Private Equity Trends 1Q 2012 Presentation Slide Deck Try the PitchBook Platform: Email: [email protected]@pitchbook.com Phone: 1-877-267-5593 Consult.

Private Equity Trends 1Q 2012Presentation Slide Deck

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Private EquityDeal Flow

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2011 PE Investment Above 2009 LowsNumber of Deals Closed (red line) and Total Capital Invested by Year (blue bars)

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2011: The Year of Two HalvesNumber of Deals Closed and Total Capital Invested by Quarter

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Midwest Led PE Deal Flow with 360 Deals Percentage of Deal Volume (count) by Region

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B2B and B2C Dominate PE Deal ActivityPercentage of Deal Volume (count) by Industry

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B2B and B2C Deal Flow Increased in 2011Percentage of Deal Volume (count) by Industry

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Capital Investment Continued Shift to IT, Healthcare & EnergyPercentage of Deal Volume (capital) by Industry

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Deals Under $250M Accounted for 75% of Deal FlowPercentage of Deal Volume (count) by Deal Size Range

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Large Deals Attracted More Capital InvestmentPercentage of Deal Volume (capital) by Deal Size Range

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Add-ons Continue to Sweeten DealsAdd-on Deals as Percentage of Buyout Deals

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Median Buyout Size Hit New Record Median Capital Invested in U.S. PE Transactions

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Still Low Leverage in the Middle MarketPercentage of Debt Used in Buyouts

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Buyout Multiples Finished Close to 2008 High EBITDA Multiples of Buyout Transactions

Private EquityExits

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Private Equity Exits on Par with 2010Annual PE Exits by Corporate Acquisition, IPO and Secondary Sale

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Exit Strategies Consistent with Long Term AveragesPercentage of P.E. Exit Volume (count) by Exit Type

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Private Equity Investors Exited $108B of Investments Quarterly PE Exits by Corporate Acquisition, IPO and Secondary Sale

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Corporate Acquisitions Dominated ExitsMedian Exit Size ($M)

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PE Exits Likely to Stay Strong in 2012 Number of U.S. Private Equity Company Inventory by Deal Year

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Inventory Buildup Resulted in Increased Holding Length Median Time from Buyout to Exit

Private EquityFundraising

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Company Inventory & Capital Overhang Stall FundraisingNumber of Funds Closed and Total Capital Raised by Year

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Fundraising Remained FlatNumber of Funds Closed and Total Capital Raised by Quarter

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Funds Under $1B Accounted for 39% of U.S. PE FundraisingPercentage of U.S. P.E. Funds (capital) by Fund Size

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Middle Market Funds Dominate FundraisingPercentage of U.S. P.E. Funds (count) by Fund Size

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PE Investors Sitting on $425B of Dry Powder Capital Overhang of US PE Investors by Vintage Year

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New GPs are Entering the Private Equity IndustryNumber of Funds Closed by Year

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Funds are Closing FasterAverage Time to Close U.S. PE Funds

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Average 2011 Vintage Fund 13% Larger than 2010 Average Fund Size ($M)

Greater Private EquityPerformance

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PE Led in Average IRR For 7 Consecutive VintagesAverage Fund IRR by Vintage Year and Fund Type

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Fund Performances Bounced Back Median 1-Year Rolling Horizon IRR by Fund Type

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Private Equity Outperforming in the Long RunHorizon IRR – Private Equity, Venture Capital and Public Index

Private EquityPerformance

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Larger Funds Lead Returns Across VintagesPrivate Equity Average Fund IRR by Vintage Year

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Larger Funds Recently Yielded Higher Returns Private Equity Horizon IRR by Fund Size

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Recent PE Funds Hit Positive IRR in 2010Median IRR by Years Since First Investment

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LPs Waiting for Distribution for 2003 & Younger Funds Average Private Equity Return Multiples by Vintage Year

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Dramatic Quartile DifferencesPrivate Equity IRR Quartiles by Vintage Year

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Matured Funds Called 92% of Committed CapitalPrivate Equity Capital Call

Venture CapitalPerformance

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Mid-Sized VC Funds Showed Growth TrendVenture Capital Average Fund IRR by Vintage Year

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$150M-$250M Funds Generated 2nd Highest ReturnsVenture Capital Horizon IRR by Fund Size

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Economy Impacted Returns More than Fund AgeMedian IRR by Years Since First Investment

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TVPI Shows Improvement, DPI Remains Low Average Venture Capital Return Multiples by Vintage Year

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VC Funds in Upper Quartiles Show Positive ReturnsVenture Capital IRR Quartiles by Vintage

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High % of Committed Capital for New InvestmentsVenture Capital Call

Fund of FundsPerformance

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Fund of Funds Delivered Returns Across VintagesFund of Funds IRR Quartiles by Vintage

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Fund of Funds Slower to Distribute Capital Average Fund of Funds Return Multiples by Vintage Year

MezzaninePerformance

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Strong and Consistent Performance Across VintagesMezzanine IRR Quartiles by Vintage

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Mezzanine Funds Fastest in Distribution of Capital Average Mezzanine Return Multiples by Vintage Year

Real EstatePerformance

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Top Quartiles Show Slow RecoveryReal Estate IRR Quartiles by Vintage

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2004 – 2008 Funds Still RecoveringAverage Real Estate Return Multiples by Vintage Year

Non-U.S. InvestorPerformance

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PE Vintages Under 2004 Perform Closely to U.S. Counterparts Average Non-U.S. PE Return Multiples by Vintage Year

Source:PitchBook

VC 2001-2004 Vintages Perform Better than U.S. Counterparts Average Non-U.S. VC Return Multiples by Vintage Year

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