AMERICAN INVESTMENT COUNCIL

2017-Q4 Private Equity Trends Table of Contents

Page Deal Activity 3 Deal Financing and Pricing 6 Fundraising 13 Exits 15 Credit Markets 26

PAGE 2 2017 U.S. private equity investment of $526 billion was 11% lower than in 2016

Capital Invested (Bil.) Capital Invested (Bil.) No. of Deals No. of Deals

$900 5,000

$800 4,500

$821 4,000 $700

3,500 $600

3,000

$500 $592

$548 2,500 $526 $519 $400 2,000 $436 $300

$369 1,500 $338 $316

$200 $289 1,000

$100 500 $157 $141 $133 $129 $107 $0 - 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 2017 2017 2017 2017

PAGE 3

Source: PitchBook The 10 largest U.S. private equity deals in 2017-Q4 accounted for 25% of investment volume

Investment Value Rank Company Description Date Financial Sponsor (Bil.) Apollo Investment, Avantor Other Commercial Performance Materials, Goldman VWR International 11/21/2017 $6.5 1 Products Sachs Merchant Banking Division, et al.1 2 West BPO/Outsource Services 10/10/2017 $5.2 Apollo Global Management Canada Pension Plan Investment NewStar Financial Asset Management 12/22/2017 $2.4 Board, Corsair Capital, First Eagle 3 Investment Management, et al.2 Fidelity National Financial, The Fidelity & Guaranty Life Life and Health Insurance 11/30/2017 $2.2 4 Blackstone Group Caisse de dépôt et placement du Wells Fargo Insurance Other Insurance 12/4/2017 $2.0 Québec, Kohlberg Kravis Roberts, 5 USI Insurance Services 6 Medallion Gathering & Processing Energy Infrastructure 10/30/2017 $1.8 Global Infrastructure Partners 7 Ten-X Real Estate Services (B2C) 10/3/2017 $1.6 Thomas H. Lee Partners Elliott Management, Juna Equity Gigamon Database Software 12/27/2017 $1.6 Partners, Qatar Investment 8 Authority 9 EAB Consulting Services (B2B) 11/17/2017 $1.6 Vista Equity Partners Plastic Containers & Tekni-Plex 10/17/2017 $1.5 Genstar Capital 10 Packaging

Note: The list above only reflects completed private equity transactions with disclosed investment values. 1 New Mountain Capital 2 Sofina, The Blackstone Group PAGE 4

Source: PitchBook, Web search The 10 largest U.S. private equity deals in 2017 sum to $49.6 billion and account for 27% of investment volume

Investment Value Rank Company Description Date Financial Sponsor (Bil.) BDT Capital Partners, JAB Holding Panera Bread Restaurants and Bars 7/18/2017 $7.5 1 Company General Merchandise HarbourVest Partners, Sycamore Staples 9/12/2017 $6.9 2 Stores Partners Management Apollo Investment, Avantor Other Commercial Performance Materials, Goldman VWR International 11/21/2017 $6.5 3 Products Sachs Merchant Banking Division, et al.1 Caisse de dépôt et placement du Québec, National Pension Service, Team Health Holdings Clinics/Outpatient Services 2/6/2017 $6.1 4 Public Sector Pension Investment Board, et al.2 Bass Pro Shops, Pamplona Capital Cabela's Specialty Retail 7/5/2017 $5.0 Management, The Goldman 5 Sachs Group 6 PAREXEL International Drug Discovery 9/29/2017 $5.0 Pamplona Capital Management ACE & Company, Ardian, BC Chewy Food Products 5/31/2017 $3.4 3 7 Partners, et al. 8 Diversey Specialty Chemicals 9/6/2017 $3.2 Bain Capital 9 Tec CTL Energy Production 6/9/2017 $3.0 Milost Global ACE & Company, Hilcorp Energy, ConocoPhillips Energy Exploration 7/31/2017 $3.0 10 The Carlyle Group

Note: The list above only reflects completed private equity transactions with disclosed investment values. 1 New Mountain Capital 2 The Blackstone Group 3 Caisse de dépôt et placement du Québec, GIC Private, Korea Investment Corporation, PetSmart, StepStone Group PAGE 5

Source: PitchBook and Web search The average proportion of equity financing for LBO transactions increased slightly to 43.7% in 2017

Contributed Equity Rollover Equity Debt Other Sources of Financing 100%

80% 51.6% 52.7% 56.1% 55.6% 54.8% 56.7% 55.0% 56.1% 56.2% 57.8% 56.3% 59.6% 60.2% 56.2% 61.4% 54.5% 65.4% 61.8% 65.7% 60% 66.4% 5.1% 0.3% 1.6%

40% 2.4% 2.4% 1.1% 3.1% 1.9% 3.8% 2.1% 3.6% 1.6% 2.7% 1.5% 4.7% 1.4% 2.7% 2.5% 2.0% 2.3%

20% 45.6% 45.5% 42.1% 41.4% 41.4% 41.1% 40.5% 40.5% 39.2% 38.8% 38.3% 38.0% 37.4% 37.0% 35.7% 34.8% 32.6% 31.0% 30.8% 29.8%

0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 2017 2017 2017 2017

Note: Contributed equity is equity provided by LBO sponsors. Rollover equity is equity in the pre-LBO company that is not cashed out, but rolled over and reinvested into the post-LBO company. Debt includes bank debt, secured debt, senior unsecured debt, public/high yield debt, bridge loan and mezzanine debt. Other represents cash held by the target company. PAGE 6

Source: Standard and Poor’s Capital IQ Leveraged Commentary and Data 7

Equity financing increased to 48.9% for middle market LBOs in 2017

Equity Financing Middle Market Large Corporate

60%

50% 53.1% 50.1%

40% 48.9% 48.0% 47.3% 47.1% 45.7% 45.4% 45.3% 45.3% 45.1% 44.8% 42.7% 42.5% 42.2% 42.1% 42.0% 41.5% 41.3% 41.2% 40.9% 40.7% 40.2%

30% 39.2% 37.8% 36.9% 35.4% 35.2% 34.2% 32.3% 31.5%

20% 29.9%

10% N/A N/A 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 2017 2017 2017 2017

Note: Large corporate issuers have EBITDAs of more than $50 million. Middle market issuers have EBITDAs of $50 million or less.

PAGE 7

Source: Standard and Poor’s Capital IQ Leveraged Commentary and Data U.S. LBO loan volume increased from the previous year to $96 billion

Loan Volume (Bil.) $250 $213

$200

$150

$100 $96 $79 $78 $76 $73 $59 $51 $50 $46 $36 $31 $26 $25 $9 $5 $0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 2017 2017 2017 2017

Note: Data above reflect all loans syndicated in the U.S. market for the purpose of LBOs. Ex-U.S. companies are excluded.

PAGE 8

Source: Standard and Poor’s Capital IQ Leveraged Commentary and Data The 10 largest U.S. LBO loans in 2017-Q4 accounted for 73% of the total LBO loan volume

Rank Company Description Launch Date1 Loan Value (Bil.) Financial Sponsor

1 Duff & Phelps Services & Leasing 11/28/2017 $1.1 Permira

Lumos Networks Operating Telecom 10/17/2017 $1.1 EQT Partners 2 Company 3 Excelitas Technologies Corp Computers & Electronics 11/6/2017 $0.9 AEA Investors 4 Medallion Midland Acquisition Oil & Gas 10/23/2017 $0.7 Global Infrastructure Partners 5 Vantage Specialty Chemicals Chemicals 10/5/2017 $0.7 HIG Capital 6 IntraLinks Services & Leasing 10/26/2017 $0.7 SIRIS Capital Group 7 Lakeland Holdings Entertainment & Leisure 11/28/2017 $0.5 Eurazeo 8 Gigamon Computers & Electronics 11/30/2017 $0.5 Evergreen Coast Capital 9 Young Innovations Healthcare 10/19/2017 $0.4 Jordan Company 10 Strategic Materials Environmental 10/18/2017 $0.4 Littlejohn & Co.

Note: The ranked list is based on a sample of all loans syndicated in the U.S. market for the purpose of LBOs. Ex-U.S. companies are excluded. Companies with loans in the table above may be involved in transactions that are still ongoing and therefore, will not appear in the list of top 10 private equity transactions (slide 4). 1 Date of loan syndication. PAGE 9

Source: Standard and Poor’s Capital IQ Leveraged Commentary and Data, Web search The 10 largest U.S. LBO loans during 2017 accounted for 26% of the total LBO loan volume

Rank Company Description Launch Date1 Loan Value (Bil.) Financial Sponsor

1 Staples Retail 8/2/2017 $4.1 Sycamore Partners 2 West Corp Services & Leasing 9/19/2017 $3.3 Apollo Management 3 Team Health Services & Leasing 1/5/2017 $3.2 Blackstone Group 4 Alight Solutions Services & Leasing 4/7/2017 $2.9 Blackstone Group 5 PAREXEL International Services & Leasing 8/8/2017 $2.4 Pamplona Capital Management 6 NBTY Retail Food & Drug 8/1/2017 $2.3 Kohlberg, Kravis & Roberts 7 USI Holdings Corp Insurance 3/29/2017 $2.1 Kohlberg & Co. 8 NeuStar Computers & Electronics 2/13/2017 $1.7 Golden Gate Capital

9 Intrawest Corp Entertainment & Leisure 6/19/2017 $1.6 KSL Capital Partners

10 CCC Information Services Computers & Electronics 3/22/2017 $1.5 Advent International

Note: The ranked list is based on a sample of all loans syndicated in the U.S. market for the purpose of LBOs. Ex-U.S. companies are excluded. Companies with loans in the table above may be involved in transactions that are still ongoing and therefore, will not appear in the list of top 10 private equity transactions (slide 5). 1 Date of loan syndication. PAGE 10

Source: Standard and Poor’s Capital IQ Leveraged Commentary and Data and Web search Average debt multiples for U.S. LBOs increased to 5.7x in 2017 from 5.4x in 2016

Debt/EBITDA 7x

6x 6.1x 5.9x 5.9x 5.7x 5.7x

5x 5.6x 5.5x 5.4x 5.4x 5.3x 5.3x 5.3x 5.1x 5.0x 4.9x

4x 4.6x 4.6x 4.2x 3.8x

3x 3.7x 3.4x

2x

1x

0x 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 2017 2017 2017 2017 Note: EBITDA is adjusted for cost savings and synergies. Debt includes senior debt and subordinated debt.

PAGE 11

Source: Standard and Poor’s Capital IQ Leveraged Commentary and Data The average purchase price multiples for U.S. LBOs increased slightly to 10.6x in 2017

Equity/EBITDA Senior Debt/EBITDA Sub Debt/EBITDA Others

Purchase Price Multiple

12x 11.2x 10.6x 10.7x 10.3x 9.9x 10.0x 9.8x 10x 9.7x 8.1x 8x

6x

4x

2x

0x 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 Q4 2017 2017 2017 2017 2017 M&A1 Note: EBITDA is adjusted for cost savings and synergies. 1 Average purchase price multiples for three months ending Dec, 2017.

PAGE 12

Source: Standard and Poor’s Capital IQ Leveraged Commentary and Data Annual U.S. private equity fundraising volume increased to $231 billion in 2017

Capital Raised (Bil.) Capital Raised (Bil.) No. of Funds No. of Funds

$300 300

$250 250 $239

$200 $231 200 $202 $200 $189

$150 $183 150 $175

$100 100 $115 $112 $81

$50 $76 50 $66 $60 $55 $50

$0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 2017 2017 2017 2017 Note: Graph above reflects data from buyout, diversified equity, growth equity, infrastructure and energy funds.

PAGE 13

Source: PitchBook Global callable capital reserves (“dry powder”) of buyout funds rose to $628 billion as of year end 2017

Buyout Growth Capital Distressed Private Equity Mezzanine Other Real Estate Venture Capital

Dry Powder (Bil.)

$1,800 $1,629 $1,600 $1,538

$1,400 $1,323

$1,200 $1,178

$1,000

$800

$600

$400 $628 $562 $480 $478 $474 $447 $437 $432 $200 $424 $390 $374 $360 $256 $176 $0 $184 Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Note: Dry powder figures are global and not specific to the United States.

PAGE 14

Source: Preqin Annual U.S. exit volume decreased 8% from the previous year to $397 billion in 2017

Exit Amount (Bil.) Exit Amount (Bil.) No. of Exits No. of Exits

$500 2000

$450

$400 1600 $433 $425 $350 $397

$300 1200 $339

$250 $268 $200 800 $250 $234

$150 $178 $100 400 $148 $122 $120

$50 $96 $100 $80 $74

$0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 2017 2017 2017 2017

PAGE 15

Source: PitchBook Six of the ten largest U.S. private equity exits during 2017- Q4 were strategic M&As

Rank Company Name Exit Type1 Date Exit Size (Bil.) Sellers

Strategic Level 3 Communications 11/1/2017 $34.0 Singapore Technologies Telemedia 1 M&A

Strategic BlackRock, State Street Global Advisors, T. Rowe C. R. Bard 12/29/2017 $24.2 2 M&A Price, et al.2

Financial VWR International 11/21/2017 $6.5 Apollo Investment, Avista Capital Partners 3 M&A

Financial West 10/10/2017 $5.2 Quadrangle Group, Thomas H. Lee Partners 4 M&A

Strategic General Atlantic, MedCare Investment Funds, EviCore Healthcare 12/15/2017 $3.6 5 M&A Ridgemont Equity Partners, et al.3

Strategic Ch2M Hill 12/18/2017 $2.9 Apollo Global Management 6 M&A

Strategic IDI Logistics 10/2/2017 $2.8 Brookfield Asset Management 7 M&A

Strategic Beach Point Capital Management, Cerberus Capital DigitalGlobe 10/5/2017 $2.4 8 M&A Management, GLG Investment Partners, et al.4

Financial Bank of America Business Capital, Capital Z Partners, NewStar Financial 12/22/2017 $2.4 9 M&A Citigroup, et al.5

Financial Cevian Capital, Harbinger Capital Partners, HRG Fidelity & Guaranty Life 11/30/2017 $2.2 10 M&A Group

1 Financial M&A includes secondary buyouts and investor buyouts by management. Public offering includes initial public offerings and secondary offerings. Strategic M&A includes corporate acquisitions and merger of equals. Includes partial exits. 2 The Vanguard Group 3 TA Associates Management 4 Hitachi, Morgan Stanley Expansion Capital PAGE 16 5 Equifin Capital, J.P. Morgan, Och-Ziff Capital Management Group, Shawmut Capital Partners, The Northwestern Mutual Life Insurance Company

Source: PitchBook, Web search The 10 largest U.S. private equity exits in 2017 comprised 37% of the total exit volume

Rank Company Name Exit Type1 Date Exit Size (Bil.) Sellers

Strategic Level 3 Communications 11/1/2017 $34.0 Singapore Technologies Telemedia 1 M&A

Strategic Cooper Hill Partners, Marshall Wace, Norwest St. Jude Medical 1/4/2017 $25.0 2 M&A Venture Partners, Prettybrook Partners

Strategic BlackRock, State Street Global Advisors, T. Rowe C. R. Bard 12/29/2017 $24.2 3 M&A Price, et al.2

Strategic American Customer Satisfaction Index, FIS Holdings, Whole Foods Market 8/28/2017 $13.7 4 M&A JANA Partners, et al.3

Strategic Advisors Asset Management, Nomura Asset DuPont Fabros Technology 9/14/2017 $7.8 5 M&A Management, Point72 Asset Management, et al.4

Strategic Patheon 8/29/2017 $7.2 JLL Partners, Koninklijke DSM 6 M&A

Financial VWR International 11/21/2017 $6.5 Apollo Investment, Avista Capital Partners 7 M&A

Financial Team Health Holdings 2/6/2017 $6.1 BlackRock, Fidelity Investments, JANA Partners, et al.5 8 M&A Kohlberg Kravis Roberts, AlpInvest Partners, Strategic Capsugel 7/6/2017 $5.5 HarbourVest Partners, Norwest Venture Partners, M&A 9 TechAcq Ventures Financial West 10/10/2017 $5.2 Quadrangle Group, Thomas H. Lee Partners 10 M&A 1 Financial M&A includes secondary buyouts and investor buyouts by management. Public offering includes initial public offerings and secondary offerings. Strategic M&A includes corporate acquisitions and merger of equals. Includes partial exits. 2 The Vanguard Group 3 The Yucaipa Companies 4 ProShare Advisors, SilverHaze Partners, T. Rowe Price 5 Maverick Capital, Pennant Capital Management, The Capital Group Companies, Wellington Management Group PAGE 17

Source: PitchBook and Web search Strategic M&As accounted for 69% of all U.S. private equity exits in 2017, up from 55% in 2016

Exit Amount Public offering Strategic M&A Financial M&A

100%

80%

60%

40% 66% 68% 69% 69% 74% 64% 55%

20%

0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q 2Q 3Q 4Q 2017 2017 2017 2017

Note: Financial M&A includes secondary buyouts and investor buyouts by management. Public offering includes initial public offerings and secondary offerings. Strategic M&A includes corporate acquisitions and merger of equals. PAGE 18

Source: PitchBook Annual proceeds raised from U.S. private equity-backed IPOs increased from the previous year to $12 billion

Proceeds raised (Bil.) No. of IPOs Proceeds raised (Bil.) No. of IPOs

$30 80

70 $25

$26 60 $24

$20 50 $18 $15 40 $16

30 $10 $12 $12 $10

$10 20 $9 $6 $8 $5 10 $2 $4 $1 $3 $0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 2017 2017 2017 2017

PAGE 19

Source: PitchBook The 10 largest U.S. private equity-backed public offerings during 2017 sum to almost $8 billion

Rank Company Date Exit Size (Bil.) Sellers

1 Invitation Homes 2/1/2017 $1.5 The Blackstone Group

Clayton, Dubilier & Rice, Kohlberg Kravis Roberts, PNC US Foods 1/25/2017 $1.1 2 Erieview Capital 3 Silver Run Acquisition II 3/24/2017 $1.0 Riverstone Holdings

Kohlberg Kravis Roberts, Silver Lake Management, GoDaddy 9/1/2017 $0.9 4 Technology Crossover Ventures 5 Gardner Denver 5/12/2017 $0.8 AlpInvest Partners, Kohlberg Kravis Roberts 6 CoStar Group 9/29/2017 $0.8 Western Technology Investment 7 Jeld-Wen 1/27/2017 $0.6 Ardian, Onex 8 Keane Group 1/19/2017 $0.5 Cerberus Capital Management, Trican Well Service

CCMP Capital Advisors, Ineos, Sole Realisation Company, et PQ Group 9/29/2017 $0.5 1 9 al.

AEA Investors, Banque Pictet & Cie, British Columbia Evoqua Water Technologies 11/1/2017 $0.5 2 10 Investment Management, et al.

1 The Carlyle Group 2 NB Private Equity Partners, Partners Group, Pictet Private Equity Investors, Temasek Holdings PAGE 20

Source: PitchBook and Web search 11 U.S. private equity-backed companies filed for bankruptcy during 2017-Q4 No. of Bankrupt Companies 30 25 20 24 24 21 15 19 18 17 16 10 14 13 14 12 11 11 11 5 10 10 9 9 10 10 7 6 6 8 7 8 6 6 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 2011 2012 2013 2014 2015 2016 2017

Bankruptcies of U.S. Private Equity-Backed Companies in 2017-Q4 Company Description Date Armstrong Energy Metals, Minerals and Mining 11/1/2017 Calypso St. Barth Apparel and Accessories 11/29/2017 Charming Charlie Retail 12/11/2017 Cobalt International Energy (CIEIQ) Exploration, Production and Refining 12/14/2017 Cumulus Media (CMLSQ) Media 11/30/2017 DuraFiber Technologies Textiles 10/6/2017 Fashion To Figure Apparel and Accessories 11/13/2017 GST Autoleather Transportation 10/3/2017 J.G. Wentworth (JGW) Other Financial Services 11/9/2017 Motorsport Aftermarket Group Transportation 11/15/2017 Rentech (RTKHQ) Commercial Products 12/19/2017

PAGE 21

Source: PitchBook, Web search 67 U.S. private equity-backed companies filed for bankruptcy in 2017, up from 63 bankruptcies in 2016 (1/2)

Company Description Date Company Description Date

21st Century Oncology Healthcare Services 5/25/2017 Bostwick Laboratories Healthcare Services 3/15/2017

Adeptus Health Healthcare Services 4/19/2017 Calypso St. Barth Apparel and Accessories 11/29/2017

Aerosoles Apparel and Accessories 9/14/2017 Charming Charlie Retail 12/11/2017

AFGlobal Commercial Products 4/30/2017 Chieftain Sand and Proppant Construction (Non-Wood) 1/9/2017

Alfred Angelo Apparel and Accessories 7/14/2017 Ciber IT Services 4/10/2017 Cobalt International Energy Exploration, Production and Angelica Commercial Services 4/3/2017 12/14/2017 (CIEIQ) Refining Answers.com Media 3/3/2017 Crossroads Systems (CRDSQ) Computer Hardware 8/13/2017

Aquion Energy Energy Services 3/8/2017 CST Industries Commercial Products 6/9/2017

Armstrong Energy Metals, Minerals and Mining 11/1/2017 Cumulus Media (CMLSQ) Media 11/30/2017

ATopTech Software 1/13/2017 Design Commercial Services 5/10/2017

Avaya IT Services 1/19/2017 DuraFiber Technologies Textiles 10/6/2017 Exploration, Production and Azure Midstream 1/30/2017 East West Copolymer Commercial Products 4/7/2017 Refining Electronic Cigarettes Basho Software 7/31/2017 Metals, Minerals and Mining 3/16/2017 International Group BCBG Max Azria Group Apparel and Accessories 2/28/2017 Emas Chiyoda Subsea Commercial Services 2/27/2017

Beamreach Solar Energy Equipment 1/30/2017 Fashion To Figure Apparel and Accessories 11/13/2017 Exploration, Production and Bonanza Creek (BCEI) 1/4/2017 First NBC Bank Commercial Banks 4/28/2017 Refining

PAGE 22

Source: PitchBook and Web search 67 U.S. private equity-backed companies filed for bankruptcy in 2017, up from 63 bankruptcies in 2016 (2/2)

Company Description Date Company Description Date

Gordmans Stores Retail 3/13/2017 popSLATE Consumer Durables 3/18/2017

Grandparents.com Software 4/14/2017 RadioShack Retail 3/8/2017

GST Autoleather Transportation 10/3/2017 Rentech (RTKHQ) Commercial Products 12/19/2017

H.H. Gregg Retail 3/7/2017 Rue21 Retail 5/15/2017

Ignite Restaurant Group Restaurants, Hotels and Leisure 6/13/2017 Rupari Food Consumer Non-Durables 4/10/2017

Ironclad Performance Wear Apparel and Accessories 9/8/2017 Shoes.com Retail 1/27/2017

J.G. Wentworth (JGW) Other Financial Services 11/9/2017 SquareTwo Financial Capital Markets/Institutions 3/19/2017

Jawbone Consumer Durables 7/6/2017 Sungevity Energy Equipment 3/13/2017 Pharmaceuticals and Katy Industries Consumer Non-Durables 5/14/2017 TerraVia 8/2/2017 Biotechnology Limited Stores Apparel and Accessories 1/17/2017 The Gymboree Apparel and Accessories 6/11/2017

Louisiana Pellets Forestry 2/22/2017 Toys "R" US Consumer Durables 9/18/2017

Marsh Supermarkets Retail 5/11/2017 True Religion Apparel Apparel and Accessories 7/5/2017 Exploration, Production and Healthcare Devices and Memorial Production Partners 1/16/2017 Unilife 4/12/2017 Refining Supplies Motorsport Aftermarket Group Transportation 11/15/2017 UniPixel Computer Hardware 8/25/2017

Oakridge Holdings Commercial Products 5/22/2017 United Road Towing Commercial Transportation 2/6/2017

Ogin Energy Equipment 5/5/2017 Vitamin World Retail 9/6/2017

Payless Retail 4/4/2017 Wet Seal Retail 2/2/2017

Plastc Consumer Durables 4/20/2017

PAGE 23

Source: PitchBook and Web search One bankrupt U.S. company received private equity investment in 2017-Q4

No. of Companies 15

10 12 10

5 5 5 5 5 4 1 1 1 4 1 1 3 2 2 3 3 2 2 2 3 2 3 3 3 0 3 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2011 2012 2013 2014 2015 2016 2017

Private Equity Investment in Bankrupt U.S. Companies in 2017-Q4 No. of Investment Company Description Date Financial Sponsor Employees Value (Mil.) Short Bark Industries Clothing - 10/24/2017 $2 JLL Partners, Point Blank Enterprises

PAGE 24

Source: PitchBook, Web search Nine bankrupt U.S. companies received private equity investment during 2017

No. of Investment Company Description Date Financial Sponsor Employees Value (Mil.) Eaton Vance, First Reserve, AFGlobal Oil and Gas Equipment N/A 5/24/2017 $120.0 Stellex Capital Management, et al.1 Movies, Music and Big Apple Circus N/A 2/14/2017 $1.30 Compass Partners Entertainment Other Commercial Agility Fuel Systems, Element CleanFUEL USA N/A 5/11/2017 N/A Products Partners Innova Global, TriWest Express Integrated Technologies Machinery (B2B) 201 2/1/2017 N/A Capital Partners

Apollo Global Management, Brigade Capital Gymboree Group Specialty Retail 11,000 9/29/2017 N/A Management, Marblegate Asset Management, et al. 2

Other Consumer Non- NJOY 87 2/23/2017 $35.0 Homewood Capital Durables

Shoreline Energy (Oil & Gas) Energy Exploration N/A 2/24/2017 $1.5 HPS Investment Partners

JLL Partners, Point Blank Short Bark Industries Clothing N/A 10/24/2017 $2.0 Enterprises

Alternative Energy Hercules Capital, Northern Sungevity 1,001 4/26/2017 $50.0 Equipment Pacific Group

1 The Carlyle Group 2 Nomura International Private Equity Group, OppenheimerFunds, Searchlight Capital Partners, Tricadia Capital PAGE 25

Source: PitchBook Leveraged loan volume for U.S. issuers increased by 17% from previous year to $550 billion

Loan Volume (Bil.)

$600

$500 $550 $540 $510 $469 $400 $464 $449 $412 $380

$300 $354 $291

$200 $248 $216 $176 $176

$100 $159 $148 $137 $136 $134 $131 $109 $67 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 2017 2017 2017 2017 Note: For the purpose of this report, leveraged loans include speculative-grade loans or unrated loans priced at or above LIBOR+125 basis points.

PAGE 26

Source: Standard & Poor’s Capital IQ Leveraged Commentary and Data 799 9th Street NW, Suite 200 Washington, DC 20001

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