SELECTED DATA ON FUNDS

by

Kavaljit Singh

EED/WEED Workshop, Berlin,

November 17, 2008

Top 20 Private Equity Firms

Private Equity Assets Under Portfolio Company Firm Management ($ bn) Employees Blackstone Group 79 350,000 Carlyle Group 56 200,000 Bain Capital 40 662,000 Texas Pacific Group 30 300,000 KKR 27 540,000 Cerberus 22 363,000 Providence Equity Partners 21 86,000 Thomas H. Lee Partners 20 391,000 Welsh, Carson Anderson & Stowe 16 62,000 Hellman & Friedman 16 73,000 Warburg Pincus 15 375,000 Madison Dearborn 14 149,000 Apollo Management 13 297,000 TA Associates 10 28,000 CCMP Capital Advisors 10 379,000 Goldman Sachs Capital Partners 9 1,050,000 DLJ Merchant Banking Partners 7 63,000 Vestar 7 53,000 Silver Lake Partners 6 301,000 Clayton, Dubilier & Rice 5 109,000 Onex 5 167,000

Source: Service Employees International Union, Behind the Buyouts: Inside the World of Private Equity, April 2007, p. 20.

- 1 - Top 10 Largest Buyout Deals

Company Value ($ bn) Buyer Year TXU Corporation* 45.00 KKR, TPG Capital 2007 Equity Office Properties Trust 38.90 Blackstone 2007 Hospital Corporation of America 32.70 Bain Capital, KKR, Merrill Lynch 2006 RJR Nabisco 31.10 KKR 1989 Harrah’s Entertainment* 27.40 Apollo, Texas Pacific 2006 Clear Channel Communications* 25.70 Bain, Thomas H. Lee Partners 2006 Kinder Morgan* 21.60 Caryle, Riverstone, Goldman Sachs 2006 Freescale Semiconductor 17.60 Blackstone, Carlyle, Permira, Texas Pacific 2006 Albertson’s 17.40 Cerberus 2006 Hertz 15.00 Caryle, Clayton Bubilier & Rice, Merrill Lynch 2005 TDC 13.90 Apax, Blackstone, KKR, Permira, Providence 2005

Source: Compiled by the author from news reports and industry documents. * Deal announced, not closed

UK Private Equity Returns 10 Year Return Figures, 2007, (in per cent) Private Equity 20.1 Property 11.8 Overseas Equities 7.6 UK Bonds 6.5 Overseas Bonds 5.5 UK Equity 6.3 Source: BVCA

PE Investments by Financing Stage % share of investments

2000 Early stage Expansion Buyouts UK 11 33 56 World 33 46 21 2007 UK 4 32 64 World 2 9 89

- 2 - Private Equity Market

INVESTORS INTERMEDIARIES ISSUERS l pension funds Investing in private Start-up l endowments equity funds Private equity l foundations → → fund l bank holding companies → l high-net-worth Private equity → → → Expansion individuals fund → l companies l investment banks Private equity → l corporations fund l sovereign wealth funds Direct Investments Buyouts l other investors... → ↓

PE Investment in India ($ bn)

Year 2004 2005 2006 2007 2008 (Jan-Sept) Amount 1.1 2.2 7.4 14.0 9.2 Source: Compiled by the author from news reports and industry documents.

Top 5 PE Investments in India

Investor Investee Sector Deal Value (in $ mn) Temasek Holdings Bharti Airtel Telcom 1,906 Temasek Holdings, Bharti Infratel Telcom 1000 Goldman Sachs, others ICICI Venture Jaypee Infratech Infrastructure 800 Carlyle Group HDFC Financial Services 650 General Atlantic, NYSE National Stock Financial 490 Goldman Sachs, Saif Partners Exchange Services

Source: Industry Reports.

- 3 - Top 10 PE and VC Funds Raised in India (2006-07)

Fund Firm Corpus ($ mn) IL&FS Realty Fund IL&FS Investment Managers 525 IDFC PE Fund II IDFC PE 430 Indivision Capital Indivision Capital (Pantaloon) 425 Sequoia Capital India Growth Fund I Sequoia Capital India 400 Kotak India Real Estate Fund II Kotak PE 350 Ascendas India Development Trust Ascendas 325 JM Financial India Fund JM Financial 225 IDG Ventures India Fund I IDG Ventures 150 Matrix Partners India Fund Matrix Partners 150 Hellon Venture Partners Hellon Venture Partners 140

Data includes actual funds raised or committed. Does not include funds announced and in the process of being raised. Source: Thomson Financial, 2007.

Some PE Firms Exit from India (January-September 2007)

Target Buyer Seller Original Deal Value % of stake Investment ($ mn) sold Punjab Tractors Mahindra & Mahindra Actis Capital 60.00 144.00 28.40 ACE Refractories Imerys ICICI Venture 65.00 136.00 99.00 Mars Restaurant & India Hospitality Corp. Navis Capital Undisclosed 110.00 74.00 Sky Gourmet Partner NIIT Orient Global Intel Capital 10.00 48.00 9.40 Firstsource Sun Group Sequoia Capital Stock swap 42.00 4.45 Solutions India Apollo Hospitals Fidelity Investments Temasek Holdings 7.50 29.70 5.26 Subhiksha Trading ICICI Prudential ICICI Venture NA 18.00 5.00 Services Mutual Fund Deccan Aviation UBS Securities ICICI Venture NA 7.00 3.25

Source: Compiled by the author from news reports and industry documents.

- 4 - Recent Deals by Blackstone in India

Target Value ($ mn) Type Intelenet Global 200 Management Buyout Gokaldas Exports 165 Buyout Nagarjuna Construction 150 Minority Stake Source: News reports.

Carlyle’s Investment in India

Date Company Fund Status June 2007 Eitecore Technologies Carlyle Asia Growth Partners III Invested May 2006 HDFC Carlyle Asia Growth Partners II Invested March 2006 Claris Lifesciences Carlyle Asia Growth Partners III Invested October 2004 Newgen Imaging Systems Carlyle Asia Growth Partners II Invested October 2003 LearningMate Solutions Carlyle Asia Growth Partners I Invested May 2003 QuEST Carlyle Asia Growth Partners II Invested February 2003 Worldzen Holdings Carlyle Asia Growth Partners II Exited November 2000 Financial Software & Systems Carlyle Asia Growth Partners I Partially exited October 2000 SSKI Investor Services Carlyle Asia Growth Partners I Exited Source: Compiled from news reports and company documents.

Key PE Buyout Deals in India

Date Target Acquirer Deal value ($million) August 2007 Gokuldas Exports Blackstone Group (US) 165 June 2007 Intelenet Global Services Blackstone Group (US) 200 September 2006 Nilgiris Supermarket Actis (UK) 65 June 2006 Nutrine Confectionery Co. IL&FS Investment Managers (India) 80 April 2006 Flextronics Software Systems KKR (US) 900 July 2005 ACE Refractory ICICI Venture (India) 59 Source: Compiled by the author from news reports and industry documents.

- 5 - The Securitization of Sub-Prime Mortgage in the US: The Modus Operandi

Sale of Loan Sub-prime Borrower Loan Sub-prime Lender ¡ Financial Institution buying home ¡ ¡ Proceeds ¡ RMBS Securitization

Banks Lowest Risk (Senior) Hedge Funds ¡ Medium Risk Insurance ¡ ¡ ¡ (Mezzanine) Companies Highest Risk Pension Funds (Equity)

Investors CDO

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