United States Private Equity Buyout Review

FIRST HALF 2020 United States Private Equity Buyouts First Half 2020 | United States Private Equity Buyout Review

United States Private Equity Buyout Deals Intelligence Private Equity Buyout Investment Activity in U.S. Companies

$250 1,800 United States Private Equity Buyout Investment Activity 1,600 Buyout investment activity in United States companies totaled $105.8 billion in the first Thousands $200 half, an 18% decrease from the year prior, but still exceeding investment levels in the 1,400 first half of 2018 by nearly a third. Deal volumes in the first six months of 2020, however, were down by 7%. The United States last saw a decline in its first half 1,200 investment volumes in 2013 and had been on an upward trajectory in the years since. $150 1,000

Add-on deals and acquisitions by portfolio companies have so far in 2020 been the 800 dominant deal type, representing 54% of all deal volumes, which has grown $100 significantly from 2015, when add-on acquisitions comprised only 38% of investment 600 activity. 400 $50 Top investors in U.S. companies included Warburg Pincus, Hellman & Friedman, GTCR, and Carlyle Group, each with 20 or more investments in the first half. The 200 largest deals of the first half included Zayo Group, Tallgrass Energy Partners, and $0 0 Pattern Energy Group, each of which saw deal values over $6 billion. 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 First Half Deal Values (US$bil) Second Half Deal Values (US$bil) # of Deals, First Half Private Equity Fundraising Private Equity Buyout Deal Volumes by Transaction Type United States-based private equity buyout funds saw a slightly weaker first half of the year, with $141.9 billion in funds raised, down 13% from the first half of 2019. The 100% number of fund closings was also down 13% from 2019 at 250, but this still 90% represented a 23% increase over the first half of 2018. The three largest fund closings in the first half included Clayton, Dubilier & Rice Fund XI LP; Insight Partners Fund XI; 80% and Francisco Partners VI LP, each of which raised over $7 billion. 70%

Private Equity Exits 60%

50% First half exit values were up 10% over the first half of 2019, at $49.1 billion. Exit volumes, however, tumbled by 28% from 2019, falling to the lowest level since 2011, 40% with only 206 deals in the first half. The largest exit was also the largest investment of 30% the quarter, as Zayo was acquired by Digital Colony Partners and EQT partners for $14.3 billion, as the Colorado-based fiber network company was taken private. 20%

10%

0% 2012 2013 2014 2015 2016 2017 2018 2019 H1 2020 Add-on Acquisition Minority Stake LBO Other

www.refinitiv.com/dealsintelligence 1 Investments First Half 2020 | United States Private Equity Buyout Review

Top U.S. PE Buyout Deals by Deal Value Top Investors in U.S. PE Buyout Deals Deal Value New or Company Name Inv. Date (US$mil) Sector Follow-On Location Firm Name Rank # of Deals Location Warburg Pincus LLC 1 26 New York Zayo Group LLC 03/09/20 $14,300.0 Communications and Media N Colorado Hellman & Friedman LLC 2 23 California GTCR Golder Rauner LLC 3 21 Illinois Tallgrass Energy Partners LP 04/17/20 $6,300.0 Industrial/Energy F Kansas Carlyle Group Inc 4 20 D. of Columbia KKR & Co Inc 5* 19 New York Pattern Energy Group LP 03/16/20 $6,100.0 Industrial/Energy N California GI Partners 5* 19 California TPG Capital Management LP 7* 17 Texas Vivint Solar Holdings Inc 01/17/20 $5,600.0 Semiconductors/Other Elect. F Utah Trivest Partners LP 7* 17 Florida HGGC LLC 9* 16 California Tech Data Corp 06/30/20 $5,400.0 Business Services F Florida Harvest Partners LP 9* 16 New York DXC Technology - Health and Altas Partners LP 9* 16 Ontario, Canada 03/10/20 $5,000.0 Medical/Health N New York Human Service Genstar Capital LLC 9* 15 California New Mountain Capital LLC 13* 14 New York Wella 05/11/20 $4,300.0 Consumer Related N New York Audax Group, Inc. 13* 14 Massachusetts Blackstone Group Inc 15* 13 New York Essential Utilities Inc 03/16/20 $4,275.0 Utilities F Pennsylvania TA Associates Management LP 15* 13 Massachusetts Webster Equity Partners LLC 15* 13 Massachusetts Deerfield Duff & Phelps LLC 04/14/20 $4,200.0 Financial Services F New York Madison Dearborn Partners LLC 18* 12 Illinois Ares Management LLC 18* 12 California Cincinnati Bell Inc 03/13/20 $2,900.0 Communications and Media N Ohio AE Industrial Partners LP 20* 11 Florida Thoma Bravo LP 20* 11 Illinois

PE Buyout Investments by State Top Announced PE Deals by U.S. Firms Investing Abroad 01/01/2020 - 06/30/2020 01/01/2019 - 06/30/2019 YoY % YoY % Deal Value New or State Value ($mil) # of Deals Value ($mil) # of Deals Chg. ($) Chg. (#) Company Name Inv. Date (US$mil) Sector Follow-On Location California $16,162.6 193 $13,521.8 225 20% ▲ -14% ▼ Thyssenkrupp AG-Elevator 02/27/20 $18,916.6 Electronics Equipment N Germany Texas $6,695.2 175 $29,607.5 221 -77% ▼ -21% ▼ Technology Business New York $15,448.4 112 $7,039.9 137 119% ▲ -18% ▼ United Cobham Ltd 01/22/20 $5,256.0 Business Services N Florida $7,951.8 104 $11,522.5 69 -31% ▼ 51% ▲ Kingdom Illinois $3,921.4 85 $935.8 94 319% ▲ -10% ▼ Veeam Software 01/09/20 $5,000.0 Computer Software F Switzerland Massachusetts $2,781.8 64 $7,927.9 69 -65% ▼ -7% ▼ Georgia $1,936.2 61 $675.9 49 186% ▲ 24% ▲ United Viridor Waste (Adapt) Ltd 03/18/20 $4,877.5 Pollution and Recycling N Pennsylvania $5,715.3 53 $6,401.2 64 -11% ▼ -17% ▼ Kingdom New Jersey $1,669.0 52 $7,626.9 37 -78% ▼ 41% ▲ United Sophos Group PLC 03/02/20 $3,900.0 Computer Software N Virginia $2,001.9 49 $1,035.0 52 93% ▲ -6% ▼ Kingdom North Carolina $115.0 41 $2,957.0 46 -96% ▼ -11% ▼ Mas Movil Telecom 30 SA 06/01/20 $3,295.7 Wireless Communications N Spain Ohio $3,212.3 41 $57.0 56 5536% ▲ -27% ▼ Colorado $14,858.5 37 $30.7 42 48275% ▲ -12% ▼ United Pattonair Ltd 01/09/20 $1,900.0 Transportation F Michigan $226.5 34 $25.0 37 806% ▲ -8% ▼ Kingdom Connecticut $936.8 33 $4,279.0 20 -78% ▼ 65% ▲ Fortitude Reinsurance 04/01/20 $1,800.0 Financial Services F Bermuda Missouri $320.0 29 $0.0 25 - ▲ 16% ▲ Company Ltd Minnesota $138.1 27 $3,556.8 36 -96% ▼ -25% ▼ Kissner Milling Company Ltd 04/01/20 $1,409.6 Chemicals and Materials N Canada Tennessee $46.3 26 $0.0 30 - ▲ -13% ▼ Arizona $529.5 25 $123.0 33 330% ▲ -24% ▼ Colonial First State 05/12/20 $1,099.7 Financial Services N Australia Alabama $240.9 22 $7.0 11 3341% ▲ 100% ▲ Investments Ltd Utah $8,654.0 22 $85.0 17 10081% ▲ 29% ▲ Kentucky $0.0 18 $2,640.0 15 -100% ▼ 20% ▲ Washington $1,403.9 18 $3,957.0 23 -65% ▼ -22% ▼ Wisconsin $960.0 18 $13,664.9 22 -93% ▼ -18% ▼ Maryland $2,405.0 16 $0.0 25 - ▲ -36% ▼

*Indicates a Tie

www.refinitiv.com/dealsintelligence 2 Investments First Half 2020 | United States Private Equity Buyout Review

Investments by Sector, Deal Value (US$bil) Investments by Sector, Number of Deals

100% 100%

90% 90%

80% 80%

70% 70%

60% 60%

50% 50%

40% 40%

30% 30%

20% 20%

10% 10%

0% 0% H1 2015 H1 2016 H1 2017 H1 2018 H1 2019 H1 2020 H1 2015 H1 2016 H1 2017 H1 2018 H1 2019 H1 2020

Computer Software & Services Industrial/Energy Consumer Related Internet Specific Medical/Health Other Computer Software & Services Industrial/Energy Consumer Related Internet Specific Medical/Health Other

Deal Size Composition of Investments Top Computer Software & Services Deals Deal Value New or Company Name Inv. Date (US$mil) Sector Follow-On Location 3% 3% Zayo Group LLC 03/09/20 $14,300.0 Wide Area Networks N Colorado 14% 7% Vivint Solar Holdings Inc 01/17/20 $5,600.0 Semiconductor/Electr F Utah 15% Cincinnati Bell Inc 03/13/20 $2,900.0 Telephone Rel. N Ohio

≥ $10 Bil Cision Us Inc 01/31/20 $2,740.0 Internet Marketing Services N Illinois 6% $1 < $10 Bil Lytx Inc 02/28/20 $2,500.0 Transportation Software N California Security/Firewalls,Encryption $500 Mil < $1 Bil RSA Security LLC 02/18/20 $2,075.0 N Massachusetts software Vantage Data Centers Data communications $100 < $500 Mil 02/10/20 $2,000.0 N California 59% Management Company LLC systems management < $100 Mil 20% Instructure Inc 03/23/20 $1,816.0 Educational Software N Utah

Forescout Technologies Inc 02/06/20 $1,430.0 Computer Security Services N California

Phoenix Tower International Wireless Communications 02/03/20 $1,400.0 F Florida Outer Ring: Deal Values (US$bil) LLC Services Inner Ring: # of Deals

73%

www.refinitiv.com/dealsintelligence 3 Fundraising First Half 2020 | United States Private Equity Buyout Review

U.S. Private Equity Buyout Fundraising Activity Private Equity Buyout Fundraising, Fund Size Composition

$450 350 100%

$400 90%

Thousands 300 80% $350

250 70% $300

60% $250 200 50%

$200 150 40%

$150 100 30% $100 20% 50 $50 10%

$0 0 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 H1 2010 H1 2011 H1 2012 H1 2013 H1 2014 H1 2015 H1 2016 H1 2017 H1 2018 H1 2019 H1 2020

First Half Funraising (US$bil) Second Half Fundraising (US$bil) # of Funds Closed, First Half ≤ $30 Mil $30 < $50 Mil $50 < $100 Mil $100 < $300 Mil $300 < $500 Mil $500 < $1 Bil ≥ $1 Bil

PE Buyout Fundraising, by Investment Stage (US$bil) Largest PE Buyout Funds Raised in the U.S. Amount Total Fund Fund Name Location Raised Size Fund Stage $4.3 Clayton, Dubilier & Rice Fund XI LP New York $10,000.0 $10,000.0 Buyouts

$12.4 Insight Partners Fund XI New York $8,650.0 $9,500.0 Generalist Francisco Partners VI LP California $7,450.0 $7,450.0 Buyouts

Clearlake Capital Partners VI LP California $6,695.0 $7,000.0 Buyouts Buyouts Trident VIII LP Connecticut $5,655.0 $7,000.0 Buyouts Generalist GSO European Senior Debt Feeder Fund II LP New York $4,546.5 $4,546.5 Turnaround $40.6 Turnaround/Distressed Blackstone Life Sciences V LP New York $4,202.4 $4,605.0 Buyouts Debt $84.6 Mezzanine Stage Tiger Global Private Investment Partners XII, LP New York $3,750.0 $3,750.0 Generalist

Ares Special Opportunities Fund, L.P. California $3,500.0 $3,500.0 Buyouts

Odyssey Investment Partners VI New York $3,100.0 $3,250.0 Buyouts

www.refinitiv.com/dealsintelligence 4 Exits First Half 2020 | United States Private Equity Buyout Review

U.S. Private Equity Buyout Exit Activity Exits by Sector, Number of Deals

$200 400

$180 3% 350

Thousands 8% $160 300 $140 11% Information Technology 250 $120 Business Services 46% $100 200 Industrial/Energy

$80 Consumer Related 150 12% Healthcare $60 100 Other $40

50 $20

$0 20% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

First Half Exit Values (US$bil) Rest of Year (US$bil) # of Exits, First Half

Number of Years from Investment to Exit Top U.S. PE-Backed Exits Date Deal Value Company Name Complete (US$mil) Sector Exit Type

4% 4% Zayo Group LLC 03/09/2020 $14,259 Wide Area Networks Secondary Sale Pattern Energy Group LP 03/16/2020 $5,091 Wind Energy Secondary Sale 13% Privilege Underwriters Inc 02/10/2020 $3,100 Insurance Related Trade Sale

Aleris International Inc 04/14/2020 $2,800 Chemicals and Materials Trade Sale Over 15 Years 34% 11 -15 Years Draftkings Inc 04/23/2020 $2,055 Entertainment Trade Sale 5-10 Years Dun & Bradstreet Inc 06/30/2020 $1,981 Data Services IPO Pharmaceutical Product 2-4 Years 02/05/2020 $1,863 Pharmaceutical Research IPO Development Inc Under 2 Years Consolidated Aerospace 02/24/2020 $1,500 Aerospace Trade Sale Manufacturing LLC

Saba Software Inc 04/22/2020 $1,295 Talent Management Trade Sale

45% Dermira Inc 02/20/2020 $1,070 Biotechnology Trade Sale

www.refinitiv.com/dealsintelligence 5 United States Private Equity Buyout Criteria First Half 2020

If you would like to participate in the submission process, receive Data collected and analyzed by Refinitiv for this statistical report were drawn from a variety of sources including including regulatory filings, press releases, quarterly press releases, or have Refinitiv PE and M&A databases, and contributed submissions from buyout firms, generalist firms, and law firms. questions about our full league table criteria please contact: Key statistical indicators (e.g., total disbursements, per quarter or per annum) are influenced by the fact that a substantia l fraction of buyout and other PE deals are not fully disclosed. For instance, “dollars invested” in a given period pertain only to those deals with values that hav e been published or confidentially AMERICAS disclosed to Refinitiv.

Gavin Penny The data also highlights the deal-making of U.S. funds in non-U.S. companies. “Dollars invested” pertain to the total value of disclosed deals in which U.S. funds Tel: 416-687-7577 have participated and not the specific U.S. financial contributions to these deals. Deals are first tracked as of announcemen t date, then tracked as of completion [email protected] date upon closing.

Merissa Selts Statistical data reflect eligible PE backed add-on acquisitions, leveraged buyouts, management buyouts, management buy-ins, secondary buyouts, Tel: 646-223-8415 recapitalization and turnaround financing, mezzanine, secondary purchase, open market purchase, PIPE, and bridge loans. [email protected] League tables, commentary, and charts include both announced and completed transactions.

League Table rankings of top PE investors include only publicly-disclosed investment activity made in United States portfolio companies. Estimated investment activity is based on the actual syndicate breakdown, where available, and is split equally among disclosed investors where ac tual breakdowns are not available. Announced league tables include announced and completed deals that were announced between January 1, 2020 and June 30, 2020 and of which Refinitiv was made aware.

All current and previous years data is as of Tuesday, July 28th, 2020. Data is continuously updated and is therefore subject to change. All figures are in U.S. dollars unless otherwise noted.

While Refinitiv has used reasonable endeavors to ensure that the information provided in this document is accurate and up to date as at the time of issue, neither Refinitiv nor its third party content providers shall be liable for any errors, inaccuracies or delays in the information, no r for any actions taken in reliance thereon, nor does it endorse any views or opinions of any third party content provider. Refinitiv disclaims all warranties, express or implied, as to the accuracy or completeness of any of the content provided, or as to the fitness of the content for any purpose to the extent permitted by l aw. The content herein is not appropriate for the purposes of making a decision to carry out a transaction or trade and does not provide any form of advice (investment, tax, legal) amounting to investment advice, nor make any recommendations or solicitations regarding particular financial instruments, investments o r products, including the buying or selling of securities. Refinitiv has not undertaken any liability or obligation relating to the purchase or sale of securitie s for or by any person in connection with this document.