QUARTERLY REPORT for the Period from 1 January 2005 to 31 March 2005 QUARTERLYSTATEMENT REPORT of the INVESTMENT MANAGER

QUARTERLY REPORT for the period from 1 January 2005 to 31 March 2005 QUARTERLYSTATEMENT REPORT OF THE INVESTMENT MANAGER

INVESTMENT MANAGER’S REPORT

POSITIVE START TO THE YEAR FOR PEARL

In the first quarter of 2005, the net asset value (NAV) of the Pearl portfolio increased by 1.15% to 83.59%. A large number of partnerships recorded valuation adjustments to their portfolio companies in their annual financial statements as per the end of December 2004. This had a positive effect on the NAV of the Pearl portfolio. The mid-market price of the Pearl convertible bond remained unchanged on the previous quarter at 92.50%, having peaked in between time, however, in February at 94.00%. The convertible bond issued by Pearl Holding Limited provides access to the private The first three months of the year were characterized by a equity asset class. For the first time, investors have the opportunity to buy into the very high level of investment activity, which pushed the investment level – the ratio of the total value of private earnings potential of a broadly diversified private equity portfolio, while enjoying equity investments to the NAV of the Pearl portfolio - up by 14% to 64.28%. During this period, over EUR 49m were capital protection and a 2% coupon. Its tailor-made structure makes the convertible drawn down by the partnerships, as well as for direct investments. This is significantly higher than in the past and bond suitable for German private and institutional investors (i.e. “deckungsstock- und reflects the active commitment activity of the Pearl portfolio since the middle of last year. In the first three months of spezialfondsfähig”). this year, Pearl made new commitments to two partnerships, namely BC European Capital VIII, L.P., and Levine Leichtmann Capital Partners III, L.P., and acquired three new secondary portfolios, namely Blackstone Communi- cation Partners I, L.P., Bridgepoint Europe II ‘C’, L.P. and Doughty Hanson & Co. Fund III, L.P.

The allocations to Doughty Hanson & Co. Fund IV, L.P. and Partners Group U.S. Venture, L.P. were raised. The latter will allow Pearl access to top US venture funds that are other- wise generally closed and therefore not accessible. Pearl also made direct investments in two companies, namely Ahold, a Spanish supermarket chain, and in Bodybell, a Spanish perfume and household goods retailer. This document is neither a sales prospectus nor a direct or indirect sales promotion instrument. 2 2004 was a record year for distributions for Pearl. Given the The allocation of the Pearl portfolio by financing stage, ge- INVESTMENT ADVISOR TO PEARL WINS friendly exit environment, 2005 is also likely to see sub- ographical region and industry is virtually unchanged quar- PRIVATE EQUITY AWARD stantial proceeds flowing back into the portfolio. During the ter on quarter. Pearl remains a well-diversified portfolio. first three months of this year, over EUR 20m has been The results of the Global Private Equity Awards organized by returned from realised investments, with significant dis- Investors had an opportunity to gain an insight into the the highly renowned publication Private Equity International tributions stemming from the sale of Saft, a French-based Pearl portfolio on 23 March 2005 at the Pearl telephone and its sister website PrivateEquityOnline.com were re- battery systems manufacturer, the refinancing of Gala, a conference. Investors were given a general overview of the leased in March. Partners Group, the Swiss-based alternative British bingo club and casino operator, and the Partners private equity industry and a run-down on the latest devel- asset management group and investment advisor to Pearl Group SPP1 Limited secondary portfolio. opments in the Pearl portfolio. The telephone conference Management and Insurance Limited, was awarded “Best was well received. Pearl intends to continue staging this European Fund-of-Funds of the Year” and ranked second in platform for investors twice a year. the category “European Secondaries Firm of the Year” for 2004. According to Private Equity International, these results are based on thousands of votes cast in the largest ever online reader poll.

The awards are unique in that they are totally independent MID-MARKET PRICE AN NAV DEVELOPMENT and there are no shortlists, no panel of judges, or sponsors: every investor who reads the magazine or website can par- ticipate.

110% Partners Group has been acting as investment advisor to Pearl since the product’s launch in 2000. Today, Partners 100% Group has over USD 7bn of assets under management in hedge funds and private equity programmes and offices in

90% Zug, New York, London, Singapore and Guernsey.

Urs Wietlisbach, Co-Chairman of Partners Group, said: “We 80% are honored by this recognition from the market. We believe the award validates our integrated private equity invest-

70% ment approach. For us and our clients, it has certainly made a difference.” 31.12.00 31.03.01 30.06.01 30.09.01 31.12.01 31.03.02 30.06.02 30.09.02 31.12.02 31.03.03 30.06.03 30.09.03 31.12.03 31.03.04 30.06.04 30.09.04 31.12.04 31.03.05

NAV Mid-market price NAV incl. paid and accrued interest

3 QUARTERLY REPORT

MARKET TRENDS

RECORD FUNDRAISING AND INVESTMENT ACTIVITY BY EUROPEAN BUYOUT GROUPS

A large number of well-known private equity players are expected to return to the market to raise new funds in 2005 for investments in European buyout transactions. The total amount raised by these players, many of them established brand names with a long track record, is expected to easily exceed the sums raised in 2003 and 2004. Though on the up, the capital available for deployment in All the private equity segments – i.e. buyout, venture capital and special situations – the European buyout market is looking at good investment opportunities, which will have an impact on investment are likely to face very definite trends in 2005. Gaining access to the top European buy- activity. Preliminary figures from Initiative Europe, a leading provider of information on European private equity and ven- out houses and oversubscribed US venture capital funds, the beginning of a new venture capital markets, show that the total value of all buyout transactions closed in 2004 was EUR 72.2bn, or 15% higher ture investment cycle, together with record levels of activity in European mezzanine than in 2003, and that 2004 was in all likelihood a record year for buyout investing in Europe. The European buyout markets, will create a highly competitive environment for investors and private equity segment is likely to remain attractive this year, with firms profiting from continuing economic growth and low interest firms alike. rates. Low rates mean relatively cheap leverage, which is beneficial to completing buyout investments. Thus, buyout investing in 2005 is expected to be on a par with that in 2004. However, cheap financing packages, better revenue prospects and fiercer competition for deals are likely to result in generally higher entry valuations. For this reason, it will be important to invest with partnerships that exhibit very strong pricing discipline. Notwithstanding the raft of buyout groups raising new funds, many are likely to be oversubscribed and access to the top, best-performing partnerships will therefore become increasingly important in 2005.

4 ANOTHER RECORD YEAR FOR THE US VENTURE CAPITAL INDUSTRY AT backer. According to the US National Venture Capital EUROPEAN MEZZANINE MARKET THE BEGINNING OF A NEW CYCLE Association (NVCA), venture capitalists will be searching for true breakthrough innovations and avoiding “me-too” The demand for mezzanine capital for use in leveraged buy- Though still remaining cautious, investors and venture capi- deals. Value creation will be of paramount importance in out transactions is running at unprecedented levels. Figures tal firms alike seem to have regained confidence in the ven- company formation. With competition for funding remaining recently published by Fitch Ratings confirm that, at EUR ture capital asset class and, consequently, are now facing a fierce, good ideas will simply not be good enough. Gone are 5.8bn, 2004 had seen a record level of new mezzanine strong competitive environment in this sector. the days when just any kind of idea was backed by seed issuance in the European market. The fact that a large money. In 2005, even start-up companies will be required number of “jumbo” leveraged buyouts opted to issue Google’s successful initial public offering (IPO) last summer to have some meat on their bones if they are to attract ven- mezzanine in preference to high-yield bonds is evidence of helped spark interest in venture capital investing. ture capital. the maturity of the mezzanine asset class as well as its Investors’ demand for the venture capital asset class is now growing popularity among investors. back to a high level again. Given that the funds being raised The NVCA expects technology to remain the cornerstone of are smaller in size, investors will have to compete strongly venture capital investing in 2005, with a focus on the soft- Mezzanine issuance is likely to remain high again this year. for an allocation in the best performing funds that are due ware and life sciences sectors. Emerging areas such as The mezzanine market will benefit from increased global to be raised over the coming months. Many of these funds stem cell research and nanotechnology will be watched leveraged buyout activity and growth capital opportunities, will face the prospect of being oversubscribed; venture closely by the venture capital industry, though investment including mergers and acquisitions, corporate restructurings capitalists’ discipline in limiting fund sizes so that they are in such companies will remain limited until more basic re- and recapitalizations. in line with investment needs will be critical in 2005. Last search and development has been done. Venture capitalists year, only about 5% of total funds raised exceeded the USD are also increasingly looking beyond their traditional sectors Market conditions, however, are expected to remain ex- 500m mark, which suggests that funds are capping their of interest at, for instance, energy, clean technology and tremely competitive. Consequently, the downward trend in limited partner commitments so as to be in line with ex- financial services. pricing in large mezzanine facilities in 2004 is likely to con- pected investment needs. tinue. With pricing under pressure, the European mezzanine market should witness high prepayment levels again, driven Competition in the US venture capital market not only primarily by refinancing activity. exists among investors. New funds are being raised, but these dollars will have to be invested. 2005 will be charac- Further, the trend towards ever more complex deal structures terized by a return to early-stage investing, as venture is expected to continue. capitalists start to invest their new funds. At the beginning of the investment period of a fund, there is no pressure on Finally, in the current market, where liquidity is plentiful, the the venture capitalist to make any immediate exits and so stiff competition between the equity sponsors and arranging they have the time and opportunity to search for seed, banks will support the trend towards even higher leverage start-up and early-stage companies with the potential to multiples. become one of the next rising stars.

Despite a healthy market with money ready for investing, the bar remains high for companies looking for a venture 5 QUARTERLY REPORT

PORTFOLIO ALLOCATION

INVESTMENTS AND DISTRIBUTIONS

140

120 in EUR m 100

Pearl has a balanced and by geographic regions, financing stages, 20

0 industry sectors and vintage years broadly diversified portfolio. 2000 2001 2002 2003 2004

83% of the portfolio is invested in the stable buyout and special YTD 2005 Drawndown Commitments Distributions situations segments.

INVESTMENTS BY VINTAGE YEARS

100 94 90

in EUR m 80 73 70

50 45

40 25 30 20 19 19 20 11 12 5 10 6

0 1996 1997 1998 1999 2000 2001 2002 2003 2004 pre 1996 YTD 2005

6 INVESTMENTS BY TYPE OF INVESTMENTS* INVESTMENTS BY GEOGRAPHIC REGIONS*

Direct Investments Rest of World 10% Private equity investment company 7% 7%

USA 36% Secondary Partnerships 25% Primary Partnerships 58%

Europe 57%

* Allocation by unrealized value of private equity investments * Allocation by unrealized value of private equity investments

INVESTMENTS BY FINANCING STAGES INVESTMENTS BY INDUSTRY SECTORS*

Special Situations Other 16% 10% Communication & Media 17%

Venture Capital 17% IT & High-Tech Retail 8% 22%

Buyout Life Sciences 73% 13%

Financial Services Industrial Production & Manufacturing 6% 18%

* Allocation by unrealized value of private equity investments * Allocation by unrealized value of private equity investments

7 QUARTERLYSTATEMENT REPORT OF THE INVESTMENT MANAGER

PORTFOLIO

NEW COMMITMENTS

BC European Capital VIII, L.P. In March, Pearl made a EUR 10m commitment to BC European Capital VIII, L.P. BC Partners was established in 1986 and today is one of the leading European buyout firms with an excellent reputation in the market and a longstanding network of contacts. BC Partners has offices in Paris, London, Milan, Hamburg, and Geneva. BC Partners has always fo- cused on larger buyout opportunities and has become one of the few established players in the large-cap buyout market in Europe. The firm is considered to be one of the top players in its segment. BC Partners' latest fund, BC European Capital VIII, will invest in a diversified portfolio of large management Including the new commitments and the investments in Troplast AG and Interflora buyouts in Europe (investments of EUR 250-EUR 500m each), mainly in the countries where it has offices. the Pearl portfolio now comprises 97 partnerships, 16 direct investments and 14 Levine Leichtman Capital Partners III, L.P. listed investment companies. In March, Pearl committed USD 7.5m to Levine Leichtman Capital Partners III, L.P. Levine Leichtman is a California- based private equity firm that pursues investments in entrepreneurially led middle-market companies in the US. Levine Leichtman’s investment strategy is to provide capital to industry-leading companies owned and managed by entrepreneurs. The firm generally invests in the subordi- nated debt or equity of a company, but has the flexibility to invest at any level of capital structure. With many owners wanting to grow their business without surrendering control, Levine Leichtman is often a first call for entrepreneurs. Levine Leichtman provides capital for growth and expansion, mergers and acquisitions and restructurings and recapitalizations. Its Western US focus – a region heavy with middle-market companies but relatively deficient in capital providers – leads to an attractive, stable deal flow. The company expects to invest between USD 25m and USD 50m per portfolio company for fund III. 8 NEW DIRECT INVESTMENTS SELECTED INVESTMENTS SELECTED EXITS

Ahold Supermercados S.L. Carlyle Partners III, L.P, Gala Group In February, Pearl provided mezzanine financing, with US private equity firms the Carlyle Group and Advent Gala Group completed a refinancing in which it renegotiated Permira as private equity sponsor, to Dutch company International Corp., a Pearl partnership, agreed to buy the its borrowings to take advantage of its strong financial per- Ahold’s Spanish supermarket operations. Valued at EUR three business units, namely profine GmbH, Trocellen formance and the favorable market conditions. Gala repaid 685m, it is one of the country’s largest-ever private equity GmbH and DYNOS, from German plastics manufacturer HT half of the GBP 550m invested by private equity sponsors deals. Ahold operates almost 600 stores in Spain, trading Troplast AG for an undisclosed price in January. HT Troplast when they acquired the company back in March 2003. All under a number of brands (e.g. SuperSol, HiperSol, is a world-leading plastics converter, and employs some shareholders will retain their existing stakes in Gala. Pearl HiperDino, Netto and CashDiplo). Its net sales totaled 4,300 people in these divisions. Its activities include manu- benefited from the refinancing of the company through its around EUR 2bn in 2003. Permira believes that this asset facturing plastic products for the construction, sports and direct investment in Gala, on the one hand, and its invest- can be improved operationally and financially over the next leisure equipment, and automotive industry. Gregor Boehm ment in the private equity sponsor Cinven on the other. couple of years. “This is a good investment opportunity, with from the Carlyle Group said, “HT Troplast has excellent a presence in the Canaries and mainland Spain,” said Carlos market positions in a growing industry. We are delighted to Doughty Hanson & Co. IV, L.P. Mallo, managing director of Permira’s Spanish operations. have the chance to add a further market leader to our port- Following the successful recapitalization of Saft, a market folio.” leader in high-tech battery systems for industrial applica- Bodybell tions, investors in the Doughty Hanson IV fund received EUR In March, a consortium that was led by Spanish private 3i Europartners IV, L.P. 175m, or around 1.5 times their equity investment, while equity investor Nmás1 Private Equity S.L. and included Pearl 3i paid GBP 20m for a majority stake in Interflora, which retaining their stake in the stable, high-quality and fast- acquired Bodybell, a Spanish perfumery and household has been a trade association run by its member florists growing business. Based on this refinancing transaction goods retailer. Founded 30 years ago, Bodybell has over 110 since its establishment more than 80 years ago. Interflora alone, the gross IRR on the Saft investment amounts to retail stores that are concentrated mostly in and around covers 58,000 florists worldwide and delivers to 140 coun- 43%. The recapitalization, which was completed just a year Madrid. The consortium expects the sector to expand by tries. In order to complete the transaction, the corporate after its acquisition, was driven by Saft’s strong performance. over 7% p.a. on growing demand for beauty and premium structure of Interflora had to be changed. 3i will own products, especially for men’s care and cosmetics. around 65% of the business, with the remaining stake being held by Interflora florists. Interflora will use the expansion capital to embark on a modernisation program and to expand into new product areas. Although flowers will remain its core business, Interflora is keen to offer cus- tomers the opportunity to send gifts such as teddy bears, champagne and chocolates.

9 ÜBERBLICKQUARTERLYSTATEMENT REPORT OF THE INVESTMENT MANAGER

PORTFOLIO OVERVIEW

PRIMARY PARTNERSHIPS European Equity Partners (IV), L.P. Global Life Science Ventures Fund II, L.P. Europe – Buyout GMT Communications Partners II, L.P. 3i Europartners IV, L.P. HealthCap 1999 GbR Activa Capital Fund FCPR* Index Ventures II (Jersey), L.P. Advent International GPE V, L.P. Index Venture Partners III, L.P. Advent International GPE V, L.P.* Sofinnova Capital IV, L.P. Apax Europe V, L.P. Sofinnova Capital Partners V, L.P. Apax Europe VI, L.P. Zweite TechnoStart Ventures Fonds GmbH & Co. KG AXA LBO Fund III-A* BC European Capital VII Top Up Fund Europe - Special Situations BC European Capital VIII, L.P. Coller International Partners IV, L.P. CapVis Equity II, L.P.* ICG Mezzanine Fund 2003, L.P. No. 1 Doughty Hanson & Co. Fund IV, L.P. ICG Mezzanine Fund 2003, L.P. No. 1* Duke Street Capital V, L.P.* Indigo Capital IV, L.P.* EQT IV, L.P. Special Situations Venture Partners, L.P. Global Private Equity Fund IV-D, L.P. The Rutland Fund Graphite Capital Partners VI, L.P.* Industri Kapital 2000, L.P. Rest of World – Buyout Investitori Associati IV, L.P. * Advent Latin American Private Equity Fund II, L.P. Italian Private Equity Fund IV, L.P.* Ironbridge Capital 2003/4 Fund*** Mercapital Spanish Private Equity Fund II, L.P. Newbridge Asia III, L.P. Nmás1 Private Equity Fund US No. 1, L.P.* Polish Enterprise Fund IV, L.P. Nordic Capital V, L.P.* Polish Enterprise Fund V, L.P.* Permira Europe III, L.P. Unison Capital Partners II (F), L.P.*** Segulah III, L.P.* Terra Firma Capital Partners II, L.P. Rest of World – Venture Capital Third Cinven Fund (No. 4), L.P. Crimson Velocity Fund, L.P. Pitango Venture Capital Fund IV, L.P. Europe – Venture Capital SVE Star Ventures Enterprises GmbH & Co. IX KG Abingworth Bioventures III, L.P. ACT 2001 Venture Capital Fund, L.P. No. 2 North America – Buyout Advent Private Equity Fund III ‘D’, L.P. Carlyle Partners IV, L.P. Amadeus II C, L.P. JP Morgan Partners Global Investors (Cayman), L.P. BrainHeart Capital, L.P. Kohlberg TE Investors V, L.P. BrainHeart Capital Annex Fund, L.P. Providence Equity Partners V-A, L.P. 102 ÜBERBLICKSTATEMENT OF THE INVESTMENT MANAGER

ÜBERSICHT 2004

Ripplewood Partners II Parallel Fund, L.P. SECONDARY INVESTMENTS LISTED PRIVATE EQUITY Silver Lake Partners II, L.P. American Industrial Partners Capital Fund III, L.P. 3i Group Plc TPG Partners IV, L.P. Apollo Overseas Partners III, L.P. AIG Private Equity Ltd Warburg Pincus Private Equity VIII, L.P. AXA Private Equity Fund II Feeder, L.P.* Allied Capital Corp. William Blair Capital Partners VII QP, L.P. Blackstone Communications Partners I, L.P. American Capital Strategies Corp. Bridgepoint Europe II ‘C’, L.P.* Candover Investments PLC North America – Venture Capital Bridgepoint Europe II ‘C’, L.P. Castle Private Equity Ltd Advanced Technology Ventures VII, L.P. Doughty Hanson & Co. Fund III, L.P. Dinamia Battery Ventures VII, L.P.** Electra European Fund L.P.* Electra Investment Trust PLC Boulder Ventures IV, L.P. EQT III Limited (formerly Northern Europe) Graphite Enterprise Trust PLC Draper Fisher Jurvetson Fund VIII, L.P.** EQT Scandinavia II, L.P. HgCapital Trust PLC International Life Sciences Fund III, L.P. ICG Mezzanine Fund 2000, L.P. No. 2* Martin Currie Capital Return Trust PLC Morgenthaler Partners VII, L.P. ICG Mezzanine Fund 2000, L.P. No. 2 Onex Corp. New Enterprise Associates X, L.P. Partners Group Secondary, L.P. Standard Life European Private Equity Trust PLC New Enterprise Associates XI, L.P.** Partners Group SPP1 Limited SVG Capital PLC Oxford Bioscience Partners IV, L.P. PG Carlyle Opportunity Partnership Prism Venture Partners IV, L.P. * Participation through Partners Group Europe, L.P. at no additional fees ** Participation through Partners Group U.S. Venture, L.P. at no additional Prism Venture Partners V, L.P.** DIRECT INVESTMENTS fees Prospect Venture Partners II, L.P. Ahold Supermercados S.L. *** Participation through Partners Group Asia-Pacific 2005, L.P. at no Prospect Venture Partners III, L.P.** AMC Entertainment Inc. additional fees Commitments added this quarter are stated in italics. Prospect Venture Partners III, L.P. The Automobile Association Sevin Rosen IX, L.P.** Balta Group Summit Ventures VI-B, L.P. Bodybell TA Atlantic and Pacific V, L.P.** Brand Services, Inc. Vortex Corporate Development Fund, L.P. CellZome AG CESA Corporacion Eolica S.A. North America - Special Situations CiCi Enterprises, Inc. Ares Corporate Opportunities Fund, L.P. esmertec AG Levine Leichtman Capital Partners III, L.P. Findexa Co-Invest LLC Lexington Capital Partners V, L.P. Gala Group Limited Paul Associates II International, L.P. GMT Casema Holding Limited Peninsula Fund III, L.P. Phoqus Pharmaceutical Technologies TFCP II Co-Investment L.P. (UCI/Odeon) Refco Group Ltd.

112 QUARTERLYSTATEMENT REPORT OF THE INVESTMENT MANAGER

UNAUDITED INCOME STATEMENT for the period from 1 January 2005 to 31 March 2005

01.01.2005– 01.01.2004– 31.03.2005 31.03.2004 Notes EUR EUR Net income from limited partnerships and directly held investments 9,062,305 5,447,751 - Dividend and interest income 5&14 2,471,891 323,846 - Revaluation 5&16 4,794,024 4,599,310 - Foreign exchange gains and losses 5&15 1,796,390 524,595

Net income from associates 2,786,832 184,853 - Dividend and interest income 6&14 - - - Revaluation 6&16 1,884,964 (76,889) - Foreign exchange gains and losses 6&15 901,868 261,742

Net income from listed private equity 1,865,129 1,443,401 - Dividend and interest income 7&14 139,221 112,870 - Gains and losses 7 1,118,758 577,326 - Foreign exchange gains and losses 7&15 607,150 753,205

Net income from short-term investments 1,098,518 1,467,400 - Gains and losses 8 1,098,518 1,467,400

Net income from cash and cash equivalents 255,023 66,164 - Interest income 10&14 117,345 66,164 - Foreign exchange gains and losses 15 137,678 -

Operating income 15,067,807 8,609,569

Operating expenses (5,487,858) (5,222,760) - Management fee 2 (2,297,713) (2,026,019) - Insurance fee 2 (2,970,000) (2,970,000) - Administration fee 2 (153,181) (135,068) - Direct investment performance fee - - - Tax exemption fee 3 - - - Other foreign exchange gains and losses 15 (3,913) 2,139 - Other operating expenses (63,051) (93,812)

Financing cost (8,500,759) (8,338,860) - Finance cost on convertible bond 12&14 (4,904,281) (4,742,382) - Amortization of transaction costs 12 (296,478) (296,478) - Bond interest 14 (3,300,000) (3,300,000)

Surplus / (loss) for the financial period 1,079,190 (4,952,051)

12 UNAUDITED BALANCE SHEET as at 31 March 2005

31.03.2005 31.03.2004 Notes EUR EUR Assets Non-current assets Investments in limited partnerships and directly held investments 1&5 279,293,033 234,863,468 Investments in associates and joint ventures 6 49,761,140 49,367,973 Investments in listed private equity 7 25,558,692 23,560,460 354,612,865 307,791,901 Current assets Short-term investments 1&8 193,195,147 208,106,992 Other short-term receivables 9 427,819 51,178 Cash and cash equivalents 10 13,697,968 32,899,434 207,320,934 241,642,002

Total assets 561,933,799 549,433,903

Equity Capital and reserves Issued capital 11 10,000 10,000 Reserves (30,987,370) (32,066,560) Total equity (30,977,370) (32,056,560)

Liabilities Liabilities falling due after more than one year Convertible bond 12 582,686,880 577,486,120

Liabilities falling due within one year Hedging liabilities 5&6 3,302,709 - Other short-term payables 13 6,921,580 4,004,343 Rounding - - 10,224,289 4,004,343

Total liabilities and equity 561,933,799 549,433,903

The financial statements on pages 12 to 26 were approved by the board of directors on 27 April 2005 and are signed on its behalf by: U. Wietlisbach N. Carey Director Director

13 QUARTERLYSTATEMENT REPORT OF THE INVESTMENT MANAGER

UNAUDITED STATEMENT OF CHANGES IN EQUITY for the period from 1 January 2005 to 31 March 2005 (all amounts in EUR)

Share Share Accumulated capital premium surplus/(loss) Total

Equity at beginning of reporting period 10,000 155,719,948 (187,786,508) (32,056,560) Surplus / (loss) for the financial period - - 1,079,190 1,079,190 Rounding - - - -

Equity at end of reporting period 10,000 155,719,948 (186,707,318) (30,977,370)

14 UNAUDITED STATEMENT OF CHANGES IN EQUITY for the period from 1 January 2004 to 31 March 2004 (all amounts in EUR)

Share Share Accumulated capital premium surplus/(loss) Total

Equity at beginning of reporting period 10,000 155,719,948 (172,605,105) (16,875,157) Surplus / (loss) for the financial period - - (4,952,051) (4,952,051) Rounding - - - -

Equity at end of reporting period 10,000 155,719,948 (177,557,156) (21,827,208)

15 QUARTERLY REPORT

UNAUDITED CASH FLOW STATEMENT for the period from 1 January 2005 to 31 March 2005

01.01.2005– 01.01.2004– 31.03.2005 31.03.2004 Notes EUR EUR Cash flow from operating activities - Management fee 2 (2,297,713) (2,026,019) - Administration fee 2 (153,181) (135,068) - Insurance fee 2 (2,970,000) (2,970,000) - Direct investment performance fee - - - Tax exemption fee 3 - - - Other operating expenses (63,051) (93,812) - Proceeds from hedging activities 5&6 - 7,565,138

- (Increase) / decrease in other short-term receivables (380,555) (859) - Increase / (decrease) in other short-term payables (382,763) (28,489)

- Interest and dividend income from limited partnerships and directly held investments 5 2,471,891 323,846 - Purchase of limited partnerships and directly held investments 5 (47,948,401) (7,081,172) - Distributions by limited partnerships and directly held investments 5 12,592,335 4,969,969

- Purchase of investments in associates 6 (520,967) (968,891) - Distributions by investments in associates 6 4,318,656 5,223,396

- Purchase of listed private equity 7 (4,529,257) (2,101,817) - Sale of listed private equity 7 4,256,933 5,049,590 - Income from listed private equity 7 139,221 112,870

- Purchase of short-term investments 8 (73,989,637) (113,181,162) - Repayment of short-term investments 8 90,000,000 80,000,000

- Interest income received from cash and cash equivalents 10 117,345 66,164

- Interest paid on convertible bond - -

Net increase / (decrease) in cash and cash equivalents (19,339,144) (25,276,316)

Cash and cash equivalents at beginning of reporting period 10 32,899,434 37,990,049

Effects on cash and cash equivalents - movement in exchange rates 137,678 - - rounding - (2)

Cash and cash equivalents at end of reporting period 10 13,697,968 12,713,731

16 NOTES TO THE UNAUDITED FINANCIAL STATEMENTS

1 PRINCIPAL ACCOUNTING POLICIES clude the increase in value of bonds purchased at a discount. All realized and unrealized surpluses and losses are recognized in the income statement. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Company's financial statements: Expenditure

Basis of preparation The expenditure is included in the financial statements on an accruals basis.

The financial statements have been prepared in accordance with International Accounting Functional and presentation currency Standard 34 (Interim Reporting), except for the following: Items included in the Company's financial statements are measured using the currency of For the valuation of investments in limited partnerships, the directors refer to the most the primary economic environment in which it operates ('The Functional Currency'). This recent available information of the General Partner of the underlying investment. Owing is the Euro, which reflects the Company's primary activity of investing in European limited to the diversified nature of the limited partnership investments and the variety of valu- partnerships and private equity. The Company has also adopted Euro as its presentation ation bases adopted and quality of management information provided by the General currency. Partners the values included in these financial statements do not necessarily comply with fair values as defined in IAS 39. Transactions in foreign currencies are translated into Euro at the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign The financial statements have been prepared in accordance with International Financial currencies are translated into Euro at the exchange rate prevailing at the balance sheet Reporting Standards (IFRS) (with the exception indicated above) and under the histori- date. Exchange gains and losses are included in the income statement. cal cost convention as modified by the revaluation of “financial assets and financial liabilities at fair value through profit and loss” and all derivative contracts. Recognized Investments in limited partnerships and directly held investments assets and liabilities that are hedged are stated at fair value in respect of the risk that is hedged. Investments in limited partnerships are valued initially at cost and thereafter at the most recent net asset value as reported by the underlying partnership and adjusted for subse- The preparation of financial statements in conformity with IFRS requires the use of esti- quent net capital activity. mates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the In selecting investments the Directors have taken into consideration the accounting and reported amounts of revenues and expenses during the reporting period. Although these valuation basis of the underlying partnerships and select only those investments, which estimates are based on management's best knowledge of current events and actions, adopt an internationally recognized standard. actual results ultimately may differ from those estimates. The Directors also review management information provided by underlying partnerships on Net income from short-term investments and cash and cash equivalents a regular basis. In those cases where the management information is limited, the Directors work with the underlying partnership in an attempt to obtain more meaningful informa- Income from bank deposits is included on an accruals basis. Gains and losses from tion. short-term investments and gains and losses from cash and cash equivalents also in-

17 QUARTERLY REPORT

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS (continued)

Notwithstanding the above, the variety of valuation bases adopted and quality of manage- The short-term investments purchased at par are included in the balance sheet at mar- ment information provided by the underlying partnerships and the lack of liquid markets ket values ruling at the balance sheet date. The changes in the fair value are included for the investments held mean that there are inherent difficulties in determining the fair within “Net income from short-term investments - Gains and losses”. values of these investments that cannot be eliminated. The short-term investments purchased at a discount are included in the balance sheet Amounts realized on the sale of investments will differ from the fair values reflected in at market values ruling at the balance sheet date. The changes in the fair value and the these financial statements and the differences may be significant. interest received at maturity are included within “Net income from short-term investments - Gains and losses”. Upon maturity of the short-term investments purchased at a The directly held investments are being treated as “financial assets at fair value through discount the difference between the last reported fair value and the maturity amount are profit or loss” and are therefore disclosed at fair value. For determining the fair value, included within “Realized gains and losses”. the Directors refer to the most recent available information provided by the lead investor of the investment with any changes resulting from additional financing rounds or a All transactions relating to short-term investments are recognized on the settlement date. diminution in value.

Any changes in the fair value of the investments are shown within “Net income from limi- Cash and cash equivalents ted partnerships and directly held investments - Revaluation”. Cash and cash equivalents consist of cash at bank and cash invested in money market Any distributions, including return of principal of investment, received from the under- instruments with a maturity of up to three months from the date of purchase. The cash lying limited partnerships and directly held investments are recognized on the distribu- equivalent investments purchased at a discount are included in the balance sheet at tion date. market values ruling at the balance sheet date. The changes in the fair value and the interest received at maturity are included within “Net income from cash and cash Investments in associates equivalents”.

Investments in associates are valued initially at cost and thereafter at the most recent Accounting for derivative financial instruments and hedging activities net asset value as reported by the underlying investment and adjusted for subsequent net capital activity. Associates are entities over which the Company generally has bet- The Company's policy of hedging the value of non-Euro investments against the Euro ween 20% and 50% of the voting rights, or over which the Company has significant does not qualify as hedge accounting as defined in IAS 39 (revised 2004). Derivative influence, but which it does not control. financial instruments are initially recognized in the balance sheet at cost and subse- quently are remeasured at their fair value. As a result the unrealized changes in the fair Short-term investments value of these derivatives and the realized net gains / losses on the derivatives that matured during the period are recognized in the income statement under the heading of Short-term investments are defined as investments with maturity between three and “Net income from limited partnerships and directly held investments – foreign exchange twelve months from the date of purchase and are being treated as “financial assets at gains and losses”. fair value through profit or loss”. The fair values of various derivative instruments used for hedging purposes are disclosed in notes 5 and 6.

18 2 EXPENSES 4 FINANCIAL RISK MANAGEMENT

Management fee Financial risk factors

The management fee is paid quarterly in advance pursuant to the Investment The Company's activities expose it to a variety of financial risks, including the effects of Management Agreement between Pearl Holding Limited and Pearl Management Limited. changes in debt and equity market prices, foreign currency exchange rates and interest The quarterly management fee is calculated as 0.375% of the higher of the sum of rates. The Company's overall risk management programme focuses on the unpredictability Private Equity Net Assets and the undrawn commitments or the Net Assets of the of financial markets and seeks to minimize potential adverse effects on the financial per- Company. formance of the Company. The Company may use derivative financial instruments such as foreign exchange contracts to hedge certain exposures. Administration fee (a) Foreign exchange risk The administration fee is paid quarterly in advance pursuant to the Administration Agreement between Pearl Holding Limited and Partners Group (Guernsey) Limited. The The Company operates and invests internationally and is exposed to foreign exchange risk quarterly administration fee is calculated as 0.025% of the higher of the sum of Private arising from various currency exposures. The Company may use forward contracts to Equity Net Assets and the undrawn commitments or the Net Assets of the Company. hedge its exposure to foreign currency risk in connection with the functional currency.

Insurance fee (b) Interest rate risk

The insurance fee is paid quarterly in advance pursuant to the Insurance Trust The Company's income and operating cash flows are substantially independent of changes Agreement between Pearl Holding Limited, Pearl Management Limited and European in market interest rates. The Company has no significant interest-bearing assets. International Reinsurance Company Limited. The quarterly insurance fee is calculated as 0.45% of the higher of the sum of Private Equity Net Assets and the undrawn commit- (c) Credit risk ments or the Net Assets of the Company or the Principal Amount of the Bond. The Company has no significant concentration of credit risk. Derivative counterparties and cash transactions are limited to high credit quality financial institutions. 3 TAXATION STATUS (d) Liquidity risk The Company is exempt from Guernsey income tax under the Income Tax (Exempt Bodies) (Guernsey) Ordinances 1989 and 1992 and is charged an annual exemption fee Prudent liquidity risk management implies maintaining sufficient cash and marketable of GBP 600. securities, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Due to the dynamic nature of the underlying businesses, the Company aims at maintaining flexibility in funding by keeping sufficient liquidity in readily realizable short-term investments.

19 QUARTERLYSTATEMENT REPORT OF THE INVESTMENT MANAGER

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS (continued)

Fair value estimation 5.2 DISTRIBUTIONS 01.01.2005- 01.01.2004- The fair 31.03.2005 31.03.2004 value of publicly traded derivatives and “financial assets at fair value through profit or loss” securities is based on quoted market prices at the balance sheet date. The fair Dividends 1,818,376 193,868 value of forward foreign exchange contracts is determined using forward exchange Interest income 653,515 129,977 market rates at the balance sheet date. Rounding - 1 2,471,891 323,846 In assessing the fair value of non-traded derivatives and other financial instruments, the Company uses a variety of methods and makes assumptions that are based on market Return of investments 12,592,335 4,969,969 conditions existing at each balance sheet date. Quoted market prices or dealer quotes for the specific or similar instruments are used for long-term debt. Other techniques, Total distributions 15,064,226 5,293,815 such as option pricing models and estimated discounted value of future cash flows, are used to determine fair value for the remaining financial instruments. 5.3 FOREIGN EXCHANGE 01.01.2005 - 01.01.2004- 5 LIMITED PARTNERSHIPS AND DIRECTLY HELD INVESTMENTS 31.03.2005 31.03.2004

5.1 INVESTMENTS Foreign exchange revaluation 4,279,474 1,340,544 31.03.2005 31.12.2004 Revaluation of foreign exchange hedges relating to investments in limited partnerships and directly Balance at beginning of reporting period 234,863,468 166,100,235 held investments (2,483,084) (4,137,801)

Capital activity recorded at the transaction rate 47,948,401 100,760,092 Realized gain / (loss) from foreign exchange hedges Distributions (12,592,335) (45,391,930) relating to investments in limited partnerships and Revaluation 4,794,024 20,384,268 directly held investments - 3,321,852 Foreign exchange gains / (losses) 4,279,474 (6,989,197) Rounding - - Rounding 1 - 1,796,390 524,595 Balance at end of reporting period 279,293,033 234,863,468

At the balance sheet date, Pearl Holding Ltd. had the following forward foreign exchange contracts in place. The contracts were entered into to hedge against changes in the foreign exchange value of the investments in limited partnerships and directly held investments. The unrealized surplus / (loss) at the end of the reporting period is detailed on the next page:

20 Surplus / Surplus / 6.2 DISTRIBUTIONS Amount (loss) (loss) 01.01.2005- 01.01.2004- EUR Rate Value date 31.03.2005 31.12.2004 31.03.2005 31.03.2004 Dividends - - Sell USD Interest income - - against EUR 54,417,505 1.34997 15.07.2005 (2,109,770) 373,314 - - Return of investments 4,318,656 5,223,396 (2,109,770) 373,314 Total distributions 4,318,656 5,223,396

6 INVESTMENTS IN ASSOCIATES 6.3 FOREIGN EXCHANGE 01.01.2005- 01.01.2004- 6.1 INVESTMENTS 31.03.2005 31.03.2004 31.03.2005 31.12.2004 Foreign exchange revaluation 2,305,892 1,339,464 Balance at beginning of reporting period 49,367,973 59,105,714 Revaluation of foreign exchange hedges relating Capital activity recorded at the transaction rate 520,967 2,904,797 to investments in associates (1,404,023) (5,321,007) Distributions (4,318,656) (20,441,286) Realized gain / (loss) from foreign exchange Revaluation 1,884,964 11,610,911 hedges relating to associates - 4,243,286 Foreign exchange gains / (losses) 2,305,892 (3,812,162) Rounding (1) (1) Rounding - (1) 901,868 261,742 Balance at end of reporting period 49,761,140 49,367,973 At the balance sheet date, Pearl Holding Ltd. had the following forward foreign exchange contracts in place. The contracts were entered into to hedge against changes in the foreign The only associate, unlisted, is: exchange value of the investments in associates. The unrealized surplus / (loss) at the end of the reporting period is detailed below: Country of incorporation Activity % interest Surplus / Surplus/ held Amount (loss) (loss) EUR Rate Value date 31.03.2005 31.12.2004 Partners Group SPP1 Limited Guernsey, Holding of Sell USD Channel Islands investments 49.64% against EUR 30,769,573 1.34997 15.07.2005 (1,192,938) 211,085

(1,192,938) 211,085

21 QUARTERLY REPORT

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS (continued)

7 INVESTMENTS IN LISTED PRIVATE EQUITY 8 SHORT-TERM INVESTMENTS

7.1 INVESTMENTS 8.1 INVESTMENTS 31.03.2005 31.12.2004 31.03.2005 31.12.2004

Balance at beginning of reporting period 23,560,460 17,812,172 At beginning of reporting period 208,106,992 252,823,843 Purchases recorded at the transaction rate 4,529,257 11,361,077 Additions 73,989,637 274,782,948 Disposals recorded at the transaction rate (4,256,933) (7,922,267) Redemptions (90,000,000) (325,000,000) Gains / (losses) on listed private equity 1,118,758 2,576,607 Gains and losses on short-term investments 1,098,518 5,500,201 Foreign exchange gains / (losses) 607,150 (267,129) Rounding - - Rounding - - At end of reporting period 193,195,147 208,106,992 Balance at end of reporting period 25,558,692 23,560,460

8.2 INCOME 7.2 INCOME 01.01.2005- 01.01.2004 - 01.01.2005- 01.01.2004- 31.03.2005 31.03.2004 31.03.2005 31.03.2004 Gains and losses Dividends 116,322 112,870 Realized gains / (losses) from short-term investments 1,488,130 (801,339) Realized gains / (losses) on listed private equity 696,243 151,140 Unrealized gains / (losses) from short-term investments (389,612) 2,268,739 Unrealized gains / (losses) on listed private equity 422,515 426,186 Other income 22,899 - Total gains / (losses) from short-term investments 1,098,518 1,467,400

1,257,979 690,196

9 OTHER SHORT-TERM RECEIVABLES

31.03.2005 31.12.2004

Distributions receivable 427,819 51,178

427,819 51,178

22 10 CASH AND CASH EQUIVALENTS Bondholders have the right to convert bonds into shares on or after 1 October 2008 and up to the close of business on 31 August 2010. Bondholders have the right to convert 10.1 BALANCE bonds at their option into either fully paid, ordinary non-voting Class B shares or fully paid, 31.03.2005 31.12.2004 ordinary voting Class C shares (collectively “Ordinary Shares”). Ordinary shares will rank pari passu in all respects with all other Ordinary Shares of the issuer which are in issue on Cash at banks 13,697,968 32,899,434 the relevant conversion date, save that Class B shares will not confer voting rights at all, Rounding - - and Class C shares will not confer voting rights until the earlier of the date upon which 95 per cent of the principal amount of the bonds have been converted or final maturity Total cash and cash equivalents 13,697,968 32,899,434 (“Specified Date”). From the Specified Date, but prior to the Class A shares being converted into Class C shares, the holders of Class C shares shall be entitled in aggregate to 4,000,000 votes, representing 80% of the votes available. 10.2 INTEREST INCOME 01.01.2005- 01.01.2004 - Following the Specified Date, the Class A shares issued may, at the option of the holders, be 31.03.2005 31.03.2004 converted into Class C shares. Upon conversion of all Class A shares into Class C shares, every shareholder of Class C shares shall have one vote for every share held by him. Interest received from cash at banks 117,345 66,164 Rounding - - 12 CONVERTIBLE BOND Total interest income from cash and 31.03.2005 31.12.2004 cash equivalents 117,345 66,164 Balance at beginning of reporting period 577,486,120 557,089,830 Amortization of transaction costs 296,478 1,185,611 Finance cost on convertible bond 4,904,281 19,210,679 11 SHARE CAPITAL Rounding 1 - 31.03.2005 31.12.2004 Authorized Balance at end of reporting period 582,686,880 577,486,120 1,000,000 Class A shares of EUR 0.01 each 10,000 10,000 10,000,100 non classified shares of EUR 0.01 each (“Ordinary Shares”) 100,001 100,001 As at the balance sheet date the nominal value of the convertible bond outstanding was EUR 660,000,000. The bond is not convertible into shares until on or after 1 October 2008, 110,001 110,001 at the option of the investor, using the relevant conversion price. Pearl Holding Limited has entered into an insurance policy to ensure that it is provided with sufficient funds for the Issued and fully paid repayment of the principal upon redemption of the bond on 30 September 2010. 1'000'000 Class A shares of EUR 0.01 each 10,000 10,000

23 QUARTERLY REPORT

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS (continued)

In accordance with IAS 32, Financial Instruments: Disclosure and Presentation, the net 14 DIVIDEND AND INTEREST INCOME AND EXPENSE proceeds of the bond have been split between the liability and equity option compo- nents. The fair value of the equity component has been calculated as EUR 153,058,174 01.01.2005- 01.01.2004- using cash flows discounted at market interest rates for an equivalent period. This 31.03.2005 31.03.2004 amount is classified as share premium and will remain part of the permanent equity of Interest income: the Company. The remaining net proceeds, after the allocation of the liability related - Dividend and interest income from limited transaction costs, of EUR 497,711,848 are allocated to the liability component. The lia- partnerships and directly held investments 2,471,891 323,846 bility, including transaction costs, is therefore stated at a discount of 0.84276% per - Dividend and interest income from listed quarter to the maturity value. private equity 139,221 112,870 - Interest income from cash and cash equivalents 117,345 66,164

The result of this technical requirement in IAS 32 is that the discount is amortized Total dividend and interest income 2,728,457 502,880 through the income statement as a finance cost, on a yield to maturity basis, over the life of the bonds until the beginning of the conversion period. This accounting treat- Interest expense: ment has no effect on either the economic position or the net asset value of the - Finance cost on convertible bond (4,904,281) (4,742,382) Company. The cumulative finance cost in retained earnings is offset by an equivalent - Bond interest (3,300,000) (3,300,000) credit in share premium. However, the required treatment clearly does have a significant impact on the net surplus or loss reported in the income statement over the period Total interest expense (8,204,281) (8,042,382) to the conversion of the bond.

15 FOREIGN EXCHANGE GAINS AND LOSSES 13 OTHER SHORT-TERM PAYABLES 01.01.2005- 01.01.2004 - 31.03.2005 31.12.2004 31.03.2005 31.03.2004 Foreign exchange gains and losses on: Accrual of interest on convertible bond 6,600,000 3,300,000 - limited partnerships and directly held investments 1,796,390 524,595 Sundry accruals 321,580 704,343 - investments in associates 901,868 261,742 - investments in listed private equity 607,150 753,205 6,921,580 4,004,343 - cash and cash equivalents 137,678 - - other foreign exchange gains and losses (3,913) 2,139

3,439,173 1,541,681

24 16 REVALUATION 19 INSURANCE POLICY

01.01.2005- 01.01.2004- On 29 June 1999, Pearl Holding Limited and Pearl Management Limited entered into an 31.03.2005 31.03.2004 Insurance Agreement with European Reinsurance International Company Limited, to ensure that the Company will be provided with sufficient funds to be able to pay the principal Revaluation of: amount of the Bond at maturity on 30 September 2010. - limited partnerships and directly held investments 4,794,024 4,599,310 - investments in associates 1,884,964 (76,889) 20 NUMBER OF EMPLOYEES 6,678,988 4,522,421 At the balance sheet date no persons were employed by the Company. 17 COMMITMENTS 31.03.2005 31.12.2004 Total commitments translated at the rate 21 RELATED PARTY TRANSACTIONS prevailing at the balance sheet date 829,452,343 747,679,953 GE & W AG, a majority of whose shares are held by the founding partners of Partners Unutilized commitments translated at the rate Group Holding, and Partners Group Holding hold 100% of the Class A shares. prevailing at the balance sheet date 374,455,065 350,761,132 Partners Group Holding owns 19.9% of the share capital of GE & W AG.

18 DILUTED NET ASSETS PER ORDINARY SHARE Mr. Wietlisbach, a Director of Pearl Holding Limited and a partner of Partners Group, con- trols 26.7% of the issued share capital of GE & W AG. The net assets are calculated by deducting the Liabilities falling due within one year from the Total Assets. The 660,000 convertible bonds at a par value of EUR 1,000 each, Partners Group and all its subsidiaries and affiliates are considered to be related parties to if converted at EUR 100 per share would result in 6,600,000 shares. Once 95% of the the Company. The directors as disclosed in the Directors' Report are also considered to be convertible bonds are converted, the existing 1,000,000 Class A shares will be converted related parties to the Company. at 10,000 : 1, resulting in 100 Class C shares after conversion.

31.03.2005 31.12.2004

Net assets of the company 551,709,510 545,429,560 Outstanding shares at the balance sheet date 100 100 Additional shares due to conversion 6,600,000 6,600,000 Net assets per share after conversion 83.5911 82.6396

25 QUARTERLYSTATEMENT REPORT OF THE INVESTMENT MANAGER

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS (continued)

Transactions with related parties 23 RISKS

The following transactions were carried out with related parties: It is expected, that a large proportion of the Company's investments will be made by investing in private equity funds (including affiliated funds). Many of the private equity i) Services funds may be wholly unregulated investment vehicles. In addition, certain of the private 01.01.2005- 01.01.2004- equity funds may have limited or no operational history and have no proven track record 31.03.2005 31.03.2004 in achieving their stated investment objective. Management fee: - Pearl Management Limited (2,297,713) (2,026,019) The value of the investments in the private equity funds and the income from them may fluctuate significantly. Administration fee: - Partners Group (Guernsey) Ltd (153,181) (135,068) The Company's over-commitment strategy could result in periods in which the Company has inadequate liquidity to fund its investments or to pay other amounts payable by the Insurance fee: Company. - Pearl Management Limited (2,970,000) (2,970,000) The Company expects that a portion of the private equity investments to be made by the Direct investment performance fee: Company will be in a number of different countries and denominated in a number of dif- - Pearl Management Limited - - ferent currencies. Any returns on and value of, such portion of the private equity investments made by the Company may, therefore, be materially affected by exchange rate fluc- Directors' fees paid (3,698) (1,936) tuations, local exchange control and other restrictions, including restrictions on the con- vertibility of the currencies in question and also by political and economic developments in Reimbursement of fees paid by related limited the relevant countries. partnerships: - Partners Group (Guernsey) Ltd 240,711 461,108

22 PARENT COMPANY AND ULTIMATE CONTROLLING PARTY

GE & W AG, a company organized under Swiss law holds the majority of the Class A shares. Partners Group Holding holds 19.9% of the share capital of GE & W AG.

26 NOTES

27 Pearl

LIST OF ADRESSES

Registered office Trading information Pearl Holding Limited Price information Elizabeth House Reuters DGZ07 Les Ruettes Braye German Security Number 558.527 St Peter Port, Guernsey Swiss Security Number 1.140.571 Channel Islands Phone +44 1481 730 946 Market Maker Facsimile +44 1481 730 947 DekaBank E-mail [email protected] Frankfurt a. M., Germany Info www.pearl-privateequity.net Phone +49 69 7147 1301

Investment manager Pearl Management Limited Guernsey, Channel Islands

Investors relations Isabelle Hess E-mail [email protected]

Auditors PricewaterhouseCoopers Guernsey, Channel Islands