Nordic Private Equity Summit Europe PE overview Sachin Date Private Equity Leader 20 June 2017

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1 Nordic Private Equity Summit Europe PE overview Sachin Date Private Equity Leader 20 June 2017

2 Europe market overview Stats at a glance Key Europe PE stats at a glance YTD PE funds closed Committed capital ($b) Announced PE deals Announced PE deal value ($b) PE-backed M&A exits ($b) PE-backed IPOs Source: Preqin, Dealogic. YTD 2017 through June 2017

3 Fundraising remains strong for Europe-focused funds Record fundraising in 2016 second highest during the last 15 years Europe PE fund-raising by year (in US$b) Europe has seen straight years of successive increases in fundraising since Last year saw record US$162b raised by PE funds focused on the region. $180 $160 $140 $120 $100 $80 $60 $40 $ Source: Preqn YTD 0 Top 5 funds closed ytd 2017 Fund Firm Type Amount raised Close date AlpInvest Secondaries Fund VI AlpInvest Partners Secondaries Mar-17 EQT Infrastructure III EQT Funds Management Infrastructure Feb-17 HgCapital 8 HgCapital Buyout Feb-17 EQT Mid Market Europe Orion European Real Estate Fund V EQT Buyout May-17 Orion Capital Managers Real Estate Mar-17 Source: Preqin

4 Dry powder is climbing At its highest point since 2010 Globally, the industry has US$1.5 trillion in capital available for deals 24% of this is focused on Europe. Global PE dry powder by region (in US$b) Europe US$368b US US$860b Asia-Pacific and the rest of world US$306b Source: Preqin European dry powder, All Private Equity by Europe Focus (in US$b) $400 $350 $300 $250 $200 $150 $100 $ YTD Source: Preqin

5 Europe PE activity remains steady Deal value has remained steady during ; it has risen by 30% since 2010 Europe PE acquisitions by year (in US$b) PE acquisition activity continues to remain steady thought it has faced several volatile conditions such as BREXIT, Greek financial crisis, etc after the Great Recession. $300 $250 $200 Value (US$b) Volume While activity has yet to revisit the historic high of US$251b set in 2007, PE investments in 2016 climbed to US$106b (30% higher than in 2010), aided by positive economic fundamentals and significant amounts of dry powder. $150 $100 $ YTD has thus far seen US$37b in announced deals. Source: Dealogic Top 5 announced PE acquisitions In 2017 Company Value (Euro b) PE firm STADA Arzneimittel AG 5.2 Cinven-Bain consortium Sector Medical: Pharmaceuticals ENGIE E&P International S.A. (70% Stake) 4.7 Neptune Oil & Gas Limited Aon plc (benefits outsourcing division) 4.0 Blackstone Group LP Sponda Oyj 3.6 Blackstone Group LP Q-Park N.V. 3.0 Kohlberg Kravis Roberts & Co. L.P. Source: Mergermarket Energy Services (other) Real Estate Services (other)

6 Significance of secondary buyouts Secondaries dipped first time in last four years; PE firms were in exit mode while Strategics were competing aggressively for assets Value of Europe secondary buyouts by year (in US$b) Secondary activity remains high across Europe but has declined from 2015 when it was more than 40% of European PE deals. $60 $50 $40 $30 $20 $ YTD Source: Dealogic Top 5 announced acquisitions In 2017 Company Value m) PE firm (acquiror) Cerba HealthCare SAS 1,800 Partners Group Holding AG; Public Sector Pension Investment Board PE firm (seller) PAI Partners SAS Zabka Polska sp. z o.o CVC Capital Partners Limited Mid Europa Partners LLP ConvaTec Group PLC (19.95% Stake) 1170 Novo A/S Nordic Capital; Avista Capital Partners, LP Compania Logistica de Hidrocarburos CLH, S.A. (25% Stake) 1000 CVC Capital Partners Limited Ardian; Alberta Investment Management Corporation; Kutxabank S.A.; Abanca Corporacion Bancaria, S.A. Zenith Group Holdings Limited 879 Bridgepoint Advisers Limited HgCapital Source: Mergermarket

7 Valuations remain PE firms biggest challenge EBITDA multiples remain high Valuations trended higher in 2014, a result of an improved macro situation, a higher stock market, and corporates getting more involved in M&A. Valuations in 2017 were higher than last year especially in the middle market of $ m deals, usually the PE market domain. Multiples remain high for PE due to ever increasing dry powder and competition for good assets. Corporate M&A valuations declined during 2016 due to uncertainty because of BREXIT and other geopolitical factors. M&A multiples since 2000 (Enterprise value/ebitda of announced deals) $16 $14 $12 $10 $8 10,99 10,68 11,34 10,24 10,51 9,46 11,01 10,84 9,09 9,68 12,61 12,78 12,97 11,88 12,00 12,66 11,60 11,38 9,64 9,10 10,83 12,47 11,12 11,22 9,70 9,41 10,85 10,65 13,55 12,17 12,51 11,55 10,87 10,58 11,35 10,18 $6 $4 $ YTD Total EV/EBITDA m (Middle Market) Source: Dealogic: includes 7,791 deals over the period with disclosed EV/Ebitda multiples for Europe-based targets Global Private Equity 2014 Trends and Stats

8 From PE houses to asset managers - PE firms continue to diversify Firms are expanding well beyond the traditional buyout model PE firms of all sizes continue to expand beyond the traditional buyout model into hedged strategies, credit, real estate, venture, and other asset classes. Capital Markets Among the drivers is the trend which has seen many LPs seek to rationalize their alternative investment portfolios and reduce the number of managers they back in order to streamline complexity and management fees paid to funds. Venture Advisory Private Equity Hedge Funds Infrastructure Fund-of-funds Real estate Distressed/ credit

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