PRIVATE CAPITAL PERFORMANCE UPDATE: Q2 2017 PRIVATE CAPITAL PERFORMANCE UPDATE: Q2 2017

Fig. 1: Private Capital Horizon IRRs (As at 30 June 2017) Fig. 2: Private Capital Rolling One-Year Horizon IRRs 25% 30% Private Capital 25% 20% 20% Private Capital 15% 15% Buyout 10% 5% Venture Capital 10% Mezzanine One-Year Horizon IRR 0% Annualized Return Distressed Private -5% 5% Equity 0% 1 Year to 3 Years to 5 Years to 10 Years to

Jun-17 Jun-17 Jun-17 Jun-17 Year 1 Jun-13 to Year 1 Jun-14 to Year 1 Jun-15 to Year 1 Jun-16 to Year 1 Jun-17 to 1 Year 1 Sep-13 to Year 1 Sep-14 to Year 1 Sep-15 to Year 1 Sep-16 to 1 Year 1 Dec-13 to Year 1 Dec-14 to Year 1 Dec-15 to Year 1 Dec-16 to 1 Year 1 Mar-13 to Year 1 Mar-14 to Year 1 Mar-15 to Year 1 Mar-16 to Year 1 Mar-17 to Source: Preqin Source: Preqin

Fig. 3: Private Capital Rolling Three-Year Horizon IRRs Fig. 4: Buyout Fund Horizon IRRs by Size* (As at 30 June 2017) 20% 25% 18% 16% 20% 14% Private Capital Mega Buyout 12% 10% Buyout 15% Large Buyout 8% 6% Venture Capital Mid Buyout 4% 10% Three-Year Horizon IRR 2% Annualized Return 0% Small Buyout 5%

0% 1 Year 3 Years 5 Years 3 3 Years to Jun-13 3 Years to Jun-14 3 Years to Jun-15 3 Years to Jun-16 3 Years to Jun-17 3 3 Years to Sep-13 3 Years to Sep-14 3 Years to Sep-15 3 Years to Sep-16 3 3 Years to Dec-13 3 Years to Dec-14 3 Years to Dec-15 3 Years to Dec-16 3 3 Years to Mar-13 3 Years to Mar-14 3 Years to Mar-15 3 Years to Mar-16 3 Years to Mar-17 to Jun-17 to Jun-17 to Jun-17

Source: Preqin Source: Preqin

Fig. 5: Private Capital Horizon IRRs by Fund Primary Geographic Focus (As at 30 June 2017) DATA SOURCE 25% Preqin’s online platform is the industry’s most extensive source of net-to-LP private capital fund performance, with 20% full metrics for over 8,900 named vehicles. North America 15% For more information, or to arrange a demonstration, please visit: Europe 10% www.preqin.com/privateequity Asia Annualized Return

5% *Size ranges: Vintage 1992-1996: Small Buyout ≤ $200mn, Mid Buyout $201mn-$500mn, Large 0% Buyout > $500mn 1 Year 3 Years 5 Years Vintage 1997-2004: Small Buyout ≤ $300mn, Mid Buyout $301mn-$750mn, Large to Jun-17 to Jun-17 to Jun-17 Buyout $751mn-$2bn, Mega Buyout > $2bn Vintage 2005-2018: Small Buyout ≤ $500mn, Mid Buyout $501mn-$1,500mn, Large Source: Preqin Buyout $1,501mn-$4.5bn, Mega Buyout > $4.5bn

1 © 2018 Preqin Ltd. / www.preqin.com PRIVATE CAPITAL PERFORMANCE UPDATE: Q2 2017

Fig. 6: Private Capital by Fig. 7: Private Capital Assets under Management by Geographic (As at 30 June 2017) Focus (As at 30 June 2017)

Vintage Year Dry Powder ($bn) Unrealized Value ($bn) Dry Powder Unrealized Value Geographic Focus ($bn) ($bn) 2000 3.6 3.7 North America 932.6 1,794.9 2001 1.9 3.0 Europe 411.6 756.8 2002 2.9 2.8 2003 1.2 5.9 Asia 251.2 513.1 2004 2.0 13.3 Latin America 19.1 57.7 2005 4.5 42.2 Diversified Multi-Regional 21.5 48.1 2006 13.0 124.1 Australasia 15.4 30.6 2007 12.3 188.4 Middle East & Israel 8.9 27.2 2008 13.8 215.2 Africa 10.3 25.6 2009 7.0 102.3 Source: Preqin 2010 7.6 139.6 Fig. 8: Private Capital Assets under Management by Fund Type 2011 26.2 296.8 (As at 30 June 2017) 2012 32.2 270.8 2013 60.3 249.6 Fund Type Dry Powder ($bn) Unrealized Value ($bn) 2014 121.4 252.3 Private Equity 970.1 1,850.5 2015 223.4 170.7 Real Estate 245.5 565.4 2016 329.2 106.0 Private Debt 226.8 410.5 2017 282.6 29.6 Infrastructure 149.3 268.4

Source: Preqin Natural Resources Only 70.9 158.2 Source: Preqin

Fig. 9: Change in NAVPS and Share Price of Listed Private Equity Fig. 10: Private Capital Median Net IRRs by Fund Type by Quarter (As at 30 June 2017)

35% 35% 30% 30% 25% Private 20% 25% Capital 15% 10% 20% Buyout 5% 15% 0% Venture Previous Quarter -5% 10% Capital -10% Median Net IRR

Average Change in NAV from 5% -15% Real Estate -20% 0% Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3

2009 2010 2011 2012 2013 2014 2015 2016 2017 -5%

Change in NAVPS of Change in Share Price of 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Listed Private Equity Listed Private Equity Vintage Year Source: Preqin Private Equity Online Source: Preqin

Fig. 11: Private Capital – J-Curve: Annual Median Net IRRs by Vintage Year

20% Vintage 2005 15% PREQIN’S PRIVATE EQUITY DATA PLATFORM Vintage 2006 10% Vintage 2007 Preqin provides unrivalled data and intelligence 5% Vintage 2008 on private equity and venture capital, including fundraising, fund managers, institutional investors, fund 0% Vintage 2009 performance, deals and exits, service providers, fund 0 1 2 3 4 5 6 7 8 9 10 11 12 terms and conditions and more. -5% Vintage 2010

Median Net IRR -10% Vintage 2011 : [email protected]

-15% Vintage 2012 : www.preqin.com/privateequity Vintage 2013 -20% Vintage 2014 -25% Investment Year Source: Preqin

2 © 2018 Preqin Ltd. / www.preqin.com PRIVATE CAPITAL PERFORMANCE UPDATE: Q2 2017

Fig. 12: PrEQIn Quarterly Index: All Strategies 600 PrEQIn Private Capital

500 PrEQIn Buyout

PrEQIn Venture Capital 400 PrEQIn Real Estate 300 PrEQIn Fund of Funds Index Return 200 PrEQIn Distressed Private Equity

S&P 500 TR 100 (Rebased to 100 as of 31-Dec-2000) PrEQIn Private Equity 0 30-Jun-01 30-Jun-02 30-Jun-03 30-Jun-04 30-Jun-05 30-Jun-06 30-Jun-07 30-Jun-08 30-Jun-09 30-Jun-10 30-Jun-11 30-Jun-12 30-Jun-13 30-Jun-14 30-Jun-15 30-Jun-16 30-Jun-17 31-Dec-00 31-Dec-01 31-Dec-02 31-Dec-03 31-Dec-04 31-Dec-05 31-Dec-06 31-Dec-07 31-Dec-08 31-Dec-09 31-Dec-10 31-Dec-11 31-Dec-12 31-Dec-13 31-Dec-14 31-Dec-15 31-Dec-16

Source: Preqin

Fig. 13: Consistent Top Performing Buyout Fund Managers

Total Funds Overall No. No. of Funds in No. of Funds in Average Quartile Firm Location Raised in Last of Funds with Top Quartile Second Quartile Rank 10 Years ($mn) Quartile Ranking Inflexion UK 3,292 5 5 0 1.00 Auctus Management Germany 503 4 4 0 1.00 Clearview Capital US 575 3 3 0 1.00 Main Capital Partners Netherlands 431 3 3 0 1.00 FIMI Israel 2,427 5 4 1 1.20 Altor Sweden 5,292 4 3 1 1.25 Wynnchurch Capital Partners US 1,840 4 3 1 1.25 Quadrant Private Equity Australia 3,136 6 5 0 1.33 Vista Equity Partners US 26,761 6 4 2 1.33 Altaris US 938 3 2 1 1.33 Corpfin Capital Spain 274 3 2 1 1.33 DFW Capital Partners US 577 3 2 1 1.33 Egeria Capital Management Netherlands 2,509 3 2 1 1.33 Gilde Equity Management Netherlands 633 3 2 1 1.33 Benelux Industrial Growth Partners US 1,400 3 2 1 1.33 Montefiore Investment France 964 3 2 1 1.33 Nautic Partners US 2,241 3 2 1 1.33 US 13,000 3 2 1 1.33 Seidler Equity Partners US 1,173 5 4 0 1.40 Ethos South Africa 1,117 5 3 2 1.40

Source: Preqin

Fig. 14: Consistent Top Performing Growth Fund Managers

Total Funds Overall No. No. of Funds in No. of Funds in Average Quartile Firm Location Raised in Last of Funds with Top Quartile Second Quartile Rank 10 Years ($mn) Quartile Ranking Ampersand Capital Partners US 445 5 5 0 1.00 Trustbridge Partners China 1,975 5 5 0 1.00 KJK Capital Finland 183 3 2 1 1.33 Technology Crossover Ventures US 4,730 5 2 3 1.60 Amundi Private Equity France 334 3 1 2 1.67 Frontier Capital US 1,340 3 1 2 1.67 LLR Partners US 1753 4 1 3 1.75 Enfoca Inversiones Peru 1420 5 1 4 1.80 Spectrum Equity US 3055 6 2 3 1.83

Source: Preqin

3 © 2018 Preqin Ltd. / www.preqin.com PRIVATE CAPITAL PERFORMANCE UPDATE: Q2 2017

Fig. 15: Consistent Top Performing Venture Capital Fund Managers

Total Funds Overall No. No. of Funds in No. of Funds in Average Quartile Firm Location Raised in Last of Funds with Top Quartile Second Quartile Rank 10 Years ($mn) Quartile Ranking Benchmark Capital US 1,497 3 3 0 1.00 Pontifax AgTech US 608 3 3 0 1.00 Third Rock Ventures US 1,558 3 3 0 1.00 Avalon Ventures US 552 6 5 1 1.17 OrbiMed Advisors US 5,349 5 4 1 1.20 US 12,377 5 4 1 1.20 Partners US 2,010 4 3 1 1.25 US 988 4 3 1 1.25 Vickers Venture Partners Singapore 367 4 3 1 1.25 CRCM Venture Capital Hong Kong 103 3 2 1 1.33 DN Capital UK 486 3 2 1 1.33 Forbion Capital Partners Netherlands 585 3 2 1 1.33 Future Venture Capital Japan 19 3 2 1 1.33 US 2,825 10 7 2 1.40 BlueRun Ventures US 395 5 4 0 1.40 CDH Investments China 9,201 5 3 2 1.40 Charles River Ventures US 1,088 5 3 2 1.40 US 10,465 10 5 5 1.50 Matrix Partners US 3,122 6 4 1 1.50 Caufield & Byers US 6,735 6 3 3 1.50 Scottish Equity Partners UK 744 4 3 0 1.50 Partners US 999 4 2 2 1.50 Pappas Ventures US 97 4 2 2 1.50

Source: Preqin

Fig. 16: Consistent Top Performing Private Equity Fund of Funds Managers

Total Funds Overall No. No. of Funds in No. of Funds in Average Quartile Firm Location Raised in Last of Funds with Top Quartile Second Quartile Rank 10 Years ($mn) Quartile Ranking Twin Bridge Capital Partners US 1,662 3 3 0 1.00 Weathergage Capital US 564 6 4 2 1.33 Nordea Private Equity Denmark 334 3 2 1 1.33 Greenspring Associates US 4,697 7 5 1 1.43 Spur Capital Partners US 288 4 3 0 1.50 Industry Ventures US 2,893 8 4 3 1.63 Bay Hills Capital US 201 6 3 2 1.67 Darwin Ventures US 216 3 2 0 1.67 Stafford Timberland UK 1,638 3 2 0 1.67 Bowside Capital US 61 3 1 2 1.67 ATP Private Equity Partners Denmark 5,691 5 3 1 1.80 Altamar Private Equity Spain 1,663 5 2 2 1.80 TrueBridge Capital Partners US 1,585 6 4 0 1.83 LGT Capital Partners Switzerland 12,014 13 3 9 1.85 North Sky Capital US 298 8 4 2 1.88 Siguler Guff US 8,222 18 9 3 1.89 Fort Washington Capital US 1,248 9 3 4 1.89 Partners Wilshire Private Markets US 1,017 13 5 5 1.92 Storebrand Asset Management Norway 1,612 19 9 5 1.95

Source: Preqin

4 © 2018 Preqin Ltd. / www.preqin.com PRIVATE CAPITAL PERFORMANCE UPDATE: Q2 2017 THE IMPORTANCE OF PME BENCHMARKING nvestors and fund managers alike The development of the public market a choice of three PME methodologies: Ifrequently benchmark private equity equivalent (PME) measure of returns Kaplan-Schoar PME, Long-Nickels PME returns against public markets in order to provides a more meaningful, like-for-like and PME+. All of the methodologies utilize gauge the relative performance of their comparison. PME metrics benchmark the since-inception cash flow data Preqin investments. For LPs, it is an important the performance of a fund, or a group holds for over 3,900 funds. exercise which can inform portfolio of funds, against an appropriate public construction decisions and help to market index while accounting for the The table below provides an overview evaluate the performance of one asset timings of the fund cash flows. When PME of the three PME methodologies Preqin class against another. For fund managers, values are generated for many funds, they now offers, along with their specific it forms a key aspect of fund marketing to can be used as an alternative measure strengths and weaknesses. Having the help secure LP commitments. of ranking fund performance, while ability to employ a number of different controlling for broader market behaviour. PME methodologies is highly desirable Private equity returns, however, are not to an investor, but it is also important directly comparable with public market Preqin provides PME benchmarks and to maintain awareness that each is indices, due to the asset class’s illiquid individual fund-level PME comparisons on fundamentally an approximation until the nature and irregular timing of cash flows. its online databases, which already provide funds are fully realized. The industry has long used the analogy net-to-LP fund performance metrics of ‘comparing apples with oranges’ when for over 9,200 named private equity discussing the difficulties of evaluating the vehicles globally. The PME tool enables differences between private equity and the comparison of private equity returns public market performance. against six public market indices using

PME Benchmarking Methods Offered by Preqin Private Capital Benchmark Metric Description of Calculation Strengths Weaknesses Outperformance if: The calculation looks at Calculated by discounting the private capital the ratio of outflows to fund cash flows by the public market index inflows as opposed to KS-PME value. generating an IRR, which Ignores the timings of cash (Kaplan- Ratio Value above one is time dependent and flows. Schoar) The discounted distributions plus the easily manipulated. current remaining value are divided by the

discounted contributions to obtain the ratio. Easy to interpret. Contributions to private capital fund are IRR sensitive to early converted to an equal purchase of shares distributions. Large in the public index. Distributions represent LN PME IRR is directly distributions could cause a LN PME Estimated PME IRR < liquidation of share in public index. comparable to the private Annualized negative PME final period (Long- Private Capital Fund capital fund IRR, allowing Rate remaining value, making Nickels) IRR IRR calculation uses same contributions an apples-to-apples PME IRR calculation and distributions as private capital fund, comparison. computationally but with a different final period remaining impossible. value. Uses a fixed scaling factor (Lambda) to As for LN PME, with the modify each distribution to ensure the PME added benefit of avoiding Capital Estimated PME IRR < final period remaining value is the same as PME+ does not Annualized a final period negative Dynamics Private Capital Fund the private capital fund remaining value. match the cash flows Rate remaining value, making PME+ IRR IRR calculation uses modified contributions perfectly. PME IRR calculation and distributions but same final period possible in more cases. remaining value.

5 © 2018 Preqin Ltd. / www.preqin.com PRIVATE CAPITAL PERFORMANCE UPDATE: Q2 2017 PME BENCHMARKS

Fig. 17: KS PME: Private Capital - All Regions Fig. 18: KS PME: Private Capital - North America (As at 30 June 2017) (As at 30 June 2017)

1.3 1.3

If PME value (X) If PME value (X) is >1, private is >1, private 1.2 1.2 capital has capital has outperformed the outperformed the public market public market 1.1 1.1 KS PME Using KS PME Using

PME Value (X) S&P 500 TR 1.0 S&P 500 TR 1.0 PME Value (X)

0.9 0.9

0.8 0.8 2000 2001 2002 2003 2004 2005 2006 2007 2010 2011 2012 2014 2015 2016 2017 2008 2009 2013 2002 2003 2006 2007 2010 2011 2012 2000 2001 2004 2005 2008 2009 2013 2014 2015 2016 2017 Vintage Year Vintage Year Source: Preqin Private Equity Online Source: Preqin Private Equity Online

Fig. 20: KS PME: Private Capital - Asia & Rest of World Fig. 19: KS PME: Private Capital - Europe (As at 30 June 2017) (As at 30 June 2017)

1.4 2.0

If PME value (X) If PME value (X) 1.3 1.8 is >1, private is >1, private capital has capital has 1.2 outperformed the 1.6 outperformed the public market public market 1.1 1.4

1.0 KS PME Using 1.2 KS PME Using PME Value (X) MSCI Europe TR PME Value (X) S&P 500 TR 0.9 1.0

0.8 0.8

0.7 0.6 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Vintage Year Vintage Year Source: Preqin Private Equity Online Source: Preqin Private Equity Online

Fig. 21: LN PME: Private Capital - All Regions Fig. 22: LN PME: Private Capital - North America (As at 30 June 2017) (As at 30 June 2017)

16 18 If LN PME using If LN PME using S&P 500 TR < 16 S&P 500 TR < 14 Preqin Median Preqin Median Net IRR, private 14 Net IRR, private 12 capital has capital has outperformed the 12 outperformed the 10 public market public market 10

% 8 % Preqin Median 8 Preqin Median 6 Net IRR Net IRR 6 4 LN PME Using 4 LN PME Using S&P 500 TR S&P 500 TR 2 2

0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2000 2001 2002 2003 2004 2005 2006 2009 2010 2012 2013 2014 2007 2008 2011 Vintage Year Vintage Year Source: Preqin Private Equity Online Source: Preqin Private Equity Online

6 © 2018 Preqin Ltd. / www.preqin.com PRIVATE CAPITAL PERFORMANCE UPDATE: Q2 2017

Fig. 24: LN PME: Private Capital - Asia & Rest of World Fig. 23: LN PME: Private Capital - Europe (As at 30 June 2017) (As at 30 June 2017) 18 16 If LN PME using If LN PME using S&P 500 TR < 16 S&P 500 TR < Preqin Median Net 14 Preqin Median Net IRR, private capital 14 IRR, private capital has outperformed 12 has outperformed 12 the public market the public market 10 10 Preqin Median

% Net IRR 8 % 8 Preqin Median Net IRR 6 LN PME Using 6 MSCI Europe TR LN PME Using 4 4 S&P 500 TR 2 LN PME Using S&P 500 TR 2 0 0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014

Vintage Year Vintage Year Source: Preqin Private Equity Online Source: Preqin Private Equity Online

Fig. 26: PME+: Private Capital - North America Fig. 25: PME: Private Capital - All Regions (As at 30 June 2017) (As at 30 June 2017) 16 18

14 16 14 12 12 10 Preqin Median Preqin Median Net IRR 10 Net IRR % % 8 % 8 6 PME+ Using PME+ Using S&P 500 TR 6 S&P 500 TR 4 4

2 2

0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Vintage Year Vintage Year Source: Preqin Private Equity Online Source: Preqin Private Equity Online

Fig. 28: PME+: Private Capital - Asia & Rest of World Fig. 27: PME+: Private Capital - Europe (As at 30 June 2017) (As at 30 June 2017) 20 16 18 14 16 Preqin Median 12 14 Net IRR Preqin Median 12 10 Net IRR PME+ Using % 10 % 8 S&P 500 TR 8 PME+ Using 6 6 PME+ Using S&P 500 TR 4 MSCI Europe TR 4

2 2 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2005 2002 2003 2006 2007 2008 2009 2010 2011 2012 2013 2014 Vintage Year Vintage Year Source: Preqin Private Equity Online Source: Preqin Private Equity Online

7 © 2018 Preqin Ltd. / www.preqin.com