Private Equity Spotlight

Welcome to the latest edition of Private Equity Spotlight, the Private Equity Spotlight monthly newsletter from Preqin providing insights into private equity September 2015 performance, investors, deals and fundraising. Private Equity Spotlight combines information from our online services Performance Analyst, Investor Intelligence, Fund Manager Feature Article Proﬁ les, Funds in Market, Secondary Market Monitor, Buyout Deals Analyst 2015 Preqin Private Equity Fund Terms Advisor: Executive Summary and Venture Deals Analyst. In this month’s Private Equity Spotlight, we present the Executive Summary of the newly released 2015 Preqin Private Equity Fund Terms Advisor, the most comprehensive guide to September 2015 private equity fund terms and conditions ever produced. Page 3 Volume 11 - Issue 7 Lead Article FEATURED PUBLICATION: The Growing Prominence of Alternative Assets 2015 Preqin Alternative Assets Performance Monitor Following the release of the 2015 Preqin Alternative Assets Performance Monitor, this extract from the new-look publication explores the increasing prominence of alternative assets, as well as summarizing a selection of the key ﬁ ndings with regards to private equity

The 2015 Preqin Alternative Assets performance. Page 7 Performance Monitor

Preqin Industry News

Private equity fundraising for natural resources-focused funds has reached an all-time high A comprehensive guide to the performance of alternative assets as at the end of August 2015. We present the latest news stories relating to deals and

ISBN: 978-1-907012-84-6 $175 / £105 / €145 fundraising in the industry. www.preqin.com Page 11 alternative assets. intelligent data.

To find out more, download More from Preqin: New Private Equity Research sample pages or to obtain your copy, please visit: Featured new private equity research from Preqin this month. Page 12

www.preqin.com/pm The Facts

New York: UK-Based Fundraising - Analysis of fundraising by managers based in the UK. Page 14 One Grand Central Place 60 E 42nd Street Investor Satisfaction with Returns - Survey results reveal investor expectations. Page 16 Suite 630 New York, NY 10165 Venture Capital Deals in Food & Agriculture - Breakdown of deals data. Page 18 +1 212 350 0100 North American Buyout Deals - Latest statistics for buyout deals in the region. Page 19 London: 3rd Floor, Vintners’ Place Funds of Funds Interested in Growth Funds - The latest data for these managers. Page 21 68 Upper Thames Street London, EC4V 3BJ +44 (0)203 207 0200 Conferences - Upcoming private equity conferences around the world. Page 23

Singapore: One Finlayson Green You can download all the data in this month’s Spotlight in Excel. #11-02 Wherever you see this symbol, the data is available for free download on Singapore 049246 Excel. Just click on the symbol and your download will begin automatically. You are welcome to use the data in any presentations you are preparing; +65 6305 2200 please cite Preqin as the source. San Francisco: One Embarcadero Center Suite 2850 Free Subscription San Francisco Sign up to receive your free edition of Private Equity Spotlight every month! CA 94111 +1 415 316 0580 www.preqin.com/spotlight w: www.preqin.com e: [email protected]

Twitter: www.preqin.com/twitter LinkedIn: www.preqin.com/linkedin alternative assets. intelligent data. The 9th Annual SuperReturn Middle East 2015

The Largest Private Equity Gathering In The Middle East

Egypt & North Africa Summit: 8th November, 2015 Fundraising & LP/GP Relations Summit: 8th November, 2015 Main Conference: 9th – 11th November, 2015 | Ritz‐Carlton DIFC, Dubai http://www.superreturnme.com/FKR2378PRQS

Reader Offer ‐ 15% Discount – quote VIP Code: FKR2378PRQS

We will be in Dubai for this year’s SuperReturn Middle East event and are delighted to offer Spotlight readers a special 15% discount should you be planning to attend.

Over 400 private equity professionals including 120+ local and international LPs will be joining us this November to hear from a superb line‐up of 120+ global and regional expert speakers, divulge in excellent networking opportunities and hear about the biggest topics in private equity. Whether there to fundraise in the region or deploy capital, SuperReturn Middle East offers delegates the perfect opportunity to meet key regional and global contacts, including LPs currently investing in private equity.

Top speakers already confirmed on the line‐up include:  Kris De Souter, Executive Director, Investments, MAJID AL FUTTAIM TRUST  Anthony Hamad, CEO, AL MASAR HOLDING  Arslan Mian, Managing Director, BLACKROCK PRIVATE EQUITY PARTNERS  Jesper Persson, Head of Unit, Private Equity, EUROPEAN INVESTMENT BANK  Eyad Mashal, Managing Director & Head of MENA Investments, RIMCO INVESTMENTS  Bob Diamond, Founder & CEO, ATLAS MERCHANT CAPITAL  Jo Taylor, Head of EMEA, ONTARIO TEACHERS' PENSION PLAN  Arslan Mian, Managing Director, BLACKROCK PRIVATE EQUITY PARTNERS  Dr. John Hulsman, Geopolitical Expert & Life Member, US COUNCIL ON FOREIGN RELATIONS  Dr. Fahad M. Alturki, Chief Economist & Head Of Research, JADWA INVESTMENT  Angus Blair, President, SIGNET INSTITUTE

I look forward to seeing you there!

Kindest regards

Mark O’Hare

For all bookings & enquiries, please contact the SuperReturn Middle East Team Quote VIP Code: FKR2378PRQS for your 15% discount Tel: +44 (0) 20 7017 7200 Email: [email protected] Web: http://www.superreturnme.com/FKR2378PRQS Feature Article The 2015 Preqin Private Equity Fund Terms Advisor Download Data

The 2015 Preqin Private Equity Fund Terms Advisor

Here we present the Executive Summary of the newly released 2015 Preqin Private Equity Fund Terms Advisor, the most comprehensive guide to private equity fund terms and conditions ever produced.

Navigating the Private Equity Fund Terms Space Fig. 1: Extent to Which LPs Believe that GP & LP Interests Are Properly Aligned, June 2012 - June 2015 Private equity fund terms and conditions are an important aspect 100% of fund agreements between GPs and LPs. It is essential that the 4% 4% 4% 10% Strongly Agree interests between the two parties in this area are closely aligned 90% that Interests Are Properly Aligned to ensure a harmonious and positive working relationship during 80% the lifetime of the fund, and potentially thereafter in the form of re- 70% Agree that ups or positive sentiment within the investor community. Should this 57% 63% 59% Interests Are sensitive area be neglected and fund terms and conditions favour 60% 60% Properly Aligned either the GP or LP, problems may be compounded and over the 50% longer term, parties can lose out economically. Fundamentally, it is Disagree that important for GPs to be appropriately remunerated and incentivized 40% Interests Are Properly Aligned for good performance while LPs have the right to guarantee clauses 30% that protect their capital and to ensure that they are getting a fair 31% 27% Proportion of Respondents 20% Strongly deal on their investments. 32% 27% Disagree that 10% Interests Are For GPs, adopting the most appropriate fund terms and conditions 8% 10% Properly Aligned 0% 1% 4% is no easy task. For one, it is well known that the opaque and Jun-12 Jun-13 Jun-14 Jun-15 conﬁ dential nature of private equity investments means that fees Source: 2015 Preqin Private Equity Fund Terms Advisor are rarely disclosed to those outside the fund, and as such, it is difﬁ cult to benchmark fund terms and conditions against other GPs The 2015 Preqin Private Equity Fund Terms Advisor is here to help. and competitors throughout the wider industry. Moreover, LPs may In its 10th iteration, the Fund Terms Advisor compiles data from our have a perceived idea of fund terms industry benchmarks which may current databases, historical datasets and LP and GP surveys to not be in line with what GPs are offering, or perhaps the increase provide comprehensive and accurate insight into the private equity in LP negotiating power in this area is something that GPs do not fund terms universe. Using fund terms for over 4,500 funds with fully understand. Without solid evidence or awareness of current terms data, Preqin’s Fund Terms Advisor is the market-leading sentiment, this may cause investors to question the fund terms that source of data and intelligence in this area. they are being offered by GPs, or even decide against investing in a fund due to the proposed terms and conditions, which 91% of investors claim to have done on a frequent or occasional basis.

Fig. 2: Investors’ Intentions for Their GP Relationships over the Fig. 3: Areas in Which LPs Believe LP and GP Alignment Can Next Two Years, June 2014 - June 2015 Be Improved

100% 45% 40% 40% 90% 35% 32% 80% 39% Increase No. of 30% 30% 47% GP 30% 70% Relationships 25% 21% 60% 20% Maintain No. of 14% 15% 13% 50% GP Relationships 10% 8% 40% 46% Proportion of Respondents 5% Decrease No. 30% 44% of GP 0%

Proportion of Respondents Relationship 20% Other Hurdle

10% by GP Fees

15% Amount

9% Committed Increased Reducing at Fund Level 0% Transparency Performance Management Fees - Amount Are Charged Are Performance Jun-14 Jun-15 Period Lock-up Fees – How They Source: 2015 Preqin Private Equity Fund Terms Advisor Source: 2015 Preqin Private Equity Fund Terms Advisor

This is an extract from the 2015 Preqin Private Equity Fund Terms Advisor. For more information, to download sample pages or to order your copy, please visit: www.preqin.com/fta

Alignment of Interests between GPs and LPs Is Improving However, Despite Improvement, Areas of Contention Still Exist

A recent Preqin study shows that 70% of private equity investors Although it would appear that the alignment of interests between reported that the interests of GPs and LPs are properly aligned, an GPs and LPs has notably improved, 30% of LPs reported that increase from the 63% and 67% of investors that thought the same interests between GPs and LPs are not aligned. Fig. 3 shows where in 2014 and 2013 respectively (Fig. 1). This is encouraging news, alignment between GPs and LPs can be further improved from the considering the debate surrounding fees and the transparency perspective of the LP. The largest proportion (40%) told us that of private equity fi rms, and CalPERS’ recent appearance in the management fees are an area that could infl uence the relationship fi nancial press at the forefront of this issue. The largest US public and is in need of improvement. However, this proportion is a pension fund reported that fees paid to private equity fi rms were not reduction on recent years: 54% and 59% of investors thought the explicitly disclosed or accounted for, but this does not look to have same in 2014 and 2013 respectively, indicating that progress looks harmed GP/LP relations among the investor community. to have been made in terms of management fees in favour of the investor. Chapter 8 gives an insight into the management fees of the Furthermore, Preqin data shows that 47% of LPs are looking to industry using actual fund terms data broken down by peer group, increase their number of GP relationships over the next two years, vintage year and strategies, and the key determents that arguably as shown in Fig. 2. This is an eight percentage point increase on form the biggest area of contention between GP and LP interests. those that Preqin spoke to last year, illustrating the opportunities available to GPs to acquire new relationships with LPs looking for Accessing Private Equity Funds through Non-Traditional additional private equity investments. As fund terms remain a top Offerings Is Gaining Traction concern among the LP community in relation to better alignment of interests between partners (Fig. 3), it is imperative that GPs New to this edition, the 2015 Preqin Private Equity Fund Terms make the effort to ensure that their fund terms and conditions are Advisor explores non-traditional avenues through private equity favourable to LPs so as to attract quality institutional capital in a and the terms and conditions that surround these areas. Preqin competitive fundraising environment. For more information on LP data shows that the terms and conditions pertaining to separate attitudes towards fund terms and conditions, please see Chapter 6. accounts and co-investments offered by GPs are notably different to those of their traditional commingled counterparts, refl ective of Outside fi nancial clauses, Preqin data shows that GPs are offering the unique and diverse characteristics of such offerings. Indeed, other ways to meaningfully align interests between themselves and the growing appetite for alternative routes to private equity could their investors, such as key-man clauses, no-fault divorce clauses threaten the traditional, commingled fund structure, forcing GPs and LP advisory committees, among others. Preqin data shows that to consider adapting and changing their offerings in the evolving a signifi cant proportion (77%) of direct private equity funds (raising fundraising environment to better meet the needs of LPs. or closed with a 2014 or 2015 vintage) have a key-man clause, showing GPs’ commitment to offer non-fi nancial clauses to LPs to Fig. 4 shows that 48% of private equity separate accounts use the better their fund agreements. Moreover, such key-man clauses and traditional 20% carry rate fi gure, compared to 85% of traditional other non-fi nancial clauses are offered on various levels or activated commingled funds that employ this rate. This suggests that GPs after certain thresholds, indicative of the complex and sophisticated largely do not appear to adhere to the industry standard of a terms and conditions that LPs are expecting. For more information 20% carry rate when managing separate accounts. The extra on non-fi nancial clauses, please see Chapter 10: Governance. administrative efforts and resources on the GP side that are used to run separate accounts mean that it is more common to see the larger investors with bigger ticket sizes accessing private equity

Fig. 5: Carry Terms Discount Offered to Co-Investors Fig. 4: Carried Interest Rates Used by Separate Accounts Compared to LP Fund Commitments

50% 48%

s 45%

40% 25% 35%

30% No Carry 25%

20% 19% 19% 48% Reduced Carry

15% Same Fee 10% 10% 5% Proportion of Separate Account 5% 27% 0% Less than 10% 15% 20% More than 10% 20% Carried Interest Source: 2015 Preqin Private Equity Fund Terms Advisor Source: 2015 Preqin Private Equity Fund Terms Advisor

This is an extract from the 2015 Preqin Private Equity Fund Terms Advisor. For more information, to download sample pages or to order your copy, please visit: www.preqin.com/fta

strategies in this way. For this reason, GPs are more willing to case of large LP commitments, investments before fi rst close, non- negotiate fees to secure the backing of a large institutional investor, economic clauses etc.) and their negotiating power has grown which may not necessarily be in line with the perceived standard signifi cantly as GPs are eager to secure institutional capital in 20% carry rate. For more information on separate accounts, please the competitive fundraising environment. While there are many see Chapter 4. GPs that offer compelling fund terms to LPs, those that do not fully understand the wider industry trends and investor sentiment Furthermore, Preqin spoke to 300 private equity GPs from around regarding fund terms are in danger of deterring potential investors the world about their experiences and attitudes towards offering co- from investing or even harming relationships with LPs further down investments; the majority (69%) of GPs reported that they offered the line. co-investment rights to LPs. Co-investments are typically passive, non-controlling investments, a provision of separate equity not The 2015 Preqin Private Equity Fund Terms Advisor focuses its subject to fees (or at least subject to reduced fees). They also offer analysis on the very latest fund terms and conditions information LPs the possibility of discounts on existing fees within the fund. collected by Preqin. Preqin goes to great lengths in order to capture The attraction of co-investments is not lost on investors, with many as much up-to-date, relevant data as possible, and provides the looking to take advantage of the benefi ts of investing this way. best source of data for industry professionals looking for the latest Indeed, while private equity co-investments have long been a part information; we track fund terms and conditions data for over 4,500 of the industry, the US Securities and Exchange Commission (SEC) private equity funds and have conducted exclusive surveys with has recently taken steps to securitize private equity co-investment LPs and GPs from around the world. This edition provides readers practices and activities to provide a regulatory and uniform stance with the actual terms employed by individual vehicles, as well as across the industry, illustrating the prominence of this investing benchmark terms. Individual fund listings, on an anonymous basis, method. Eighty-four percent of GPs that spoke to Preqin look to are provided for more than 2,500 private equity funds of different offer co-investment rights to build stronger relationships with LPs. strategies, vintages, geographies and sizes. All major fund types Moreover, Fig. 5 shows that nearly half (48%) of GPs surveyed are featured in the Fund Terms Advisor, with buyout, venture capital, remove the carry rate for LP co-investments compared with LP real estate, fund of funds, distressed private equity, secondaries, fund commitments, showing the benefi t of investing alongside GPs mezzanine, infrastructure and natural resources funds all covered. in portfolio companies. For more information on co-investments, please see Chapter 5. Other key features of this year’s Fund Terms Advisor include listings of over 1,600 named funds showing the net costs incurred by LPs The 2015 Preqin Private Equity Fund Terms Advisor annually. (This summary of information on total costs is obtained through Freedom of Information requests to public pension funds in Private equity fund terms and conditions remain a fundamental the US and the UK, unlike the detailed listings of fund terms.) The aspect of both the fund agreements and the relationship between publication also contains a listing of some of the most active law GPs and LPs. Striking the right balance between incentivizing and fi rms in private equity fund formation, including sample assignments. rewarding good performance of GPs and ensuring that LPs are not We hope that you fi nd the 2015 Preqin Private Equity Fund Terms being overcharged on their investments is diffi cult without being Advisor to be a valuable reference guide, and as ever we welcome suffi ciently informed of the wider industry trends and sentiments. any feedback and comments that you may have for future editions. Preqin data in the 2015 Fund Terms Advisor shows that investors have increased their leverage over fund terms (particularly in the

The 2015 Preqin Private Equity Fund Terms Advisor

The 2015 Preqin Private Equity Fund Terms Advisor is the most comprehensive guide to The 2015 private equity fund terms and conditions ever produced. Based on analysis of terms and conditions Preqin Private Equity Fund Terms Advisor data for over 4,500 funds, the publication and complimentary online module contain vital analysis, benchmarks and actual listings of key terms for funds of all types, investor sentiment towards fund terms and conditions, and much more.

• View actual terms and conditions data (on an anonymous basis), including management fees, carry, hurdle/preferred return, fee rebates, no-fault divorce and key-man clauses, GP

commitments, investment period and much more. alternative assets. intelligent data • All major fund types are covered, including buyout, venture capital, real estate, infrastructure, distressed private equity, mezzanine, natural resources, fund of funds, growth, secondaries funds and more.

• Listings of over 1,600 named funds showing the net costs incurred by LPs annually are also provided. This information is obtained through Freedom of Information requests to public pension funds in the US and the UK.

• New for 2015! Fund terms coverage of GPs offering private equity separate accounts and co-investment rights.

For more information on the upcoming publication, to download sample pages or to order your copy, please visit:

www.preqin.com/fta

5 Private Equity Spotlight / September 2015 © 2015 Preqin Ltd. / 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 25 experienced professionals in North America, Europe and Asia.

New Water Capital Partners We congratulate the New Water team on the successful closing of New Water Capital Partners at its hard cap.

www.csplp.com Americas — Europe — Middle East — Asia Pacific

Securities placed through CSP Securities, LP Member FINRA/SIPC Authorised by FINMA Lead Article The Growing Prominence of Alternative Assets Download Data

The Growing Prominence of Alternative Assets

Following the release of the 2015 Preqin Alternative Assets Performance Monitor, this extract from the new-look publication explores the increasing prominence of alternative assets, as well as summarizing a selection of the key findings with regards to private equity performance.

The alternatives industry has not only increased in prominence Preqin Maintains the World’s Largest Database of Alternative over past years but industry assets under management (AUM) Assets Performance Data have also seen signifi cant growth. Preqin estimates that AUM has grown steadily from $5.5tn in 2012 to $7.1tn as at Q1 2015. With alternatives growing in size and signifi cance within the Alternatives are commanding a great deal of attention in the investment landscape, it is imperative for investors and fund investment portfolios of many institutional investors across the managers alike to be able to understand and interpret wider world, which raises the question: what is driving capital towards industry trends in an ever-changing environment. For investors, the alternatives industry and how far can this be expected to the diverse nature of alternatives coupled with their inherent continue? The unique benefi ts that alternatives offer to investors differing characteristics (liquidity terms and investment horizons for as well as the attraction of gaining exposure to uncorrelated, risk- example) means that direct comparisons between asset classes adjusted returns may be some of the reasons attributed to the rise are particularly diffi cult. The 2015 Preqin Alternative Assets in prominence of the alternatives industry. Fig. 1 shows the returns Performance Monitor is here to help. By analyzing key metrics delivered by each asset class using the fi nancial statements of 100 over the entirety of our datasets, we have produced the most public pension funds in North America and Europe. According to comprehensive overview of alternative asset performance in the Fig. 1, private equity has outperformed listed equity, fi xed income market and an invaluable tool for any investor or fund manager. and other alternative asset classes, especially over the longer term. Moreover, within this sample, real estate has shown its Fig. 2 shows the growth in Preqin’s global coverage of alternatives value, delivering double-digit returns over the short- to medium- performance across private equity, natural resources and venture term periods. Although the hedge fund asset class in this sample capital, private equity real estate, infrastructure, private debt and set has not seen the same outperformance over the same periods, hedge funds. With AUM continuing to grow, positive investor wider industry trends show that hedge funds have demonstrated sentiment and the attractive benefi ts alternatives can offer lower volatility, delivering attractive, absolute risk-adjusted returns investors, it is clear that demand for alternatives will continue to to investors. rise for the foreseeable future, with fund managers anticipated to launch new alternatives offerings to access this growing, dynamic Throughout the 2015 Preqin Alternative Assets Performance marketplace. Preqin is here to help: with performance coverage Monitor, we demonstrate that alternatives have shown their value for approximately 20,500 funds (as at September 2015) across in meeting investors’ objectives by providing strong, risk-adjusted, alternative asset classes, Preqin data gives an unrivalled insight uncorrelated returns and for this reason, the alternatives industry into the performance of alternatives. will remain as important a consideration for investors in the future as it is at present.

Fig. 1: Median Public Pension Fund Net Returns by Asset Fig. 2: Preqin Performance Coverage: Track Records, Class (As of 31 December 2014) December 2011 - September 2015

14.0% 50,000 Private Equity 12.0% Private Equity (including Venture Capital and Natural Resources) 10.0% Fixed Income Private Debt 5,000 Listed Equity 8.0% Private Equity Real Real Estate 6.0% Estate

Hedge Funds Median Net Return 4.0% 500 Infrastructure Total Investment 2.0% Portfolio Hedge Funds 0.0%

12 Months 3 Years 5 Years 10 Years with PerformanceNo. of Funds Tracked Data 50 Dec-11 Dec-12 Dec-13 Dec-14 Sep-15 Horizon Source: 2015 Preqin Alternative Assets Performance Monitor Source: 2015 Preqin Alternative Assets Performance Monitor

This is an extract from the 2015 Preqin Alternative Assets Performance Monitor. For more information, to download sample pages or to purchase your copy, please visit: www.preqin.com/pm

Fig. 3: Risk/Return by Strategy (Vintage 2002-2012)

25% Balanced Buyout Distressed Private Equity 20% Early Stage Fund of Funds 15% Growth Infrastructure Mezzanine 10% Natural Resources Real Estate 5% Secondaries Venture Capital Risk - Standard Deviation of Net IRR Risk - Standard Other 0% 0% 2% 4% 6% 8% 10% 12% 14% 16% Return - Median Net IRR Source: 2015 Preqin Alternative Assets Performance Monitor

Risk/Return returns from the median benchmark. The dispersion of returns around the median is high for alternatives funds; it is clear that Generating positive returns relative to the amount of risk is an careful fund selection is of vital importance for investors, hence the important consideration for investors during the fund selection need for reliable data and careful due diligence. and asset allocation process. Such risk can be measured by the standard deviation of net IRRs (Fig. 3) and the dispersion of returns Fig. 4 also demonstrates mezzanine funds’ dispersion of net from the benchmark (Fig. 4). Fig. 3 shows the standard deviation of IRR from the benchmark, illustrating how one of the attractive net IRRs (risk) and median net IRRs (return) of private equity fund characteristics of mezzanine funds is their proven ability to generate types for vintages 2002-2012, with each bubble size representing relatively consistent returns across the board. Meanwhile, funds of the capital committed to the strategy (in $bn). Early stage venture funds also display low volatility, with 37% of multi-manager funds capital funds show their inherent high-risk characteristics, being generating net IRRs that deviate fewer than ﬁ ve percentage points placed at the top-left side of the chart, and illustrate that such from the median benchmark. funds exhibit the highest degree of risk but have generated a disappointing median IRR of just 2% over the period 2002-2012. Public Market Equivalent (PME)

Meanwhile, buyout funds across 2002-2012 vintage years make Public Market Equivalent (PME) is an additional metric that up the largest proportion of the market, and show a relatively compares private equity with public markets. Different investment higher median net IRR (11.0%) against the degree of risk taken horizons and liquidity periods make it inherently difﬁ cult to directly on (standard deviation of 17%) compared with private real estate compare private and public equity markets. PME solves this issue funds for the same vintages (median net IRR of 7.0% and standard to a large extent, allowing for comparison against any public deviation of 19%). Moreover, Fig. 4 shows the dispersion of fund index. Fig. 5 shows one measure of PME, the Capital Dynamics

Fig. 5: PME+: All Private Equity - All Regions (As of 31 Fig. 4: Net IRR Deviation from Median Benchmark December 2014)

45% 25 If PME+ using 40% All Private Equity S&P 500 TR < 35% Preqin Median Buyout 20 30% Net IRR, private equity has Fund of Funds 25% outperformed the 20% Mezzanine 15 public market. 15% 10% Real Estate % Proportion of Funds 5% 10 PME+ Using S&P Venture Capital 500 TR 0%

5 Preqin Median Net IRR 0% to 4.9% 5% to 9.9%

-0.1% to -5% 0 10% to 14.9% 15% to 19.9% 20% to 24.9% 25% to 29.9% 30% to 34.9% 35% to 39.9% 40% to 44.9% 45% to 49.9% 50% to 54.9% 55% to 59.9% -5.1% to -10% -50.1% or Less -45.1% to -50% -40.1% to -45% -35.1% to -40% -30.1% to -35% -25.1% to -30% -20.1% to -25% -15.1% to -20% -10.1% to -15% 60% and Above 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Net IRR Percentage Point Difference from Respective Median Benchmark Vintage Year Source: 2015 Preqin Alternative Assets Performance Monitor Source: 2015 Preqin Alternative Assets Performance Monitor

This is an extract from the 2015 Preqin Alternative Assets Performance Monitor. For more information, to download sample pages or to purchase your copy, please visit: www.preqin.com/pm

PME+ measure, and compares private equity returns against Venture Capital that of the S&P 500 TR (for more information about this PME and methodology, please go to page 26 of the 2015 Preqin Altenative After years of weak performance by venture capital funds, the Assets Performance Monitor). According to Fig. 5, funds with older strategy has seen a turnaround over the past three years, and the vintages have outperformed the S&P 500 Index signiﬁ cantly. With PrEQIn Venture Capital Index has reached an all-time high as of the average life cycle of a private equity fund spanning approximately 31 December 2014 (index rebased to 100 on 31 December 2000). 10 years, Fig. 5 shows that such funds have delivered sizeable This represents a signiﬁ cant turning point for venture capital funds: excess returns to investors relative to public equity markets. 2002 when rebased to 31 December 2007 to illustrate the time period vintage funds in particular have stood out, with a median net IRR since just before the Global Financial Crisis (GFC), the PrEQIn of 18.4% calculated by Preqin compared to a PME+ value of 7.3% Venture Capital Index (156.1 index points) surpassed the PrEQIn for the S&P 500 TR. For more recent vintages that are at an earlier All Private Equity Index (148.6 index points) as of 31 December stage of their fund cycle, fund performance is currently trailing 2014. the S&P 500 Index. While this is of concern to investors, many of these private equity funds are at a relatively early stage of their life On a fund level, strong performance of venture capital funds is (the J-curve), not to mention that public markets have performed displayed within the All Private Equity league tables, which list strongly in recent years. the best performing closed-end private equity style funds by net IRR overall and across various vintage groups. Strong recent PME methodology can be applied to various other fund types, performance demonstrated by venture capital funds is further geographies and individual fund track records. Using a slightly illustrated when comparing PME performance of venture capital different method to calculate PME, Fig. 7 demonstrates the positive with that of buyout funds. We saw that venture capital funds with turnaround in venture capital performance, and shows that venture recent vintages (2007-2011 and 2013) have already outperformed capital funds with recent vintages (2007-2011 and 2013) have public markets using the Kaplan Schoar method (KS PME) in Fig. already outperformed public markets using the Kaplan Schoar 7. This compares favourably to buyout funds where no recent method (KS PME). vintage buyout funds have outperformed the Russell 3000 Index as of yet.

Fig. 6: PrEQIn Private Equity Index: All Private Equity, Buyout Fig. 7: KS PME: Venture Capital - All Regions (As of 31 and Venture Capital vs. S&P 500 Total Return December 2014)

180 1.4

160 1.3 PrEQIn All 140 Private Equity 1.2 120 1.1 PrEQIn Buyout 100 1.0

80 0.9 KS PME (X) Using PrEQIn Venture Russell 2000 TR 0.8 Index Returns 60 Capital PME Value (X) PME Value 40 0.7 S&P 500 TR 20 0.6

(Rebased to 100 as of 31-Dec-2007) 0 0.5 0.4 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 30-Jun-11 30-Jun-12 30-Jun-13 30-Jun-14 30-Jun-08 30-Jun-09 30-Jun-10 31-Dec-09 31-Dec-10 31-Dec-11 31-Dec-12 31-Dec-13 31-Dec-14 31-Dec-07 31-Dec-08 Vintage Year Source: 2015 Preqin Alternative Assets Performance Monitor Source: 2015 Preqin Alternative Assets Performance Monitor

The 2015 Preqin Alternative Assets Performance Monitor

The 2015 Preqin Alternative Assets Performance Monitor provides unrivalled insight into the performance of alternative assets funds, analyzing performance data for over 20,500 funds. Bringing together extensive data The 2015 Preqin Alternative Assets from Preqin’s industry-leading online products, the 2015 Performance Monitor offers detailed statistics, league Performance Monitor tables, charts and analysis of performance across the alternative assets industry.

The 2015 Performance Monitor is a vital tool for fund managers and placement agents when marketing a fund, benchmarking performance against the market, and keeping track of competitors; and essential for investors and advisors that require accurate and comprehensive data for use in evaluating portfolios, when considering new investments, and when keeping up-to-date with the latest developments for different A comprehensive guide to the performance of alternative assets sectors within the industry.

ISBN: 978-1-907012-84-6 $175 / £105 / €145 www.preqin.com alternative assets. intelligent data. For more information, to download sample pages or to order your copy, please visit:

www.preqin.com/pm

The 7th Annual Private Equity Brazil Forum is South America’s largest international private markets investment conference. The forum brings together 600+ investors, funds, and advisors for a two day meeting discussing sectors, due diligence, and private equity investment opportunities in Brazil and around the world. The investor focused event provides a due diligence forum for international and South American pension funds, foundations, endowments, fund of funds, family offices, wealth managers, consultants, and sovereign wealth funds interested in direct research on private investment opportunities. Session topics cover the entire spectrum of private equity investments, from sector speciﬁc sessions on venture capital investments in Brazil to discussions on global buyout opportunities, and roundtables of the biggest global & Brazilian institutional investors discussing their speciﬁc investment appetites.

SPEAKERS

Anne Charlotte Jane Rowe, Head Vaughn Brock, Yoshi Kiguchi, Licio da Costa Henrique Mauricio Mark, Head of of Private Equity, Director of Special CIO, Okayama Raimundo, Meirelles, Former Marcellini Equities & Alternatives, Ontario Teacher’s Projects, Teachers’ Metal & Machinery Director of President, Central Pareira, Investment Sampension Pension Plan Retirement of Texas Pension Investments, Petros Bank of Brazil Director, FUNCEF

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Preqin Industry News

Private equity fundraising for natural resources-focused funds has reached an all-time high as at the end of August 2015. With a record $32bn raised in 2015 YTD for investments in the sector, Bradley McEwan and Matthew Morris present the latest news stories relating to natural resources deals and fundraising.

As the Chart of the Month illustrates, natural resources fundraising for 2015 YTD stands at an all-time high. Natural resources private Chart of the Month equity vehicles closed this year have secured capital commitments totalling a combined $32bn, already surpassing the capital raised Annual Natural Resources Fundraising, 2005 - 2015 YTD in the previous peak year of 2013. Notably, only 16 funds are (As at 26 August 2015) responsible for the capital raised so far this year, leading to an 50 35 average fund size of $2.2bn – another record high. Fundraising 32 Aggregate Capital Raised ($bn) 45 30 growth has been driven by the notable drop in commodity prices, 30 particularly oil, over the past year, creating potentially attractive 40 24 25 investment opportunities in what may prove to be undervalued 35 24 25 companies and assets in this market. 30 19 20 25 The record fundraising level so far in 2015 may yet increase further, 43 15 20 13

with more than three months until the year end and Preqin data No. of Funds 9 9 31 15 8 10 revealing that there are currently 61 natural resources-focused 26 25 26 10 19 funds in market, collectively targeting $32bn in capital. 5 16 24 16 13 5 5 12 0 0 Natural Resources Funds 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD Year of Final Close The largest natural resources fund to close this year is EnCap No. of Funds Aggregate Capital Raised ($bn) Energy Capital Fund X. Managed by EnCap Investments, the fund Source: Preqin Funds in Market closed on $6.5bn in April 2015, 30% above its target. The fund invests in upstream companies, or those focusing on oil & gas exploration and production based in the US. as a placement agent, with investors including Teacher Retirement System of Texas, Texas County & District Retirement System and At the end of August 2015, Edge Natural Resources closed their Orange County Employees’ Retirement System. debut private equity fund on its hard cap, collecting $446mn and surpassing the initial target size of $300mn. Based in Dallas and Natural Resources Deals led by a group of former executives of Natural Gas Partners, ENR Partners will seek to invest in small cap North American oil & gas opportunities. In July 2015, Beijing Tairui Innovation Capital Management completed a PIPE transaction in Canada-based Western Potash Having started to fundraise in Q2 2014, TIAA-CREF Global Corp, totalling CAD 80mn. The company is a development stage Agriculture II held a fi nal close on its hard cap at the end of July potash fi rm, engaging in evaluation, exploration and development 2015, securing $3bn for its second natural resources-focused of potash mineral properties. vehicle. Following the same strategy as the previous fund, it will invest in grain-exporting countries and employs a top-down strategy Black Swan, a portfolio company of Canada Pension Plan primarily focused on achieving diversifi cation by geography and Investment Board (CPPIB), KERN Partners and Warburg Pincus, crop type. Focused primarily on the US, the fund also targets acquired Carmel Bay Exploration for CAD 200mn in cash in July investments in Australia, Brazil, Chile and New Zealand. Investors 2015. Carmel is a Calgary-based upstream company focused in the fund include British Columbia Investment Management on acquiring and developing assets in the Western Canadian Corporation, AP-Fonden 2 and New Mexico State Investment Sedimentary Basin. Council.

July 2015 also witnessed the ﬁ nal close of Ridgewood Energy Oil & Gas Fund III on $1.9bn, far above its initial target size of $1.5bn. The New Jersey-based ﬁ rm focuses on oil & gas investments in the deep-water Gulf of Mexico. The fund employed Eaton Partners

Do you have any news you would like to share with the readers of Spotlight? Perhaps you’re about to launch a new fund, have implemented a new investment strategy, or are considering investments beyond your usual geographic focus?

Send your updates to [email protected] and we will endeavour to publish them in the next issue.

11 Private Equity Spotlight / September 2015 © 2015 Preqin Ltd. / www.preqin.com More from Preqin New Private Equity Research Download Data More from Preqin: New Private Equity Research In addition to our monthly Spotlight newsletters and publications, Preqin also publishes special reports and daily blogs covering all alternative asset classes. Read on to see what’s new from Preqin this month in the private equity universe.

Blog of the Month  First-Time Fundraising in Private Equity – August 2015

Entering the world of private equity as a fi rst-time fund manager remains a challenging task. Since the start of the fi nancial crisis, fi rst-time fund managers have struggled to match the record levels of capital raised in the preceding years. First-time funds accumulated an aggregate $98bn from 433 funds and $97bn from 429 funds in 2007 and 2008 respectively.

First-time fundraising is currently below the levels seen last year, yet ﬁ rst-time fund managers are, on average, closing above target more frequently. This is promising news for ﬁ rst-time fund managers, who are notoriously struggling to compete with the established names that are dominating the fundraising landscape and securing most of the LP capital.

Click here to read the full blog by Simon Li. To view the full archive of Preqin blogs, please visit:

www.preqin.com/blog

New Research

Preqin Investor Outlook: Private Equity in the Midwest US Alternative Assets, H2 2015 Factsheet

The Facts Private Equity in the Midwest US alternative assets. intelligent data.

Private Equity in the Midwest US

With its rich industrial heritage, large urban centres and sizable working population, the Midwest region is a major contributor Preqin Investor Outlook: to US GDP. Here, Preqin presents an overview of the private equity industry in this business hub. Alternative Assets Key Facts: Number of private equity funds ND MN currently in market that specifically SD WI 39 H2 2015 MI target opportunities in the Midwest US. IA NE IL OH IN KS MO Aggregate assets under management $5.23tn of the 670 LPs based in the Midwest US.

Number of private equity fund 588 managers headquartered in the Midwest US.

Fig. 2: Annual Fundraising for Private Equity Funds with an Fig. 1: Breakdown of Midwest US-Based Private Equity Investment Focus on the Midwest US, 2008 - 2015 YTD (As at Investors by Type 10 August 2015)

25 Foundation 22 Private Sector Pension Fund 2% 5% 20 3% 24% Endowment Plan 5% 16 No. of Funds 15 Closed 6% Insurance Company 15 12 Public Pension Fund 11 11 9% 10 Aggregate Capital Family Office Raised ($bn)

19% Wealth Manager 5 5 10% 5 Fund of Funds Manager 2.9 1.3 0.9 1.2 1.0 1.2 17% 0.3 0.3 Corporate Investor 0 2008 2009 2010 2011 2012 2013 2014 2015 Other YTD Year of Final Close Source: Preqin Investor Intelligence Source: Preqin Funds in Market

Fig. 3: Largest Midwest US-Based Private Equity Fund Managers by Total Funds Raised in the Last 10 Years

Primary Private Equity Total Funds Raised in Last Estimated Dry Powder Firm Headquarters Investment Strategy 10 Years ($bn) ($bn) Adams Street Partners Chicago, IL Funds of Funds 21.1 7.3 Private Equity Hedge Funds Real Estate Infrastructure Private Debt CarVal Investors Hopkins, MN Distressed Private Equity 13.9 3.4 Madison Dearborn Partners Chicago, IL Buyout 12.6 2.4 GTCR Chicago, IL Buyout 10.3 3.9 BDT Capital Partners Chicago, IL Buyout 8.2 4.9 Thoma Bravo Chicago, IL Buyout 8.0 3.2 Wayzata Investment Partners Wayzata, MN Distressed Private Equity 7.4 1.5

Värde Partners Minneapolis, MN Distressed Private Equity 7.0 - Castlelake Minneapolis, MN Distressed Private Equity 5.6 2.4 alternative assets. intelligent data. RCP Advisors Chicago, IL Funds of Funds 3.3 1.6 Source: Preqin Fund Manager Proﬁ les

Based on extensive interviews with over 460 institutional With its rich industrial heritage, large urban centres and investors globally, this report looks at investor activity in the sizeable working population, the Midwest region is a major past 12 months, investors’ plans for the next 12 months, contributor to US GDP. In this factsheet, Preqin presents an their changing allocations, returns expectations and more. overview of the private equity industry in the region, analyzing The report also provides an in-depth summary of investors’ the fundraising environment, buyout and venture capital deals satisfaction with their private equity returns over the past year, and performance of Midwest US-based managers. their views on regulation and fees, and what they believe are the key issues the private equity industry faces. Download a copy Download a copy For more free research from Preqin available to download now, please visit our Research Center. Already a member? Login for access to Research Center Premium.

alternative assets. intelligent data.

Fund Coverage: Funds 44,856 900 Infrastructure Funds 5,323 PE Real 17,854 Private Equity* Funds 18,940 Hedge Funds Estate Funds 1,839 Private Debt Funds Firm Coverage: Firms 21,354 457 Infrastructure Firms 2,942 PERE 9,281 PE Firms 7,835 Hedge Fund Firms Firms 839 Private Debt Firms

Performance Coverage: 20,681 Funds (IRR Data for 6,140 Funds and Cash Flow Data for 2,948 Funds) 1,360 196 Infrastructure 6,066 PE Funds 12,388 Hedge Funds PERE Funds 671 Private Debt

Fundraising Coverage: 17,540 Funds Open for Investment/Launching Soon Including 2,599 Closed-Ended Funds in Market and 343 Announced or Expected Funds 947 250 Infra. Funds 1,979 PE 14,089 Hedge Funds PERE Funds Funds 275 Private Debt Funds Deals Coverage: 144,046 Deals Covered; All New Deals Tracked

43,085 Buyout Deals** 89,415 Venture Capital Deals*** 11,546 Infra. Deals

Investor Coverage: 13,368 Institutional Investors Monitored, Including 9,340 Verified Active**** in Alternatives and 98,314 LP Commitments to Partnerships

5,028 Active Hedge 2,507 Active 1,666 Active 5,940 Active PE LPs 5,026 Active RE LPs Fund Investors Infra. LPs Private Debt Investors Alternatives Investment Consultant Coverage: 507 Consultants Tracked Fund Terms Coverage: Analysis Based on Data for Around 12,660 Funds Best Contacts: Carefully Selected from Our Database of over 330,953 Active Contacts

Plus The Preqin Difference - Over 200 research, support and development staff Comprehensive coverage of: - Global presence - New York, London, Singapore and San - Placement Agents - Dry Powder Francisco - Fund Administrators - Compensation - Depth and quality of data from direct contact methods - Law Firms - Plus much more... - Unlimited data downloads - Debt Providers - The most trusted name in alternative assets

New York: +1 212 350 0100 - London: +44 (0)20 3207 0200 - Singapore: +65 6305 2200 - San Francisco +1 415 316 0580 www.preqin.com

*Private Equity includes buyout, venture capital, distressed, growth, natural resources and mezzanine 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 firms in companies globallyacross all venture capital stages, from seed to expansion phase. The deals figures provided by Preqin are based on announced venture capital rounds when the capital is committed to a company. ****Preqin contacts investors directly to ensure their alternatives programs are active. We emphasize active investors, but clients can also view profiles for investors no longer investing or with programs on hold. The Facts UK-Based Fundraising Download Data

UK-Based Fundraising

Harry Richardson uses Preqin’s Funds in Market online service to examine fundraising by fund managers headquartered in the UK, revealing the importance of the UK to the private equity industry in Europe.

Fig. 1: UK-Based Private Equity Fundraising, 2008 - 2015 YTD Fig. 2: Breakdown of Private Equity Fundraising by Europe- (As at 25 August 2015) Based Managers, 2008 - 2015 YTD (As at 25 August 2015)*

140 100%

124 90% 25.2 21.0 120 32.1 16.4 21.8 18.0 80% 18.5 25.0 96 100 70% 6.1 8.3 Rest of 87 No. of Funds 6.7 3.2 8.2 4.8 Europe 77 Closed 60% 10.4 80 73 14.0 17.7 Switzerland 68 6.3 10.0 65 50% 4.4 3.0 14.1 58 Aggregate 60 54 54 4.7 France Capital 40% 8.0 44 Raised (€bn) 40 30% UK 58.2 53.8 28 27 27 27.6 43.7 27.2 19 19 20% 18.5 26.8 20 19.0 10%

0 Proportion of Aggregate Capital Raised 0% 2008 2009 2010 2011 2012 2013 2014 2015 2008 2009 2010 2011 2012 2013 2014 2015 YTD YTD Year of Final Close Year of Final Close Source: Preqin Funds in Market Source: Preqin Funds in Market *Figures in this chart refer to aggregate capital raised (€bn).

Fig. 4: Proportion of UK-Based Private Equity Funds that Fig. 3: UK-Based Private Equity Fundraising Momentum, 2006 Closed On, Above or Below Target Size, 2008 - 2015 YTD (As - 2015 YTD (As at 25 August 2015) at 25 August 2015)

25 100%

90% 15% 21 26% 26% 20 19 19 80% 41% 43% 18 15% 49% 44% 17 16 70% 60% 15 15 22% Above Target 15 60% 13 38% 12% 11 50% 18% On Target 21% 10 40% 22% 70% 10% Below Target Close (Months) 30% Proportion of Funds 52% 45% 5 20% 40% 36% 35% 29% 30% 10% Average Time Taken to Reach Final Time Taken Average 0 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2008 2009 2010 2011 2012 2013 2014 2015 YTD YTD Year of Final Close Year of Final Close Source: Preqin Funds in Market Source: Preqin Funds in Market

Fig. 5: Five Largest Private Equity Funds Managed by UK-Based Firms, Funds Closed in 2015 YTD (As at 25 August 2015)

Fund Firm Type Final Size (mn) Geographic Focus Bridgepoint Europe V Bridgepoint Buyout 4,000 EUR Europe ICG Europe Fund VI Intermediate Capital Group Mezzanine 3,000 EUR Europe, West Europe Equistone European Fund V Equistone Partners Europe Buyout 2,000 EUR Europe, West Europe Hermes GPE Infrastructure Infrastructure Fund Europe, North America, UK, US, West Hermes GPE 1,160 GBP Fund of Funds Europe European Property Investors Tristan Capital Partners Real Estate 1,500 EUR Europe Special Opportunities 4 Source: Preqin Funds in Market

Rebranded this year as Wealth Speakers confirmed include: Management Americas, for the 9th straight year Terrapinn will bring together the most senior executives from US and LatAm Private Banks and Family Offices to discuss todays latest investment opportunities across all asset classes, as well as the latest trends within family governance, wealth planning, and Blair Hull Beatriz Sanchez William Kidd timely regulation topics around Founder, Managing Partner Managing Director, Head of Wealth Founding Partner FATCA. Ketchum Trading Management for Latin America Kidd & Company Goldman Sachs www.terrapinn.com/WMA15

2015 Sponsors: The Facts Investor Satisfaction with Returns Download Data

Investor Satisfaction with Returns

As part of the biannual Investor Outlook: Alternative Assets report, Preqin surveyed over 100 private equity investors to gain insight into the global LP community’s investment actvities and attitudes toward the asset class. Here, Antonia Lee presents the results relating to investors’ expectations of fund performance.

Fig. 1: Institutional Investors’ Current Perception of the Fig. 2: Investors’ Returns Expectations for Their Private Equity Private Equity Industry Portfolios, June 2013 - June 2015

100% 2% 1% 3% 9% 90% 15% 5% 23% 80% Same as Public Market 70% 39% 23% Positive 34% Public Market 60% +2% Neutral 41% 50% Public Market Negative 40% +2.1% to 4%

30% Public Market 49% 49% +4.1% and over 72% Proportion of Respondents 20% 35% 10%

0% Jun-13 Jun-14 Jun-15 Source: Preqin Investor Outlook: Alternative Assets, H2 2015 Source: Preqin Investor Outlook: Alternative Assets, H2 2015

Fig. 3: Proportion of Investors that Feel Their Private Equity Fig. 4: Proportion of Investors that Feel Their Private Equity Fund Investments Have Lived up to Expectations, June 2013 Fund Investments Have Lived up to Expectations by Investor - June 2015 Location

100% 100% 12% 90% 90% 18% 25% 35% 80% 35% 80% 43% 50% Exceeded 70% 70% Exceeded Expectations Expectations 60% 60% Met 50% Met Expectations 50% 74% 62% 68% Expectations 40% 57% 43% 31% Fallen Short of 40% 52% 30% Fallen Short of Expectations 30% Expectations 20% Proportion of Respondents

Proportion of Respondents 20% 10% 19% 14% 13% 8% 0% 10% 14% 14% 13% North Europe Asia Rest of 0% America World Jun-13 Jun-14 Jun-15 Investor Location Source: Preqin Investor Outlook: Alternative Assets, H2 2015 Source: Preqin Investor Outlook: Alternative Assets, H2 2015

Preqin Investor Outlook: Alternative Assets, H2 2015

The data in this factsheet draws on the recently released Preqin Investor Outlook: Alternative Assets, Preqin Investor Outlook: Alternative Assets H2 2015, a unique and in-depth look at the appetite, plans, expectations and concerns of institutional investors in H2 2015 private equity, infrastructure, real estate, hedge funds and private debt.

The report draws on conversations between Preqin’s dedicated research analysts and key investment decision makers at over 460 institutional investors from across the globe.

For more information, and to download your free copy, please visit: Private Equity Hedge Funds Real Estate Infrastructure Private Debt

alternative assets. intelligent data. www.preqin.com/investoroutlook

Network with over 30 leading industry speakers and 350 senior-level delegates at this year’s forum, and get expert insight into the key drivers of growth within the Italian M&A market over the next 12 months.

Lead strategic partners:Strategic partners: Media partner:

alternative assets. intelligent data.

Book your place for €795 For more details about the event, including pricing, please visit mergermarketgroup.com/event/italia2015 email [email protected] or call +44 (0)20 3741 1069 The Facts Venture Capital Deals in Food & Agriculture Download Data

Venture Capital Deals in Food & Agriculture

In 2014, the aggregate venture capital deal value for the food & agriculture industry reached an all-time high. Emily Forbes presents a summary of deal volumes by year, tracking the changes seen over time.

Fig. 1: Number and Aggregate Value of Venture Capital Fig. 2: Proportion of Number of Venture Capital Deals in Deals* in Food & Agriculture, 2007 - 2015 YTD (As at 19 Food & Agriculture by Stage, 2007 - 2015 YTD (As at 19 August 2015) August 2015)

160 1,200 100% Add-on & Other 90% 140 Aggregate Deal Value ($mn) Angel/Seed 1,000 80% 120 Grant 70% 800 Growth 100 60% Capital/Expansion PIPE 80 600 50% 40% Series A/Round 1

No. of Deals 60 400 30% Series B/Round 2 40 Proportion of Total 20% Series C/Round 3 200 20 10% Series D/Round 4 0 0 0% and Later Unspecified 2007 2008 2009 2010 2011 2012 2013 2014 2015 Round YTD 2007 2008 2009 2010 2011 2012 2013 2014 Venture Debt No. of Deals Aggregate Deal Value ($mn) 2015 YTD Source: Preqin Venture Deals Analyst Source: Preqin Venture Deals Analyst

Fig. 3: Proportion of Aggregate Value of Venture Capital Deals* in Food & Agriculture by Location, 2007 - 2015 YTD (As at 19 August 2015)

100% 2% 1% 2% 1% 1% 3% 1% 4% 3% 4% 3% Subscriber Quicklink 9% 6% 9% 12% 90% 8% 10% 22% 80% 36% 17% 16% 19% Subscribers to Preqin’s Venture Deals Analyst can click here 70% to view comprehensive information on over 1,840 venture 7% 3% 3% 55% 67% 55% capital deals in the food & agriculture industry worldwide. 60% 65% 23% 50% Deal proﬁ les detail type, location, known ﬁ nancing, known 31% 40% investors, deal overview, deal stages and much more. 68% 67% 9% 6% 67% Proportion of Total 30% 10% 48% Not yet a subscriber? For more information, or to arrange a 20% 16% demonstration, please visit: 26% 30% 29% 10% 19% 9% 0% www.preqin.com/vcdeals 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD North America Europe Greater China India Other Source: Preqin Venture Deals Analyst

Fig. 4: Five Largest Venture Capital Deals* in Food & Agriculture, 2014 - 2015 YTD (As at 19 August 2015)

Deal Size Primary Company Name Stage Deal Date Investor(s) Location (mn) Industry Bessemer Venture Partners, Fidelity Management & Research Blue Apron Series D/Round 4 Jun-15 135 USD US Food Company, First Round Capital, Graph Partners, Stripes Group

HelloFresh Series E/Round 5 Feb-15 110 EUR Insight Venture Partners, Rocket Internet US Food

Huaxia Farm Series D/Round 4 Jul-14 106 USD GIC , GRC Chrysalix, Olympus Capital Asia China Agriculture Collaborative Fund, Founders Fund, Horizons Ventures, Khosla Hampton Creek Foods Series C/Round 3 Dec-14 90 USD US Food Ventures, OS Fund, Tao Capital Partners, WP Global Partners Impossible Foods Series A/Round 1 Oct-14 75 USD Horizons Ventures US Food Source: Preqin Venture Deals Analyst *Figures exclude add-ons, grants, mergers, secondary stock purchases and venture debt.

North American Buyout Deals

The North American market consistently represents approximately half – if not more – of global private equity- backed buyout activity. Philipp Kuny analyzes the data Preqin holds on the number and aggregate value of North American buyout transactions, and lists the largest deals of the year so far.

Fig. 1: Quarterly Number and Aggregate Value of North American Private Equity-Backed Buyout Deals, Q1 2006 - Q3 Fig. 2: Number of Private Equity-Backed Buyout Deals by 2015 TD (As at 19 August 2015) Region, Q1 2006 - Q3 2015 TD (As at 19 August 2015)

600 200 1,200

180 Aggregate Deal Value ($bn) 500 160 1,000 140 400 800 120 300 100 600 80 No. of Deals 200 No. of Deals 400 60 40 100 200 20 0 0 0 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 TD Q3 TD 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 No. of Deals Aggregate Deal Value ($bn) North America Europe Asia Rest of World Source: Preqin Buyout Deals Analyst Source: Preqin Buyout Deals Analyst

Fig. 3: Proportion of Number of US Private Equity-Backed Buyout Deals by State, 2006 - 2015 YTD (As at 19 August 2015)

100% Subscriber Quicklink 90% 80% 47% Subscribers to Preqin’s Buyout Deals Analyst can click here 54% 49% 53% 51% 49% 50% 50% 52% 49% 70% to view comprehensive information on over 22,180 private 60% equity-backed buyout deals in North America.

50% 5% 4% 4% 3% 3% 3% 5% 2% 4% 4% 4% Deal proﬁ les contain information on industry, location, entry 4% 5% 4% 5% 6% 5% 5% 4% 40% 5% 4% 5% 3% 4% 5% 4% 5% 4% 5% 4% 6% deal size, investment type and much more. 6% 6% 6% 5% 6% 6% 5% 30% 6% 7% 8% Proportion of Total 8% 8% 5% 7% 6% 6% 8% 7% 8% 20% 12% 11% 10% Not yet a subscriber? For more information, or to arrange a 10% 10% 10% 10% 11% 11% 12% 10% demonstration, please visit: 14% 12% 13% 12% 12% 13% 14% 14% 13% 15% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 www.preqin.com/buyoutdeals YTD California Texas New York Florida Pennsylvania Illinois Ohio Other Source: Preqin Buyout Deals Analyst

Fig. 4: Five Largest Private Equity-Backed Buyout Deals in North America, 2015 YTD (As at 19 August 2015)

Investment Deal Deal Size Deal Bought from/ Primary Company Name Investors Location Type Date ($bn) Status Exiting Company Industry 3G Capital, Berkshire Hathaway, The Kraft Heinz Merger Mar-15 40.0 Completed H.J. Heinz Company, Kraft Foods - US Food Company Group Suddenlink BC Partners, CPP Add-on May-15 9.1 Announced Altice S.A., Carlyle Group, Cinven US Telecoms Communications Investment Board Veritas Buyout Aug-15 8.0 Announced Carlyle Group, GIC Symantec Corp US Software Informatica Public to CPP Investment Board, Microsoft, Apr-15 5.3 Announced - US Software Corporation Private Permira, Salesforce Ventures Fortress Investment Group, Financial OneMain Financial Add-on Mar-15 4.3 Announced Citigroup US Springleaf Financial Services Services Source: Preqin Buyout Deals Analyst

• Conduct market research and track industry trends

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• Access slide decks from Preqin presentations at conferences

Gaining access to Preqin’s Research Center Premium is easy – to register for free, please visit: www.preqin.com/RCP alternative assets. intelligent data. The Facts Funds of Funds Interested in Growth Funds Download Data

Funds of Funds Interested in Growth Funds A notable 41% of private equity funds of funds that reached a final close in 2015 YTD have a preference for growth vehicles, the largest proportion on record. Francesca Braganza takes a look at the group of private equity funds of funds that seek opportunities in this specific fund type.

Fig. 2: Annual Number of Private Equity Funds of Funds Fig. 1: Geographic Make-up of Private Equity Fund of Funds Closed: Growth-Focused Funds vs. All Other Funds of Funds, Managers Interested in Growth Opportunities 2005 - 2015 YTD (As at 26 August 2015)

180 US 160 China 9% 15 2% Switzerland 140 23 2% Funds of Funds 2% Germany 120 12 2% Interested in 2% UK 100 4 17 Growth 2% Opportunities France 80 35 5% 144 23 33 28

50% Italy No. of Funds 125 24 Other Funds of 60 114 5% 102 93 Funds Australia 40 20 64 61 Canada 51 60 59 6% 20 29 Norway 0 7% Spain 7% Japan 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Other 2015 YTD Year of Final Close Source: Preqin Investor Intelligence Source: Preqin Investor Intelligence

Fig. 3: Geographic Preferences of Private Equity Fund of Funds Managers Seeking Growth Opportunities

Subscriber Quicklink North America 67% Subscribers to Preqin’s Investor Intelligence can click here to use the Fund of Funds tool and search for private equity Europe 64% funds of funds expressing a preference for growth funds. Results can also be ﬁ ltered by country/regional allocations, Asia 49% investment plans and fund strategy preferences.

Not yet a subscriber? For more information, or to arrange a Rest of World 37% demonstration, please visit:

www.preqin.com/ii Global 29%

0% 20% 40% 60% 80% Proportion of Fund of Funds Managers Source: Preqin Investor Intelligence

Fig. 4: Largest Private Equity Funds of Funds Closed with a Preference for Growth Funds, All Time

Final Close Size Fund Firm Vintage Year Geographic Focus (mn) HarbourVest Partners VII - Venture HarbourVest Partners 2003 2,020 USD Global, US Crown Premium V LGT Capital Partners 2011 900 EUR Europe, US Greater China, India, Japan, Axiom Asia III Axiom Asia Private Capital 2012 1,150 USD Southeast Asia, Korea, Australia BlackRock Private Equity BlackRock Private Equity Partners IV 2007 743 EUR Europe, North America, Asia-Paciﬁ c Partners Asia Alternatives Capital Partners IV Asia Alternatives Management 2015 1,000 USD Asia-Paciﬁ c Source: Preqin Investor Intelligence

7th Annual Women’s Alternative Investment Summit November 5–6, 2015 The Pierre, New York City

Join more than 400 of the top women in private equity and alternatives — GPs, LPs, and advisors to the industry — as we gather in November in New York City for insightful and candid discussions on fundraising, deal ﬂow, portfolio management, liquidity, and more.

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Meet the world’s leading institutional investors

Featuring experts from NOVEMBER 18 TPG Capital, NEW YORK, NY New York Common Fund, Bain Capital and more Produced by Privcap Media Conferences Conferences Download Data

Conferences Spotlight

Conference Dates Location Organizer Preqin Speaker Discount Code World Pension 20% Discount - World Pension Summit 10 - 11 September 2015 The Hague, NL - Summit MEDIA2015WPS20 15% Discount - SuperInvestor Africa 2015 14 - 16 September 2015 South Africa ICBI Mark O'Hare FKR2383PNSL Haymarket Media China Global Investment Forum 16 September 2015 Beijing -- Ltd. 15% Discount - SuperReturn Asia 2015 21 - 24 September 2015 Hong Kong ICBI Mark O'Hare FKR2382PRQSP 15% Discount - Global AgInvesting Asia 2015 22 - 24 September 2015 Singapore HighQuest Group - Preqin 2015 Middle Market Direct Lending 24 September 2015 London iGlobal Forum - - Summit

Banff Venture Forum 2015 24 - 25 September 2015 Banff, Canada Critical Path Group - -

Ai CEO Institutional Investment 25 September 2015 New York Africa Investor - - Summit 2015 Worldwide Business 15% Discount - Capital Creation 2015 28 - 30 September 2015 Monte Carlo Mark O'Hare Research (WBR) Preqin15 Financial Research 15% Discount - Co-Investing: Fall Summit 28 - 29 September 2015 New York - Associates, LLC FMP187 15% Discount - Private Credit U.S. 28 - 29 September 2015 Chicago, IL IIR USA Ryan Flanders XU2500PREQ Central & Eastern European M&A and Private Equity Forum 30 September 2015 Warsaw Mergermarket Group - - 2015 NAIC’s 45th Annual Meeting & 5 - 6 October 2015 New York NAIC - - Convention

CEE Private Equity Forum 8 - 9 October 2015 London C5 Communications - -

European CLO Summit 14 - 16 October 2015 Monaco Opal Finance Group - -

Swiss M&A and Private Equity 22 October 2015 Zurich Mergermarket Group - - Forum 2015 Family Ofﬁ ce & Private Wealth 28 - 30 October 2015 Napa, CA Opal Finance Group - - Management Forum – West Italian M&A and Private Equity 29 October 2015 Milan Mergermarket Group - - Forum 2015 The 7th Annual Women's Alternative Investment Summit 5 November 2015 New York Falk Marques Group - - (WAIS) 15% Discount - SuperReturn Middle East 2015 8 - 11 November 2015 Dubai ICBI Mark O'Hare FKR2378PRQS Middle Eastern Family Ofﬁ ce 11 - 12 November 2015 Dubai Opal Finance Group - - Symposium Endowment & Foundations 16 - 18 November 2015 Boston, MA Opal Finance Group - - Forum AIMA Middle AIMA Alternative Investment 16 - 17 November 2015 Dubai East Alternative -- Summit Investment Summit

Wealth Management Americas 17 - 18 November 2015 Miami, FL Terrapinn - -

15% Discount - SuperInvestor 2015 17 - 20 November 2015 Amsterdam ICBI Mark O'Hare FKR2373PNSL

America’s Family Ofﬁ ce Forum 18 - 19 November 2015 Miami, FL Terrapinn - -

WorldPensionSummit 2015

Date: 10 - 11 September 2015 Information: www.worldpensionsummit.com Location: Louwman Museum, The Hague, NL Organizer: WorldPensionSummit

The WorldPensionSummit is THE platform for & by pension professionals and the only truly global learning and networking experience. Learn from innovative ideas and new strategies. Discuss the future of pensions with global thought leaders. Get fresh perspectives on how to tackle the pension challenges and how to achieve sustainable pension provision.

2nd Annual China Global Investment Forum

Date: 16 September 2015 Information: www.china-investmentforum.com Location: Beijing, China Organizer: AsianInvestor

The event will bring together over 200 senior investors from China’s government investment funds, insurance companies, trusts, pensions funds, family offices as well as fund selectors and heads of distribution from China’s private banks to discuss global investment opportunities. Minal Khilani | Conference Producer | E: [email protected]

Middle Market Direct Lending Summit

Date: 24 September 2015 Information: http://www.iglobalforum.com/Directlending Location: London, UK Discount Code: PREQIN Organizer: iGlobal Forum

iGlobal Forum’s Middle Market Direct Lending Summit will explore the critical role that alternative lenders can play in providing optimal lending solutions for European businesses. There is continued strong momentum in the European direct lending market and a proliferation of alternative capital providers.

Co-Investing: Fall Summit

Date: 28 - 29 September 2015 Information: https://www.frallc.com/conference. aspx?ccode=B979 Location: The Princeton Club - New York, NY Discount Code: FMP187 Organizer: Financial Research Associates

We’ve assembled a top-notch speaking faculty to guide this interactive seminar on co-investment due diligence, valuation, governance, and compliance. Join speakers from Hamilton Lane, Fisher Lynch Capital, Tamarind Partners, Global Risk Management Advisors, Winston Strawn, StepStone, McGuireWoods, and more as they guide attendees through the process of breaking down co-investment opportunities. Register today and join us at the Princeton Club of New York on September 28th and 29th to launch your deals to the next level!

CEE Private Equity

Date: 8 - 9 October 2015 Information: http://c5-online.com/privateequity Location: Le Méridien Piccadilly, London, UK Organizer: C5 Communications

Join this year’s gathering of top wealth creators to get an important update on fast-changing private equity environment in the CEE, share the best practices and find solutions to the most critical issues.

Swiss M&A and Private Equity Forum 2015

Date: 22 October 2015 Information: http://mergermarketgroup.com/ event/switzerland2015?utm_source=preqin&utm_ medium=website&utm_campaign=switzerland2015 Location: The Dolder Grand, Zurich Organizer: Mergermarket

Mergermarket is delighted to be returning to Zurich for its annual Swiss M&A and Private Equity Forum. This year’s event will bring together senior-level M&A and private equity professionals, investors and advisors to review the deal environment in Switzerland and provide an update on the latest developments within the market.

Italian M&A and Private Equity Forum 2015

Date: 29 October 2015 Information: http://mergermarketgroup.com/ event/italia2015?utm_source=preqin&utm_ medium=website&utm_campaign=italia2015 Location: Hotel Principe Di Savoia, Milan Organizer: Mergermarket

Join a senior-level audience at Mergermarket’s annual Italian M&A and Private Equity Forum, and hear from industry experts as they discuss the latest trends within the Italian M&A market and look ahead at the future deal pipeline for the next year.

The 7th Annual Women’s Alternative Investment Summit (WAIS)

Date: 5 - 6 November 2015 Information: www.womensalternativesummit.com Location: The Pierre New York, NY Organizer: Falk Marques Group

The 7th annual Women’s Alternative Investment Summit will bring together an influential group of more than 400 senior-level women — fund managers, institutional investors, and advisors to the industry — across the spectrum of alternatives to build trusted networks and engage in candid discussions about alternative investments in an emerging new world.

Healthcare Game Change

Date: 18 November 2015 Information: http://healthcaregamechange.com/ Location: New York Althetic Club, New York, NY Organizer: Privcap Media

The Private Capital Opportunity in a Transforming Market. The premier private equity healthcare investing event connecting leading investors and fund managers. Privcap Media is proud to present the Healthcare Game Change 2015 conference in NYC on November 18th, 2015 at the New York Athletic Club. The conference will bring together senior executives from large and mid-cap private equity firms and their limited partners, as well as a range of experts from government and industry. Speakers include senior executives from TPG Capital, Bain Capital, APAX Partners and more.

AIFM Directive 2015

Date: 30 November 2015 Information: www.aifmdirective.co.uk Location: London Discount Code: PREQIN Organizer: Private Equity Forum

Through company case studies, in-depth presentations and panel discussions, Private Equity Forum’s 5th AIFM Directive 2015 Conference will provide you with clarification on the next series of changes to ensure you are aware of the necessary key actions and deadlines. Specifically timed to provide you with updates from European Securities and Markets Authority and European Commission.

Catalyst Cap Intro: Private Equity Fund Investing

Date: 18 May 2016 Information: http://catalystforum.com/node/347 Location: New York City Organizer: Catalyst Financial

Catalyst Cap Intro Events are sector focused, investor driven events that host hand-picked investment managers and investors that are introduced to each other with a view to become investment partners.

This Catalyst Cap Intro Event focuses only on Private Equity Fund investing.

Access Free Conference Slide Decks and Presentations

Preqin attends and speaks at many different alternative assets conferences throughout the year, covering topics from private equity 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