Private Equity & Venture Capital

VOLUME 13, ISSUE 5 ■ JUNE 2017

alternative assets. intelligent data. PRIVATE EQUITY & VENTURE CAPITAL SPOTLIGHT

OVERACHIEVERS: GPS SEEING IN THIS ISSUE SUCCESS ON THE ROAD Preqin’s data shows a key trend in the value of prior fundraising experience in reaching a first close quickly. Managers that have previously raised at least $5bn are those that have most often exceeded their target size by 25% or more. FEATURE 3 Overachievers: GPs Find out more on page 3 Seeing Success on the Road

FEATURE 8 Venture Capital Exits ‘Snap’ Back in North VENTURE CAPITAL EXITS ‘SNAP’ America BACK IN NORTH AMERICA INDUSTRY NEWS 12 The North American venture capital exit environment in 2016 was anchored by 11 notable transactions, each of THE FACTS which was valued at more than $1bn. ■ Private Equity in 14 Canada ■ Sovereign Wealth 17 Find out more on page 8 Funds Investing in Private Equity 19 ■ Micro Venture Capital

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Dear Spotlight reader,

We are very pleased to offer a10% discount to Spotlight readers for registrations to SuperReturn Asia in Hong Kong, 25 – 28 September 2017.

Bringing together private equity leaders from around the world, you can expect to meet and network with:

• 750+ top private equity and venture capital attendees

• 400+ local and international LPs, including decision makers from pension plans, family offices, sovereign wealth funds, foundations and fund of funds

• 300+ of the world’s most influential GPsfrom 5 continents

As well as offering you the perfect opportunity to connect with LPs via a networking app and other facilities, the conference will dig deeper into venture capital, co-investments and explore the current dynamics of the LP/GP relation- ship plus cover the hottest topics in private equity.

Please visit the website for full event details.

I hope to see you there!

Kindest regards

Mark O’Hare Managing Director, Preqin

For all bookings & enquiries, please contact the SuperReturn Asia Team Quote VIP: FKR2433PRQS for your 10% discount Tel: +44 (0) 20 7017 7200 Email: [email protected] Or register online here. OVERACHIEVERS: GPS SEEING SUCCESS ON THE ROAD OVERACHIEVERS: GPs SEEING SUCCESS ON THE ROAD In this month’s feature article, we examine how recent distributions and increased LP appetite for private equity has affected the fundraising landscape, providing insight into which managers have enjoyed a successful time on the road.

2016 marked the fourth consecutive year Fig. 1: Average Time Spent on the Road by Private Equity Funds and Average Fund Size, in which private equity fundraising has 2008 - 2017 YTD (As at May 2017) surpassed $300bn; an aggregate $378bn 25 700 was raised by 948 private equity funds,

20 20 625 600 Average Fund Size ($mn) the highest level of capital secured since 20 18 18 18 18 the Global Financial Crisis. A driving 17 500 force behind this increase in fundraising 15 15 15 456 400 activity has been the high levels of 427 12 distributions recorded in recent years. In 372 388 389 300 Preqin’s December 2016 survey of over 10 323 273 283 200 investors active in private equity, 248 200 95% of respondents reported that their 5 100 investments had met or exceeded their expectations, and nearly half (48%) of on Road (Months) Spent Time Average 0 0 investors surveyed planned to increase 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 their allocations to the asset class over the YTD Year of Final Close longer term. Average Time Spent on Road (Months) Average Fund Size ($mn) PRIVATE EQUITY: ANNUAL AMOUNT Source: Preqin Private Equity Online CALLED-UP AND DISTRIBUTED With LPs receiving strong returns on focus and manager experience can affect 472 their private equity investments, many investor demand, a fund’s time on the road 439 investors have returned to private equity and its ability to achieve its target. to re-invest their gains. This has not only 323 305295 led to more capital entering the private GEOGRAPHY 257 224 equity industry, but to managers spending Over the course of the past four years, the less time in market and raising larger funds average time taken for a private equity 129 (Fig. 1). fund to reach a final close has decreased, and this trend is generally seen across all This article will examine the impact of regions (Fig. 2). Europe-focused private 2013 2014 2015 H1 recent distributions on fundraising, and equity funds closed in 2016 were the 2016 how fund performance, geographic fastest to reach a final close, spending Capital Called-up Capital Distributed

Fig. 2: Average Time Spent on the Road by Private Equity Funds Fig. 3: Average Size of Private Equity Funds by Geographic by Geographic Focus, 2008 - 2017 YTD (As at May 2017) Focus, 2008 - 2017 YTD (As at May 2017) 30 800

700 25 600 20 500

15 400

300 10 200 Average Fund Size ($mn) Size Fund Average 5 100 Average Time Spent on Road (Months) Spent Time Average 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD YTD Year of Final Close Year of Final Close North America Europe Asia Rest of World North America Europe Asia Rest of World Source: Preqin Private Equity Online Source: Preqin Private Equity Online

3 Private Equity & Venture Capital Spotlight | June 2017 © Preqin Ltd. 2017 / www.preqin.com OVERACHIEVERS: GPS SEEING SUCCESS ON THE ROAD

an average of 14 months in market. This Fig. 4: Average Time Spent on the Road by Aggregate Capital Previously Raised, represents a change in the historical trend 2013 - 2017 YTD (As at May 2017) of North America-focused funds spending 100% 25 Months or the shortest amount of time raising 90% 16% 14% 18% More capital. However, North America-focused 33% 80% 14% funds regained the top spot in the first five 19% 15% 19-24 Months months of 2017, with 153 funds closed 70% 17% 60% 13% having spent an average of just nine 20% 15% months on the road, a significantly shorter 50% 13-18 Months 20% period than seen in any region historically 40% 16% 23% 30% – perhaps unsurprising given the majority 30% 6-12 Months (61%) of investors surveyed by Preqin in 17% Proportion of Funds Closed of Funds Proportion 20% 36% December 2016 saw North America as 27% 10% 24% Less than 6 presenting the best opportunities in the 14% Months current market. 0% Less than $500-999mn $1-4.9bn $5bn or More $500mn While private equity funds have been spending less time raising capital in recent Aggregate Capital Raised since 2013 years, the average size of funds entering Source: Preqin Private Equity Online the market has been increasing (Fig. 3). With the exception of Asia-focused funds, Fig. 5: Average Proportion of Target Size Achieved by Aggregate Capital Previously fund sizes stayed relatively level between Raised, 2013 - 2017 YTD (As at May 2017) 2013 and 2015. 2016, however, witnessed 100% 11% a spike in the size of Europe-focused funds. 90% 21% Three of the 10 largest Europe-focused 27% 125% or More 80% 38% private equity funds ever raised closed 25% 70% in 2016: Advent Global Private Equity 101-124% Funds VIII ($13bn), Ardian Secondary 60% 40% 24% 39% Fund VII ($10.8bn) and Apax IX ($9bn). 50% 100% 37% So far in 2017, it is North America- and 40% 50-99% Asia-focused funds that have attracted 30% 20% greater levels of capital than previously 33% 18% Proportion of Funds Closed of Funds Proportion 20% 11% Less than 50% seen. Three North America-focused funds 15% 10% 15% 12% have closed in 2017 so far, having secured 8% 0% 3% 1% 2% over $10bn: Silver Lake Partners V ($15bn), Less than $500-999mn $1-4.9bn $5bn or More KKR Americas Fund XII ($13.9bn) and Vista $500mn Equity Partners Fund VI ($11bn). Aggregate Capital Raised since 2013 Source: Preqin Private Equity Online MANAGER EXPERIENCE Perhaps unsurprisingly, the mega funds mentioned above were all raised by Fig. 6: Average Time Spent on the Road, Target Size Achieved and Average Fund Size by Fund Manager Rank, 2013 - 2017 YTD (As at May 2017) experienced managers, and are the latest funds in their respective, established 126% 116% 115% 112% series. As seen in Figs. 4 and 5, a manager’s 20 19 5

experience, measured by the amount Average Fund Size ($bn) 18 17 of capital raised since 2013, directly 16 4.4 4 correlates to fundraising success. The 14 13 3.6 majority (55%) of managers to have raised 12 3 9 $1bn or more since 2013 have spent an 10

(Months) 8 2 average of 12 months or less on the road, 6 1.7 1.7 compared with 31% of managers that have 4 1 raised less than $500mn. Only one-third 2 Average Time Spent on Road Spent Time Average of funds raised by managers that have 0 0 secured $5bn or more take over 18 months 1-10 11-25 26-50 51-100 to close on average, indicative of larger Fund Manager Rank (by Capital Raised since 2013) funds being raised by more established Average Time Spent on Road (Months) x% Average Proportion of Target managers. Average Fund Size ($bn) Size Achieved Source: Preqin Private Equity Online

4 Private Equity & Venture Capital Spotlight | June 2017 © Preqin Ltd. 2017 / www.preqin.com OVERACHIEVERS: GPS SEEING SUCCESS ON THE ROAD

Following recent investor distributions and Fig. 7: Average Time Spent on the Road: Consistent Top Performing Managers vs. All LPs’ positive perception of private equity, Other Managers, 2013 - 2017 YTD (As at May 2017) the majority (68%) of funds closed since 100% 2013 have met or exceeded their target 7% 90% 24% size. Where experienced managers have 15% 25 Months or More seen greater success is in exceeding their 80% targets: managers that have previously 70% 16% 18% 19-24 Months raised at least $5bn are those that have 60% most often exceeded their target size by 15% 50% 13-18 Months 25% or more – Fig. 5 shows a clear trend 19% in this regard that therefore illustrates the 40% value of fundraising experience. 6-12 Months 30% 21%

Proportion of Funds Closed of Funds Proportion 47% 20% KEY ATTRIUBTES INVESTORS CONSIDER Less than 6 Months WHEN EVALUATING A FUND MANAGER 10% 17% 83% 0% Consistent Top Performing All Other Managers 61% 61% Manager Source: Preqin Private Equity Online the most capital are spending more time as the most consistent performers in the in market, but are securing significantly industry based on the quartile rankings of greater levels of capital. The average size their funds. As seen in Fig. 7, 47% of funds of a fund raised by a manager ranked 1-50 raised by these consistent top performing is over 2x larger than that of a manager managers typically spend less than six ranked 51-100. This greater fund size is months on the road, while the remainder Record Record not only driven by the most experienced of the fund manager universe tends to Firm Track Track Firm Experience Team Track Track Team managers targeting larger funds, but experience a longer fundraising journey. Team Strategy Strategy Team also by LP demand for these high-profile Not only do consistent top performing By assigning active fund managers with a vehicles. managers excel in terms of time on the ranking based on the amount of private road, but also in reaching and exceeding equity capital raised since 2013, we can PAST PERFORMANCE their fundraising targets (Fig. 8). Two- see a similar trend emerging with regards Fund performance is a key factor thirds of funds raised by consistently top to exceeding their target size. Despite determining a fund manager’s ability to performing managers exceeded their the average fund size raised by managers raise capital: 83% of investors surveyed by target – just 7% fell short of their capital ranked 1-10 exceeding $4bn, there Preqin in December 2016 cited team track goal, compared with one-third of all other remains strong LP demand for these larger record as the key attribute considered private equity fund managers. vehicles: on average, a fund raised by a top when evaluating a fund manager. In 10 manager will exceed its target size by Preqin’s 2017 Global Private Equity Follow-on funds to top performers are 26% (Fig. 6). The managers that have raised Report, 40 fund managers were identified naturally likely to attract LP attention as

Fig. 8: Average Proportion of Target Size Achieved: Consistent Fig. 9: Average Time Spent on the Road and Proportion of Target Top Performing Managers vs. All Other Managers, Size Achieved by Performance of Predecessor Fund, 2013 - 2017 YTD (As at May 2017) 2013 - 2017 YTD (As at May 2017) 20 120% 100% 19 18 18 Average Proportion of Target Size 17% 18 90% 23% 115% 16 114% 80% 125% or More 14 110%

70% 29% 11 Achieved 101-124% 12 105% 60% 10 105% 45% 104% 50% 100% 8 100% 21% 40% 6 97% 95% 50-99% 4 30% 90% 2 Proportion of Funds Closed of Funds Proportion Less than 50% 20% 25% 27% on Road (Months) Spent Time Average 0 85% 10% 1st 2nd 3rd 4th 6% 0% 1% 6% Performance Quartile of Predecessor Fund Consistent Top All Other Managers Average Time Spent on Road (Months) Performing Manager Average Proportion of Target Size Achieved Source: Preqin Private Equity Online Source: Preqin Private Equity Online

5 Private Equity & Venture Capital Spotlight | June 2017 © Preqin Ltd. 2017 / www.preqin.com OVERACHIEVERS: GPS SEEING SUCCESS ON THE ROAD

they are able to demonstrate a successful Fig. 10: Average Time Spent on the Road by Performance of Predecessor Funds, Funds track record. Fig. 9 shows that funds closed Closed 2013- 2017 YTD (As at May 2017) since the start of 2013 that followed a 100% predecessor fund with a top-quartile IRR 14% 90% 20% 25 Months or spent, on average, just 11 months on the 29% 27% More 10% road and secured 114% of their target. 80% The relatively similar fundraising journeys 70% 14% 19-24 Months 28% of funds following second-, third- and 60% 18% 22% bottom-quartile predecessors emphasizes 13-18 Months 50% 26% the positivity with which investors look 12% 10% 19% upon previous strong performance. 40% 6-12 Months 30% 17% 20% 17%

Nearly two-thirds (63%) of funds following Closed of Funds Proportion 20% 37% a top-quartile predecessor closed within a Less than 6 10% 23% 22% year, and 70% exceeded their fundraising 16% Months 0% target. This being said, the majority of 1st 2nd 3rd 4th funds closed since 2013 that followed the strategy of a predecessor exceeded Performance Quartile of Predecessor Fund Size their target. The difference occurs instead Source: Preqin Private Equity Online in the speediness of the final close, with imperative to keep track of the latest During this time of competitive private the proportion of funds following a top- funds on the road. Preqin’s Private Equity equity fundraising, investors’ access to quartile predecessor closing within 12 Online profiles 1,931 private equity performance comparison data and fund months –1.5x quicker than that of funds funds currently seeking an aggregate managers’ ability to stand out among their following a second-quartile fund. $611bn in capital commitments. Several peers may be more important than ever. funds following top-quartile-performing THE CURRENT MARKET predecessors are currently in market, With funds following top performing as are large funds representing the predecessors highly sought after, it is latest instalments in high-profile series.

Fig. 11: Sample Funds to Have Raised $1bn in Less than Six Months, 2016 - 2017 YTD (As at May 2017) Fund Geographic Time Spent on the Fund Size Fund Firm Type Final Close Date Focus Road (Months) ($bn) Genstar Capital Partners VIII Genstar Capital Partners Buyout US 2 3.3 Mar-17 MBK Partners IV MBK Partners Buyout Asia 2 4.1 Nov-16 Investindustrial Fund VI Investindustrial Buyout Europe 3 2.3 Feb-16 HGGC III HGGC Buyout US 3 1.8 Dec-16 Ardian LBO Fund VI Ardian Buyout Europe 4 4.5 Sep-16 Cinven VI Cinven Buyout Europe 4 7.7 Jun-16 Silver Lake Partners V Silver Lake Buyout US 4 15.0 Apr-17 Great Hill Equity Partners VI Great Hill Partners Balanced US 5 1.5 Feb-17 HgCapital 8 HgCapital Buyout Europe 5 3.1 Feb-17 L Catterton Partners VIII L Catterton Buyout US 5 2.8 Nov-16 Source: Preqin Private Equity Online

PRIVATE EQUITY ONLINE

The Fundraising Momentum tool on Private Equity Online can be used to view and filter the time spent on the road by closed private equity funds and funds in market.

For more information or to arrange a demo, please visit:

www.preqin.com/privateequity

6 Private Equity & Venture Capital Spotlight | June 2017 © Preqin Ltd. 2017 / www.preqin.com Global private equity fundraising Capstone Partners (www.csplp.com) is a leading independent placement agent focused on raising capital for private equity, credit, real assets and infrastructure firms. The Capstone team includes 30 experienced professionals in North America, Europe and Asia.

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Americas — Europe — Middle East — Asia Pacific Securities placed through CSP Securities, LP Member FINRA/SIPC Authorised by FINMA VENTURE CAPITAL EXITS ‘SNAP’ BACK IN NORTH AMERICA VENTURE CAPITAL EXITS ‘SNAP’ BACK IN NORTH AMERICA

Using data from Preqin’s Venture Capital Online, we examine current trends in the venture capital exit environment in North America, looking at the rise in IPO activity in recent months, and providing a round up of the largest North American venture capital exits in 2017 so far.

he average value of venture capital Fig. 1: North American Venture Capital Exits, Q1 2015 - Q2 2017 TD (As at May 2017) exits in North America has picked T 250 16 up in the first half of 2017, creating 14 optimism among fund managers and Aggregate Exit Value ($bn) 196 194 200 190 185 investors for potentially substantial 183 177 12 165 returns. The aggregate value of North 156 158 American venture capital exits in 2016 150 10 increased by 17% compared to the 8 previous year, despite the total number No. of Exits No. 100 89 6 of exits decreasing by 9% (Fig. 1). The exit 4 environment in 2016 was anchored by 11 50 notable transactions, each of which was 2 valued at more than $1bn. 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 TD LARGEST EXITS The largest North American venture 2015 2016 2017 capital exit in 2016 was the trade sale of No. of Exits Aggregate Exit Value ($bn) Stemcentrx, a company which develops Source: Preqin Venture Capital Online therapies and diagnostics for cancer TRADE SALES industry made up more than a quarter patients. The portfolio company was Of these $1bn or greater exits in 2016, all (28%) of the region’s transactions, totalling acquired by Abbvie Biotech Ventures but one were trade sales: Cvent Inc. was $8.8bn in aggregate value. Although the in April 2016 for $5.8bn in a cash and sold to Vista Equity Partners in April 2016 healthcare industry accounted for slightly stock transaction. As a Series C/Round 3 for $1.65bn. This exit will transition Cvent less in terms of number of exits (20%), investor, ARTIS Ventures has seen positive Inc. back to a private company, as it had it represented more than double the performance as a result of this exit: Artis originally held an IPO in August 2013 for aggregate value at $16bn. Ventures I has a net multiple of 3.95X, $118mn. more than twice the median multiple for IPO ACTIVITY ON THE RISE venture capital funds of the same 2010 Trade sales accounted for 87% of all North While trade sales remain the dominant vintage year. American venture capital exits in 2016, exit type in 2017, IPO activity has been on followed by sales to GPs and IPOs, at 6% the rise since 2016, particularly regarding each (Fig. 3). With 191 exits, the software the share of aggregate exit value. IPOs for

Fig. 3: North American Venture Capital Exits in 2017 YTD by Type Fig. 2: North American Venture Capital Exits in 2016 by Type (As at May 2017) 100% 100% 47 2.9 22 90% 44 2.7 90% 16 5.8 80% 80% 0.3 70% 70% IPO IPO 60% 60% Sale to GP Sale to GP 50% 50% 594 44.5 40% Trade Sale 40% 202 16.9 Trade Sale Proportion Proportion of Total 30% Proportion of Total 30%

20% 20%

10% 10%

0% 0% No. of Exits Aggregate Exit Value ($bn) No. of Exits Aggregate Exit Value ($bn) Source: Preqin Venture Capital Online Source: Preqin Venture Capital Online

8 Private Equity & Venture Capital Spotlight | June 2017 © Preqin Ltd. 2017 / www.preqin.com VENTURE CAPITAL EXITS ‘SNAP’ BACK IN NORTH AMERICA US US US US US US US US US US Location Related Internet Internet Other IT Services Semic. & Semic. Business Industry Telecoms Healthcare Healthcare Healthcare Electronics Software & Source: Preqin Venture Capital Online Capital Venture Preqin Source: 1,000 5,800 1,000 3,500 3,300 1,650 1,400 1,300 1,400 1,500 ($mn) Exit Value Exit Value AbbVie Unilever Wal-Mart TDK Corp The Allstate Allstate The Corporation Acquiror (Exit) Acquiror Cisco Systems, Inc. Systems, Cisco Vista Equity Partners Vista Dalian Wanda Dalian Wanda Group Jazz Pharmaceuticals Zimmer Holdings, Inc. Zimmer Holdings, Jul-16 Jan-16 Jun-16 Apr-16 Apr-16 Feb-16 Dec-16 Nov-16 Aug-16 May-16 Exit Date Exit Type Sale to GP Sale to Trade Sale Trade Trade Sale Trade Trade Sale Trade Trade Sale Trade Trade Sale Trade Trade Sale Trade Sale Trade Trade Sale Trade Trade Sale Trade 49 38 474 137 570 148 252 257 137 1,130 Total Known Known Total Funding ($mn) Funding Capital Partners Investors (Entry) Investors Enterprise Associates Enterprise Ventures, Waddell & Reed Waddell Ventures, Investment Co., VentureTech Alliance VentureTech Co., Investment Capital, Western Technology Investment Technology Western Capital, Venture Partners, Weston Presidio Capital Presidio Weston Partners, Venture Qualcomm Ventures, Sierra Ventures, SkyLake Ventures, Sierra Ventures, Qualcomm Artiman Ventures, Foxconn Ventures, Inventec Inventec Ventures, Foxconn Ventures, Artiman Capital, Hearthstone Investments Ltd., National National Hearthstone Ltd., Capital, Investments Accel Partners, Bank of America, Breyer Capital, Capital, Bank of America, Breyer Partners, Accel Pritzker Group Venture Capital, Shasta Ventures, Ventures, Shasta Capital, Venture Group Pritzker Goldman Sachs, IDG Capital, J.P. Morgan, Morgan Morgan Morgan, J.P. IDG Capital, Goldman Sachs, Andreessen Horowitz, Battery Ventures, Comcast Comcast Ventures, Battery Horowitz, Andreessen Catalyst Partners, Goldman Sachs, GV, MentorTech MentorTech GV, Goldman Sachs, Partners, Catalyst Appliances Corp, NTT DOCOMO , Partech Partners, NTT Partners, , Partech Corp, DOCOMO Appliances Founders Fund, Sequoia Capital, Silicon Valley Bank Valley Silicon Sequoia Capital, Fund, Founders Coatue Management, Fidelity Investments, General General Investments, Fidelity Management, Coatue Capital Partners, Sequoia Capital, Temasek Holdings Temasek Sequoia Capital, Partners, Capital Technology Crossover Ventures, Venrock, White White Star Venrock, Ventures, Crossover Technology ARTIS Ventures, Capital Group, Fidelity Investments, Investments, Fidelity Group, Capital Ventures, ARTIS Partners, Crescendo Ventures, DAG Ventures, Integral Integral Ventures, DAG Ventures, Crescendo Partners, Accel Partners, Alibaba Group, Bain Capital Ventures, Ventures, Bain Capital Group, Alibaba Partners, Accel Forerunner Ventures, Kleiner Perkins Caufield & Byers, & KleinerByers, Caufield Perkins Ventures, Forerunner Ventures, Valence Life Sciences, Ventures West West Capital Life Valence Ventures Sciences, Ventures, Ventures, New Enterprise Associates, Norwest Venture Venture Norwest Associates, New Enterprise Ventures, Healthcare Capital, Rothschild Ventures, Telegraph Hill Telegraph Ventures, Rothschild Capital, Healthcare Partners, Silicon Valley Bank, Temasek Holdings, Thrive Thrive Holdings, Temasek Bank, Valley Silicon Partners, Securities Corporation, Quaker Partners Management, Quaker Management, Partners Securities Corporation, Stanley Alternative Investment Partners, Royal Bank of Royal Partners, Investment Alternative Stanley Greenspring Associates, Insight Venture Partners, New Partners, Venture Insight Associates, Greenspring Roth Capital Partners, Thomas, McNerney & Partners, TL McNerney & Partners, Thomas, Partners, Roth Capital BDC Venture Capital, Domain Associates, GrowthWorks GrowthWorks Domain Associates, Capital, Venture BDC Argus Capital Partners, Bain Capital Ventures, BlueCrest BlueCrest Ventures, Bain Capital Partners, Capital Argus AB, Bench, Benchmark, AB, Bridgescale Benchmark Capital, Austin Ventures, Keensight Capital, Path4 Ventures, PTV Ventures, Path4 Capital, Keensight Ventures, Austin Ventures, Dragoneer Investment Group, Felicis Ventures, Ventures, Felicis Group, Investment Dragoneer Ventures, Canada, Softbank Capital, TomorrowVentures, UBS, Valar Valar UBS, TomorrowVentures, SoftbankCanada, Capital, Global Investment Partners, JPMorgan Chase, Staenberg Staenberg Chase, JPMorgan Partners, Global Investment Capital Finance, Clayton Dubilier & Rice, Draper Richards, Richards, Draper Dubilier& Rice, Clayton Finance, Capital Jul-05 Jul-11 Jul-14 Jan-03 Jan-04 Jun-05 Oct-99 Sep-06 Mar-11 Mar-12 Investment Date of First of First Date Legend Pictures, LLC Pictures, Legend LDR Spine Cvent Inc. Cvent Fig. 4: North American Venture Capital Exits in 2016 Valued at $1bn or More at Valued Exits in 2016 Capital Venture 4: North American Fig. Company Portfolio Stemcentrx Jet.com Celator Celator Inc. Pharmaceuticals, InvenSense, Inc. InvenSense, Club Dollar Shave SquareTrade, Inc. SquareTrade, Jasper, Inc. Jasper,

9 Private Equity & Venture Capital Spotlight | June 2017 © Preqin Ltd. 2017 / www.preqin.com VENTURE CAPITAL EXITS ‘SNAP’ BACK IN NORTH AMERICA

North American companies account for Aside from Snap Inc., the other four IPOs OUTLOOK 25% ($5.8bn) of the aggregate exit value among the region’s largest exits for the While high-value IPOs do not guarantee in 2017 so far – this is an increase of 100% year collectively amount to just $883mn. the success of a venture capital fund, they in aggregate exit value from the previous The public offerings of Carvana, LLC, an are one of best ways to generate returns. year, with half the year still to go. online automobile dealership platform, Although 2017’s aggregate exit value is and Cloudera, a software company which inflated because of the IPO for Snap Inc., While 2016 saw just one IPO among the powers the data processing engines of a it is a good sign for the industry that more top 25 largest exits in the region, this variety of websites, each secured $225mn. high-value exits are IPOs, along with the year has already seen five. This includes more common trade sales. As the venture the second largest exit of 2017 so far: the Still, the IPO market has the potential capital exit market continues to recover highly publicized Snap Inc. IPO was valued to be even more active in 2017. from a slow 2016, success in the rest of the at $3.4bn (Fig. 5). Early investments in AppDynamics Inc., which operates as venture capital universe can be expected: Snap Inc. included a seed investment of an application management solutions investor confidence in the market, more $0.49mn from Lightspeed Venture Partners provider, planned to hold an IPO in successful fundraising and deployed dry VIII in March 2012 and Series A/Round early 2017, but instead was acquired via powder are all possibilities for 2017. 1 commitment of $14mn in February a trade sale by Cisco Systems, Inc. for 2013 from Benchmark Capital Partners $3.7bn. Lightspeed Venture Partners VIII, VII. As at September 2016, Lightspeed previously mentioned as an early investor Venture Partners VIII’s 2.90X net multiple in Snap Inc., was also an initial investor in outperformed the median among other AppDynamics Inc. 2008 vintage venture capital funds.

Fig. 5: Five Largest North American Venture Capital IPOs Announced in 2017 YTD (As at May 2017)

Date of First Total Known Exit Value Portfolio Company Investors (Entry) Exit Date Industry Location Investment Funding ($mn) ($mn) Alibaba Group, Benchmark Capital, Coatue Management, DST Global, Fidelity Investments, General Atlantic, General Catalyst Partners, GIC, Glade Brook Capital Partners, Snap Inc. Mar-12 HDS Capital, Institutional Venture 2,909 Mar-17 3,400 Telecoms US Partners, Kleiner Perkins Caufield & Byers, Lightspeed Venture Partners, Lone Pine Capital, Morgan Stanley, NBC Universal, Sequoia Capital, SV Angel, T Rowe Price, Tencent, Yahoo Carvana, LLC Jan-13 - 300 Apr-17 225 Industrials US Accel Partners, EquityZen, Fidelity Investments, Greylock Partners, GV, Ignition Venture Partners, In-Q- Software & Cloudera Mar-09 1,041 Apr-17 225 US Tel, Intel Capital, Meritech Capital Related Partners, MSD Capital, SV Angel, T Rowe Price Adage Capital Management, Bay Partners, Brookside Capital, Cisco Investments, HWVP, Lightspeed Venture Partners, Meritech Capital Software & 259 Mar-17 221 MuleSoft, Inc. Oct-06 Partners, Morgenthaler Ventures, Related US New Enterprise Associates, Salesforce Ventures, Salesforce.com, Sands Capital Ventures, Sapphire Ventures, ServiceNow Altimeter Capital, Andreessen Horowitz, Floodgate, Glynn Capital Okta, Inc. Sep-09 Management, Greylock Partners, 229 Apr-17 187 Other IT US Janus Capital Group, Khosla Ventures, Sequoia Capital, SV Angel

Source: Preqin Venture Capital Online

10 Private Equity & Venture Capital Spotlight | June 2017 © Preqin Ltd. 2017 / www.preqin.com Preqin Solutions One Page Ad v7.pdf 1 16-Jan-17 2:25:12 PM

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Aout Preqin olutions Preqin Solutions, formerly Baxon Solutions, delivers market-leading cloud collaboration software for monitoring, valuation, benchmarking and reporting on private capital portfolio investments. The software automates the compilation, analysis and exchange of all portfolio information including operating metrics (nancial, KPIs, ESG), investment valuations, and ultimately investment and aggregate fund performance. Through the integration of Preqin data, this performance can be contextualized with reference to the broader market for internal and investor reporting purposes. INDUSTRY NEWS INDUSTRY NEWS

We take a look at the latest news from the private equity industry, including funds that have held interim closes in May, funds focused on Canada that have reached a final close and investors targeting buyout investments in the next 12 months.  INTERIM CLOSES IN MAY CHART OF THE MONTH

In May 2017, 22 funds held an interim Private Equity Funds in Market over Time, Q1 2013 - Q2 2017 TD (As at June 2017) close, with these fund managers having 2,000 secured an average of 58% of their target 1,800 capital. While the vast majority of these 1,600 funds have just reached their first close, 1,400 ABG Innovation and Mobeus Equity 1,200 Partners IV have held a second close, with 1,000 both funds making their first portfolio 800 investment in 2016. 600 400 Among the funds to have held an interim 200 close in May is Softbank Vision Fund, 0 which secured $93bn of its $100bn target, Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 making it the largest private equity fund ever raised. Notable investors in the fund 2013 2014 2015 2016 2017 include sovereign wealth funds Mubadala Investment Company and Sanabil al- No. of Funds Raising Aggregate Capital Targeted ($bn) Saudia. The fund will focus on investing in Source: Preqin Private Equity Online market-leading companies in the global technology sector. June’s Chart of the Month focuses on the increasing number of private equity funds on the road. With larger managers and top performers raising capital for private equity investment, there are currently a record number of funds on the road, RECENTLY CLOSED CANADA-FOCUSED targeting a record level of capital: 1,908 funds are currently raising capital as at the FUNDS beginning of Q2 (up from 1,834 at the beginning of the year), targeting an aggregate $635bn in capital commitments. So far in 2017, 13 funds that include Canada as part of their investment Much of the increase in capital comes from the launch of the $100bn hybrid vehicle mandate have reached a final close, Softbank Vision Fund. However, even without this fund, the presence of other including two solely Canada-focused large vehicles, such as China State-Owned Capital Venture Investment Fund (CNY funds, OMERS Ventures III and Diagram 200bn/$29bn) and Apollo Investment Fund IX ($20bn), mean that the aggregate Fund I. OMERS Ventures III reached a final capital targeted comfortably surpasses the prior records set in Q4 2015 and Q1 2017. close in May on CAD 300mn and will invest in technology and financial services companies, while Diagram Fund I, a micro of existing managers in its portfolio and INVESTORS TARGETING BUYOUT venture capital fund, held a final close in FUNDS new managers it has not previously January, securing $25mn to invest in the worked with. insurance and healthcare sectors. Preqin’s Private Equity Online profiles The California-based public pension The largest vehicle closed so far this 522 investors with active investment fund Sacramento County Employees’ year which includes Canada as part of its mandates focused on buyout strategies Retirement System (SCERS) is another mandate is KKR Americas Fund XII, which in the next 12 months.These include investor that plans to be active over this secured $14bn in March, almost $4bn Netherlands-based insurance company period. SCERS will look to commit $220mn above its target size. The fund will focus on Achmea Investment Management, which to buyout funds globally, targeting the control-oriented investments in a diverse has a preference for buyout and growth healthcare and medical sectors. range of industries across Latin and North vehicles and plans to commit €350mn America. across eight funds focused on Europe and North America. It will invest with a mixture

12 Private Equity & Venture Capital Spotlight | June 2017 © Preqin Ltd. 2017 / www.preqin.com PREQIN GLOBAL DATA COVERAGE alternative assets. intelligent data.

FUNDS OPEN TO INVESTORS FUNDS WITH FIRMS FUNDS DEALS & EXITS ALTERNATIVES INVESTMENT MONITORED PERFORMANCE COVERAGE 27,284 49,361 19,882 14,399 25,374 279,736

PRIVATE NATURAL HEDGE FUNDS REAL ESTATE INFRASTRUCTURE PRIVATE DEBT EQUITY* RESOURCES 6,581 5,201 5,753 3,070 2,699 2,734 INVESTOR Active Active Active Active Active Active COVERAGE Private Equity Hedge Fund Real Estate Infrastructure Private Debt Natural Resources LPs Investors LPs LPs Investors Investors

FUND 17,439 24,138 6,434 1,148 2,304 1,653 COVERAGE Private Equity Hedge PE Real Estate Infrastructure Private Debt Natural Resources Funds Funds Funds Funds Funds Funds

FIRM 11,523 8,939 3,888 513 1,475 946 COVERAGE Private Equity Hedge Fund PE Real Estate Infrastructure Private Debt Natural Resources Firms Firms Firms Firms Firms Firms

PERFORMANCE 5,841 16,321 1,676 230 808 498 COVERAGE Private Equity Hedge PE Real Infrastructure Private Debt Natural Resources Funds Funds Estate Funds Funds Funds Funds

FUNDRAISING 1,954 16,773 1,086 269 306 376 COVERAGE Private Equity Hedge PE Real Infrastructure Private Debt Natural Resources Funds Funds Estate Funds Funds Funds Funds

BUYOUT VENTURE CAPITAL REAL ESTATE INFRASTRUCTURE DEALS & EXITS COVERAGE 80,464 135,415 37,056 26,801 Buyout Deals** and Exits Venture Capital Deals*** and Exits Real Estate Deals Infrastructure Deals

Alternatives Investment Consultants Funds Terms Coverage: Analysis Best Contacts: Carefully Selected from Coverage: Based on Data for Around our Database of over 562 16,286 400,821 Consultants Tracked Funds Contacts + PLUS THE PREQIN DIFFERENCE Comprehensive coverage of: + Over 250 research, support and development staff + Placement Agents + Dry Powder + Global presence - New York, London, Singapore, San Francisco, + Fund Administrators + Compensation Hong Kong and Manila + Law Firms + Plus much more... + Depth and quality of data from direct contact methods + Debt Providers + Unlimited data downloads + The most trusted name in alternative assets *Private equity includes buyout, growth, venture capital, turnaround, private equity fund of funds, private equity secondaries, direct secondaries, balanced, hybrid, hybrid fund of funds, PIPE, co-investment and co-investment multi-manager funds. **Buyout deals: Preqin tracks private equity-backed buyout deals globally, including LBOs, growth capital, public-to-private deals, and recapitalizations. Our coverage does not include private debt and mezzanine deals.

***Venture capital deals: Preqin tracks cash-for-equity investments by professional venture capital fi rms in companies globally across 2015 Annual CAIA Corporate all venture capital stages, from seed to expansion phase. The deals fi gures provided by Preqin are based on announced venture capital RecogniƟ on Award Winner rounds when the capital is committed to a company. As at 5th June 2017 THE FACTS PRIVATE EQUITY IN CANADA

Using data from Preqin’s Private Equity Online, we provide an overview of the private equity industry in Canada, including assets under management, fund managers, fundraising, investors and deals in the region.

$1.9bn $42bn $4.9tn Record aggregate deal value of 269 Aggregate capital raised by Canada-based Aggregate assets under management of venture capital transactions completed private equity funds closed since 2008. Canada-based private equity investors. in Canada in 2016.

Fig. 1: Canada-Based Private Equity Fundraising, Fig. 2: Canada-Based Private Equity Fundraising by Fund Type, 2009 - 2017 YTD (As at May 2017) 2014 - 2017 YTD (As at May 2017) 30 100% 0.8 3 0.2 4 1.0 25 90% 1.7 25 7 Secondaries 22 80% 2.4 8 No. of Funds 20 19 70% Co-Investment Closed 17 17 60% 15 Growth 15 14 Aggregate 50% 31 Capital Raised Fund of Funds 9 9.1 ($bn) 40% 10 8.2 8 16.6 Proportion of Total of Proportion 30% 5.5 Venture Capital 5 3.9 3.3 3.9 2.5 20% 1.8 1.5 21 Buyout 10% 0 0% YTD 2009 2010 2011 2012 2013 2014 2015 2016 2017 No. of Funds Aggregate Capital Raised Year of Final Close Closed ($bn) Source: Preqin Private Equity Online Source: Preqin Private Equity Online

Fig. 3: Canada-Based Private Equity Investors by Fund Type Fig. 4: Canada-Based Private Equity Investors by Geographic Preference and Fund Searches Issued in 2017 Preference and Fund Searches Issued in 2017

80% 76% 100% 93% 70% 90% 62% 59% 60% 80% 50% 47% 70% 66% 40% 38% 38% 60% 50% 48% 28% 50% 47% 44% 30% 41% 40% 20% 14% 15% 14% 29% Proportion of Investors Proportion 10% 30%

10% 6% 5% of Investors Proportion 20% 0% 12% 12% 10% 0% Funds Buyout Growth Fund of

Balanced North Europe Asia-Pacific Emerging Global Capital Venture

Turnaround America Markets Secondaries General Preference Fund Searches in 2017 General Preference Fund Searches in 2017 Source: Preqin Private Equity Online Source: Preqin Private Equity Online

14 Private Equity & Venture Capital Spotlight | June 2017 © Preqin Ltd. 2017 / www.preqin.com THE FACTS

Fig. 5: Canadian Private Equity-Backed Buyout Deals, Fig. 6: Canadian Private Equity-Backed Buyout Exits by Type, 2009 - 2017 YTD (As at May 2017) 2009 - 2017 YTD (As at May 2017) 250 25 35 5

208 30 Aggregate Exit Value ($bn)

200 Aggregate Deal Value ($bn) 200 20 4 172 25 19 150 3 150 15 20 16 21 123 16 108 15 13 No. of Exits No. 12 12 2

No. of Deals No. 100 10 4 80 10 5 70 67 3 1 7 1 2 1 6 4 50 5 5 6 9 2 1 4 7 7 7 3 3 0 2 2 2 2 0 0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD YTD Sale Restructuring IPO Trade Aggregate No. of Deals Aggregate Deal Value ($bn) to GP Sale Exit Value ($bn) Source: Preqin Private Equity Online Source: Preqin Private Equity Online

Fig. 7: Canadian Venture Capital Deals*, 2009 - 2017 YTD Fig. 8: Canadian Venture Capital Exits by Type, 2009 - 2017 YTD (As at May 2017) (As at May 2017)

350 333 328 2.5 50 2.0 299 45 3 1.8 300 293 Aggregate Exit Value ($bn) 269 2.0 Aggregate Deal Value ($bn) 40 2 1.6 250 35 1.4 222 2 1.5 30 1.2 200 1 34 172 34 25 1 30 1.0 150 2 1.0 of Exits No. 20 1 0.8 No. of Deals No. 113 28 15 26 0.6 100 79 21 12 19 10 18 0.4 0.5 3 3 3 50 5 3 0.2 1 7 7 8 3 2 2 2 2 4 0 0.0 0 1 0.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD YTD No. of Deals Aggregate Deal Value ($bn) IPO Sale to GP Trade Sale Write-off Aggregate Exit Value ($bn) Source: Preqin Private Equity Online Source: Preqin Private Equity Online

*Figures exclude add-ons, grants, mergers, secondary stock purchases and venture debt.

PRIVATE EQUITY ONLINE

Looking for more information on private equity in Canada? Preqin’s Private Equity Online contains detailed profiles for 148 investors in private equity and 144 fund managers based in the country.

Private Equity Online is Preqin’s flagship online private equity information resource and encompasses all of Preqin’s private equity and venture capital databases, with unrivalled data and intelligence on all aspects of the asset class, including fund terms and conditions, fundraising, fund managers, institutional investors, fund performance, deals and exits and more.

Constantly updated by our teams of dedicated researchers strategically located in industry centres around the globe, Private Equity Online represents the most comprehensive source of industry intelligence available today.

www.preqin.com/privateequity

15 Private Equity & Venture Capital Spotlight | June 2017 © Preqin Ltd. 2017 / www.preqin.com CLAIM YOUR FREE COPY OF THE 2018 PREQIN PRIVATE CAPITAL COMPENSATION AND EMPLOYMENT REVIEW

Preqin is pleased to partner once again with FPL Associates L.P. to conduct the 2018 Preqin Private Capital Compensation and Employment Survey, the largest global private capital survey of its kind. Participants that fully complete the survey will get a free copy of the Review plus a free excelsheet of all the compensation data for further analysis.

The objective of the survey is to provide clients and participants with customized, real-time compensation trends and data that can be used at all levels of the organization to assist with human capital decisions.

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alternative assets. intelligent data. THE FACTS SOVEREIGN WEALTH FUNDS INVESTING IN PRIVATE EQUITY We feature an extract from the recently released 2017 Preqin Sovereign Wealth Fund Review to profile these unique investors, which have been steadily increasing their share of capital invested in private equity and remain an important source of capital for the asset class.

61% 19% 63% of sovereign wealth funds are known to of all investor capital allocated to private of sovereign wealth funds investing in invest in private equity. equity is accounted for by sovereign private equity are inclined to co-invest wealth funds (as at January 2017). alongside GPs.

Fig. 1: Sovereign Wealth Funds Investing in Private Equity by Fig. 2: Sovereign Wealth Funds Investing in Private Equity by Location Total Assets under Management 100% 100% 89% 4% 90% 13% 80% North America 71% 70% 67% 60% Europe 28% 11% 50% 41% 36% Middle East 40% Private Equity Private 30% Africa 20%

Proportion of SWF Investors in of SWF Investors Proportion 10% Asia 0% 9% 35% Australasia $1-9bn $1bn $250bn or More Less than Less $10-49bn $50-99bn $100-249bn Total Assets under Management Source: 2017 Preqin Sovereign Wealth Fund Review Source: 2017 Preqin Sovereign Wealth Fund Review

Fig. 3: Sovereign Wealth Funds Investing in Private Equity by Fig. 4: Sovereign Wealth Funds Investing in Private Equity by Strategy Preference Regional Preference 80% 80% 76% 72% 67% 70% 63% 70% 65% 61% 61% 60% 57% 60% 59% 50% 50% 48% 48% 40% 37% 33% 40% 30% 24% Private Equity Private 30% 20% Equity Private 20% 10% Proportion of SWF Investors in of SWF Investors Proportion 0% in of SWF Investors Proportion 10% 0% Funds Buyout Capital Growth Asia Fund of Venture MENA Other Other North Global Europe America Turnaround Secondaries Markets Private Equity Emerging Strategy Preference Regional Preference Source: 2017 Preqin Sovereign Wealth Fund Review Source: 2017 Preqin Sovereign Wealth Fund Review

17 Private Equity & Venture Capital Spotlight | June 2017 © Preqin Ltd. 2017 / www.preqin.com ALTERNATIVE INVESTMENTS INITIATIVE

10th Annual Private Equity Symposium 29-30 June 2017, London

Private Equity in the US and Europe: Innovation and Disruption

The 10th Annual Private Equity Symposium is organized jointly with the University of Pennsylvania’s Wharton School and will be held on 29-30 June 2017 at London Business School, Regent’s Park, London.

Day one will explore different aspects and perspectives on the current private equity environment in the US and Europe, with a special focus on innovation and disruption. The second day will feature the latest academic research on private equity and venture capital.

The keynote speakers will be Hanneke Smits (CEO, Newton Investment Management & co-founder of Level 20), Marco de Benedetti (MD & Co-head of the Europe Buyout advising group, The Carlyle Group) and Sanjay Patel (Managing Partner, European Private Equity, Apollo LLP).

Further information and tickets can be found at www.london.edu/PEsymposium2017

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Early Confirmed Speakers include:

Kathleen Kennedy Townsend, Managing Director, The Rock Creek Group Stuart Fiertz, Co-Founder and President, Cheyne Capital Management Bruce Richards, Co-Managing Partner and CEO, Marathon Asset Management Briant Lahart, Managing Director, Asset Management, Abbot Downing Ed Rzeszowski, Managing Director, BlackRock

www.imn.org/totalalts | [email protected] | (212)224-3207 THE FACTS MICRO VENTURE CAPITAL

We provide a detailed look at the micro venture capital industry using data from Preqin’s Venture Capital Online.

Fig. 1: Venture Capital Funds in Market: Micro VC vs. Non-Micro Fig. 2: Proportion of Venture Capital Funds Closed: Micro VC vs. VC (As at April 2017) Non-Micro VC, 2006 - 2017 YTD (As at April 2017) 100% 90% 26% 29% 27% 28% 33% 80% 38% 37% 34% 39% 38% 40% 46% 70% 60% 50% $1-50mn: 71% 40% Non-Micro VC: 74% Micro VC: 70% 71% 73% 72% 67% 30% 30% 62% 63% 66% 61% 62% 60% 54% $51-100mn: 20% Proportion of Funds Closed of Funds Proportion 29% 10% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD Year of Final Close Micro VC Non-Micro VC Source: Preqin Venture Capital Online Source: Preqin Venture Capital Online

Fig. 3: Annual Venture Capital Fundraising: Micro VC vs. Non- Fig. 4: Proportion of Target Size Achieved by Micro Venture Micro VC, 2006 - 2017 YTD (As at April 2017) Capital Funds, 2007 - 2017 YTD (As at April 2017)

400 60 Aggregate ($bn) Capital Raised 100% 50

5% 5% Average Fund Size ($mn) 10% 9% 16% 9% 11% 13% 15% 350 90% 15% 24% 20% 17% 45 50 80% 29% 14% 15% 40 300 27% 20% 28% 18% 18% 10% 16% 40 70% 27% 16% 35 250 60% 27% 23% 30 20% 20% 25% 28% 200 30 50% 29% 25% 22% 39% 25 150 40% 20% 27% 16% 48% 20 20 22% 16% 30% 20% 15 100 18% 22% 22% 20% No. of Funds Closed of Funds No. 20% 24% 10 10 29% 35% 50 10% 24% 27% 29% 24% 13% 5 Proportion of Funds Closed of Funds Proportion 16% 17% 17% 18% 0 0 0% 7% 6% 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD 2017 YTD 2017 Year of Final Close Year of Final Close No. of Funds Closed: Non-Micro VC No. of Funds Closed: Micro VC 75% or Less 75-99% 100% 101-120% Aggregate Capital Raised: Micro VC Aggregate Capital Raised: Non-Micro VC 120% or More Average Fund Size ($mn) Source: Preqin Venture Capital Online Source: Preqin Venture Capital Online

Fig. 5: Number of Micro Venture Capital Funds Closed by Fig. 6: Aggregate Capital Raised by Micro Venture Capital Funds Primary Geographic Focus, 2006 - 2017 YTD (As at April 2017) by Primary Geographic Focus, 2006 - 2017 YTD (As at April 2017)

250 10 31 14 15 9 35 25 1.4 0.7 200 43 23 8 0.4 1.1 46 1.0 23 35 21 1.0 1.8 19 19 68 53 7 0.9 1.6 1.9 53 49 1.4 150 50 30 0.7 0.8 1.7 2.3 46 6 1.4 0.9 1.4 60 64 67 79 2.5 33 30 5 2.0 40 3.0 1.9 2.4 1.4 2.3 68 3.0 1.3 100 56 4 2.1 53 49 38 1.5 43 138 3 2.0 126 2.1 1.2 5.2 No. of Funds Closed of Funds No. 3 50 99 111 106 6 1.4 0.04 6 2 4.0 3.8 3.9 65 71 3.0 3.3 0.2 54 54 61 53 2.3 2.8 0.3

Aggregate Capital Raised Capital ($bn) Aggregate 1 2.1 37 1.7 1.4 1.4 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD YTD Year of Final Close Year of Final Close North America Europe Asia Rest of World North America Europe Asia Rest of World Source: Preqin Venture Capital Online Source: Preqin Venture Capital Online

Fig. 7: 10 Smallest Venture Capital Funds in Market (As at April 2017) Target Size Primary Fund Firm Fund Type Status ($mn) Geographic Focus KVP Seed Innovation Fund KLab Venture Partners Early Stage: Seed 0.15 Asia First Close Veterans’ Opportunity Fund TCP Venture Capital Venture Capital (All Stages) 0.2 North America Raising ZORA Investments III ZORA Ventures Early Stage 0.5 Middle East & Israel Raising BootUp Capital A BootUp Capital Partners Early Stage: Start-up 1.0 North America Raising Kansas City Fund Angel Capital Group Early Stage: Start-up 1.0 North America Raising MVC Fund Mendota Group Early Stage 1.0 North America Raising Phoenix Fund Angel Capital Group Early Stage: Start-up 1.0 North America Raising Rim Guard Holdings Charter Capital Partners Venture Capital (All Stages) 1.0 North America Raising Tuck/DEN Ventures Tuck CPE/E Early Stage 1.0 North America Raising Eclipse Partners Fund I Eclipse Ventures Venture Capital (All Stages) 1.2 North America Raising

Source: Preqin Venture Capital Online

Fig. 8: Headquarters of US-Based Fund Managers with at Least One Micro Venture Capital Fund in Market (As at April 2017)

WA 3 ND OR 1 MN VT 1 1 1 MA WI NY 18 2 MI 26 5 PA NJ CT 6 3 2 IL OH UT 4 MD 2 CO 14 VA CA 3 KS MO KY 5 83 2 1 4 1 NC DC TN 3 AZ 3 4 1 SC GA 1 4 TX LA 4 1 FL 2

Source: Preqin Venture Capital Online

Fig. 9: Number of Active Investors in Private Equity, Venture Fig. 10: Median Net IRRs by Vintage Year: Micro VC vs. Capital and Micro VC and Investors Committed to Micro VC Funds Non-Micro VC 25%

20% 6,380 All Active PE Investors 15%

10% Active VC Investors 3,871 5%

2,253 Potential Micro VC Inception Net IRR since 0% Investors -5% Investors Committed to

1,602 Micro VC Funds 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Vintage Year Non-Micro VC Micro VC Source: Preqin Venture Capital Online Source: Preqin Venture Capital Online

20 Private Equity & Venture Capital Spotlight | June 2017 © Preqin Ltd. 2017 / www.preqin.com CEO Institutional Investment Summit & Awards 2017

The Africa investor (Ai) CEO Institutional Investment Summit is a unique 18 September CEO investor-issuer, invitation-only capital market leaders’ platform for NEW YORK, USA global institutional investors and African sovereign wealth and pension fund For more information, go to: investors to originate and intermediate capital market transactions in Africa. www.aicapitalmarketsummit.com SUMMIT THEMES

African Sovereign Country Ai Capital Markets Africa’s Capital Wealth Fund Issuer African Pension Banking Investment Invesmtment Global Pension Global Institutional Index Series Markets Investing Presentations Funds Roundtable Success Stories Presentations Fund Roundtable Investor Dialogue Awards

SEPTEMBER 21 & 22 2017Fairmont Banff Springs Hotel - Banff, Canada The New Technology Economy Happens in Banff Connect with the who's who of the North #BVF2017 KEYNOTE SPEAKER American investment community at #BVF2017! Reinventing Vehicles and 350 DELEGATES: 50+ Presenting Companies Leaving the Limits in the Rearview and over 40 VC ﬁrms including:

Jay Rogers CEO & Co-Founder

Special Rate For Preqin Members Save Over $190 - Limited to the ﬁrst 5 registrations! Harry Singh from Intel Capital, one of the most active Promo Code: BVFPREQIN15 Join Jay Rogers ascorporate he delves venture into funds how with Local over US$11Motors Billion drives the commercialization of high tech products using co-creation and micro manufacturing. From 3-D printed cars to self-driving electric vehicles, you won’t want to miss how Local Banff Venture @CapRoad_BVF_CFF Forum Group #BVF2017 Motors is disrupting the auto industry as we know it! CONFERENCES CONFERENCES

JUNE 2017

Conference Dates Location Organizer Preqin Speaker Discount Code Fund Finance 1st Annual Asia-Pacific Fund Finance Symposium 19 June 2017 Hong Kong Ling Yan Teo - Association Nordic Private Equity Summit 20 June 2017 Denmark DVCA - - Operations & Compliance for Alternative Financial Research 15% Discount - 20 - 21 June 2017 New York - Investment Funds Associates FMP187 AVCJ Private Equity and Venture Forum - Japan 22 - 23 June 2017 Tokyo AVCJ - - 2017 3rd Annual China NPL Investment and Distressed 22 - 23 June 2017 Shanghai Oppland Tom Carr - Corporate Restructuring Forum 10% Discount – SuperReturn Emerging Markets 26 - 28 June 2017 Amsterdam KNect365 Mark O'Hare FKR2434PRQEM Institutional and Alternative Lending Conference Euromoney 27 - 28 June 2017 New York Ryan Flanders - New York 2017 Seminars London Business Private Equity Findings Symposium 29 - 30 June 2017 London - - School (LBS)

JULY 2017

Conference Dates Location Organizer Preqin Speaker Discount Code PE Invest in Real Estate 2017 18 July 2017 Shanghai Finfo Global Ltd. - - Family Office & Private Wealth Management Opal Financial 24 - 26 July 2017 Newport, RI - - Forum 2017 Group Operations & Compliance for Alternative San Francisco, Financial Research 15% Discount - 25 - 26 July 2017 - Investment Funds CA Associates FMP187

AUGUST 2017

Conference Dates Location Organizer Preqin Speaker Discount Code Family Office & Private Equity Dealmakers Tricap Partners & Breakfast Series: The Emergence of the NYC Tech 3 August 2017 New York - - Co. Sector

SEPTEMBER 2017

Conference Dates Location Organizer Preqin Speaker Discount Code 7 - 8 September San Francisco, Total Alts 2017 IMN - - 2017 CA 11 - 13 September 10% Discount - SuperReturn CFO/COO Forum Amsterdam KNect365 Mark O'Hare 2017 FKR2422PRQW 13 - 15 September 15% Discount - Capital Creation 2017 Monte Carlo WBR TBC 2017 PREQINCC15 18 September Ai CEO Institutional Investment Summit 2017 New York Africa Investor - - 2017 21 - 22 September Banff Venture Forum 2017 Banff, AB Critical Path Group - - 2017

10TH PRIVATE EQUITY SYMPOSIUM 2017

DATE: 29 - 30 June 2017 INFORMATION: www.london.edu/PEsymposium2017 LOCATION: London Business School ORGANIZER: Private Equity at LBS The 10th Annual PE Symposium is organised jointly with the University of Pennsylvania’s Wharton School and will be held on 29-30 June 2017 at London Business School, Regent’s Park, London.

Day one will explore different aspects and perspectives on the current private equity environment in the US and Europe, with a special focus on innovation and disruption. Day two will showcase and discuss the latest academic research being conducted on the private equity and venture capital asset class.

The UK Private Equity Conference

50+ LPs | 80+ GPs | 40+ CxOs | 200+ Attendees

21st September 2017

Mondrian Hotel

London

One-day event

250 regional 20% DISCOUNT! & international With Preqin! key players

Special Coupon for Registration: 50 + Speakers Contact us: [email protected] 23 Private +351Equity 211 & Venture 335 966 Capital Spotlight | June 2017UKPEC_Preqin © Preqin Ltd. 2017 / www.preqin.com 1 Keynote CONFERENCES

PRIVATE INVESTMENT FUND OPERATIONS & COMPLIANCE FORUM

DATE: 25 - 26 July 2017 INFORMATION: http://events.frallc.com/events/the-private-investment-fund-operations-and-compliance-forum-b1060-/ event-summary-c1dd555e5e194c5f80723df69131ea47.aspx LOCATION: Marines Memorial Club, San Francisco, CA ORGANIZER: Financial Research Associates, LLC Optimizing the productivity and efficiency for private equity, venture capital, hedge fund and other less-liquid Investments. As change is on the horizon, join our assembly of industry leaders and cutting-edge thinkers for opportune and relevant discussion covering the major developments that affect private investment funds.

TOTAL ALTS 2017

DATE: 7 - 8 September 2017 INFORMATION: www.imn.org/totalalts LOCATION: San Francisco, CA ORGANIZER: IMN Total Alts will reflect the growth and dynamism of the wider world of alternatives and will provide LPs with access to insights from the sharpest minds in private equity, venture capital, private debt, real assets, hedge funds and so much more!

Join us this September 7-8 at the Ritz-Carlton in San Francisco, as we explore and explain the ever-growing and evolving alternative investments landscape.

AI CEO INSTITUTIONAL INVESTMENT SUMMIT & AWARDS 2017

DATE: 18 September 2017 INFORMATION: http://aicapitalmarketsummit.com/ LOCATION: New York, USA ORGANIZER: Africa Investor The Ai CEO Institutional Investment Summit is now firmly established as the international calendar event and platform for US and global institutional investors and pension funds to engage African pension funds and capital market leaders on investment opportunities in African markets. Ai – Africa’s leading benchmark and index provider – hosts this annual Summit to profile African capital market opportunities to the international institutional investment community and African national pension funds.

UK PRIVATE EQUITY CONFERENCE

DATE: 21 September 2017 INFORMATION: http://pe-conference.org/british/agenda LOCATION: London, Mondrian Hotel ORGANIZER: Private Equity Insights The UK Private Equity Conference provides unrivalled networking opportunities in the UK private equity market. On 21st September 2017, meet over 50 LPs, 80 GPs and 40 CxOs at the Mondrian Hotel in London.

SUPERRETURN ASIA

DATE: 25 - 28 September 2017 INFORMATION: https://finance.knect365.com/superreturnasia/?vip_code=FKR2433PRQS LOCATION: JW Marriott Hotel, Hong Kong ORGANIZER: KNect365 Over 750 members of the global private equity community including 400+ powerful LPs will be in Hong Kong this September for SuperReturn Asia, so don’t miss this superb networking opportunity. Preqin subscribers get a 10% discount – quote VIP code FKR2433PRQS.

ACCESS FREE CONFERENCE SLIDE DECKS AND PRESENTATIONS

Preqin attends and speaks at many different alternative assets conferences throughout the year, covering topics from infrastructure fundraising trends to alternative UCITS.

All of the conference presentations given by Preqin speakers, which feature charts and league tables from Preqin’s online products, can be viewed and downloaded from Preqin’s Research Center Premium, for free.

For more information, and to register for Preqin’s Research Center Premium, please visit:

www.preqin.com/rcp