INVESTOR REPORT FULL YEAR 2020

Private Equity International's interactive and downloadable review of the investor environment

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Nicole Douglas Adrian Glean Head of Investor Research Research Associate [email protected] [email protected] Largest known private equity fund commitments made in 2020

Institution Fund Manager Commitment Region Strategies $12bn raised by top 20 ($m) California Public Employees' LongRange Capital Fund LongRange 1500.0 Multi- / Retirement System I Capital regional Corporate PE largest commitments California Public Employees' Oaktree Latigo Oaktree Capital 1000.0 North Buyout / Retirement System Investment Fund Management America Corporate PE

California Public Employees' CVC Capital Partners VIII CVC Capital 919.1 Multi- Buyout / Retirement System Partners regional Corporate PE

Fundraising for the year remained strong. California Public Employees' Silver Lake Partners VI Silver Lake 800.0 Multi- Buyout / Retirement System regional Corporate PE GPs amassed over $530 billion in 2020, California Public Employees' EQT IX EQT 750.0 Multi- Buyout / despite travel bans and global lockdowns, Retirement System regional Corporate PE Canada Pension Plan Investment CVC Capital Partners VIII CVC Capital 612.7 Multi- Buyout / and investors continued to back brand-name Board Partners regional Corporate PE fund managers. New York State Common CVC Capital Partners VIII CVC Capital 612.7 Multi- Buyout / Retirement Fund Partners regional Corporate PE

California Public Employees' New Mountain Partners New Mountain 600.0 North Buyout / California LPs accounted for half of the largest Retirement System VI Capital America Corporate PE Washington State Investment GTCR Fund XIII GTCR 600.0 North Buyout / disclosed fund commitments in 2020. The Board America Corporate PE

California Public Employees' Clayton, Dubilier & Rice Clayton, Dubilier 500.0 North Buyout / California Public Employees' Retirement Retirement System Fund XI & Rice America Corporate PE System was the most active of these with Oregon State Treasury Pathway Private Equity Pathway Capital 500.0 Multi- / eight sizeable commitments. Fund III-Co Management regional Co-Investment Texas Municipal Retirement System H.I.G. Strategic Partners H.I.G. Capital 500.0 North Buyout / Fund II America Corporate PE California State Teachers' CVC Capital Partners VIII CVC Capital 450.0 Multi- Buyout / Retirement System Partners regional Corporate PE

New York State Common Fund XIV Thoma Bravo 400.0 North Buyout / Retirement Fund America Corporate PE

Texas Municipal Retirement System HarbourVest/TMRS Co- HarbourVest 400.0 North Fund of Funds / Invest Fund of One Partners America Co-Investment

Washington State Investment TPG Growth V TPG 400.0 Multi- / Growth Board regional Equity

To view Private Equity International’s 2020 Download data fundraising report PE commitment activity Top 10 most active investors based on known PE fund commitments made in 2020 remains strong

Institution Regional HQ Number of 2020 Regional appetite commitments Of the top 10 most active investors in private European Investment Fund Western 41 Central/Eastern , Western Europe equity, the majority are agnostic when it Europe Texas County and District Retirement System North America 30 All regions considered comes to regional appetite. San Francisco Employees' Retirement System North America 26 All regions considered

European Investment Fund, the most active State of Wisconsin Investment Board North America 25 All regions considered investor, committed mostly to buyout and New York State Common Retirement Fund North America 23 All regions considered Cathay Life -Pacific 22 Asia-Pacific, North America, Western venture capital funds in Western Europe. Europe Maryland State Retirement and Pension North America 20 All regions considered Combined, the top 10 most active investors System made 258 fund commitments to 2020-vintage California Public Employees' Retirement North America 19 All regions considered funds. System Los Angeles Fire & Police Pension System North America 18 All regions considered

California State Teachers' Retirement System North America 17 All regions considered Florida Retirement System Trust Fund North America 17 All regions considered

To view European Investment Fund's recent commitments Download data Historic private equity allocation by institution type

PE represents 8.7% of the 12 average investor portfolio 10 Private equity continues to represent a notable proportion of portfolios and is often the alternative asset class to which 8 ) % (

investors allocate the most capital. n io t

ca o l l 6

On average, private equity constituted 8.7% of an a y it LP's investment portfolio in 2020. With the u q e e exception of private pensions, average allocation t a iv r 4 has increased since 2016. P

Foundations and endowments dedicate an above-average proportion: 11.61% 2

Since 2019, the average allocation to private equity has increased from 8.58%, indicating 0 continued appetite for, and confidence in, the 2016 2017 2018 2019 2020 asset class. Foundation / Endowment Insurance company Private Public pension fund All investors

To view the 100 largest LPs globally and their PE allocation Download data Percentage of institutions increasing, maintaining or decreasing 75% private equity allocations from 2019 to 2020 Portion of investors Investors want a larger globally that have piece of PE pie maintained or Foundation / Endowment shifted more capital into private equity As mentioned on the previous slide, the average allocation to private equity has increased in recent years. Our data show Insurance company that, globally, 75% of institutional investors Foundations and maintained or shifted more capital into the endowments, asset class over the course of 2020. which allocate Private pension fund 11.6% of their

portfolio to PE Breaking this down by institution type, and are one of the foundations and endowments were the most institution types likely to increase their allocation to the asset Public pension fund that dedicate the class (57%), while 22% maintained their greatest allocation to PE. proportion of a portfolio to the

All investors asset class, are also the most likely to increase 0 10 20 30 40 50 60 70 80 90 100 their PE allocation each year Increased allocation Maintained allocation Decreased allocation To view Private Equity International’s database Download data Investors' private equity allocation position from 2016 to 2020

The majority of investors 100% remain underweight in PE 90%

80% While investors continue to shift more capital into private equity, nearly 60% of investors’ 70% allocations to private equity remain below target. 60%

50%

40%

30%

20%

10%

0% 2016 2017 2018 2019 2020

Underallocated At target Overallocated

To view the 100 largest LPs globally and their PE allocation Download data Historical regional appetite of investors globally

Appetite is strongest for North America 70 n io g e r t a

In recent years, investor appetite on a regional h t r

o 60 level has remained relatively consistent, with f e it t

LPs displaying the greatest appetite for North e p p

America- and Western Europe-focused funds. a h it w

It follows that North America-focused funds y l l a

b 50 continue to lead by capital raised, accounting o l g s for over one-third of the total in 2020. r o t s e v in f

Just over half (54%) of investors have appetite o n io t 40 for Asia-Pacific focused funds, which r o p o accounted for approximately 10 percent of r P overall fundraising in 2020.

30

2016 2017 2018 2019 2020

Asia-Pacific Central / Eastern Europe Latin America Middle East / Africa North America Western Europe

To view Private Equity International’s database of institutional investors Download data Historical strategy appetite of investors globally

80 Strategy appetite

remains varied y g e t a r t s t a h

In recent years, investor strategy appetite has t

r 60 o f remained relatively consistent, with LPs e it t e displaying the greatest appetite for venture p p a h

capital / growth equity and buyout /corporate it w y l private equity funds. l a b o l

g

s 40 r o

Since 2017, there has been a decline in t s e investors' appetite for distressed/turnaround v in f o funds. n io t r

o

p o r P 20

2016 2017 2018 2019 2020

Buyout / Corporate private equity Venture capital / Growth equity Fund of funds / Co-investment Secondaries

Distressed / Turnaround Mezzanine / Debt To view Private Equity International’s database of institutional investors Download data Sign up to our Platinum service today, and get...

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