View the full edition of Spotlight at: https://www.preqin.com/docs/newsletters/pe/Preqin-Private-Equity-Spotlight-October-2014.pdf The Facts Private Equity Secondaries Download Data Private Equity Secondaries Raisah Yusuf takes a look at active secondary market players that are focused on buyout investments, and provides the latest pricing information for buyout funds’ narrowing discount to NAV. Fig. 1: Listed Private Equity Discount/Premium to NAV, Buyout Funds, 2004 - 2014 YTD (As at 25 September 2014) 20 10 0 -10 -20 -30 -40 Discount/Premium (%) -50 -60 30-Jun-04 30-Jun-05 30-Jun-06 30-Jun-07 30-Jun-08 30-Jun-09 30-Jun-10 30-Jun-11 30-Jun-12 30-Jun-13 30-Jun-14 30-Sep-04 30-Sep-05 30-Sep-06 30-Sep-07 30-Sep-08 30-Sep-09 30-Sep-10 30-Sep-11 30-Sep-12 30-Sep-13 31-Mar-04 31-Mar-05 31-Mar-06 31-Mar-07 31-Mar-08 31-Mar-09 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 31-Mar-14 31-Dec-04 31-Dec-05 31-Dec-06 31-Dec-07 31-Dec-08 31-Dec-09 31-Dec-10 31-Dec-11 31-Dec-12 31-Dec-13 Source: Preqin Secondary Market Monitor Fig. 2: Sample of Buyout-Focused Sellers, 2014 YTD (As at 25 September 2014) Firm Firm Firm Type Next 12 Month Plan Location As of September 2014, EdgeStone Capital Partners is seeking $300mn in order to restructure two EdgeStone Private Equity Canada of its existing vehicles: EdgeStone Capital Equity Fund II and EdgeStone Capital Equity Fund III. Capital Partners Firm UBS Investment Bank Private Funds Group is acting as secondary intermediary in this process. As of September 2014, Danske Private Equity expects to sell some of its existing fund interests Private Equity Danske Private with vintage years between 2000 and 2003. The fi rm's portfolio of fund investments with these Fund of Funds Denmark Equity vintage years include buyout, venture capital and special situations vehicles, with a focus on Manager Europe and the US. As of September 2014, Banka Celje is looking to sell some of its existing stakes in private equity Banka Celje Bank Slovenia funds on the secondary market over the next 12 months. The bank has investments in buyout and venture capital vehicles, with a focus on Europe. La Financière Private Equity As of August 2014, the fi rm expects to sell one or two fund interests over the following 12 Patrimoniale Fund of Funds Switzerland months in order to improve its investment portfolio and free-up distribution capital. The fi rm holds Européenne Manager investments in buyout and mezzanine vehicles, with a focus on Europe. Source: Preqin Secondary Market Monitor Fig. 3: Notable Purchases of Buyout Fund Stakes, 2014 YTD (As at 25 September 2014) Seller Firm Buyer Firm(s) Date Fund Veritas Pension Insurance Company Argentum Fund Investments Sep-14 Sovereign Capital III BlackRock Private Equity Eastman Kodak Company Pension Fund (US) Partners, Lincoln National Life Insurance Sep-14 PAI Europe IV, PAI Europe V Company Victorian Funds Management Corporation Goldman Sachs AIMS Private Equity Sep-14 Actis Emerging Markets 3, EQT V Citi Capital Advisors Lexington Partners Aug-14 Metalmark Capital Partners II Bridgepoint Europe II, Bridgepoint Europe BNY Mellon Wealth Management Pantheon Aug-14 III, Bridgepoint Europe IV Source: Preqin Secondary Market Monitor Data Source Access essential information on all aspects of the private equity secondary market using Preqin’s Secondary Market Monitor, including potential buyers and sellers, secondaries funds and more. For more information, or to arrange a demonstration, please visit: www.preqin.com/smm 17 Private Equity Spotlight / October 2014 © 2014 Preqin Ltd. / www.preqin.com.