PE Global Capital Confidence Barometer … Equity Global Capital Confidence Barometer 3 >a_mj] -&

Issue 4 Outlook May 2013–October 2013

About this survey

The

••

•

• •

2 Private Equity Global Capital Confidence Barometer

55%

Improving Stable Declining

17%35%

14%

37%

42%

31%

46%23%

55%

Apr 12 Oct 12 Apr 13

Apr 13 Oct 12 Apr 12

% positive view

56%

55%

44%

39%

36%

26%

32%

22%

20%

20%

14%

9%

49%

40%

31%

31%

25%

2%

Economic growth

Corporate earnings

Credit availability

Employment growth

Equity valuations/stockmarket outlook

Short-term market stability

66%

More than 5% 0%

3%–5% 15%

1%–3%

Zero growth 13%

Negative growth 6%

19%34%

12%

28%24%

36%

53%42% 52%

Apr 12 Oct 12 Apr 13

Improving Stable Declining

3Private Equity Global Capital Confidence Barometer

64%

64%

36%

Yes

No

44%

44%Slowing growth inemerging markets

40%Stagnation in the Eurozone

15%US debt ceiling challenges

4 Private Equity Global Capital Confidence Barometer

85%

49%18%

46%34%

33%24%

26%8%

18%6%

9%7%

1%3%

13 12

16%Zero

9%21%–50%

34%11%–20%

16%Over 50%

3%Don't know

22%<10%

5Private Equity Global Capital Confidence Barometer

10%40%

41%Less than 30%

23%9%

10%30%–35%

9%10%

12%36%–40%

14%14%

8%40%–45%

19%10%10%

46%–50%

22%18%

21%Over 50%

Apr 13 Oct 12 Apr 12

% saying yes

38%

43%

31%

25%29%

Apr 11 Oct 11 Apr 12 Oct 12 Apr 13

Increase Remain at current levels Decrease

13% 20%6%

44% 41%

30%

43% 39%64%

Apr 12 Oct 12 Apr 13

6 Private Equity Global Capital Confidence Barometer

42%

57%

% respondents positive

Likelihood of closingacquisitions

37%22%

44%

Quality of acquisitionopportunities

44%20%

38%

57%36%

48%

Number of acquisitionopportunities

Apr 13 Oct 12 Apr 12

India China SoutheastAsia

WesternEurope

United States and

Canada

Turkey Mexico Africa Russia/CIS

Brazil Central/EasternEurope

OtherLatin

America

6%

32%

62%

4%

34%

62%

20%

33%

47%

6%

35%

59%

9%

49%

42%

5%

49%

46%

15%

50%

35%

16%

46%

38%

27%

41%

32%

31%

42%

27%

23%

63%

14%

22%

47%

31%

Increase No change Decrease

April 2013 October 2012

7Private Equity Global Capital Confidence Barometer

22%

Lack of attractive targets 22%

Increased valuations 11%

Regulatory risk (includingtax exposure) 19%

Political risk 11%

Risk of not closing the deal 8%

8%

Local business governance practices 21%

8 Private Equity Global Capital Confidence Barometer

24%

26%Strategic value overestimated/purchase price multiple too high

24%Sales volume declines

24%Poor execution of investment thesis

23%Sales price deterioration

23%Underperforming management team

17%Poor operating cost assumptions

15%Unforeseen liabilities (tax, HR,pension, etc.)

12%Expectations from recent acquisitionshave all been met

10%Loss of customers

56%Revenue enhancement initiatives

47%Management alignment withnew plans/leadership

37%Reporting

34%Cost control/improvements

32%Cash generation initiatives

22%Internal controls improvements

15%IT improvements

3%Use of third-party consultants

3%Do not use 100-day/valuecreation plans

Create jobs/hire talent Keep current workforce sizeReduce workforce numbers

PE portfolio companies

9%

42%

49%

Corporations

10%

48%

42%

Private Equity Global Capital Confidence Barometer

Private Equity Global Capital Confidence Barometer

•

•

•

•

78%

24%

40%12–24 months before exit

4%On hiring advisors

15%At the time of the acquisition

2%Less than 6 months before exit

1%Other

38%6–12 months before exit

43%53%

Secondary or sale to

33%32%Trade sale

24%15%IPO

Apr 13 Oct 12

25%$20 billion and above

26%$1 billion to lessthan $5 billion

19%$5 billion to less than$20 billion

30%$250 million to lessthan $1 billion

40%North America

4%Eastern Europe

21%

2%Latin America

2%Middle East and Africa

31%Western Europe

| | |

Global