Breakdown 3Q The Private Equity. Total Private Equity Deal Flow

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1 The Private Equity Breakdown Q 2009 PitchBook Data, a private equity-focused research firm, has published a comprehensive set of statistics analyzing United States private equity investment activity during the first half of The period marked the slowest six months since 2002 with only 08 completed investments. Despite the current economic downturn, private equity firms are continuing to find attractive opportunities. In addition to the 17 completed deals in the second quarter, another deals were announced (but have yet to close) totaling $6. billion. The data also show that lower and middle-market companies are receiving more attention from PE firms as investors seek out attractively priced investment opportunities that can be done with less leverage. Through the first half of the year, these middle-market deals accounted for 70% of all investments. Also remaining a key area of focus for investors is add-on acquisitions, which accounted for almost 0% of the overall deal flow so far in Total Private Equity Deal Flow Deal volume continues to decline, albeit at a slower rate, as investors regroup, shift toward smaller deals and utilize less leverage. The number of deals in 2Q 2009 declined 2.9% from 2 in 1Q The capital invested in 2Q 2009 declined 1.% from $1.6 billion in 1Q Contact PitchBook: l (212) l demo@pitchbook.com

2 PE Transactions by Industry Sector, 1H 2009 PE Transactions by Region, 1H 2009 Consumer Products & Services (B2C) and Business Products & Services (B2B) made up the majority of deal flow, each with 28% of the completed deals in the first half of Information Technology and Energy remained steady, while Materials & Resources, Financial Services, and Healthcare saw minor contractions as a percentage of deal flow. Regional investment trends remained similarly distributed throughout the country. The West Coast and Mid-Atlantic regions saw a modest increase in their share of deal flow, while the Midwest experienced the largest decline from 2% in 1Q 2009 to 19% in 1H Percent of PE Transactions (Count) by Deal Size Percent of PE Investment (Total $ Amount) by Deal Size Deals under $20 million continue to surge, making up 89% of deal flow in the first half of Deals above $20 million slid from nearly 0% of deal flow in 2007 to slightly over 10% as leverage for large deals dried up. Deals over $2. billion accounted for nearly 0% of capital invested, despite making up only 2% of total deal flow during the first half of At the same time, deals below $20 million continued their resurgence, accounting for 16% of the capital invested during the first half of Contact PitchBook: l (212) l demo@pitchbook.com

3 Add-Ons as a Percentage of Deal Flow Add-on activity has remained a steady presence in recent quarters despite declining deal volume, making up over 28% of deals on average and over 2% of 2Q 2009 deals. The consistent level of add-on activity hints that, while firms have slowed their pace of investment overall, they continue to believe that add-ons are an important aspect of their existing portfolio companies growth. Median Deal Amount by Year Median Deal Amount by Deal Type The effects of tightening credit markets manifested themselves in the median deal size during the first half of The median deal size for 1H 2009 was $2 million, which is well below the annual medians for each of the last 6 years. The median deal size in all categories declined significantly as investors focused on lower and middle-market deals. Medians may begin to rise as credit loosens and investors put larger amounts of the nearly $00 billion in dry powder to work. Contact PitchBook: l (212) l demo@pitchbook.com

4 The State of Private Equity Fundraising PitchBook s aggregated data and statistics for private equity fundraising in the first half of 2009 show that U.S. private equity funds were closed, raising over $81 billion. The second quarter of 2009 saw 17 funds close for a total of $27 billion, versus 27 funds closed for a total of $ billion during the first quarter of Funds between $00 million and $1 billion continued to lead the charge with 11 funds closed, closely followed by funds ranging from $100 million to $20 million and those $1 billion to $ billion, each of which closed 9 funds. While the overall number of funds closed has declined, there continues to be demand for large and mega-funds, further adding to the $00 billion of dry powder already on the sidelines (as reported by PitchBook in June 2009).* Look for fundraising to stay slow in the near term as investors watch for signs of life in the economy and limited partners wrestle with the denominator effect on their current asset allocations. A slowly improving economy should drive investors to put the current capital overhang to work and invest in new portfolio companies at a relative discount. Fundr aising Activity The number of funds raised in 1H 2009 declined % compared to 9 funds in 1H Total capital raised in 1H 2009 declined % compared to the $180 billion raised in 1H Largest Funds Closed in 1H 2009 Firm Apollo Investment Management The Carlyle Group First Reserve The Carlyle Group/Riverstone Lindsay Goldberg The Blackstone Group Fund Apollo Investment Fund VII Carlyle Partners V First Reserve Fund XII Carlyle/Riverstone Global Energy & Power Fund IV Lindsay Goldberg III Blackstone Real Estate Partners Europe III Welsh, Carson, Anderson & Stowe WCAS XI TCW/Crescent Mezzanine TCW/Crescent Mezzanine Partners V Odyssey Investment Partners Odyssey Investment Partners Fund IV Pine Brook Road Partners Pine Capital Partners The Riverside Company Riverside Capital Appreciation Fund V Providence Equity Partners Providence TMT Special Situations Fund Great Hill Partners Great Hill Equity Partners IV Thoma Bravo Thoma Bravo Fund IX Russia Partners Russia Partners III Tailwind Capital Tailwind Capital Partners I ABRY Partners ABRY Advanced Securities Fund Calera Capital Calera Capital IV Versa Capital Management Versa Capital Fund II Aisling Capital Aisling Capital III Size ($M) 1,000 1,700 9,000 6,000,700,0,700 2,80 1,00 1,0 1,170 1,10 1, Capital R aised by Fund Size Fund Count by Fund Size Total capital raised by funds below $1 billion has stayed steady thanks to an increased number of funds closing between $00 million and $1 billion. Funds over $ billion continue to dominate despite a record $00 billion of dry powder sitting in the coffers of US investors.* The proportion of funds closed under $20 million increased to a level not seen since funds closed below $1 billion in the first half of 2009, versus 7 in the first half of *See PitchBook s US PE Capital Overhang Report in the PitchBook Library: Contact PitchBook: l (212) l demo@pitchbook.com

5 Most Active Private Equity Investors, 1st Half 2009 By Number of Investments Investor Name The Riverside Company Platinum Equity Parthenon Capital The Carlyle Group Marlin Equity Partners Stonington Partners Hart Capital American Capital Bain Capital Welsh, Carson, Anderson & Stowe Angelo Gordon & Company RoundTable Healthcare Partners Thoma Bravo Kohlberg Kravis Roberts KPS Capital Partners Summit Partners Clearview Capital Gordon Brothers Group North Castle Partners Warburg Pincus W.L. Ross & Co. ABS Capital Partners The Gores Group Monomoy Capital Partners Stockwell Capital GTCR Golder Rauner Veronis Suhler Stevenson Providence Equity Partners Oaktree Capital Management The Blackstone Group Perseus Milestone Partners Falconhead Capital Riverside Partners Catalyst Investors Egis Capital Partners Topspin Partners Wayzata Investment Partners Atlanta Equity Rustic Canyon/Fontis Partners Deal Count 6 6 Top Law Firms in Private Equity 1 Jones Day Shearman & Sterling Latham & Watkins Kirkland & Ellis Skadden, Arps, Slate, Meagher & Flom Sullivan & Cromwell Morgan, Lewis & Bockius Willkie Farr & Gallagher Wachtell Lipton Rosen & Katz DLA Piper Rudnick Gray Cary Hunton & Williams Simpson Thacher & Bartlett 1 by counsel provided on transactions Top Investment Banks & Advisors 2 Houlihan Lokey Howard & Zukin Harris Williams Goldman Sachs William Blair & Company Alvarez & Marsal Holdings Lazard Middle Market KPMG Piper Jaffray Jefferies Group Evercore Partners Morgan Joseph Miller Buckfire Lewis Sandler O'Neill & Partners Montgomery & Company Arlington Capital Advisors 2 by number of advisory roles in transactions Top Lenders in Private Equity General Electric Capital Bank of America CIT Group TriState Capital Bank PNC Financial Services Group U.S. Bank LBC Credit Partners Fifth Third Bank Peninsula Capital Partners Babson Capital Partners Wells Fargo Foothill GE Antares Capital Madison Capital Funding Golub Capital NewStar Financial by number of financings provided Contact PitchBook: l (212) l demo@pitchbook.com

6 Your Single Source for Quality Private Equity Data Only PitchBook tracks the entire private equity lifecycle and every party involved: limited partners, inancial sponsors & investors, target companies, service providers and key professionals. By dynamically linking these parties, PitchBook makes it easy to identify relationships and networks. Additionally, it actively researches target companies the entire time they are in an investor s portfolio so you ll always be up-to-date on the crucial details of a transaction and the company s progress. Broadest Private Equity Coverage The PitchBook Platform contains information on over 2,000 private equitybacked companies, investors, and service providers, across every industry segment, every deal size and every private equity deal type from announcement to exit. Deepest Level of Detail PitchBook s mission is to provide hard-to- ind information on private equity: the details you can only ind through direct contact with key players and painstaking background research. PitchBook researches deal amounts and valuations, target company inancials and price multiples, capitalization structures, deal terms, investor information and service provider contact information. It also tracks deal stakeholders and participants not just inancial sponsors and investors, but also the many other inancial, legal, and advisory irms associated with taking a deal through to completion. What Makes PitchBook Different Deal monitoring and research through the entire lifecycle. Without exception, PitchBook actively researches and reports on companies from announcement to inal exit. PitchBook captures the full inancing story, much more than just a snapshot of the deal s announcement. Full spectrum coverage. PitchBook covers the full spectrum of private equity deals: all sizes, all industries, and all types. No shortcuts. It takes meticulous research to produce complete, consistent, timely, and accurate information, and we devote the manpower and resources necessary to make this happen. The PitchBook Platform Places Powerful Intelligence at Your Fingertips: Request a Demo Detailed Reports Customizable Dashboard Excel Downloads Sortable Results Advanced Searches* *Advanced Searches allow selecting criteria from more than 10 search options Visit us at Contact PitchBook: l (212) l demo@pitchbook.com