2,547 2,556 2, ,034 2, ,

Transcription

1 1. Executive Summary - Sample Pages Executive Summary Over the past 10 years, the global buyout sector has undergone a number of important changes, evolving into a global industry impacting ever more signifi cantly on the global economic stage. After suffering a dip in fundraising during the economic downturn following the turn of the millennium, the market grew signifi cantly from 2003 onwards in terms of both the overall capital being raised and the size of funds achieving a fi nal close. Fuelled by strong returns, institutional investor appetite for funds reached its peak in 2008, when funds raised an aggregate $248 billion over fi ve times the $44 billion which managers garnered in (Fig. A) Fig. A: Annual Number and Value of Buyout Funds Raised: H1 No. of Funds Aggregate Capital Raised ($bn) Dramatic Change The abundance of leverage available in the markets served to amplify the increase experienced in fundraising, and in 2006 the total deal value for private equity-backed buyout deals reached a peak of $685 billion worldwide over 10 times the $66 billion in global PE-backed dealfl ow seen in 2001 (Fig. B). Consequently, when the global downturn struck, the effect was felt especially hard by the global buyout industry. Fund managers lacked the available fi nancing or market stability required to undertake new deals, and the value of portfolio companies bought at the height of the market boom saw signifi cant writedowns, sending fund performance deep into the red. Investors that had previously been pumping money into the asset class held back from making new commitments. No. of Deals Fig. B: Number and Value of Buyouts Globally: Q ,000 2,547 2,556 2, ,034 2,000 1,500 1,363 1,521 1,334 1, , H No. of Deals Aggregate Deal Value ($bn) *2008-H Preqin Data Dealogic Data. Figures exclude add-on deals Aggregate Deal Value ($bn) 2010 Preqin Ltd 1

2 1. Executive Summary - Sample Pages 2009 was a year of extreme uncertainty, with the value of global deal fl ow falling to $81.6 billion only the second time since the turn of the millennium that private equity-backed deal fl ow was at sub-$100 billion levels. However, with fund managers having around $500 billion in equity available to them to spend in the form of uncalled commitments, this fi gure was especially concerning, and with one-year performance of buyout funds standing at -33% as of March 2009, the management fees being charged on this vast outstanding amount became a source of unrest for institutional investors, many of which were halting new fund commitments altogether as a result of poor performance, continued uncertainty and growing dissatisfaction at fund terms and conditions. Fig. C: LPs Plans for Their Buyout Allocations in the Next 12 Months The impact can clearly be seen in the total capital that the industry was able to raise during the course of the year, with just $107 billion being raised by funds holding a fi nal close during With some of these funds having spent a considerable amount of time on the road before closing, the real amount of capital actually committed in 2009 specifically is likely to be signifi cantly lower than this fi gure would suggest. Many fund managers had to abandon their fundraising efforts as conditions became increasingly competitive, with the average amount of time required to close a fund increasing to 18.8 months in 2010 up from 11 months in The Bigger They Are... A major contributing factor to the overall growth experienced in the global buyout industry up to 2008 was the increase in the number and size of both buyout funds and buyout deals. Following the launch of Goldman Sachs $8.5 billion fund in 2005, 24 funds have been raised with a size exceeding $8 billion between 2005 and With these funds typically employing the highest levels of leverage, they felt the effects of the market downturn especially strongly, with fund NAVs for these largest vehicles dropping by more than their smaller counterparts. This prompted institutions to turn their backs on the mega fund - only two vehicles with a size exceeding $8 billion held a fi nal close in 2009 with a considerable proportion of this capital having been raised before September Looking at deals, the proportion of private equity-backed deals occurring at values above $1 billion fell to just 3% of the total, down from 8% in Smaller and mid-market deals saw their share of the total number of deals grow, with deals valued at less than $500 million accounting for 81% of the total in 2009, up from 73% in The Road to Recovery As the global economy has begun to recover, with equities prices increasing and the balance sheets of banks being bolstered, the global buyout industry has started to show signs of improvement and recovery. Fund net asset values have risen steadily following a turning point in March 2009, and one-year performance for the industry turned positive as of December After the largest buyout funds were most affected by the downturn, they are now showing the highest recovery levels, with NAVs for mega buyout funds consistently improving by the highest factor between quarters. In the markets, the number and value of private equity backed deals has seen improvement, with deals totalling $67 billion in value having been announced in the fi rst half of 2010, compared with 2010 Preqin Ltd 2

3 1. Executive Summary - Sample Pages $81.6 billion for the whole of Although some way short of the near $700 billion levels being seen in , it is a positive and encouraging trend that suggests that the industry is on its way to recovery. 140 Fig. D: Number and Value of Exits by Type: Q Q Problems in the Fundraising Market One area where the buyout sector continues to struggle is with new fundraising. The first half of 2010 saw just $31 billion being raised by new funds achieving a final close. So with performance improving and deal flow picking up, what are the reasons behind the sluggishness still being seen in the fundraising market? Although investors are still somewhat cautious when considering making new investments, the results of Preqin s survey of 300 leading LPs does indicate that the majority of investors (60%) are still seeking to maintain their allocations to private equity in the next twelve months. There is even evidence of some investors seeking to increase their allocations to private equity, with 18% of those polled indicating a planned rise in private equity investments compared with only 10% that plan to reduce their exposure (the remaining 12% are investing opportunistically) (Fig. C). The main contributing factor behind the drop off in new commitments being made to buyout funds is therefore the cash flow position that investors are finding themselves in. With the majority of investors seeking to simply maintain allocations for the time being, their commitments to new vehicles will be driven by both the amount of capital that they have called up in their funds and the distributions that they have been receiving from maturing investments, as they will have to reinvest this capital in order to maintain their allocations. An increase in fundraising will therefore only really be seen once the number of exits in the market begins to increase, and there is certainly encouraging news on this front. Q2 No. of Deals Q Q Q Q Q Q Q Q Q Q Trade Sale Secondary Buyout Sale Restructuring IPO Aggregate Exit Value ($bn) 2010 saw $40.5 billion in exits, representing the secondhighest quarter since the onset of the financial downturn. Capital is once again beginning to churn through the private equity machine, and as a result an upturn in private equity fundraising is looking increasingly likely for the end of 2010 and into A Changed Industry? After emerging from the most dramatic global financial downturn in living memory, the buyout industry does look somewhat different, and has undergone changes as a result of the experiences of the past two years. Investor attitudes to funds have changed significantly, with institutions now taking far more time and care when selecting fund managers to commit to. Automatic re-ups are a thing of the past as institutions are scrutinizing their existing relationships and closely examining all new opportunities. There has been a growth in appetite for mid-market deals as opposed to mega-sized deals, and this has been reflected in a growing number of smaller deals taking place, both from dedicated mid-market players and also from some of the larger fund managers with mega-sized funds. In this ever-changing landscape, it is more important than ever before for investors, fund managers, advisors, placement agents, consultants, law firms and other private equity professionals to access a comprehensive resource detailing all the latest trends affecting this global market. Aggregate Deal Value ($bn) 2010 Preqin Ltd 3

4 1. Executive Summary - Sample Pages The 2010 Preqin Buyout Review The 2010 Preqin Buyout Review is the most detailed, comprehensive overview of the buyout industry ever created. The publication includes detailed profi les for the 500 most significant and active GPs involved in the buyout industry, including information on their deals, investment preferences, fund performance, funds raised, funds in market, direct contact details for key personnel and much more. It also profi les 600 LPs that invest in buyout vehicles, their investment preferences and key personnel contact details. All fi rms featured in the Review have been contacted directly by our analysts, ensuring that the information held is both accurate and far-reaching. In addition, the Review contains analysis on all aspects of the market, including an in-depth look at trends in deals, fundraising, performance, fund terms and conditions and much more. We hope that you fi nd the Review to be a useful and informative tool, and as ever we welcome any feedback and suggestions for future editions that you may have Preqin Ltd 4

5 The 2010 Preqin Buyout Review - Sample Pages The 2010 Preqin Buyout Review - Sample Pages 2010 Preqin Ltd 5

6 - The 2010 Preqin Buyout Review - Sample Pages Contents 1. Executive Summary 2. Data Sources 3. Buyout Market Overview Large Buyouts - Market Overview - History and evolution of the large buyout market, top 10 buyout funds raised, top 10 buyout funds in market, fundraising by geographic focus and industry focus, breakdown of fundraising market by fund size. Mid-Market Buyouts - Market Overview - History and evolution of the mid-market buyout market, fundraising by geographic focus and industry focus, breakdown of fundraising market by fund size. Small Buyouts - Market Overview - History and evolution of the small buyout market, fundraising by geographic focus and industry focus, breakdown of fundraising market by size. 4. Historic Fundraising Overview: 2005 H History and evolution of the buyout market, fundraising by geographic focus and industry focus, breakdown of fundraising market by fund size, average time spent on the road, success at reaching initial fundraising targets. 5. Funds Closed Historically Listings 6. Placement Agent Overview - Key placement agents, sample of funds using placement agents. 7. Current Fundraising Overview - Buyout funds on the road, fundraising by geographic focus and industry focus, fundraising market by fund size, interim closes, fi rst-time funds on the road, length of time spent on the road. 8. Funds on the Road Listings 9. Fund Terms and Conditions Overview - Management fees, hurdle rates, carried interest, fee rebates to investors, manager commitments, key-man provisions, no-fault divorce clauses, GP catch-up rate. 10. Global Buyout Deal Activity Overview - Global buyout deal flow 2000-present, global buyout activity by quarter 2008-present, deal flow by region, type, value and industry. 11. Largest Deals, Fund Managers and Most Active Service Providers - Largest 20 deals in H1 2010, 2009 and 2008, largest deals by geographic region, most active firms by aggregate transaction size, most active fi nancial advisors, law fi rms and debt fi nancing providers. 12. Buyout-Backed Exit Activity Overview - Exit activity 2008-present, exits by region and industry, notable exits. 13. Fund Performance Overview - Median, money-weighted and pooled IRRs, IRRs by fund size, geographic focus, net cash fl ow, net cash fl ow by vintage year, J-curve, relationship between predecessor and successor fund quartile. 14. Fund Performance Listings 15. Market Benchmarks 16. Firm Investment Preferences - Matrix showing fi rm preferences by geographic focus and industry focus. 17. Top 50 Buyout Fund Managers - League table of top 50 buyout managers by buyout funds raised in the last 10 years. 18. Firm Profiles - Profi les for over 500 private equity buyout fund managers Preqin Ltd 6

7 The 2010 Preqin Buyout Review - Sample Pages 19. Dry Powder Overview - Dry powder by region and fund sizes, fi rms with the most dry powder available. 20. Fund Manager Overview - Buyout fund managers by size, location, industry focus, investment criteria (equity investment size, transaction investment size, target company annual revenue, target company enterprise value, holding period), shareholding preferences, board representation, applied strategies and expertise provided. 21. Institutional Investors in Buyout Funds Survey - Results of a survey of over 300 LPs covering their attitudes to buyout funds in the wake of the fi nancial crisis, fund returns, size preferences, LP-GP relationships and future plans for buyout allocations. 22. Institutional Investors in Buyout Funds Listings - Listings for 600 institutional investors in buyout funds, including sample investments and fund size preferences. 23. Index - Buyout Firms - Investors - Figure Index 24. Glossary 25. Other Publications - Other Preqin products Preqin Ltd 7

8 2. Data Sources - Sample Pages Data Sources The 2010 Preqin Buyout Review has drawn upon many different sources of data in order to provide a unique perspective on the worldwide market for buyout funds. Fund Managers: We have directly contacted over 500 private equity buyout fi rms from around the world in order to collect information on fundraising and investment preferences. We also undertook questionnaires with fund managers regarding the terms and conditions of their funds. Investors: We have surveyed over 600 investors from around the world in order to ascertain their investment preferences, past history within the asset class and plans for the future. Regulatory Filings: We regularly review regulatory fi lings in the US, the UK and other regions in order to uncover additional fund information and the identity of institutional investors in funds. FOIA Requests: We make Freedom of Information Act Requests of public investors in buyout funds in both the US and the UK in order to calculate fund performance and sample investments made by investors. Information contained in The 2010 Private Equity Buyout Review is available on our online services, where subscribers benefi t from constantly updated information on all aspects of the buyout sector. For more information on the private equity buyout sector please contact our client support service: info@preqin.com Placement Agents: We have regular contact with placement agents in order to ascertain their involvement in the private equity buyout market, and also to gain information on funds that they are working on where applicable. Law Firms: We have made enquiries with numerous law fi rms that have provided us with information on funds they have provided fund formation services to Preqin Ltd 8

9 3. Buyout Market Overview - Sample Pages Large Buyouts - Market Overview Fig. 3.3: Large Buyout Fundraising: No. of Funds 120 As Fig. 3.3 shows, fundraising for large buyout funds between 2005 and H mirrors fundraising for the entire buyout industry during this period. Between 2005 and 2008 the aggregate capital raised by large buyout funds increased year-on-year, reaching its peak in 2008 when 31 vehicles raised an aggregate $179 billion and accounted for 72% of all buyout capital raised that year. However, the turmoil in the fi nancial markets impacted on fundraising for large buyout funds, as it did on the entire private equity fundraising market, and the aggregate capital raised in 2009 dropped by 55% from the previous year. This decrease was caused by a number of factors. The contraction in the credit markets, led to a dramatic decrease in private equity deal fl ow. Large buyout deals, which are typically reliant on high proportions of leverage, were particularly affected and consequently capital call-ups slowed considerably. This meant that investors did not have to invest in new funds to maintain their allocations, and those investors that did have capital to invest were being very cautious. As Fig. 3.4 demonstrates, fundraising reached its lowest level since 2005 in the fi rst quarter of 2010, when three large buyout funds secured an aggregate $8 billion H Fig. 3.4: Large Buyout Quarterly Fundraising: Q Q Aggregate Capital Raised ($bn) No. of Funds Aggregate Capital Raised ($bn) Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Preqin Ltd 9

10 7. Current Fundraising Review - Sample Pages 45% of funds currently raising are intending to invest a proportion of their capital in the industrials sector, which includes areas such as shipping, distribution, transportation, construction and manufacturing. Consumer discretionary is the second most targeted sector, with 37% of buyout funds in market looking to invest in this industry. 35% of buyout funds will be looking to invest in business services, which has become a popular and profi table area as fi rms look to cut costs by outsourcing various services as a result of the economic downturn. 50% 45% 40% 35% 30% 25% 20% 15% 45% 37% Fig. 7.2: Industry Focus of Buyout Funds in Market 35% 21% 20% 20% 18% 15% 14% 30% Funds on the Road by Fund Size 10% 5% Fig. 7.3 shows a breakdown of the buyout fundraising market by target fund size. 26% of aggregate capital is being targeted by small-cap funds with 68% of funds falling into this category. Mid-market funds are targeting capital commitments of $40 billion and account for a further 26% of funds raising at present. There are signifi cantly fewer large funds on the road, but these funds are targeting the largest amount of capital, with 11 such funds seeking an aggregate $42.6 billion, or 38% of the total capital being sought. 0% Industrials 128 Consumer Discretionary Business Services Information Technology Telecoms, Media and Communications Fig. 7.3: Breakdown of Buyout Funds in Market by Fund Size Health Care Energy and Utilities Materials Food and Agriculture Any Funds on the Road by Fund Status 46% of buyout funds currently on the road have reached an interim close. One-third of these have held a fi rst close, having raised, on average, 55% of their total targeted capital. A further 6% have reached a second close having raised, on average, 52% of their targeted capital. Funds that have held a third and fourth close have raised 53% and 60% of target capital and account for 5% and 2% of funds in market respectively No. of Funds Aggregate Target Size ($bn) 0 Small Mid-Market Large 2010 Preqin Ltd 10

11 8. Funds on the Road Listings - Sample Pages Fund / Firm Target Size Interim Closes (mn) Geographic Placement Agent Law Firm Sample LPs (mn) Focus ICICI Venture Capital Fund III (Balanced) 500 USD First Close: 250 USD (Oct-2009) Used But Not Specified Clifford Chance ICICI Venture Funds Management India KKR China Growth Fund 800 USD First Close (Expected): (Sep-2010) Greater China Kohlberg Kravis Roberts China, Hong Kong, Taiwan Lake Pacific II 200 USD North America Not Used Kirkland & Ellis SWIB Lake Pacific Partners US Leeds Equity Partners V 1,000 USD First Close: 500 USD (Dec-2009) Goodwin Procter CalPERS, General Electric Pension Trust, New Mexico Educational Leeds Equity Partners US Retirement Board, New York City Employees' Retirement System, New York City Teachers Retirement System, State of Connecticut Retirement Plans and Trust Funds, Time Warner Littlejohn Fund IV 1,350 USD First Close: 398 USD (Sep-2009), Fourth Europe, North Park Hill Group Morrison Cohen MSRPS, OPERF, Illinois TRS, WSIB Close: 800 USD (Feb-2010) America Littlejohn & Co. Canada, US Morgan Stanley Capital Partners V 6,000 USD First Close: 2,500 USD (Jul-2008) Global Regents of the University of California Morgan Stanley Private Equity Navis Asia Fund VI 1,000 USD First Close: 360 USD (Jun-2009), Asia Campbell Lutyens Debevoise & Plimpton Employees' Retirement System of Texas, MSRPS Navis Capital Partners Second Close: 450 USD (Jul-2009), Third Close: 776 USD (Mar-2010), Fourth Close: 1,070 USD (Jun-2010), Final Close (Expected): 1,250 USD (Aug-2010) Australia, Hong Kong, India North Castle Partners USD First Close: 100 USD (Feb-2009) North America Merrill Lynch Private North Castle Partners US Equity Placements Group Spectrum Equity Investors VI 1,000 USD First Close: 625 USD (Nov-2008) North America, West Europe Spectrum Equity Investors SunTx Capital Partners II 350 USD First Close: 210 USD (Jul-2008) North America UBS Investment Bank SunTx Capital Partners US Private Funds Group Riverside Asia Fund I 100 USD First Close: 25 USD (Sep-2008), Second Asia Riverside Company Close: 27 USD (Aug-2009) Riverside Europe Fund IV 550 EUR First Close: 100 EUR (Dec-2008), Riverside Company Second Close: (May-2009) Veritas Capital Fund IV 950 USD First Close: 300 USD (Dec-2009), UBS Investment Bank Veritas Capital Second Close: 500 USD (Feb-2010) US Private Funds Group Akin Gump Strauss Hauer & Feld APFC, Employees' Retirement System of the State of Hawaii, Illinois Municipal Retirement Fund, Iowa Public Employees' Retirement System COPERA, Constitution Capital Partners Europe Jones Day Employees' Retirement System of Texas, MSRPS US Equity Partners III 500 USD Used But Not Specified Paul, Weiss, Rifkind, Pennsylvania Public School Employees' Retirement System Wasserstein & Co US Wharton & Garrison Wellspring Capital Partners V 1,500 USD First Close: 205 USD (Apr-2009), North America Credit Suisse Private Paul, Weiss, Rifkind, FSBA, OPERF Wellspring Capital Management Second Close: 600 USD (Apr-2010) Canada, US Fund Group Wharton & Garrison Whitney VII 750 USD Los Angeles City Employees Retirement System, Pennsylvania SERS J.H. Whitney & Co US Seidler Equity Partners IV 400 USD First Close: 125 USD (Apr-2009) Seidler Equity Partners US Yucaipa American Alliance Fund II Yucaipa Companies 2,000 USD First Close: 1,500 USD (Feb-2009) North America Atlantic-Pacific Capital American Beacon Advisors, ASRS, CalPERS, Los Angeles City Employees Retirement System, MSRPS, Pennsylvania SERS Illinois TRS 2010 Preqin Ltd 11

12 12. Buyout-Backed Exit Activity - Sample Pages backed fund managers in Q1 2010, and 31% of exits in Q The value of secondary buyouts has also surged in 2010 compared to the previous year, with $18.5 million in secondary buyouts announced during H1 2010, double the value of secondary buyouts in Fig. 14.2: Number of Exits by Region: H H Exits by Region Figs and 14.3 show the number and aggregate value of private equity buyout-backed exits by region. The economic downturn impacted the number and value of exits in all regions during H and H and the aggregate value of exits fell by 77% between H and H However, in the second half of 2009 deal fl ow picked up and the aggregate value of exits increased three-fold between H and H North American exits make up a signifi cant proportion of all exits globally, accounting for the largest number and aggregate value of exits for each of the years shown. Between H and H the aggregate value of deals in the region increased signifi cantly from $2.1 billion to $12.5 billion. The aggregate deal value of European exits has remained the most stable during this period, but the proportion of global deal value accounted for by deals in this region has fl uctuated the most. During the economic downturn, in H and H1 2009, European deals accounted for nearly half of the global aggregate deal value, but in H this proportion decreased, with exits in the region accounting for one-third of global deal value. During the fi rst half of 2010, global exit activity increased substantially from H1 2009, with the aggregate value of exits standing at $66.1 billion, almost identical to the aggregate deal value in H Aggregate Exit Value ($bn) No. of Exits H H H H H Fig. 14.3: Aggregate Value of Exits: H H H H H H H Asia and Rest of World Europe North America Asia and Rest of World Europe North America 2010 Preqin Ltd 12

13 20. Buyout GP Profiles - Sample Pages Cape Natixis Established: Via Monte Rosa, Milan, 20149, Italy Tel: Web: Fax: info@cape.it Cape Natixis is a Milan-based firm positioned at the smaller end of the buyout market. The firm s investments focus on controlling stakes in profitable small and mid-market firms. Its target companies typically face generational succession issues and operate in traditional manufacturing industries, in the north of Italy. In addition to buyouts the firm can also provide development capital in specific circumstances. Since 1999, Cape Natixis has made more than 50 investments. With offices in China (Shanghai) and India (Bangalore) Cape help its portfolio companies to expand into those geographies, by creating local commercial or procurement offices or even production sites. Key Investment Criteria Buyout Industry Focus: Business Services, Clean Technology, Consumer Services, Manufacturing Geographic Preferences: Europe, West Europe, Croatia, France, Greece, Italy, Portugal, Spain Transaction Investment Size (mn): EUR 8 to 10 Equity Investment Size (mn): EUR 5 to 7 Target Company - Annual Revenue (mn): EUR 10 to 50 Target Company - Enterprise Value (mn): EUR 10 to 50 Holding Period (Years): 3 to 5 Board Representation: Prefer Shareholding: Prefer Controlling Funds Raised Fund Size (mn) Vintage Status Cape Natixis Private Equity Fund II 195 EUR 2007 Closed Cape Natexis Private Equity Fund 120 EUR 2004 Closed Notable Recent Investments Date Type Size (mn) Industry Location Duplomatic Automazione Nov-08 Buyout EUR 4 Industrial Italy Trafomec Nov-08 Buyout EUR 62 Energy Italy Gruppo ITP Oct-08 Buyout EUR 29 Manufacturing Italy AMF Aug-08 Buyout EUR 11 Retail Italy Garioni Naval Jul-08 Buyout EUR 16 Energy Italy BBI Electric Jul-08 Buyout EUR 5 Industrial Italy Simone Cimino Founder & Managing Partner s.cimino@cape.it Maddalena de Liso CFO m.deliso@cape.it Guido de Vecchi Managing Partner g.devecchi@cape.it Marco Vismara Managing Partner & CEO m.vismara@cape.it GP Investments Established: 1993 Avenue Brigadeiro Faria Lima, nº 3900, 7th floor, Itaim Bibi, Sao Paulo, , Brazil Tel: Web: Fax: GP Investments is a Latin American private equity company focused on the acquisition of mature companies with high potential for value creation. The company targets opportunities that allow for enhancement of shareholder value through improved management and operating techniques and by leveraging proven international business models adapted to the Latin American marketplace. GP Investments does not concentrate on any particular sector, nor is the company bound by macroeconomic considerations. GP Investments acquires only control or joint-control in companies to ensure that its proven strategy can be implemented. Key Investment Criteria Buyout Industry Focus: Diversified Geographic Preferences: Central America, South America, Brazil Transaction Investment Size (mn): USD 100 to 200 Equity Investment Size (mn): USD 100 to 200 Target Company - Annual Revenue (mn): At least USD 100 Holding Period (Years): At least 5 Board Representation: Required Shareholding: Prefer Controlling Funds Raised Fund Size (mn) Vintage Status GP Capital Partners V 1,100 USD 2008 Closed GP Capital Partners IV 1,300 USD 2007 Closed GP Capital Partners III 250 USD 2005 Closed GP Capital Partners II 800 USD 1997 Liquidated GP Capital Partners 500 USD 1994 Liquidated Notable Recent Investments Date Type Size (mn) Industry Location Magnesita SA Sep-07 Public to Private USD 641 Mining Brazil Pride International Land Drilling and E&P Services Business Aug-07 Buyout USD 1,000 Industrial US Antonio Co-Chairman, Co-CEO & IR antonio.bonchristiano Bonchristiano Mayra Gabriele mayra.fregonesi Investor Relations Fersen Lamas fersen.lambranho Co-Chairman & Co-CEO Thiago Rodrigues CFO Preqin Ltd 13

14 20. Buyout GP Profiles - Sample Pages Thomas H. Lee Partners Established: Federal Street, Boston, MA, 02110, US Tel: Web: Fax: Thomas H. Lee Partners invests in growth-oriented global enterprises, headquartered principally in North America, within three broad sectors: business and financial services, consumer and healthcare, and media and information services. Since its founding in 1974, the firm has acquired more than 100 portfolio companies and completed over 200 add-on acquisitions, with a combined value of more than USD 150 billion. Key Investment Criteria Buyout Industry Focus: Business Services, Consumer Services, Financial Services, Healthcare, Information Services, Media Geographic Preferences: Global, North America, West Europe, UK Transaction Investment Size (mn): USD 750 to 10,000 Equity Investment Size (mn): USD 250 to 1,000 Target Company - Annual Revenue (mn): At least USD 250 Target Company - Enterprise Value (mn): USD 750 to 10,000 Holding Period (Years): Up to 5 Board Representation: Required Shareholding: Controlling Funds Raised Fund Size (mn) Vintage Status Thomas H Lee VI 10,100 USD 2006 Closed Thomas H Lee V 6,114 USD 2000 Closed Thomas H Lee IV 3,350 USD 1998 Closed Thomas H Lee III 1,350 USD 1996 Liquidated Thomas H Lee II 568 USD 1989 Liquidated Thomas H Lee I 66 USD 1984 Liquidated Notable Recent Investments Date Type Size (mn) Industry Location InVentiv Health May-10 Public to Private USD 1,100 Healthcare US Sterling Financial Corp Apr-10 PIPE USD 850 Financial Services US MoneyGram Mar-08 Recapitalization USD 1,510 Financial Services US Ceridian Corporation May-07 Public to Private USD 5,300 Outsourcing US Charles Brizius Managing Director cbrizius@thl.com Anthony DiNovi Co-President adinovi@thl.com Scott Sperling Co-President ssperling@thl.com Gregory White Managing Director gwhite@thl.com 2010 Preqin Ltd 14

15 21. LP Attitudes to Buyout Funds - Sample Pages LP Attitudes to Buyout Funds Buyout funds that reached a fi nal close in 2009 raised $107 billion, less than half the $233 billion raised the year before. The fi nancial crisis made conditions for buyout investments more challenging and fundraising for the sector has suffered as a result. Distributions from funds to LPs have fallen due to the diffi cult exit environment meaning that LPs have not had to make new commitments to maintain their allocations to the sector. This, coupled with increased caution amongst LPs, has meant that securing new commitments from LPs has become a challenging prospect for many GPs. In order to ascertain investor attitudes towards buyout funds in the current fi nancial climate, Preqin surveyed 301 institutional investors in private equity funds in May 2010, and sought to establish how their allocations to buyout funds are set to change in the future. LPs Attitudes towards Buyout Funds in the Wake of the Financial Crisis The fi nancial crisis has had a signifi cant impact on investor attitudes towards private equity and on the areas of the market to which they are seeking to gain exposure. As shown in Fig. 22.1, the majority (57%) of LPs feel that their attitudes towards small and mid-cap buyout funds have not changed following the fi nancial crisis and more than a third, 36%, have become more positive. Only 2% of the surveyed investors have become more negative towards the smaller end of the buyout market. One such investor told us that the portfolio companies of small buyout fi rms will have a more diffi cult time accessing capital since they rely on bank fi nance and not capital markets fi nance. Large portfolio companies (typically backed by large buyout funds) do not have this problem. Perhaps unsurprisingly, LP attitudes towards large and mega buyout funds were more negatively affected by the credit crunch. As shown in Fig. 22.2, almost half of LPs (48%) said they had become more negative towards large and mega buyout funds after the fi nancial crisis. Just 3% of LPs told us they had become more positive about such funds. Investors in Asia and Rest of World are showing a particular interest in the smaller end of the buyout market. More than half (57%) of the respondents from the region stated that they felt more positive about small and mid-cap buyout funds following the fi nancial downturn. For example, a Japanese investment bank said it had seen better performance during the downturn from mid-cap funds. Fig. 22.1: Change in LP Attitudes towards Small and Mid-Cap Buyout Funds after the Financial Crisis Fig. 22.2: Change in LP Attitudes towards Large and Mega Buyout Funds after the Financial Crisis 2010 Preqin Ltd 15

16 22. Investors in Buyout Funds Listings - Sample Pages Arizona State Retirement System Public Pension Fund 3300 North Central Avenue, Phoenix, AZ, , US Tel: Web: Fax: Total Assets (mn): 24,000 USD PE Allocation (mn): 1,600 USD (6.7% of Assets) PE Investment Consultant: Ennis Knupp and Associates, Franklin Park, Meketa Investment Group General Consultant: New England Pension Consultants Small Buyout Medium Buyout Large Buyout Mega Buyout Sample Investments: Blackstone Capital Partners VI (2010), Bridgepoint Europe IV (2009), JLL Partners Fund VI (2009), Lincolnshire Equity Fund IV (2009), Onex Partners III (2009), Accel-KKR Capital Partners III (2008), Apollo Investment Fund VII (2008), CVC European Equity Partners V (2008), Levine Leichtman Capital Partners IV (2008), LLR Equity Partners III (2008), Quantum Energy Partners V (2008), Yucaipa American Alliance Fund II (2008), Carlyle Partners V (2007), Jordan Resolute Fund II (2007), Nautic Partners VI (2007), New Mountain Partners III (2007), Oak Hill Capital Partners III (2007), Platinum Equity Capital Partners Fund II (2007), Silver Lake Partners III (2007), Thomas H Lee VI (2006) Gary Dokes CIO garyd@azasrs.gov Richard Henkel Private Equity Portfolio Manager richardh@azasrs.gov Ethan Hurley Assistant Private Equity & Real Estate Portfolio Manager ethanh@azasrs.gov Furuholmen Invest Family Office - Single SØRKEDALSVEIEN 24, Postboks 94, Oslo, 0369, Norway Tel: No Website Available Fax: Total Assets (mn): 1,500 NOK PE Allocation (mn): 75 NOK (5.0% of Assets) Small Buyout Medium Buyout Large Buyout Mega Buyout Sample Investments: EQT V (2006) Hans Furuholmen Investment Manager hf@fi-as.no Ketil Rosenlund Administrator, Investments kr@fi-as.no Future Fund Sovereign Wealth Fund Future Fund Management Agency, Locked Bag 20010, Melbourne, VIC, 3001, Australia Tel: +61 (0) Web: Fax: +61 (0) contact@futurefund.gov.au Total Assets (mn): 67,622 AUD PE Allocation (mn): 1,482 AUD (2.2% of Assets) PE Investment Consultant: In-House General Consultant: In-House, Towers Watson Sample Investments: CDH China Fund IV (2010) Steve Byrom Investment Director, Private steve.byrom +61 (0) Gary Gabriel Head of Private Markets +61 (0) gary.gabriel@futurefund.gov.au David George Senior Analyst, Fixed Interest & david.george +61 (0) Brian Watson Global Head, Private Equity +61 (0) Indiana Public Employees' Retirement Fund Public Pension Fund Harrison Building, Suite 800, 143 W. Market, Indianapolis, IN, 46204, US Tel: Web: Fax: questions@perf.in.gov Total Assets (mn): 14,200 USD PE Allocation (mn): 1,065 USD (7.5% of Assets) PE Investment Consultant: Strategic Investment Solutions General Consultant: Mercer Investment Consulting Sample Investments: Hellman & Friedman VII (2010), Triton Fund III (2009), Advent Global Private Equity VI (2008), Ares Corporate Opportunities Fund III (2008), CVC European Equity Partners V (2008), Herkules Private Equity Fund III (2008), Lindsay Goldberg - Fund III (2008), MBK Partners II (2008), Mill Road Capital (2008), TowerBrook Investors III (2008), Actis Emerging Markets 3 (2007), Clarity Partners China (2007), Hellman & Friedman VI (2007), Lion Capital Fund II (2007), New Mountain Partners III (2007), Silver Lake Partners III (2007), Terra Firma Capital Partners III (2007), Vista Equity Fund III (2007), Court Square Capital Partners II (2006), Lindsay Goldberg - Fund II (2006), TowerBrook Investors II (2006) John Borgo Senior Investment Analyst jborgo@perf.in.gov David Cooper CIO dccooper@perf.in.gov Greg Davis Director, Private Equity gedavis@perf.in.gov National Pensions Reserve Fund Sovereign Wealth Fund National Treasury Management Agency, Treasury Building, Grand Canal Street, Dublin, 2, Ireland Tel: +353 (0) Web: Fax: +353 (0) info@nprf.ie Total Assets (mn): 17,480 EUR PE Allocation (mn): 489 EUR (2.8% of Assets) Small Buyout Medium Buyout Large Buyout Mega Buyout Sample Investments: Summit Partners Europe Private Equity (2010), Clayton Dubilier & Rice VIII (2009), CVC European Equity Partners V (2008), Nordic Capital Fund VII (2008), TPG Partners VI (2008), CVC European Equity Partners IV Tandem Fund (2007), Hellman & Friedman VI (2007), Jordan Resolute Fund II (2007), New Mountain Partners III (2007), Providence Equity Partners VI (2007), TA Atlantic & Pacific VI (2007), Charterhouse Capital Partners VIII (2006), Madison Dearborn Capital Partners V (2006), Texas Pacific Group Partners V (2006), Clayton Dubilier & Rice VII (2005), CVC European Equity Partners IV (2005), Vestar Capital Partners V (2005) Nick Ashmore Head of Private Equity +353 (0) Ext nashmore@ntma.ie James Brennan Private Equity Analyst +353 (0) jbrennan@ntma.ie Eileen Fitzpatrick Director, Alternative Assets +353 (0) efitzpatrick@ntma.ie Sony Life Insurance Insurance Company 1-1, Minami Aoyama 1-chome, Minato-ku, Tokyo, , Japan Tel: +81 (0) Web: Fax: +81 (0) info-e@sonylife.co.jp Total Assets (mn): 40,000 USD PE Allocation (mn): 500 USD (1.3% of Assets) PE Investment Consultant: In-House Small Buyout Medium Buyout Large Buyout Mega Buyout Sample Investments: Bridgepoint Europe IV (2009), PAI Europe V (2008), Charterhouse Capital Partners VIII (2006), PAI Europe IV (2005) Mamoru Numata Manager, Alternative Investments +81 (0) Preqin Ltd 16

17 2010 Preqin Private Equity Buyout Review: Order Form The 2010 Preqin Private Equity Buyout Review is the ultimate guide to the global buyout market, featuring detailed analysis on all aspects of the market, comprehensive fund listings, plus profi les for the most prominent and active fund managers and institutional investors worldwide. Key features of this publication include: The 2010 Preqin Private Equity Buyout Review Detailed analysis examining the history and development of the industry, fundraising trends, performance analysis, dealfl ow, fund manager universe, institutional investors, buyout service providers, fund terms and conditions and much more... Profi les for 500 buyout fi rms, including direct contact details, fi rm investment strategies, recent deals, fund details and more. Listings for over 600 investors in buyout funds, including sample investments, fund size preferences and direct contact details. Listings for funds raised historically, funds currently raising, performance metrics for over 1000 funds, league tables for biggest fi rms and much more Preqin Private Equity Buyout Review Order Form - Please complete and return via fax, or post I would like to purchase the 2010 Preqin Private Equity Buyout Review Shipping $1,345 + $40 Shipping Shipping Additional Copies Shipping $180 + $20 Shipping Shipping (Shipping costs will not exceed a maximum of 15 / $60 / 37 per order when all shipped to same address. If shipped to multiple addresses then full postage rates apply for additional copies) I would like to purchase the 2010 Preqin Private Equity Buyout Review Graphs & Charts Data Pack in MS Excel Format: (contains all underlying data for charts and graphs contained in the publication. Only available alongside $300 / 175 / 185 purchase of the publication). Name: Firm: Job Title: Address: City: Post / Zip Code: Country: Telephone: Payment Options: *Security Code: Cheque enclosed (please make cheque payable to Preqin ) Credit Card Visa Mastercard Amex Visa / Mastercard: the last 3 digits printed on the back of the card. Please invoice me Card Number: Expiration Date: Name on Card: Security Code*: American Express: the 4 digit code is printed on the front of the card. Equitable House, 47 King William Street, London, EC4R 9AF 230 Park Avenue, 10th fl oor, New York, NY Samsung Hub, 3 Church Street, Level 8, Singapore , w: / e: info@preqin.com / t: +44 (0) or / f: +44 (0) or