AMERICAN INVESTMENT COUNCIL 2018-Q2 Private Equity Industry Investment Report Table of Contents Page Executive Summary 3 Business Products & Services 5 Consumer Products & Services 7 Information Technology 9 Financial Services 11 Healthcare 13 Materials & Resources 15 Energy 17 PAGE 2 Executive Summary In the first half of 2018, Business Products and Services (B2B), Consumer Products and Services (B2C), and Information Technology (IT) sectors received more than half of all private equity investment. Fund managers invested $19B in B2C companies, while IT-related companies and B2B companies each received approximately $18 billion in investment during the same period. In addition, fund managers provided $14 billion to Energy companies while businesses in the Financial Services, Healthcare, and Materials and Resources sector secured investments of $11 billion, $11 billion and $7 billion, respectively. Overall, quarterly private equity investment declined to $41 billion from $58 billion in Q2. Only Consumer Products and Services and Healthcare saw increases in investment compared to the previous quarter. Investment rose from $9 billion to $10 billion and from $5 billion to $6 billion in Consumer Products and Services and Healthcare, respectively. Investment in the Information Technology sector experienced the steepest quarterly decline, falling $8 billion to $5 billion in Q2. While investment in Energy companies fell to $4 billion from $10 billion, other sectors—Business Products and Services, Financial Services, and Materials and Resources—saw modest declines. Finally, Energy Fundraising saw a significant decline from the previous quarter, falling to $450 million. PAGE 3 2018 H1 Industry Investment PAGE 4 Business Products & Services (B2B) Deals Top Deals 2018-Q2 Company Date Investment Value (Bil) Financial Sponsor Ply Gem Industries 04/12/2018 $2.40 Clayton, Dubilier & Rice ACE & Company, Canada Pension Plan Noble Energy (Gulf of Mexico Assets) 04/12/2018 $0.58 Investment Board, et al* RPX 06/19/2018 $0.55 HGGC *Fieldwood Energy, Riverstone Holdings PAGE 5 Source: PitchBook Consumer Products & Services (B2C) Deals Top Deals 2018-Q2 Company Date Investment Value (Bil) Financial Sponsor Blackhawk Network Holdings 06/15/2018 $3.50 P2 Capital Partners, Silver Lake Management Charlesbank Capital Partners, Princess Hearthside Food Solutions 05/23/2018 $2.40 Private Equity Holding NPC International 04/25/2018 $1.00 Eldridge Industries PAGE 6 Source: PitchBook Information Technology Deals Top Deals 2018-Q2 Company Date Investment Value (Bil) Financial Sponsor CommerceHub 05/21/2018 $1.10 GTCR, Sycamore Partners Management Bomgar 04/03/2018 $0.74 Francisco Partners Clearlake Capital Group, Guggenheim Lytx 04/05/2018 $0.70 Investments, GTCR, et al* *HarbourVest Partners, Public Sector Pension Investment Board PAGE 7 Source: PitchBook Financial Services Deals Top Deals 2018-Q2 Company Date Investment Value (Bil) Financial Sponsor Atlas Merchant Capital, Cornell Capital, Talcott Resolution 05/31/2018 $2.05 Global Atlantic Financial Group, et al* Drawbridge Realty 05/23/2018 $0.47 Undisclosed Investors NorthStar Financial Services Group, TA FTJ FundChoice 05/25/2018 $0.33 Associates Management *Grupo Safra, Pine Brook, TRB Advisors PAGE 8 Source: PitchBook Healthcare Deals Top Deals 2018-Q2 Company Date Investment Value (Bil) Financial Sponsor Sound Physicians 06/28/2018 $2.15 Summit Partners Analogic 06/22/2018 $1.10 Altaris Capital Partners Patricia Industries, Water Street Healthcare Sarnova 04/04/2018 $0.90 Partners PAGE 9 Source: PitchBook Materials & Resources Deals Top Deals 2018-Q2 Company Date Investment Value (Bil) Financial Sponsor The Waddington Group 06/29/2018 $2.30 Novolex Holdings, The Carlyle Group Appvion 06/13/2018 $0.36 Franklin Templeton Investments Forever Oceans 05/18/2018 $0.00 Palapa Ventures PAGE 10 Source: PitchBook Energy Deals Top Deals 2018-Q2 Company Date Investment Value (Bil) Financial Sponsor Brazos Midstream 05/29/2018 $1.75 Morgan Stanley Infrastructure Partners 8point3 Energy Partners 06/19/2018 $0.97 Capital Dynamics Birch Permian 04/09/2018 $0.77 Riverstone Holdings PAGE 11 Source: PitchBook Energy Fundraising PAGE 12 Source: PitchBook 799 9th Street NW, Suite 200 Washington, DC 20001 Investmentcouncil.org 202.465.7700 @Americalnvests.