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 April 2014 performance, investors, deals and fundraising. Private Equity Spotlight combines information from our online Feature Article products Performance Analyst, Investor Intelligence, Fund Manager Resurgent Europe Proﬁ les, Funds in Market, Secondary Market Monitor, Buyout Deals Analyst This month’s feature article looks at growing interest in Europe in light of increased investor and Venture Deals Analyst appetite and promising fundraising ﬁ gures, as well as the outlook for the year ahead.

Page 3 April 2014 Volume 10 - Issue 4 Lead Article

FEATURED PUBLICATION: The Troubles of First-Time Funds

2014 Preqin Global Private Equity Although private equity fundraising on the whole has improved in recent years, the aggregate Report capital raised by ﬁ rst-time private equity fund managers is at its lowest level of all time. We analyze historical fundraising statistics and LP appetite for emerging managers.

Page 7

2014 Preqin Global Preqin Industry News Private Equity Report This month’s industry news focuses on investor appetite for Europe-focused funds, including LPs that have recently made commitments to vehicles predominantly focused on Europe and those that plan to in the year ahead.

Page 11

ISBN: 978-1-907012-62-4 $175 / £95 / €115 www.preqin.com alternative assets. intelligent data. The Facts To find out more and to order your copy please visit: African Private Equity - A look at private equity fundraising in Africa. Page 13 www.preqin.com/gper Investors - LPs with an interest in distressed private equity. Page 14 New York: One Grand Central Place Buyout Deals - Analysis of private equity-backed add-on transactions. Page 16 60 E 42nd Street Suite 630 Venture Capital Deals - We examine venture capital deals in Asia. Page 17 New York, NY 10165 +1 212 350 0100 Performance - A look at the performance of natural resources funds. Page 19

London: Secondaries - A breakdown of secondary market buyers and sellers. Page 21 Equitable House 47 King William Street Conferences - Upcoming private equity conferences around the world. Page 22 London, EC4R 9AF +44 (0)20 7645 8888 You can download all the data in this month’s Spotlight in Excel. Singapore: Wherever you see this symbol, the data is available for free download on One Finlayson Green 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; #11-02 please cite Preqin as the source. Singapore 049246 +65 6305 2200

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Resurgent Europe

Jessica Duong takes a look at growing interest in Europe as a prime private equity investment destination in light of increased investor appetite and promising fundraising figures, and considers the outlook for the year ahead.

In the last six to 12 months, there has been a certain shift in the other regions outside of North America and Europe recorded a six private equity landscape resulting in a real buzz surrounding percentage point increase in the same time period. Unsurprisingly, Europe, a region that was faced with notably negative investor almost three-quarters (73%) of the Europe-based LPs we spoke sentiment last year. A multitude of factors may have contributed to as a part of Preqin’s biannual survey of over 100 investors to this, but what is undeniable is the recent ramping up of private indicated that they had appetite for private equity prospects in their equity activity and interest focused on the continent, as evidenced own continent. Preqin’s Investor Intelligence currently tracks 2,662 by Preqin’s statistics on fundraising, deals and investor appetite. active private equity investors that have a preference for European opportunities. These LPs collectively have $65.5tn of assets under Europe has historically been a major market in the private equity management. universe, both in terms of the numbers of private equity fund managers basing their operations there, and its status as a major Fundraising and Performance investment destination for investors. Following the economic turmoil endured by the region as 2008’s global fi nancial crisis Private equity fundraising in Europe has been increasing year on triggered a signifi cant decline in the GDP of the majority of the year since 2010, with more and more capital being raised with a European economies, the continent saw the onset of the sovereign primary focus on European investment opportunities. Fig. 2 shows debt crisis in 2009. The latter in particular threatened the collapse the upticks in aggregate capital raised annually since 2010, with a of economies in the south of the continent, most notably Portugal, regional breakdown by the primary geographic focus of the private Italy and Spain. Ireland and Greece also suffered signifi cantly, and equity fund. 2013 saw $112bn of total capital secured by all funds the general confi dence across Europe as a whole tumbled. predominantly targeting Europe; 44% of this was placed in funds that have a multi-regional focus within Europe, and another 44% Five years on, Europe’s economic picture has brightened, and was specifi cally for investment in Western European opportunities. in the private equity realm the effects of this are refl ected in the The next largest proportion of capital (9%) is intended for the Nordic marked shifts seen in investor confi dence and the upward trends region and the remaining 3% is destined for Central & Eastern of European fundraising activity in recent years. Europe and Southern Europe.

Investor Appetite Fig. 3 shows the PrEQIn Private Equity Index by primary geographic focus of private equity funds. The PrEQIn Quarterly Index captures Fig. 1 shows the increase observed in investor appetite for Europe- the return earned by investors on average in their private equity focused fund opportunities from LPs based around the world. portfolios, based on the actual amount of money invested in private There is a consistent pattern of increase across investors based equity partnerships. It shows that since 2004, Europe-focused in North America, Europe, and Asia and other regions around the vehicles have consistently generated higher returns than their world each year. North America has seen the biggest surge in Asia- or North America-focused counterparts, and as of 30 June investor interest for Europe-focused private equity vehicles, with 2013, was recording an index return of 470.8, compared to 339.7 just 27% of investors surveyed by Preqin in December 2012 citing for Asia-focused funds and 223.7 for North America-focused funds. Europe as an attractive region for investment, compared to 60% of LPs we interviewed in December 2013. LPs based in Asia and

Fig. 1: Proportion of Investors that Find European Investment Fig. 2: Annual Europe-Focused Fundraising by Primary Opportunities Attractive by Investor Location Regional Focus, 2008 - 2013

80% 180 72% 73% 160 9.9 70% 13.1 140 8.9 60% 60% Dec-11 120 3.1 49% 54.7 10.0 50% 100 3.3 5.1 0.7 2.1 3.2 80 7.1 40% 38% Dec-12 8.0 4.2 49.2 60 1.3 3.6 30.1 32% 37.5 2.4 3.6 30% 27% 3.4 40 81.6 22.4 26.7 21% Dec-13 19% 20 50.4 49.3 20% 38.9 29.9 33.3 Proportion of Respondents Aggregate Capital Raised ($bn) 0 10% 2008 2009 2010 2011 2012 2013

0% Year of Final Close North America Europe Asia & Rest of Multi-Regional Western Europe World Southern Europe Nordic Investor Location Central & Eastern Europe Source: Preqin Investor Interviews, December 2013 Source: Preqin Funds in Market

Regional Breakdowns External Factors

In reality, Europe is a blanket term for a collection of fairly disparate It is worth noting that the draws to be found in Europe are not the sub-regions that have their own economic conditions and unique only factors to take into account when considering the resurgence private equity landscapes. Europe’s most developed private equity of investor interest in the region. Activity (or lack of it) in geographies industries are to be found in Western Europe and the Nordic region, outside may also play important roles in the rejuvenated appetite reinforced by the greater amounts of aggregate capital raised by for European private equity. private equity funds for investment in these regions. On the other hand, Central and Eastern Europe and Southern Europe have For instance, turbulence in emerging markets and rising endured particularly diffi cult macroeconomic conditions in recent competition in US markets have forced some investors to turn away years, leaving their respective private equity markets challenging from ventures in Asia, Latin America, and even North America, in to navigate, though perhaps also with much potential untapped. order to seek smoother paths to successful private equity deals. The scrambling in previous years to invest in emerging regions Many private equity fi rms have been spurred on by the brightening in attempts to diversify portfolios and take advantage of the prospects in these regions, particularly as the economic recovery rapid rates of economic development in these geographies have seems to be going from strength to strength in Southern Europe. seen some LPs get burnt. Not only have vast infl ows of capital Furthermore, following the sovereign debt crisis, opportunistic fund in these countries damaged return profi les, but events such as managers and investors have become eager to take advantage the devaluation of currencies (e.g. the Brazilian Real, the South of the emergence of distressed debt, turnaround and special African Rand and the Indian Rupee) and the moratorium on IPOs situation investment opportunities in the region. As reforms are in China which created a challenging exit environment in Asia, has implemented, fears of a crisis relapse evaporate and equity prices dampened investor confi dence in these regions. remain cheap compared to the rest of Europe, and numerous fund managers are seeking deals in Spain and Italy in particular. Italy has These factors, in conjunction with the mounting confi dence in great appeal to private equity managers due to the rich investment Europe’s economic recovery, may well have contributed to the opportunities to be explored, given the country’s industrial heritage resurgence of Europe as more investors turn to the continent and abundance of family-run businesses. to seek investment opportunities and once again view it as an attractive destination for their capital. Optimism for Central and Eastern European private equity may be shaken by the intense political unrest in Ukraine this year, but the Outlook region still maintains some stability and will continue to represent a strong niche for private equity players to allocate capital to. Russia, Indeed, the level of capital that is available for investment into which has the highest GDP per capita of all the BRIC countries, Europe is extremely sizeable, with an estimated $277bn of private is still an attractive investment destination for private equity equity dry powder awaiting deployment, as shown in Fig. 4. The players. Its burgeoning middle-class, rising disposable income, low private equity industry has been involved in hot discussions in unemployment rates and introduction of key pro-business reforms recent months with the notion that a ‘wall of money’ that has been are strong fundamentals that collectively form a solid foundation accumulating, shored up by the increasing amounts of aggregate for private equity investment opportunities. Examples that serve capital raised by private equity fund managers. The latest statistic as testament to the current appeal of Russian private equity can for Europe’s dry powder is the highest amount seen on record, and be found in the numerous co-investments announced by Russian is a direct result of the recent boosts seen in European fundraising Direct Investment Fund; over the past year, the fi rm has co- whereby the average fund size has jumped from $301mn in 2010 invested with BlackRock, One Equity Partners, Cartesian Capital, to $832mn in 2014 YTD. and CapMan.

Fig. 3: PrEQIn Index by Primary Region Focus Fig. 4: Europe-Focused Private Equity Dry Powder, 2009 - 2014

500 300 272 277 450 264 400 250 241 245 PrEQIn North 221 350 America Index 300 200 250 PrEQIn Europe Index 200 150 Index Returns 150 PrEQIn Asia Index 100 100 50 (Rebased to 100 as of 31 Dec 2000) Estimated Dry Powder ($bn) 0 50

0 30-Jun-11 30-Jun-08 30-Jun-05 30-Jun-02 30-Sep-10 30-Sep-07 30-Sep-04 30-Sep-01 31-Mar-12 31-Mar-09 31-Mar-06 31-Mar-03 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Apr-14 31-Dec-12 31-Dec-09 31-Dec-06 31-Dec-03 31-Dec-00

Source: Preqin Performance Analyst Source: Preqin Fund Manager Proﬁ les

As of April 2014, $28.3bn had been garnered by Europe-focused and for venture capital fi nancing, the aggregate deal value rose by funds closed in 2014 so far and there are 480 such vehicles 43% from 2012 to 2013 (Fig. 6 and 7). currently on the fundraising trail, seeking an aggregate $201bn. Fig. 5 lists the largest Europe-focused funds closed historically. This indicates that the resurgence of European private equity has The economy, along with investor confi dence in the region, has fed into enthusiastic investor sentiment, which has led to successful clearly been invigorated and has made a slow but sure recovery GP fundraises and increased deal volume. All of these factors then from the low points it experienced following the relatively recent feed back into the circuit, generating even more confi dence in the market crashes. Preqin’s deals data shows that 2013’s aggregate markets and buoying the private equity industry for another exciting buyout deal value saw an 11% increase from the previous year, period of activity.

Fig. 5: Top Five Europe-Focused Private Equity Funds Closed, All Time

Fund Firm Vintage Type Target Size (bn) Final Size (bn) Manager Country Apax Europe VII Apax Partners 2007 Buyout 8.5 EUR 11.2 EUR UK CVC European Equity Partners V CVC Capital Partners 2008 Buyout 11.0 EUR 10.8 EUR UK Permira IV Permira 2006 Buyout 11.0 EUR 11.1EUR UK CVC European Equity Partners VI CVC Capital Partners 2013 Buyout 9.0 EUR 10.5 EUR UK Advent Global Private Equity VII Advent International 2012 Buyout 7.0 EUR 8.5 EUR US

Source: Preqin Funds in Market

Fig. 6: Number and Aggregate Value of Private Equity- Fig. 7: Number and Aggregate Value of Venture Capital Backed Buyout Deals in Europe, Q1 2007 - Q1 2014 Deals* in Europe, Q1 2007 - Q1 2014

450 100 450 4.0

400 90 400 Aggregate Deal Value ($bn) 3.5 Aggregate Deal Value ($bn) 80 350 350 3.0 70 300 300 2.5 60 250 250 50 2.0 200 200 40 1.5 150 150 No. of Deals No. of Deals 30 1.0 100 100 20 50 0.5 50 10 0 0.0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014 No. of Deals Aggregate Deal Value ($bn) No. of Deals Aggregate Value of Deals ($bn)

Source: Preqin Buyout Deals Analyst Source: Preqin Venture Deals Analyst

* Figures exclude Add-ons, Grants, Mergers, Secondary Stock Purchases & Venture Debt

Data Source:

Preqin offers a complete resource for those looking for intelligence on the European private equity market, including:

• 2,663 institutional investors proﬁ led on Investor Intelligence with a preference for investing in Europe.

• 4,816 primarily Europe-focused funds in market and closed historically listed on Funds in Market and Fund Manager Proﬁ les.

• 8,174 European private equity-backed buyout deals that have occurred since 2006 featured on Buyout Deals Analyst and 11,393 European venture capital deals on Venture Deals Analyst.

• 2,030 Europe-focused funds with detailed performance data listed on Performance Analyst.

For more information, or to arrange a demonstration, please visit:

www.preqin.com/privateequity

Lead Article The Troubles of First-Time Funds Download Data

The Troubles of First-Time Funds

Although private equity fundraising has improved in recent years, many first-time fund managers have struggled to attract capital. Jessica Duong looks at historical fundraising statistics and LP appetite for emerging managers.

Bifurcation was the main theme of 2013’s private equity fundraising fundraising, with much potential for last year’s fi gure of $35bn to landscape, with a clear dominance of established fi rms over be surpassed. fi rst-time fund managers. LP sentiment seems to have waned signifi cantly for maiden vehicles and the statistics from Preqin’s Some first-time funds have raised signifi cant amounts of capital. An Funds in Market online service indeed demonstrate a decline example from 2014 YTD is SwanCap Investment Management’s in the proportion of investor capital allocated to fi rst-time fund fi nal close on $1.2bn for its debut vehicle, SwanCap Opportunities managers. Fig. 1 shows the split between fi rst-time fi rms and all Fund. The direct secondaries fund, however, initially was targeting a other managers and the proportion each group have contributed to slightly higher amount of $1.5bn, but the fi rm held a fi nal close after annual aggregate capital raised over the years. less than 12 months on the road. Fig. 2 illustrates the proportion of fi rst-time funds that have closed over time that have met, failed Despite signs of recovering confi dence in the markets in recent to meet, or exceeded their fundraising targets. These statistics are years, refl ected in the increasing amounts of total capital garnered compared to the more experienced managers’ vehicles. by all private equity funds from 2010 onwards, the amounts raised and proportion represented by fi rst-time fund managers increased Fig. 3 lists the top fi ve fi rst-time funds ever raised, with all top spots from $40bn (14%) in 2010 to $56bn (17%) in 2011, then declined taken by vehicles raised before the 2008 global fi nancial crisis, all year on year since (Fig. 1). with fi nal close sizes over $5bn.

First-time funds have always faced challenges securing third-party Abandoned Funds capital due to the nature of the private equity industry, which places great emphasis and value on GP track record, history and the team Failing to meet the initial fund target size is not the only issue that having worked together for a long time. Reluctance from LPs stems can hit fi rst-time fund managers on the fundraising trail. During from the risks associated with placing their money with a firm that 2013, a total of 64 funds are known to have been abandoned; these does not have any track record of success in private equity fund funds were seeking a combined $34bn. Further analysis reveals management. that a majority of fund managers that abandoned a fund in 2013 were fi rst-time managers (57%), an increase on the proportion of However, that is not to say that first-time funds cannot thrive in the fi rst-time fi rms that abandoned funds in 2012 (48%). It is worth fundraising marketplace. In the peak year of 2007, first-time private noting the data for abandoned funds is limited as it is based on only equity fund managers raised an aggregate $96bn for investment. those fund managers willing to provide the date they terminated While the annual figure has since decreased due to the prevailing their fundraising effort. economic conditions, billions of dollars are still successfully raised every year by first-time fund managers. In addition to the $5bn LP Sentiment raised by first-time funds that have reached a final close in 2014 so far, 39% of the 641 first-time private equity funds currently in Investor appetite, which is crucial for any fund manager seeking to market seeking capital have reached at least one interim close raise a private equity vehicle, is comparatively lower for fi rst-time already, garnering $25bn. With three-quarters of the year still to go, funds and this trend has persisted over the years. Fig. 4 depicts 2014 already seems to be painting a promising picture for fi rst-time the proportion of investors that will consider committing to fi rst-

Fig. 1: Annual Aggregate Capital Raised by Private Equity Fig. 2: Fundraising Success of Private Equity Funds: First-Time Funds: First-Time Funds vs. All Other Funds, 2005 - Q1 2014 Funds vs. Non-First-Time Funds, 2011 - Q1 2014

800 100% 90% Exceeded 700 80% 43% 43% Target 47% 53% 51% 55% 47% 600 70% 58% 60% Met Target 500 50% 13% 14% 22% 5% 40% 15% 400 20% 17% 571 595 30% 16% 43% 47% Did Not 300 463 20% 40% 34% 35% 454 10% 28% 26% 28% Meet Target 342 200 312 278 281 0%

255 Proportion of Funds Closed 100 91 77 96 93 Aggregate Capital Raised ($bn) 56 0 47 43 40 44 35 5 Funds Funds Funds Funds 2005 2006 2007 2008 2009 2010 2011 2012 2013 Non-First-Time Non-First-Time Non-First-Time Non-First-Time First-Time Funds First-Time Funds First-Time Funds First-Time Funds Q1 2014 Year of Final Close 2011 2012 2013 Q1 2014

First-Time Funds Non-First-Time Funds Year of Final Close Source: Preqin Funds in Market Source: Preqin Funds in Market

Fig. 3: Top Five Funds Raised by First-Time Private Equity Fund Managers, All Time (As at 24 March 2014)

Fund Firm Vintage Year Fund Type Final Close Size (bn) Terra Firma Capital Partners I Terra Firma Capital Partners 1994 Buyout 6.0 EUR GS Infrastructure Partners I GS Infrastructure Investment Group 2007 Infrastructure 6.5 USD CVI Global Value Fund I CarVal Investors 2007 Distressed Debt 5.8 USD Global Infrastructure Partners Global Infrastructure Partners 2008 Infrastructure 5.6 USD BMB Capital Sharia Fund of Funds BMB Capital 2006 Hybrid Fund Of Funds 5.0 USD

Source: Preqin Funds in Market time funds, using the results of Preqin’s biannual survey of over Fig. 4: Proportion of Investors that Will Consider Investing in 100 LPs based across the globe. As of H1 2014, less than a fi fth First-Time Funds, December 2010 - December 2013 (19%) of investors surveyed confi rmed that they would invest in fi rst-time vehicles, which is a 10 percentage point decrease from 100% the proportion of investors that stated the same last year. 2013 90% 18% 19% was a record year for fundraising, with the standout fund Apollo 28% 29% Will Invest in First- 80% Time Funds Investment VIII securing the largest fi nal close ($18.4bn) since 17% 20% the onset of the fi nancial crisis, but, as mentioned previously, was 70% 6% 14% overwhelmingly dominated by established fund managers. There Would Consider 60% 10% 10% 5% Investing in First- is evident investor appetite for established GPs, as refl ected in Time Funds 50% the success of their fundraises, and investors are drawn to the 21% Will Invest in Spin- prospects a fi rm with a proven track record can give them. 40% Off Only 30%

Proportion of Investors 55% 56% 56% However, reluctance to invest in ﬁ rst-time funds will not apply to Will Not Invest in all LPs, and in fact, Preqin has noted a number of institutional 20% 37% First-Time Funds investors are looking to expand and develop emerging manager 10% programs as a part of their wider investment strategies in the year 0% ahead. Some examples include: Dec-10 Dec-11 Dec-12 Dec-13

• In March 2014, the California Public Employees’ Retirement Source: Preqin Investor Interviews, 2010 - 2013 System (CalPERS) announced that it will allocate an additional $200mn to its emerging manager program in the private equity participated in Preqin’s investor survey indicating that they would asset class. CalPERS will utilize a new fund of funds vehicle invest in spin-off funds only when asked if they would be willing to deploy the capital, focusing on high-potential emerging to commit to ﬁ rst-time vehicles. This proportion halved to 10% in manager funds. The pension fund’s goal is to generate 2012, remained low in 2013, and halved again in Preqin’s latest appropriate, risk-adjusted investment returns by identifying survey in 2014. This trend is somewhat surprising as spin-off funds early stage funds with strong potential for success. are largely perceived to be lower risk than a regular ﬁ rst-time fund.

• Dallas Police & Fire Pension System has begun discussions Spin-out funds have some advantages over other first-time funds, on the potential creation of a dedicated emerging manager in that they often attract commitments from investors that invested program. The $3.5bn public pension fund has a current with the previous firm, or are familiar with the management team. A allocation to private equity of 21.9% of total assets and has successful legacy portfolio or an experienced investment team will a preference for funds focusing on investment opportunities also attract other investors to commit to funds managed by spin-off in the US. teams, especially in contrast to a newly established firm launching its first private equity fund without any track record or notable • Four of New York City’s pension funds (Teachers’ Retirement experience. However, it must be considered that the team spinning System of the City of New York, New York City Police Pension out to form a new fi rm is not necessarily made up of the same Fund, New York City Employees’ Retirement System and New individuals responsible for generating the quality deal flow that was York City Fire Department Pension Fund) have an in-house seen in the parent company. Furthermore, in some instances, the emerging manager program, set up in an effort to reduce the historical deal flow may not have even been driven by the private costs it would have incurred if the program was managed by equity team, but by the relationships of the sponsor involved. an external GP. The program is headed by Alex Done, who was placed in the role in March 2012. In December 2012, the Wariness surrounding spin-outs from institutional parents could four New York City pension funds committed a combined total also involve questions regarding the extent of the new fi rm’s of $400mn to funds raised by minority- and women-owned independence. If an offering is coming from an environment where fi rms, and such investments whereby new GP relationships the team was previously part of a bigger fi nancial institution, investors are formed are confi rmed to be a continued part of the pension will be cautious in ensuring the spin-out is true, particularly if the funds’ investment plans in 2014. larger organization is retaining a minority interest, or maintaining infl uence on investment decisions. Issues surrounding incentives Spin-Outs can also arise if the former parent has a signifi cant share of the profi ts and carried interest. Fig. 4 also indicates that the appetite for spin-out funds has undergone a steady decline over the years, from 21% of LPs that

Outlook Fig. 5: Number of First-Time Funds that Reached a Final Close, 2005 - Q1 2014 As Fig. 5 shows, the annual number of fi rst-time funds reaching 450 a fi nal close has been on the decline since the fi nancial crisis, 415 410 but while there is a lack of appetite for fi rst-time funds among 400 LPs at large, it is also possible to attribute the decrease to the 346 350 natural maturation of the private equity industry. The fi rst-time fund 290 managers of yesteryear are going to be the more experienced fund 300 278 277 261 managers of today. In order for the industry to grow, a continued 250 232 219 supply of fi rst-time fund managers is needed, offering investors 200 alternatives to the hard-to-access big brand names in the market No. of Funds that may be better suited to their investment capabilities and 150 strategies and offer diversifi ed strategies. 100

In spite of the challenging path that lies before private equity fi rms 50 23 launching debut vehicles, there is an abundance of fi rst-time funds 0 hitting the fundraising trail. As of April 2014, there were 641 such funds in market seeking an aggregate $141bn. This includes 2005 2006 2007 2008 2009 2010 2011 2012 2013 over 20 funds that are targeting $1bn or more, with Georgian Co- Year of Final Close Q1 2014 Investment Fund ranking as the largest as it is aiming to secure Source: Preqin Funds in Market $6bn in total commitments. As discussed in Preqin’s previous issue of Private Equity Spotlight, co-investment opportunities less bearing should the fi rst-time fund manager have a clear have gained real pace in recent times as LPs’ appetite for direct strategy that is consistent throughout the process, and attractive investments have grown and GPs have made moves to meet this prospects of niche investment opportunities suited to the LP that demand. cannot be offered by more mature private equity funds. Despite the apparent deterrent of an unproven track record of a fi rst-time Statistics from Preqin’s Funds in Market online service reveals that fund manager, with no history of stability and outperformance from over $25bn has already been raised by these 641 funds via interim an existing platform, investors will overall still be drawn to strong closes – a strong testament to the fact that there are indeed still macro-opportunities and the prospect of fruitful returns from a GP substantial levels of investor appetite for fi rst-time funds. Should at any stage. the investment strategy of the fund offering be compelling enough, fund managers have a good chance of overseeing a successful fundraise, regardless of the number the fund falls in the series. Competition from their more experienced counterparts will have

Data Source:

Subscribers to Preqin’s Investor Intelligence can click here to view detailed profi les for 2,089 LPs that consider investing in fi rst- time funds, including spin-off teams. Detailed profi les include:

• Current and target allocations to private equity.

• Fund type and geographic preferences.

• Future investment plans.

• Previous fund investments and much more.

For more information, or to arrange a demonstration, please visit:

www.preqin.com/ii

alternative assets. intelligent data.

Fund Coverage: 35,828 Funds

4,637 PE Real 768 Infrastructure 15,220 Private Equity* Funds 15,203 Hedge Funds Estate Funds Funds

Firm Coverage: 16,621 Firms

1,881 PERE 7,667 PE Firms 6,654 Hedge Fund Firms 419 Infra. Firms Firms

Performance Coverage: 15,673 Funds (IRR Data for 5,368 Funds and Cash Flow Data for 2,489 Funds)

1,165 PERE 5,469 PE Funds 8,887 Hedge Funds 152 Infra. Funds Funds

Fundraising Coverage: 14,869 Funds Open for Investment/Launching Soon Including 2,141 Closed-Ended Funds in Market and 360 Announced or Expected Funds

1,787 PE Funds 11,881 Hedge Funds 953 PERE 248 Infra. Funds Funds

Deals Coverage: 100,457 Deals Covered; All New Deals Tracked

34,511 Buyout Deals** 58,372 Venture Capital Deals*** 7,574 Infra. Deals

Investor Coverage: 11,740 Institutional Investors Monitored, Including 8,287 Verified Active**** in Alternatives and 88,160 LP Commitments to Partnerships

2,240 Active 5,269 Active PE LPs 4,552 Active Hedge Fund Investors 4,337 Active RE LPs Infra. LPs

Alternatives Investment Consultant Coverage: 470 Consultants Tracked

Fund Terms Coverage: Analysis Based on Data for Around 8,800 Funds

Best Contacts: Carefully Selected from Our Database of over 274,627 Active Contacts

Plus The Preqin Difference - Over 150 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

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*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. News Preqin Industry News Download Data

Preqin Industry News

Lisa Parker looks at investor appetite for Europe-focused funds, including investors that have recently made commitments to vehicles predominantly focused on Europe and the investors that plan to in the year ahead. Patrick Adefuye also presents some examples from the secondary market to showcase activity in Europe.

A number of investors have made commitments to Europe- focused funds this year: How has investor appetite for Europe-

Virginia Retirement System, the $58.3bn US public pension fund, focused funds changed? committed $175mn to the eighth buyout fund raised by Nordic Capital, which recently held a fi nal close on €3.5bn, above its target Chart of the Month: Proportion of Investors’ Searches of €3bn. The fund will primarily invest in Europe-based companies, Issued For Europe-Focused Private Equity Funds mainly in the Nordic region and German-speaking countries, and it 70% will operate in a wide range of industry sectors. Virginia Retirement 63% System is an active investor in private equity, currently allocating 60% 8.6% of its total assets to private equity, below its target of 9.0%. 50% The pension fund invests in a wide range of fund types, including 50% 48% buyout, venture capital and mezzanine vehicles. 44% 40% Oregon State Treasury (OST) has made a commitment to the third fund in the series raised by TDR Capital. The buyout fund has 30% a target size of $2bn, and will invest in West Europe. OST is a $67.9bn pension fund that currently allocates 22% of total assets 20% to private equity, above its target allocation of 20%. It will invest Proportion of Investors in a range of fund types, including distressed debt, growth and 10% secondaries vehicles. 0% Several investors are planning new commitments to Europe- Q2 2013 Q3 2013 Q4 2013 Q1 2014 focused funds in the next 12 months: Source: Preqin Investor Intelligence KLP Asset Management will commit €300mn (NOK 2.5bn) to the With the fi rst quarter of the year over, the Chart of the Month private equity asset class over the coming year, and will commit shows the quarterly breakdown on investor appetite for Europe- between €20mn (NOK 167mn) and €40mn (NOK 335mn) per focused private equity funds. As of Q1 2014, the proportion of fund. The NOK 300bn insurance company is open to investing in investors that are intending to seek opportunities in vehicles a range of fund types in Europe and has previously invested in with a target on Europe stood at 63%, a sizeable jump from the venture capital, buyout, growth and distressed debt vehicles. KLP 50% statistic of Q4 2013 and adding to the continuing upward Asset Management is currently operating on its target allocation trend from previous quarters. It is clear that the private equity of 1.5% of its total assets to the asset class. For its forthcoming community at large has mounting confi dence in the European fund commitments, the insurance company is open to forging new economic recovery and is making strategic moves to incorporate relationships with managers it has not worked with before, as well Europe-focused funds into their investment strategies. as re-upping with existing managers in its investment portfolio.

The €10.5bn public pension fund AEVWL is looking to commit HSBC Group is looking to sell a portfolio of fund interests on the €100mn across ﬁ ve private equity funds over the next 12 months. market, which is thought to consist primarily of stakes in buyout It plans to commit to small and mid-cap European buyout funds vehicles, and is valued at €2bn. The $2.6tn British bank has hired as well as turnaround funds. Private equity currently accounts for Campbell Lutyens to act as advisor to the bank for this secondary 6% of its total asset exposure. The pension fund will look to re- market sale. This move to reduce the ﬁ rm’s private equity assets up with existing managers within its portfolio as well as form new is a continuation in the trend of European banks reducing exposure relationships with GPs. to the asset class in order to comply with Basel III. HSBC Group has historically been an active participant in the private equity Activity in the European secondary market: arena, and currently has $2.9bn in private equity assets under management. The sixth vehicle of Ardian (formerly AXA Private Equity) is currently on the road, but has been reported to have gathered more than Do you have any news you would like to share with $5bn within a few months since its launch. The fund is reported to the readers of Spotlight? Perhaps you’re about have a $7bn target but it is likely that the fund of funds manager to launch a new fund, have implemented a new will exceed this amount. Ardian Secondary Fund VI will pursue the investment strategy, or are considering investments same strategy as its predecessors of seeking to acquire attractive beyond your usual geographic focus? private equity assets on the secondary market. The vehicle includes early secondaries and co-investment components. Send your updates to [email protected] and we will endeavour to publish them in the next issue.

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ASK 2014 Global Private Debt and Equity Summit May 14, Conrad Seoul Hotel $2tn looking for Fixed Income Substitute in Barbell Structured Market Opportunities in Korean market • Size of investors is growing from $ 2 tn to 5 tnduring next 30 years. • Private debt as solution for Korean investors Floating liability vs fixed Income asset Investing in high yields but not senior loans Credit quality: Domestic investment grade vs overseas non-investment grade • Infrastructure & real asset for inflation protection • Global private equity will satisfy high return seeking investors as Korea reaches aged society Join ASK summit and find out how to capture opportunities • 2 Regulatory Representatives speak on Laws and Penalties: Fund and Separate Account • Top 20 LPs speak on their status and future plans ($ 1tn AUM) • Full Q&A Sessions with NPS, Korea Post, KFCC and other key institution • VIP dinner with top 30 CIOs

For queries please contact IK Song [email protected] l [email protected] l www.asksummit.co.kr The Facts Private Equity in Africa Download Data

Private Equity in Africa

Africa remains a desirable destination for private equity investments, as its macro economic conditions continue to improve. Christopher Hardy looks at the latest statistics for Africa-focused firms.

Fig. 1: Annual Africa-Focused Private Equity Fundraising by Fig. 2: Average Proportion of Target Size Raised at Final Sub-Region Focus, 2004 - 2013 Close by Africa-Focused Private Equity Funds, 2006 - 2013

6 160%

5 140% 134% 0.3 0.1 120% 4 106% 100% 97% 2.2 2.7 100% 3 0.4 85% 0.1 78% 79% 0.1 80% 75% 0.2 0.5 2 0.5 0.1 0.7 0.1 1.8 1.8 60% 0.5 0.9 0.1 1.0 0.9 0.2 1.9 1 0.1 1.7 0.4 1.2 0.2 40% 1.1 1.0 0.5 0.4

Aggregate Capital Raised ($bn) 0.3 0.6 0.5 0.1 0.2 0.2 0.2 0.2 0.4 0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 20% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Year of Final Close Size Raised Proportion of Target Average 0% East Africa North Africa Pan-Africa 2006 2007 2008 2009 2010 2011 2012 2013 Sub-Saharan Africa West Africa Year of Final Close Source: Preqin Funds in Market Source: Preqin Funds in Market Fig. 3: Breakdown of Africa-Focused Private Equity Firms by Fig. 4: Breakdown of Africa-Focused Private Equity Firms by Location of Headquarters Number of Funds Previously Raised

8% 18% 7% First-Time Fund 24% Manager Africa 1 Fund Raised Previously 41% Europe 17% 2 Funds Raised Previously 17% North America 3 Funds Raised Previously Rest of World 4 or More Funds Raised Previously

24% 44%

Source: Preqin Funds in Market Source: Preqin Funds in Market Fig. 5: Five Largest Africa-Focused Private Equity Funds Currently in Market (As at 02 April 2014)

Fund Firm Fund Type Target Size (mn) Sub-Regional Focus Pan African Infrastructure Development Fund II Harith Infrastructure 1,200 USD Pan-Africa COMESA Infrastructure Fund PTA Bank Infrastructure 1,000 USD Pan-Africa Helios Investors III Helios Investment Partners Growth 1,000 USD Pan-Africa Abraaj Africa III The Abraaj Group Buyout 800 USD Sub-Saharan Africa ECP Africa Fund IV Emerging Capital Partners Growth 450 USD Pan-Africa Source: Preqin Funds in Market

Subscriber Quicklink:

Subscribers to Preqin’s Funds in Market can click here to view detailed information on all 77 primarily Africa-focused funds currently in market, including target size, interim closes, industry preferences and more.

For more information, please visit: www.preqin.com/fim

Investor Appetite for Distressed Private Equity

Preqin Investor Outlook: Alternative Assets, H1 2014 shows that almost a third of LPs intend to commit to distressed private equity funds* in the next 12 months. Raisah Yusuf looks at investor appetite for this fund type.

Fig. 1: Proportion of Investors that Plan to Invest in Distressed Fig. 2: Breakdown of Investors that Have Issued Searches for Private Equity over the Next 12 Months, December 2011 - Distressed Private Equity Funds over the Last 12 Months by December 2013 Investor Type

35% Private Equity Fund of 30% Funds Manager 30% 16% Public Pension Fund 26% 25% 23% Private Sector Pension 6% 36% Fund 20% Family Office 6% 15% Asset Manager 6% 10% Endowment Plan

Proportion of Respondents 6% 5% Insurance Company 7% 18% Other 0% Dec-11 Dec-12 Dec-13 Source: Preqin Investor Interviews, 2011 - 2013 Source: Preqin Investor Intelligence Fig. 3: Breakdown of Investors that Have Issued Searches for Distressed Private Equity Funds over the Last 12 Months by Subscriber Quicklink: Investor Location Subscribers to Preqin’s Investor Intelligence can click here to view detailed information for 1,536 private equity investors that have a preference for, or have previously invested in 6% distressed private equity funds. 9%

North America Proﬁ les include known fund commitments, future investment plans, geographic preferences and more. Europe For more information please visit: Asia 28% 57% Rest of World www.preqin.com/ii

* Distressed private equity includes distressed debt, special situations and turnaround funds.

Source: Preqin Investor Intelligence

Fig. 4: Sample Investors Looking to Commit to Distressed Private Equity Funds in 2014

Investor Type Location Investment Plans Birinco Family Offi ce plans to commit to around two new private equity vehicles over the Birinco Family Offi ce Family Offi ce - Single Canada next 12 months. It plans to specifi cally target Europe-focused operational turnaround and distressed debt vehicles. Bank Gutmann Group intends to focus on investing through its separate account mandates Private Equity Fund of over the next 12 months. The fi rm has a preference for investing in buyout, distressed debt, Bank Gutmann Group Austria Funds Manager mezzanine, special situations and turnaround vehicles, but may increase its exposure to other fund types. Feri Trust is looking to make between seven and eight new private equity fund commitments Feri Trust Asset Manager Germany over the next 12 months, specifi cally targeting special situation and buyout vehicles in Europe and North America.

Source: Preqin Investor Intelligence

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www.preqin.com/RCP The Facts Private Equity-Backed Add-on Deals Download Data

Private Equity-Backed Add-on Deals

Add-on deals, also known as bolt-on transactions, are a way for managers to strengthen their current holdings and shield their investments from market volatility. Jonny Parker analyzes the latest statistics for add-on deals, which currently account for a higher proportion of private equity-backed deals than at any other time since 2006.

Fig. 1: Number and Aggregate Value of Private Equity- Fig. 2: Number of Private Equity-Backed Add-on Deals by Backed Add-on Deals, Q1 2006 - Q1 2014 Region, 2006 - Q1 2014

300 16 1,200

14 Aggregate Deal Value ($bn) 38 250 1,000 44 43 12 50 40 37 200 800 298 222 10 204 3017 150 8 600 2310 200 139 183 3113 6 1510 No. of Deals 100 140 No. of Deals 400 152 108 4 674 691 665 50 419 471 7 12 2 200 375 355 355 46

0 0 171 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2006 2007 2008 2009 2010 2011 2012 2013 Q1 2006 2007 2008 2009 2010 2011 2012 2013 2014 2014 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: Number and Aggregate Value of Private Equity- Fig. 4: Proportion of Number of Add-on Deals by Industry, Backed Add-on Deals as a Proportion of All Deals, 2006 - Q1 2006 - Q1 2014 2014

40% 100% 90% 35% 34% 32% 80% 31% 32% 30% 70% 26% 60% 25% 25% 50% 20% 40% 20% 18% 18% 30% 16% 20% 15% 12% 13%

11% Proportion of No. Deals 10% 10%

Proportion of All Deals 8% 8% 0% 5% 2006 2007 2008 2009 2010 2011 2012 2013 Q1 5% 5% 2% 2014 Industrials Information Technology 0% Business Services Healthcare 2006 2007 2008 2009 2010 2011 2012 2013 Q1 Consumer & Retail Telecoms & Media 2014 Energy & Utilities Food & Agriculture No. of Deals Aggregate Deal Value Other Source: Preqin Buyout Deals Analyst Source: Preqin Buyout Deals Analyst

Subscriber Quicklink:

Subscribers to Buyout Deals Analyst can click here to view 6,173 add-on transactions that have occurred since 2006. Detailed proﬁ les for each deal include deal date, size, location, industry and much more.

The Market Overview feature provides a breakdown of the number and aggregate value of private equity-backed buyout deals that have occurred since 2006 by region, value band, industry and type.

www.preqin.com/buyoutdeals

Venture Capital Financings in Asia

Gemma Morris presents an overview of venture capital financings in Asia, showing the significant rise in quarterly aggregate deal value since Q3 2013, as well as a huge pick up in exit activity in the latter half of 2013.

Fig. 1: Number and Aggregate Value of Venture Capital Fig. 2: Proportion of Number of Venture Capital Financings in Financings in Asia*, Q1 2007 – Q1 2014 YTD Asia by Industry*, 2007 – Q1 2014

250 3.0 100% 90% Aggregate Deal Value ($bn) 2.5 80% 200 70% 60% 2.0 150 50% 40% 1.5 30% 100 Proportion of Total 20% No. of Deals 1.0 10% 50 0% 0.5 2007 2008 2009 2010 2011 2012 2013 Q1 2014

0 0.0 Internet Telecoms Consumer Disc. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Software & Related Health Care Industrials 2007 2008 2009 2010 2011 2012 2013 2014 Business Services Other IT Semic. & Electronics Food and Ag. Clean Tech. Materials No. Deals Aggregate Deal Value ($bn) Other Source: Preqin Venture Deals Analyst Source: Preqin Venture Deals Analyst

Fig. 3: Proportion of Number of Venture Capital Financings in Fig. 4: Number and Aggregate Value of Venture Capital Asia by Country*, 2007 – Q1 2014 Exits in Asia, Q1 2007- Q1 2014

100% 35 5.0

90% 4.5 Aggregate Exit Value ($bn) 30 80% 4.0 25 70% 3.5 3.0 60% 20 2.5 50% 15 2.0

40% No. of Exits 1.5 30% 10

Proportion of Total 1.0 20% 5 0.5 10% 0 0.0 0% 2007 2008 2009 2010 2011 2012 2013 Q1 2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 2010 2011 2012 2013 2014 India China Singapore Japan South Korea Other No. of Exits Aggregate Exit Value ($mn) Source: Preqin Venture Deals Analyst Source: Preqin Venture Deals Analyst Fig. 5: Proportion of Number of Venture Capital Exits in Asia by Type, 2007 – Q1 2014

100% Subscriber Quicklink: 90% 80% Subscribers to Preqin’s Venture Deals Analyst can click 70% here to view detailed information on over 4,400 Asian venture capital deals that have occurred since 2007. 60% 50% For more information, or to arrange a demonstration, please 40% visit:

Proportion of Total 30% www.preqin.com/vcdeals 20% 10% 0% * Figures exclude add-ons, grants, mergers, venture debt and secondary stock 2007 2008 2009 2010 2011 2012 2013 Q1 2014 purchases

IPO Trade Sale Sale to GP Write Off Source: Preqin Venture Deals Analyst 17 Private Equity Spotlight / April 2014 © 2014 Preqin Ltd. / www.preqin.com Register by 17th April & SAVE £100! Limited PartnersFREE & [email protected] Investorsplaces email: for Alternative to apply

Investor 2014Wednesday 21st May 2014, London Portfolio Optimisation for Investors in Alternative Funds

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REGISTER TODAY: Tel: +44 (0)20 7017 7790 or Fax +44 (0)20 7017 7824 Scan with smartphone Email: [email protected] QR Reader App For the latest programme or to register, please visit: www.iir-events.com/alternatives The Facts Performance Update: Natural Resources Funds Download Data

Performance Update: Natural Resources Funds

Gary Broughton analyzes the performance of natural resources private equity funds and takes a look at median net IRRs and multiples, as well as the PrEQIn Natural Resources Index.

Fig. 1: Natural Resources Funds - Median Net IRR and Fig. 2: Natural Resources Funds - Median and Money- Quartile Boundaries by Vintage Weighted Net Multiple by Vintage

20% 3.0

15% 2.5 Top Quartile IRR Boundary Median 10% 2.0 Multiple Median IRR

5% 1.5 Money- Bottom Weighted Quartile IRR Multiple Net Multiple (x) Median Net IRR 0% Boundary 1.0 2005 2006 2007 2008 2009 2010 2011 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 -5% 0.5

-10% 0.0

Vintage Year Vintage Year Source: Preqin Performance Analyst Source: Preqin Performance Analyst

Fig. 3: Natural Resources Funds - Median Called-Up, Fig. 4: PrEQIn Index: Natural Resources vs. All Private Equity Distributed and Residual Value Ratios by Vintage Year

250% 250

200% 200 Residual Value to Paid-In PrEQIn Natural Capital (%) 150 Resources 150% Index Distributions to Paid-In Capital 100 100% (%) PrEQIn All Index Returns Private Equity Called-Up to Index Committed 50 50% Capital (%)

(Rebased to 100 as of 31 Dec 2005) 0 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 30-Jun-06 30-Jun-07 30-Jun-08 30-Jun-09 30-Jun-10 30-Jun-11 30-Jun-12 30-Jun-13 Vintage Year 31-Dec-05 31-Dec-06 31-Dec-07 31-Dec-08 31-Dec-09 31-Dec-10 31-Dec-11 31-Dec-12 Source: Preqin Performance Analyst Source: Preqin Performance Analyst

Data Source:

Preqin’s Performance Analyst contains net-to-LP performance data for 165 natural resources funds, including detailed information on fund size, vintage and type, as well as the amount of capital called-up and distributed, unrealized value, multiple and IRR.

View historical data points showing how a fund’s performance has changed over time and compare the performance of funds by vintage year, geography, fund type and more.

For more information, please visit:

www.preqin.com/pa

alternative assets. intelligent data. The 2014 Preqin Global Alternatives Reports are the most comprehensive reviews of the alternatives investment industry ever undertaken, and are a must have for anyone seeking to understand the latest developments in the private equity, hedge fund, real estate and infrastructure asset classes.

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Secondaries Sellers and Buyers

Investors around the world seem to be increasingly recognizing the growing investment opportunities the secondary market can offer. Francesca Braganza provides a breakdown of the potential buyers and sellers that are tracked on Preqin’s Secondary Market Monitor by type and location.

Fig. 1: Breakdown of Potential Secondary Market Sellers by Fig. 2: Breakdown of Potential Secondary Market Sellers by LP Type LP Location

Public Pension Fund 14% Private Equity Fund of Funds Manager 13% 12% Bank and Investment Bank 11% Foundation 8% Europe

Asset Manager 8% 44% Private Sector North America Pension Fund 7% Investment 7% Company Asia & Rest of World Insurance Company 7% 44% Endowment Plan 6%

Other 20%

0% 5% 10% 15% 20% 25% Proportion of Sellers Source: Preqin Secondary Market Monitor Source: Preqin Secondary Market Monitor

Fig. 3: Breakdown of Potential Secondary Market Buyers by Fig. 4: Breakdown of Potential Secondary Market Buyers by LP Type LP Location

Public Pension Fund 22% Private Sector 13% Pension Fund 13% Asset Manager 11%

Insurance Company 11% North America Endowment Plan 10%

Foundation 8% 47% Europe Investment Company 6% Family Office - Single 5% Asia & Rest of World 40% Family Office - Multi 3%

Bank 2%

Other 8%

0% 5% 10% 15% 20% 25% Proportion of Buyers Source: Preqin Secondary Market Monitor Source: Preqin Secondary Market Monitor

Subscriber Quicklink:

Preqin’s Secondary Market Monitor can be used to access comprehensive information on all aspects of the secondary market. View detailed proﬁ les for 378 potential buyers* of fund interests and 266 LPs that are looking to sell fund interests, as well as 35 secondaries funds currently in market and 203 closed since 2003.

This vital tool is constantly updated by Preqin’s team of dedicated analysts through direct contact with institutional investors and fund managers around the world.

For more information, or to register for a demonstration, please visit:

www.preqin.com/smm

* Excludes fund of funds managers

Conferences Spotlight

Conference Dates Location Organizer Preqin Speaker Discount Code Clean Technology 22 - 25 April 2014 Singapore Terrapinn - - Investment World Asia 2014 Private Equity World Latin 6 - 7 May 2014 Miami, Florida Terrapinn - - America 2014 The Korea Economic ASK 2014 14 May 2014 Seoul, South Korea -- Daily

Alternative Investor 21 May 2014 London Informa Stuart Taylor -

European Family Ofﬁ ce & 1 June 2014 Geneva Opal Finance Group - - Private Wealth Mezzanine Finance & the 4 - 5 June 2014 Paris Informa - - Private Debt Markets 2014 15% Discount - SuperReturn US 9 - 12 June 2014 Boston ICBI Mark O'Hare FKR2362PRQSP SuperReturn Emerging 15% Discount - 24 - 27 June 2014 Geneva ICBI Mark O'Hare Markets FKN2365PRE1 Family Ofﬁ ce & Private 21 - 23 July 2014 Newport RI Opal Finance Group - - Wealth Forum

Capital Creation 2014 8-10 September 2014 Monte Carlo WBR - -

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

Clean Technology World Asia 2014

Date: 22 - 25 April 2014 Information: www.terrapinn.com/cleantechasia Location: Resorts World Convention Centre, Singapore Organiser: Terrapinn

Clean Technology World Asia is the region’s most authoritative clean technology investment event which promotes partnership, investment and capital raising for innovators, investors and financiers. In 2014, we have reformatted this exciting convention to effectively connect global & Asian investors and partner communities with cleantech companies and other key stakeholders to explore new investment and partnership opportunities in the region.

Private Equity World Latin America

Date: 6 - 7 May 2014 Information: www.terrapinn.com/pelatam Location: Four Seasons Hotel, Miami FL Organiser: Terrapinn

Private Equity World Latin America unites over 300 local and global investors, private equity funds and venture capitalists to discuss the latest investment strategies and opportunities across the region. If you are looking to forge new partnerships, raise capital or stay on top of the latest fund offerings and investment opportunities, then you must attend.

ASK 2014 Global Private Debt and Equity Summit

Date: 14 May 2014 Information: www.asksummit.co.kr Location: Seoul, South Korea Organiser: The Korea Economic Daily

Korean institutions are growing from $2tn to 5tn during next 30 years and looking for substitute for fixed income in fields of private debt, equity, infrastructure, and real assets. Summit provides best access to investors by inviting top 20 investors as speakers, top 30 CIOs at VIP dinner, and around 250 investors at floor.

The Private Equity Latin America Forum

Date: 19 - 20 May 2014 Information: http://www.latinmarkets.org/forums/private-equity-latin-america-forum/overview Location: Private Club, NYC Organiser: Latin Markets

The 3rd Annual Private Equity Latin America Forum is a meeting of the world’s largest international private equity managers and investors. Keynotes from: Former President of Mexico, US Treasury Secretary, SilverLake, WL Ross & Co, Lee Equity Partners, Clayton Dubilier & Rice, The Carlyle Group. Limited capacity, purchase tickets in advance.

Alternative Investor 2014

Date: 21 May 2014 Information: http://www.iiribcfinance.com/FKW52757PQL Location: London Organiser: IIR & IBC Finance

This one-day conference has been designed to aid Family Offices, Pension Funds, Endowments & other Institutional Investors when deciding which alternative strategies to pursue. The forum covers the entire spectrum of alternative investments, with expert contributions from the leaders in Private Equity, Real Estate, Infrastructure, Private Debt & Hedge Funds. Learn more, see the latest agenda and register today at http://www.iiribcfinance.com/FKW52757PQL. Quote VIP code FKW52757PQL to save 15% courtesy of Preqin!

European Family Office & Private Wealth

Date: 4 - 6 June 2014 Information: www.opalgroup.net/trk/efopwc1418.html Location: Intercontinental Geneve, Geneva, Switzerland Organiser: Opal Financial Group

Following the success of Opal’s annual Family Office/Private Wealth Management Forum in the United States, we will bring this event back to Europe in 2014. A part of the Private Wealth Series, this family office conference is Opal’s premier event for high net worth individuals and family offices. Private investors and asset managers from around the world will visit this picturesque setting for three days of engaging discussions on the latest investment trends. The conference will explore the challenges and opportunities associated with investing in emerging markets, alternative investments, real estate, global credit & fixed income markets along with numerous other asset types

Family Office & Private Wealth Forum

Date: 21 - 23 July 2014 Information: www.opalgroup.net/trk/fopwc1410.html Location: Hyatt Regency Newport, Newport, RI Organiser: Opal Financial Group

As part of the Private Wealth Series, the Family Office/Private Wealth Management Forum is Opal’s premier conference and the preeminent event in North America for high net worth individuals and family offices from around the world. Come and join us for three days of engaging discussions on the latest investment trends and soft issues with some of the most well established and senior Family offices, Private investors, money managers, and private wealth service providers from around the globe. The event will be held in Newport, Rhode Island, where the history of private wealth spans many generations dating back the early settlement dates of America.

This event will explore the challenges and opportunities associated with investing in emerging markets, alternative investments, real estate, direct energy, numerous other asset classes and will also address many of the softer issues related to the family office such as tax and regulation, asset protection, philanthropy, structuring a family office, and many more. Opal will kick off the event with its Annual Regatta Cup, in which attendees will have the opportunity to work with a professional sailing charter crew while competing against industry peers.