Private Equity Capital Briefing Monthly insights and intelligence on PE trends

Transcription

1 September 2 Private Equity Capital Briefing Monthly insights and intelligence on PE trends SEC likely to ramp up PE fees probe The agency will likely continue to take a closer look at the industry fee practices after settlements

2 The PE Capital Briefing has been designed to help you remain current on capital market trends. It captures key insights from subject-matter professionals across EY, and distils this intelligence into a succinct and user-friendly publication. PE Capital Briefing provides perspectives on both recent developments and the longerterm outlook for private equity (PE) fundraising, acquisitions, and exits, as well as trends in global M&A, cross-border deal flows, IPOs, and the debt and bond markets. Please feel free to reach out to any of the subject-matter contacts listed on the reverse of this document if you wish to discuss any of the topics covered.

3 Contents Section 1 Private equity: fundraising 4 Private equity: acquisitions 5 Private equity: exits 6 Section 2 M&A 7 Section 3 IPOs 9 Section 4 Loans 1 Section 5 Bonds 11 Appendices Appendix A PE activity by geography 13 Appendix B M&A activity monthly flash 22 Appendix C M&A multiples and bid premium 23 Appendix D Capital Confidence Barometer 24

4 1.i. Private equity: fundraising Executive summary Buyout fundraising fell 4.4% in August, to US$23.1b versus a year ago. YTD, fundraising trails last year s pace by 3.9%. The average PE fund size in August climbed 17%, to US$747m, from a year ago. Buyout dry powder ended August at US$536.4b, up 11% from a year earlier, as fundraising stays robust while the pace of new investment remains muted. Current state Fundraising PE firms raised less capital in August relative to a year ago on fewer closes, a reflection the strong fundraising environment in recent years that means a number of firms are not scheduled to start marketing new investment vehicles. Buyout fundraising in August fell 4.4% to US$23.1b from a year earlier on 18% fewer funds closed. YTD, fundraising is down modestly versus last year s pace, ending the month at US$36.2b, 3.9% lower than a year earlier. PE firms closed funds across a range of strategies in August. The top 1 closes during the period included three buyout funds, two real estate and two infrastructure funds. A year earlier, 7 of the top 1 investment vehicles were buyout funds. The latest mix of funds provides an indication about how PE firms use diverse strategies for investments. There were just four funds in the August that exceeded US$1b, vs seven a year earlier. The reduced number of large funds, however, did not hurt average fund size which rose 17% to US$747m from US$638m last year. Two of the largest funds in August included Blackstone Real Estate Debt Strategies III, which held a final close of US$4.5b. The firm will use the capital to invest in institutional-grade real estate in North America and Europe; and Madison Dearborn Capital Partners VII, which hit its US$4.43b hard cap. The Chicago-based firm will use the fund to invest in the basic industries, business and government services, consumer, financial and transaction services, health care, and telecommunications, media and technology services sectors in North America. Dry powder Buyout dry powder remains elevated as PE firms continue to invest capital at a slower pace than a year ago. The industry ended August with buyout dry powder up 11% to US$536.4b from US$484.3b a year earlier. The year-over-year increase is caused by fundraising in August staying close to year earlier levels, while investment over the same period remained muted. Environment and horizon Environmental, social and governance (ESG) could be increasingly important for PE fundraising after the California Public Employees Retirement System made ESG one of its strategic initiatives. The plan s six initiatives are: data and corporate reporting standards; UN PRI Montreal Pledge company engagement; diversity and inclusion; manager expectations; sustainable investment research; and private equity fee and profit sharing transparency. The pension plan said, The strategic plan serves as the framework by which CalPERS executes its shareowner proxy voting responsibilities; engages public companies to achieve long-term, sustainable risk-adjusted returns; and works with internal and external investment managers to ensure their practices align with CalPERS Investment Beliefs. Other public pensions may follow CalPERS, which is the largest pension fund in the U.S. PE firms may ultimately find Brexit helping fundraising efforts, as demand from investors may increase despite the referendum result. While the long-term effects yet to be determined, over the near- and mid-term, PE firms could see attractive pricing for investments and a resulting uptick in demand for Europe-focused vehicles. PE firms may find lower entry points for investments in the U.K. because company valuations slip as a result of the uncertainty from the vote. In addition, Brexit could also increase cross border M&A opportunities for PE firms located in other regions. The Securities and Exchange Commission is poised to continue its probe into PE fees; its crackdown on the industry has identified a number of practices the agency wants to curtail. A common theme in our recent enforcement actions against private equity firms is their failure to properly disclose fees and conflicts of interest to fund investors, SEC Enforcement Division Director Andrew Ceresney said. In August, the SEC secured a settlements from two firms, including one that agreed to pay US$52.7m to settle charges over fee practices. The agency also started a review of another firm to find out if it properly disclosed accelerated monitoring fees to its investors. Global PE fundraising by month (in US$b) $8 $7 $6 $5 $4 $3 $2 $1 $ Aug Sep Source: Preqin Oct Commitments (US$b) Nov Dec Jan Feb Mar Top five funds closed in August 2 (US$b) Fund name Blackstone Real Estate Debt Strategies III Madison Dearborn Capital Partners VII Bain Capital Distressed & Special Situations 2 Type Apr May Geographic focus Number of funds Jun Jul Aug Target (US$m) Close (US$m) Real Estate US 4, 4,5 Buyout US 3,75 4,43 Distressed Debt US 3, 3,1 T-C US Super Regional Mall Real Estate US NA 1,25 Fund InfraVia III Infrastructure US Source: Preqin Global PE dry powder by region (in US$b) North America Europe Asia and Rest of World YTD Source: Preqin YTD through 31 August 2. 4 Capital Briefing

5 1.ii. Private equity: acquisitions Executive summary PE acquisitions fell 23% in August, to US$22.3b, from a year earlier, reflecting reduced investment in the UK. However, on a year-to-date basis, global activity is behind last year s pace by just 2.1%, with Americas helping the year-over-year comparison. PE investments in the UK for August fell to US$28m from US$3.6b a year earlier on half the volume and effects of Brexit. The technology sector remains PE s top investment destination so far this 2. Current state PE investment activity in the U.K. continues to feel the effects of the Brexit vote. PE investments in the U.K. plummeted to US$28m on just seven deals, versus US$3.6b on 14 transactions a year earlier. As such, despite improved performance in the Americas and Asia Pacific, global deal value fell 23% in August, to US$22.3b from a year earlier. YTD, global PE investments are trailing last year s pace by 2.1%, with US$22.8b in announced deals. Apollo Global Management LLC s latest technology investment ranks as the largest announced PE investment in August. Apollo agreed to acquire Rackspace Hosting Inc. in a $4.3 billion deal that will take the Texas-based provider of cloud-computing services private. Rackspace CEO Taylor Rhodes expects Apollo will help his company s strategy as it develops information technology products and seeks new markets. Technology remains the top destination of PE investment so far this year; its share of aggregate PE investment has risen since the end of last month. The segment accounted for a 26.5% industry share of the total capital PE has put into play so far this year. Consumer goods and services and healthcare round out the top three target sectors, with the former seeing its industry share decline slightly (to 12% from 12.7%). Healthcare saw a bump to 11.5%, from 1.1% at the end of last month. Environment and horizon Optimism remains high that global PE activity will increase, despite continued concerns about valuations and the environment making it harder to find attractive investment opportunities. Preqin s recent survey of 187 PE managers indicated that a majority (62%) of managers plan to deploy more capital in the next 12 months compared with a year ago, when only 37% were looking to invest significantly more. The same survey also indicated that 38% of fund managers believe it is harder now to find attractive opportunities compared with 8% last year. Part of this reflects increased competition within PE and not just from corporate rivals. Real estate remains an attractive space for PE, and firms will continue to look for new ways to invest in the area. Blackstone Group LP recently entered the nontraded REIT market by seeking to raise US$5b for Blackstone Real Estate Income Trust. Like other nontraded REITs, the trust is primarily marketed by brokers to individual buyers, many of whom have complained about conflicts of interest and high commissions in the industry. Blackstone launched the fund after rule changes that called for stricter guidelines on net asset values and other measures to address these and other common investor complaints. Blackstone expects its perpetual-life fund will generate stable rental income from its investments in apartments, shopping centers and hotels. PE firms could find more attractive oil and gas investment opportunities starting in the second half of 2. The PE industry started to raise funds to spend of oil assets after the crash of oil prices began in mid-214. However, opportunities to put capital to work were held back by the continued free-fall in prices and the willingness of banks to extend credit. In recent months however, both factors have changed; oil prices stabilized in the $4-a-barrel range. In addition, banks looking to reduce their sector exposure slashed their lending to energy companies. PE firms will likely take years to deploy the capital recently raised, but attractive opportunities are emerging in distressed debt, equity stakes in large projects, and consolidation plays. PE acquisitions by month (in US$b) $5 $4 $3 $2 $1 $ Aug Sector Sep Oct 1 Nov Value (US$b) Dec 2 value Jan Feb Mar PE acquisitions by sector, YTD 2 (US$b) Industry share (%) Apr Top five announced acquisitions in August 2 Volume May Jun 2 volume Jul Aug Industry share (%) Technology % % Consumer goods % % Health care % 1 9.9% Real Estate.37 8.% % Industrials % % Utilities % % Financials % % Consumer services % % Materials % % Oil and gas % % Telecom % % Retail % %. Data through Aug. 31, 2. Annoucement Company Acquirer Value Sector Date (US$b) 26 Aug Rackspace Hosting Inc. Apollo Global Management LLC 4.4 Technology 2 Aug Emerson Electric Co Platinum Equity LLC (Network Power division) 9 Aug Press Ganey Holdings Inc. EQT Partners AB 1 Aug inventiv Group Holdings Inc. (5%) Advent International Corp Aug RCN Telecom TPG Capital LP Services LLC 4. Technology 2.4 Consumer services 1.9 Health care 1.6 Telecom. 5 Capital Briefing

6 1.iii. Private equity: exits Executive summary Global PE M&A exit value for August fell by nearly half, to US$21.3b, from a year earlier, on weaker activity in all regions. YTD, M&A exits are trailing last year by 33%. EMEA posted the largest drop in disclosed deal value for PE-backed M&A exits in August, on weaker U.K. activity. PE may find itself using more Special Purpose Acquisition Companies (SPACs) in the near term as an alternative to IPOs. Current state PE firms saw reduced M&A exit activity in every region during August. Firms are holding investments longer to focus on performance improvement, but remain opportunistic as market valuations remain high. Global PE M&A exit value for August fell nearly 5%, to US$21.3b from a year earlier on roughly 2% fewer transactions. YTD, deal value for PE M&A exits is 33% behind last year s pace. EMEA posted the largest drop in deal value for PE-backed M&A exits, reflecting weaker activity in the U.K. The region s deal value fell 97% from a year earlier. Announced deal value in Asia-Pacific is down 59%, while the Americas posted the narrowest decline at 34%. The largest PE-backed M&A exit in August 2 involved JW Childs Associates LP and Berkshire Partners LLC s proposed exit from Mattress Firm Holding Corp. Steinhoff International Holdings NV, a South African integrated furniture maker, agreed to acquire the Houston-based mattress retail chain operator and franchiser for US$3.9b including net debt. The transaction, which is subject to shareholders' and regulatory approvals, is expected to close in the third quarter. Unfavorable market conditions are keeping PE-backed IPO activity at bay. In August, total proceeds fell 2.9% to US$657m from US$832m a year earlier. The latest period included two fewer offerings compared with a year earlier. YTD, total proceeds from PE-backed IPOs is down 55% on nearly half the volume, reflecting weaker activity in every world region. The largest PE-backed IPO for August 2 was Cinven Ltd.'s partial exit of Medpace Holdings Inc., which raised US$185.2m through the sale of about 7 million shares. Shares of the Cincinnati-based provider of clinical research organization services trades on Nasdaq under the ticker, MEDP. Medpace plans to use proceeds to repay a portion of its outstanding borrowings under its senior secured term loan facility. Cinven will continue to own a majority stake in Medpace after the IPO. Environment and horizon IPO markets are expected to see a quiet year in 2; many portfolio companies are looking to go public starting next year. While the last several months have seen markedly improved conditions leading to a number of new offerings, the window for the balance of 2 could be compressed, as investors await the outcome of the US election. As a result, PE firms are continuing to pursue dual track strategies. In some instances, IPOs are losing out versus M&A as firms look for a quick exit from older investments. The PE industry could find itself using more Special Purpose Acquisition Companies, or SPACs, in the near term as an alternative to IPOs. PE firms have used SPACs to buy and exit portfolio holdings, and these vehicles could have a place in the current environment that makes it challenging to price companies that seek to go public. According to The Deal LLC s PrivateRaise service, nine SPACs raised almost $3.8 billion in IPOs led by PE-related entities since August 2. "I think SPACs are perfect vehicles for PE sponsors for a couple reasons," David Miller told The Deal. First, PE guys are experts at finding solid target companies at a pre-ipo stage, so it stands to reason that they will also be discovering some interesting IPO-ready targets. Secondly, if for some reason their SPAC fails to locate an appropriate target business within a reasonable period of time, they will likely have a number of their own portfolio companies which could make suitable SPAC targets." Miller is a managing partner at the law firm of Graubard Miller. PE M&A exits by month (US$b) $45 $4 $35 $3 $25 $2 $ $1 $5 $ Aug Sept Oct Nov Dec PE IPOs by month (in US$b) Value (US$b) Jan Feb Mar Apr Top five announced M&A exits in August 2 Date Company Sponsor 7 Aug Mattress Firm Holding Corp. 9 Aug Press Ganey Holdings Inc. $14 $12 $1 $8 $6 $4 $2 $ Aug Sep Oct Nov Dec JW Childs Associates LP EQT Partners AB/Vestar Capital Partners Inc. 29 Aug Aleris Corp. Oaktree Capital Group LLC/Apollo Global Management LLC 1 Aug inventiv Group Holdings Inc. (5%) Thomas H. Lee Partners LP/Advent International Corp./CVC Capital Partners Ltd. Aug Sensus USA Inc. Jordan Company LLC/Goldman Sachs Capital Partners Value (US$b) Jan Feb Mar Volume Apr May Volume May Jun Jun Jul Jul Aug Value Sector (US$b) 3.9 Retail 2.4 Consumer services 2.3 Materials 1.9 Health care 1.7 Technology Aug Capital Briefing

7 Appendices

8 Appendix A Global PE fundraising activity Global PE fundraising (in US$b) Commitments (US$b) Number of funds $7. 1,2 $6. 1, $5. 8 $4. 6 $3. $2. 4 $1. 2 $ Source: Preqin Dry powder buyout funds by region North America Europe Asia and rest of world Asia-Pac and ROW as percentage of total $6. % $5. 14% 12% $4. 1% $3. 8% $2. 6% 4% $1. 2% $ % Source: Preqin 8 Capital Briefing

9 Appendix A Global PE acquisition activity PE acquisitions by year (in US$b) Value Number of deals $8. 4, $7. 3,5 $6. 3, $5. 2,5 $4. 2, $3. 1,5 $2. 1, $1. 5 $ Global PE value and volume quarterly trend (US$b) Value Number of deals $12. 7 $1. 6 $ $6. 3 $4. 2 $2. 1 $. Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q1 Q2 Q3 Q4 Q1 Q2 Q3 9 Capital Briefing

10 Appendix A Global PE acquisition activity by region Americas Americas PE acquisitions (in US$b) Value Number of deals $8. 35 $7. $6. $5. $4. $3. $2. $ $. Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Americas PE acquisitions top 1 in August 2 Announcement Completion Value Company Sector Acquiror date date (US$m) 26 Aug Rackspace Hosting Inc. Technology 4,44.7 Apollo Global Management LLC 2 Aug Emerson Electric Co. (Network Technology 4,. Platinum Equity LLC Power division) 9 Aug Press Ganey Holdings Inc. Consumer services 2,396.9 EQT Partners AB 1 Aug inventiv Group Holdings Inc.(5%) Health care 1,9. Advent International Corp. Aug RCN Telecom Services LLC Telecom 1,6. TPG Capital LP 22 Aug BioClinica Inc. Health care 1,4. Cinven Ltd. Aug Grande Communications Telecom 65. TPG Capital LP Networks LLC 25 Aug Signet Jewelers Ltd. (Stake%) Retail 625. Leonard Green & Partners LP 19 Aug JDA Software Group Inc. (Stake%) Technology 57. Blackstone Group LP/New Mountain Capital LLC 1 Aug Affinity Gaming LLC ( %) Consumer goods Z Capital Partners LLC 1 Capital Briefing

11 Appendix A Global PE acquisition activity by region EMEA EMEA PE acquisitions (in US$b) Value No. of deals $45. $4. $35. $3. $25. $2. $. $1. $5. $. Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q1 Q2 Q3 Q4 Q1 Q2 Q EMEA PE acquisitions top 1 in August 2 Announcement date Completion date Company 1 Aug 1 Aug Shopping Centers:Centro Navile and Metropolis in Italy and L'Aljub in Spain Sector Value (US$m) Acquiror Real estate TPG Capital LP/Partners Group Holding AG 11 Aug 11 Aug OVH SAS (Stake%) Technology KKR & Co. LP/TowerBrook Capital Partners LP 2 Aug 2 Aug Portfolio of 1 German Real estate Catalyst Capital Group Inc. properties 5 Aug 5 Aug ByBox Holdings Ltd. Technology 139. Existing Management/ LDC (Managers) Ltd. 5 Aug Metroweb SpA (1.6%) Telecom 89.1 F2i Fondi Italiani per le infrastrutture SGR SpA 14 Aug 14 Aug Beloxxi Industries Ltd. (Minority%) Consumer goods 8. 8 Miles LLP/Deutsche Investitions und Entwicklungsgesellschaft mbh African Capital Alliance 5 Aug Ltd. Consumer services 68.9 Bridgepoint Advisers Ltd. 25 Aug Graal SA ( %) Consumer goods 52. Abris Capital Partners Sp z oo 11 Aug Mobyt SpA (81.767%) Consumer services 29.1 HgCapital LLP 2 Aug 2 Aug Empik Media & Fashion SA (1.2955%) Retail 1.3 Penta Holding Ltd./Krockella Ltd. 11 Capital Briefing

12 Appendix A Global PE acquisition activity by region Asia-Pacific Asia-Pacific PE acquisitions (in US$b) Value No. of deals $18. $. $14. $12. $ $8. $6. $4. $2. $. Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q1 Q2 Q3 Q4 Q1 Q2 Q Asia-Pacific PE acquisitions top 9 in August 2 Announcement Completion Value Company Sector date date (US$m) Acquiror 4 Aug Vitaco Holdings Ltd Health care Shanghai Pharmaceuticals Holding Co Ltd (6%/4%); Primavera Capital Management Ltd 25 Aug Worldmark Group Pty Ltd Industrials Quadrant Private Equity Pty Ltd (Majority%) 19 Aug Goodlife Operations Pty Consumer goods Quadrant Private Equity Pty Ltd Ltd-Goodlife Health Clubs; Hypoxi Australia Pty Ltd 29 Aug PT Siloam International Health care 5.3 CVC Capital Partners Ltd Hospitals Tbk (%) 3 Aug Stellar Value Chain Solutions Pvt Ltd (Stake%) Industrials 125. Warburg Pincus LLC 22 Aug Broadway Industrial Group Materials Platinum Equity LLC Ltd (Foam plastics solutions and flow control device businesses) 22 Aug 22 Aug JW Pharmaceutical Corp (5.31%) Health care 61.8 JW Holdings Corp 17 Aug Sagami Co Ltd (55.49%) Retail 28.9 Aspirant Group Inc 19 Aug 19 Aug Alliance Cosmetics Group (2%) Consumer goods.5 Navis Capital Partners 12 Capital Briefing

13 Appendix A Global PE exit activity Global PE-backed exits by M&A value and volume quarterly trend (US$b) Value Number of deals $ $12. 3 $1. 25 $8. 2 $6. $4. 1 $2. 5 $. Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Global PE-backed IPOs value and volume quarterly trend (US$b) Value Number of deals $45. 9 $4. 8 $35. 7 $3. 6 $25. 5 $2. 4 $. 3 $1. 2 $5. 1 $. Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q1 Q2 Q3 Q4 Q1 Q2 Q3 13 Capital Briefing

14 Appendix A Global PE exit activity Americas Americas PE exits (in US$b) M&A value IPO value M&A volume IPO volume $9. $8. $7. $6. $5. $4. $3. $2. $1. $. Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q1 Q2 Q3 Q4 Q1 Q2 Q Americas PE exits top 1 in August 2 Announcement or filing date Completion or priced date 7 Aug Mattress Firm Holding Corp. 9 Aug Press Ganey Holdings Inc. Company Sector Value Sponsor (US$m) Type Retail 3,9.3 JW Childs Associates LP M&A Exit Consumer services 2,396.9 EQT Partners AB/Vestar Capital Partners Inc. 29 Aug Aleris Corp. Materials 2,33. Oaktree Capital Group LLC/Apollo Global Management LLC 1 Aug inventiv Group Holdings Inc. (5%) Health care 1,9. Thomas H. Lee Partners LP/Advent International Corp./CVC Capital Partners Ltd. Aug Sensus USA Inc. Technology 1,7. Jordan Company LLC/Goldman Sachs Capital Partners M&A Exit M&A Exit M&A Exit M&A Exit Aug RCN Telecom Services LLC Telecom 1,6. Abry Partners Inc./TPG Capital LP M&A Exit 22 Aug LanguageLine Solutions Inc. Telecom 1,522. Abry Partners Inc. M&A Exit 22 Aug BioClinica Inc. Health care 1,4. JLL Partners Inc./Cinven Ltd./Water Street Healthcare Partners LLC;/Ampersand Capital Partners M&A Exit 8 Aug Rock Oil Holdings LLC Oil and gas 98. Riverstone Holdings LLC M&A Exit Aug Grande Communications Networks LLC Telecom 65. Abry Partners Inc./TPG Capital LP M&A Exit 14 Capital Briefing

15 Appendix A Global PE exit activity EMEA EMEA PE exits (in US$b) M&A value IPO value M&A volume IPO volume $7. $6. $5. $4. $3. $2. $1. $. Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q1 Q2 Q3 Q4 Q1 Q2 Q EMEA PE exits top 3 deals in August 2 with disclosed financial terms Announcement or filing date Completion or priced date Company Sector Value (US$m) Sponsor Type 24 Aug Westfalia-Automotive GmbH Industrials DPE Deutsche Private Equity GmbH M&A Exit 5 Aug Ltd. Consumer services 68.9 Risk Capital Partners Ltd./Bridgepoint Advisers Ltd M&A Exit 2 Aug 2 Aug Liberata Ltd. Consumer services 56.8 Endless LLP M&A Exit Capital Briefing

16 Appendix A Global PE exit activity Asia-Pacific Asia-Pacific PE exits (in US$b) M&A value IPO value M&A volume IPO volume $45. $4. $35. $3. $25. $2. $. $1. $5. $. Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q1 Q2 Q3 Q4 Q1 Q2 Q Asia-Pacific PE exits top 7 deals in August 2 with disclosed financial terms Announcement or filing date Completion or priced date 26 Aug Property Portfolio (Shanghai Central Plaza) 25 Aug 25 Aug WH Group Ltd. (2.6141%) Company Sector Value (US$m) Sponsor Type Real Estate Carlyle Group LP M&A Exit Consumer goods CDH China Holdings Management Co. Ltd. 4 Aug Vitaco Holdings Ltd. Health care Next Capital Pty. Ltd./Primavera Capital Management Ltd. 25 Aug Worldmark Group Pty. Ltd. (Majority%) Industrials M&A Exit M&A Exit Navis Capital M&A Exit Partners/Quadrant Private Equity Pty. Ltd. IPO 24 Aug 24 Aug RBL Bank Ltd. Financials 18.6 Baer Capital Partners Ltd./Gaja Capital Partners/Multiples Alternate Asset Management Pvt. Ltd. 31 Aug 31 Aug Ooedo Onsen Reit Investment Corp. 26 Aug 26 Aug Guardian Lifecare Pvt. Ltd. (Majority%) Real Estate 1.7 Bain Capital LLC IPO Retail 8.2 Samara Capital Management Ltd./Mitsui & Co. Global Investment Ltd. M&A Exit Capital Briefing Capital Briefing

17 Appendix B M&A activity monthly flash Volume Value Volume Value Calendar YTD YTD % Calendar YTD YTD % LTM LTM % LTM LTM % J F M A M J J A S O N D J F M A M J J A S O N D M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N 2 (to May ) vs. 2 (to May ) 2 (to May ) vs. 2 (to May ) LTM (to May ) vs. PTM (to May 5 LTM (to May ) vs. PTM (to May ) M&A activity by areas and regions Global 14,585-1% 1,2,96-2% 36,551-7% 4,5,92 % Americas 5,585-9% 657,189-21% 14,257-4% 2,337,439 % Canada 1,129 13% 96,643 32% 2,638 18% 223,6 2% MeCAR 87-19% 1,354 1% % 28,767-11% SA region % 3,327 95% 1,18 -% 76,718-1% US 4,424-12% 578,566-25% 11,41-6% 2,139,683 18% EMEA 5,3-13% 46,722-1% 12,738 -% 1,266,5 % Africa 267 2%,52 37% 651 3% 35,451-19% BeNe % 14,98-87% % 2,128 44% CIS 431-3% 13,813 53% % 51,8 72% CSE %,728 2% 1,7-14% 44,635 6% FraLux 1,22-3% 64,267-14% 2,255-9% 5,4 5% GSA 839 -% 17, % 2,217-13% 297,997 63% Israel 19 8% 6,882-39% 27 8% 57, % Mediterranean % 52,7-24% 1,371-23%,441-17% MENA 142 2% 3,319-84% 354 3% 24, -4% Nordics 565 -% 25,849-17% 1,226-25% 57,59-26% UK&I 1,361 % 74,984-61% 3,411 6% 42,79 7% Asia-Pacific 5,296-6% 451,47-6% 13,674 3% 1,234,531 26% ASEAN 71-1% 36,3 65% 1,696-12% 78,98 23% Greater China 2,63-7% 35,653 4% 5,572 1% 823,44 35% India 523-9%,755-3% 1,294 6% 44,644-6% Japan 1,2-13% 59,729-3% 2,96-5% 181,768 54% Korea % 26,45-54% 1,361 18% 69,48-3% Oceania 612-2% 31,32-36% 1,664 % 88,212-8% M&A activity by sectors Aerospace and defense % 9,684 12% % 35,432 3% Automotive and transportation % 111,97 9% 2,464-9% 295,634 4% Banking and capital markets % 113,9-2% 2,435-12% 413,663 42% Consumer products and retail 2,25-11% 192,858-9% 5,522-8% 637,33 36% Diversified industrial products 1,913-12% 6,427 9% 4,856-9% 457,555 2% Government and public sector % 1,638-33% % 27,93-2% Insurance % 4,1-36% 1,1 1% 288,67 114% Life sciences 966-8% 221,343 19% 2,454 2% 485,24 2% Media and entertainment 98-1% 6,59-61% 2,495-9% 27,767 -% Mining and metals 895 6% 49,875 1% 2,3 4% 142,972 36% Oil and gas 552-3% 8,454-43% 1,413 -% 332,462-27% Other sectors 1,679 -% 6,76 55% 4,312-14% 7,78 37% Power and utilities % 9,93 93% 1,399-14% 231,933 38% Provider care 455-9% 13,99-48% 1,174 % 52,736-5% Real estate 1,32 -% 73,292-5% 3,245 -% 27,3-33% Technology 3,881-4% 226,946-14% 9,52 4% 742,274 61% Telecommunications % 39,224-6% % 148,424-33% Wealth and asset management 412-9% 19,355-82% 1,19-5% 42,24-68% Regions M&A numbers represent a summation of domestic, inbound and outbound M&A activity involving the region. Sectors numbers represent involvement from either side, i.e., target or acquiror, except in the case of wealth and asset management, where only target-side involvement has been mapped. M&A analysis as at 1 June 2.. All Rights Reserved. Note: Data is continually updated and therefore subject to change. 17 Capital Briefing

18 Appendix C M&A multiples and bid premium Median deal multiple EV / EBITDA LTM (to May ) Global Americas Asia-Pacific EMEA PTM (to May ) LTM (to May ) PTM (to May ) LTM (to May ) PTM (to May ) LTM (to May ) PTM (to May ) Aerospace and defense 1.3x 11.3x 1.1x.6x 14.1x 11.5x 1.9x 1.6x Automotive and transportation 8.9x 1.3x 9.8x 9.2x 9.9x 1.2x 8.2x 1.6x Consumer products and retail 1.9x 11.3x 1.4x 14.7x 12.x 11.x 1.x 9.6x Diversified industrial products 9.8x 1.5x 1.8x 1.7x 11.x 11.7x 9.1x 9.2x Government and public sector 1.2x.x 4.6x.6x 21.8x 5.5x 1.2x 25.4x Life sciences 11.x 17.2x 12.4x 19.2x 11.4x 18.3x 1.8x 12.5x Media and entertainment 12.x 12.4x 8.8x 1.8x.2x 13.8x 1.7x 11.9x Mining and metals 8.8x 9.1x 7.8x 12.7x 1.4x 8.5x 9.4x 8.5x Oil and gas 8.x 7.4x 8.x 6.6x 6.5x 9.7x 9.3x 7.7x Other sectors 9.2x 9.5x 1.6x 8.6x 1.5x 11.6x 7.8x 8.6x Power and utilities 11.9x 11.6x 11.5x 11.7x 18.x 8.8x 1.2x 1.1x Provider care 11.9x 11.1x 1.2x 11.6x 1.4x 9.1x 12.6x 12.7x Real estate 1.x 1.4x 1.4x 1.3x 1.5x 1.1x 8.7x 1.6x Technology 11.2x 1.7x 13.6x 17.1x 11.3x 9.4x 1.2x 1.6x Telecommunications 7.3x 1.5x 6.9x 1.1x 8.2x 11.6x 7.3x 9.6x Total 1.3x 1.7x 1.4x 11.7x 11.1x 1.8x 9.5x 1.x Median bid premium to four-week stock price Global Americas Asia-Pacific EMEA LTM (to May ) PTM (to May ) LTM (to May ) PTM (to May ) LTM (to May ) PTM (to May ) LTM (to May ) PTM (to May ) Aerospace and defense % 26% 14% NA 31% 32% 14% 13% Automotive and transportation 14% 17% 21% 7% 13% 17% 9% 18% Consumer products and retail 23% 17% 32% 24% % % 27% 9% Diversified industrial products 19% 14% 24% 24% 17% 12% 24% 27% Government and public sector 22% 2% 44% 23% 21% 12% % 14% Life sciences 27% 22% 43% 31% 17% % 17% 23% Media and entertainment 17% 2% 34% 34% 11% 2% 14% 18% Mining and metals 23% 24% 28% 29% 18% 2% 36% 12% Oil and gas 27% 18% 34% 17% 24% 18% 14% 3% Other sectors 19% 25% 28% 27% % 17% 18% 31% Power and utilities 17% 11% 27% 17% 1% 7% 17% 8% Provider care 23% 12% 34% 21% 18% 13% 5% 3% Real estate 14% 21% 13% 3% % 18% 3% 11% Technology 22% 25% 34% 28% % 21% 23% 2% Telecommunications 25% 14% 28% 12% 27% 13% % 17% Total 21% 2% 3% 26% % 17% 18% 19% Deal multiples greater than 3x and bid premium greater than 1% have been excluded from calculation of median. M&A analysis as at 1 June 2.. All Rights Reserved. Note: Data is continually updated and therefore subject to change. 18 Capital Briefing

19 Appendix D Capital Confidence Barometer (April 2): by Area Respondents who expect their company to pursue acquisitions in the next 12 months Global Americas EMEA 1% 1% 1% 75% 75% 67% 75% 5% 31% 4% 56% 59% 5% 5% 28% 34% 57% 54% 5% 32% 33% 49% 48% 47% 25% 25% 25% % Apr 14 Oct 14 Apr Oct Apr % Apr 14 Oct 14 Apr Oct Apr % Apr 14 Oct 14 Apr Oct Apr Asia-Pacific China Germany 1% 1% 1% 75% 75% 75% 5% 25% 26% 57% 45% 44% 38% 5% 25% 33% 56% 43% 4% 43% 5% 25% 23% 28% 51% 56% 5% % Apr 14 Oct 14 Apr Oct Apr % Apr 14 Oct 14 Apr Oct Apr % Apr 14 Oct 14 Apr Oct Apr Japan UK US 1% 1% 1% 75% 68% 51% 75% 58% 52% 59% 75% 61% 74% 57% 5% 43% 35% 5% 26% 5% 29% 33% 25% % 25% % 25% % Apr 14 Oct 14 Apr Oct Apr % Apr 14 Oct 14 Apr Oct Apr % Apr 14 Oct 14 Apr Oct Apr 19 Capital Briefing

20 Notes 2 Capital Briefing

21 Notes 21 Capital Briefing

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