Private Equity Classification Changes November 2008
Private Equity Classification Changes November 2008 On November 1, 2008, VentureXpert, LPXpert and Thomson ONE Banker customers will see changes to the Financing Stage, Firm Type and Fund Type classifications in Private Equity components. Purpose of the Changes The Financing Stage, Firm Type and Fund Type classifications for Private Equity/Venture Capital data have been updated in order to provide more consistent and relevant categories for searching and reporting. Changes to Searching and Reporting Some financing stage categories have been combined (See Appendix A-D below). These changes will be reflected in the Stage Lookup values on search screens and report outputs. The Firm Type and Fund Type categories have been consolidated (See Appendix E and Appendix F). These changes will be reflected on firm and fund profiles and the firm and fund type criteria in profile search In any case where a stage, firm or fund type has been removed, all entries have been reviewed and reclassified by our analysts Saved Searches In order to ensure that user saved searches are not impacted by this change, search criteria will be automatically mapped from previous categories to new categories. Customer can expect to see changes to the criteria in saved searches that reflect the classification mappings outlined in the Appendices. For More Information For more questions regarding the classification changes, please contact customer support : Canada 800-662-7878 (toll free) 1-646-822-3636 ThomsonONEBankerSupportUS@thomson.com France 00 33 1 53 32 39 37 TF.HelpdeskFR@thomson.com Germany +49(0)69-7140-5533 TF.HelpdeskDE@thomson.com Hong Kong +852-3762-3588 ib.support.asia@thomson.com Japan +813-5218-6580 9:00-18:00 M-F tf.bbsupport.jp@thomson.com Latin America 800-662-7878 (toll free) 1-646-822-3636 ThomsonONEBankerSupportUS@thomson.com United States 888-463-3383 ThomsonONEBankerSupportUS@thomson.com Philippines +632-8785-777 ib.support.asia@thomson.com United Kingdom +44 (0)870-191-0596 ib.support.europe@thomson.com Singapore +65-6735-1395 ib.support.asia@thomson.com Australia 1 800 002 996 (toll free) +612-9225-3145 ib.support.asia@thomson.com
Appendix A Financing Stage Changes Old Financing Stage Combined into Financing Stage Definition of Combined Stages StartUp/ StartUp First Stage Other Second Stage Other Later Stage A relatively small amount of capital provided to an entrepreneur to prove a concept. General Guidelines: Newly-formed companies. Generally in existence for less than one year. May not have website. Incomplete Executive Structure. Team may only be CEO and Founders. No products Typically the first institutional round of financing for companies in development or beginning to provide products/ services. General Guidelines: The company is in existence for 1 or 2 years (not absolute). Products may be in development or undergoing clinical trials. Example for pharmaceuticals companies who are undergoing human drug trials. For software companies, their products are on beta testing. The company may have recently launched its product/service. The company already has a website but can be under construction or in stealth mode. Company is starting to hire additional staff. Working capital for the expansion of a company's development or product line. General Guidelines: PR states that a company will use their investment for expansion purposes. Company may have full management team. They are starting to expand their customer base.
Third Stage Other Later Stage Bridge Later Stage These funds are utilized for large scale expansion, marketing, and working capital or development of an improved product. General Guidelines: The company is in existence for several years. Products/ services are established and continually being marketed. The company usually has a complete executive lineup. The Company may be considering IPO. Buyout/Acquisition Acquisition The control, possession or ownership of a private company by another corporation. Acq. For Funds provided to a company to finance its acquisition of other companies or assets. A consolidator of companies in specific industries. LBO A fund investment strategy involving the acquisition of a product or business, from either a public or private company, utilizing a significant amount of debt and little equity. Recap/Turnaround Financing provided to a company at a time of operational or financial difficulty with the intention of improving the company's performance. MBO The company's executives buy or acquire a large part of the company. MBI Management team from outside the company buys or acquires a large part of the company. Secondary Buyout A buyout deal on top of a buyout deal. Secondary buyouts are distinguished when the initial firm investor is different from the current investing firm. Pending Acquisition The deal is considered as Pending Acquisition when the company has a pending buyout, pending acquisiton or pending acquisition for expansion deal by a PE Firm. A pending acquisition should only be used when the deal is an agreement already and not just a bid or offer. Other Acquisition Other Special Situation Combined into Financing Stage
Other Secondary Purchase Purchase of shares/stock in a company from an existing shareholder (PE Firm) rather than purchasing stock directly from the company. Open Market Purchase Purchase of publicly traded shares of a company in the open market. Private Investment in Public Company Other Special Situation Renamed PIPE Combined into Financing Stage Other A type of financing for companies that are already trading on the public. Bridge Loan A kind of short-term financing that allows a company to continue running until it can arrange longer-term financing. VC Partnership A fund makes an investment in another fund.
Appendix B Financing Stage Changes Stage Look Up 1 There are no changes to the Stage Look Up 1 Values
Appendix C Financing Stage Changes Stage Look Up 2 Old Financing Stage Start Up Other Later Stage Acquisition Public Market VC Partnership Other Unknown Special Situation Combined into Financing Stage Other
Appendix D Financing Stage Changes Stage Look Up 3 Old Financing Stage Start Up First Stage Other Early Second Stage Other Third Stage Other Later Stage Bridge Acquisition Acquisition for LBO Recap/Turnaround MBO MBI Secondary Buyout Other Acquisition Pending Acquisition Secondary Purchase Open Market Purchase Private Investment in Public Company Bridge Loan VC Partnership Unknown Special Situation Other Special Situation Combined into Financing Stage Later Stage Renamed PIPE Other
Appendix E Firm Lookup Changes Old Firm Classification Affiliate/Subsidary of Oth. Financial. Instit. Commercial Bank Affiliate or Subsidiary Investment/Merchant Bank Subsidiary or Affiliate Bank Group Investment/Merchant Bank Investing Own or Client Funds Other Service Provider Accounting Firm Mgt. Consulting Firm Venture Consulting Firm Law Firm Placement Agent Private Equity Advisor or Fund of Fund Mgr Corporate Subsidiary or Affiliate Corporate Venture Program Insurance Firm Affiliate or Subsidiary Incubators Business Development Fund Endowment Pension Fund-Corporate Pension Fund-Public Profit Sharing Fund Other Govt Program Federal Govt Affiliated Program State Govt Affiliated Program Investment Management Firm /Finance Consulting SBIC Not elsewhere classified MESBIC not elsewhere classified Individuals Investment or Angel network Other NEC Private Equity Firm Investing Own Capital University Affiliated Program Unknown Mapped to Firm Classification Bank Affiliated Service Provider Renamed Private Equity Advisor or Fund of Funds Corporate PE/Venture Renamed Insurance Firm Affiliate Incubator/Development Program Endowment, Foundation or Pension Fund Government Affiliated Program Renamed Investment Management Firm SBIC Renamed Angel Group REMOVED Renamed Private Equity Firm Renamed Other
Appendix F Fund Lookup Changes Old Fund Classification SBIC Private Partnership SBIC Investment Co not classified SBIC Affiliated with Commercial Bank SBIC Affiliated with Investment/Merchant Bank SBIC Affiliated with Non Financial Corp SBIC Affiliated with University/Endowment/Found MESBIC Public SBIC SBIC Affiliated with Other Financial Institution Independent Private Partnership Partnership not classified Other Fin.Institution Affil or Subsid. Partnership Commercial Bank Affil. or Subsidiary Partnership Insurance Affil. or Subsid Partnership Direct Investor - Commercial Bank Affil/Subsid. Direct Investor-Financial Corp. Venture/PE Subsidiary of Commercial Bank Venture/PE Subsidiary of Insurance Company Venture/PE Subsidiary of Other Fin. Institution Investment Bank Affil. or Subsidiary Partnership Direct Investor-Investment/Merchant Bank Venture/PE Subsidiary of Investment/Merchant Bank Non Financial Corp. Affil or Subsid. Partnership Direct Investor/Non Financial Corp Venture/PE Subsidiary of Service Providers Venture/PE Subsidiary of Non Financial Corp. Venture/PE Subsidiary of Other Companies NEC Direct Investor-Service Provider National Government Program Govt Agency Affil. or Subsidiary Partnership State Program Investment Adv.Firm Partnership (Non Fund of Fund) Investors not classified Public Venture Funds University Program Non partnership Business Development Program Community Development Program Mapped to Fund Classification SBIC Independent Private Partnership Other Banking/Financial Institution Investment Bank Corporate PE/Venture Fund Government Renamed Investment Advisory Affiliate REMOVED REMOVED Renamed University Development Program Business/Community Development Program
Partnerships for Secondary Portfolio Purchases Fund of Fund Partnerships Direct Investor-General Partner/Fund Manager Direct Investor-Family Groups Direct Investor-Individuals Direct Investor-Individuals/Families Not Classif. Direct Investor-Investee Company Management Direct Investor-Entrepreneur Evergreen Funds Direct Investor-Companies not Classified Direct Investor-Endowment/Foundation Direct Investor-Corporate Pension Fund Direct Investor-Public Pension Fund Venture/PE Subsidiary of Endowment/Foundation Endowment/Foundation Affil. or Subsid. Partnership Renamed Secondary Purchase Renamed Fund of Funds Angel Individuals Renamed Evergreen Renamed Other Endowment, Foundation, or Pension Fund