, and General Counsels’ Committee. Additionally, the Council held its first annual General [From left] Rep. Robert Hurt (R-VA), House Financial Counsels’ Day on November 7, a well-received event Services Subcommittee Chairman Scott Garrett (R-NJ), featuring expert panelists from our Associate Member outgoing PEGCC Chairman Mark Tresnowski, managing firms on the topics of fundraising trends, trends in deals, director and general counsel at Madison Dearborn Partners, and Robert Hull, CFO of Partners attended and SEC examinations, enforcement, and regulation. the PEGCC’s Annual Member Dinner on September 18, 2013

Private Equity Growth Capital Council | 2013 Annual Report 17 Annual Meeting and Member Dinner: Held annually in Washington, D.C., this year’s event kicked off with our Member Dinner featuring House Speaker John Boehner (R-OH), followed by the Annual Meeting, which included sessions with Sen. Michael Bennet (D-CO), Senate Republican Leader Mitch McConnell (R-KY), Rep. Richard Neal (D-MA), Rep. Steve Southerland, II (R-FL) and SEC Chair Mary Jo White. PEGCC member attendance increased by more than 30 percent in 2013, and the Council received a significant amount of positive feedback regarding the quality of the program.

Membership Expansion: Membership expansion was a core objective for 2013, with the establishment of the new PEGCC Associate Member class. The details of this membership program were developed Outgoing PEGCC Chairman Mark Tresnowski, managing director and general counsel at Madison Dearborn Partners, speaks during the second quarter of the year, and outreach at the PEGCC’s Annual Member Dinner on September 18, 2013 to trusted service providers began in early summer. The Associate Member class began with law firms, and expanded to accounting and valuation firms in the fall. The Council is proud to welcome its first 14 Associate Members, and looks forward to working with them in 2014 and beyond.

18 Private Equity Growth Capital Council | 2013 Annual Report Current Membership Our Members Associate Members

■■ ACON Investments ■■ Cleary Gottlieb Steen & Hamilton ■■ ■■ Debevoise & Plimpton ■■ Apollo Global Management ■■ Deloitte ■■ ArcLight Capital Partners ■■ EY ■■ Bertram Capital Management ■■ Kirkland & Ellis ■■ ■■ KPMG ■■ Brockway Moran & Partners ■■ Latham & Watkins ■■ ■■ Paul, Weiss, Rifkind, Wharton & Garrison ■■ CCMP Capital Advisors ■■ Proskauer ■■ Crestview Partners ■■ Ropes & Gray ■■ The Edgewater Funds ■■ Sidley Austin ■■ ■■ Simpson Thacher & Bartlett ■■ GTCR ■■ Sullivan & Cromwell ■■ Hellman & Friedman ■■ Vinson & Elkins ■■ Highstar Capital Staff List ■■ ■■ ■■ The Steve Judge, President and CEO ■■ ■■ Kelso & Company Ken Spain, VP, Public Affairs ■■ & Co. and Communications ■■ ■■ KPS Capital Partners Jason Mulvihill, General Counsel ■■ ■■ Madison Dearborn Partners Langston Emerson, VP, Government Affairs ■■ ■■ Bronwyn Bailey, VP, Research ■■ ■■ Providence Equity Partners Jennifer Colfelt, VP, Finance, Operations ■■ The Riverside Company and Membership ■■ ■■ Silver Lake Christopher Krueger, Director, Grassroots ■■ Sterling Partners and Outreach ■■ ■■ Sun Capital Partners Noah Theran, Director, Communications ■■ ■■ TA Associates Caroline Teh, Senior Researcher ■■ ■■ Thoma Bravo Marie Fenton, Executive Assistant to the CEO ■■ ■■ TPG Capital Mallory Denniston, Administrative Assistant ■■ Vector Capital ■■ ■■ Welsh, Carson, Anderson & Stowe

Private Equity Growth Capital Council | 2013 Annual Report 19 PRIVATE EQUITY GROWTH CAPITAL COUNCIL 950 F Street, NW Suite 550 | Washington, DC 20004

Phone: (202) 465-7700 | Email: [email protected] Follow us at @PEGCCouncil Visit us at www.pegcc.org and www.privateequityatwork.com