The Q Preqin Quarterly Update Private Equity

Transcription

1 The 216 Preqin Quarterly Update Private Equity Insight on the quarter from the leading provider of alternative assets data Content includes... Fundraising More venture capital funds closed than any other private equity fund type. Investors More than half of investors plan to commit to four or more funds in the coming year. Buyout Deals Number of private equitybacked buyout deals drops sharply compared with the previous quarter. Venture Capital Deals 216 saw the third highest quarterly aggregate deal value on record. Plus, Special Guest Contributors: Capstone Partners Dry Powder Capital available for investment tops $85bn. alternative assets. intelligent data.

2 The Preqin Quarterly Update: Private Equity, 216 Download the data pack at: Foreword - Christopher Elvin, Preqin The fi rst quarter of the year typically sees a slowdown in private equity* fundraising levels after a crescendo of activity at the end of the year, and 216 was no exception: 15 funds held a fi nal close raising an aggregate $66bn. While the number of funds holding a fi nal close has remained fairly steady on and Q4 215 fi gures, there has been a drop in the amount of capital raised. Increasing amounts of capital continue to be secured by fewer fund managers; of particular note in was the $13bn closure of Advent Global Private Equity VII. Global private equity-backed buyout deal and exit activity also slowed noticeably, especially when compared with the levels seen in 215. In 216, 874 deals worth a combined $44bn and 343 exits valued at $62bn were completed. Total private equity dry powder is now at a record high ($775bn) and continues to put pressure on entry prices for assets. Encouragingly, 2,48 venture capital deals worth an aggregate $34bn were completed, putting an end to the slump in deal value seen at the end of last year. With public equity markets weaker than they have been in recent quarters, it is unsurprising that fund managers are exercising caution and the pace of acquisitions has reduced. Private equity is coming off a period of strong activity, and as a result, LPs and GPs remain committed to the asset class. However, global market volatility has increased in 216, which will likely lead to fund managers and investors proceeding with caution in the year ahead. *Private Equity includes Buyout, Venture Capital, Growth, Turnaround, Other Private Equity, Private Equity Secondaries and Private Equity Funds of Funds. It excludes Real Estate, Infrastructure, Private Debt and Natural Resources. Contents Managing Potential Pitfalls of Operational Diligence Capstone Partners 3 Fundraising in Funds in Market 6 Institutional Investors in Private Equity 7 Buyout Deals and Exits 8 Venture Capital Deals 1 Fund Performance and Dry Powder 11 Data Source: Private Equity Online is Preqin s fl agship online private equity information resource and encompasses all of Preqin s private equity databases. With unrivalled data and intelligence, Private Equity Online provides a 36º transparent view of all aspects of the asset class, including fund terms and conditions, fundraising, fund managers, institutional investors, fund performance, deals and exits, service providers and more. For more information, or to arrange a demo, please visit: All rights reserved. The entire contents of Preqin Quarterly Update: Private Equity, 216 are the Copyright of Preqin Ltd. No part of this publication or any information contained in it may be copied, transmitted by any electronic means, or stored in any electronic or other data storage medium, or printed or published in any document, report or publication, without the express prior written approval of Preqin Ltd. The information presented in Preqin Quarterly Update: Private Equity, 216 is for information purposes only and does not constitute and should not be construed as a solicitation or other offer, or recommendation to acquire or dispose of any investment or to engage in any other transaction, or as advice of any nature whatsoever. If the reader seeks advice rather than information then he should seek an independent fi nancial advisor and hereby agrees that he will not hold Preqin Ltd. responsible in law or equity for any decisions of whatever nature the reader makes or refrains from making following its use of Preqin Quarterly Update: Private Equity, 216. While reasonable efforts have been made to obtain information from sources that are believed to be accurate, and to confi rm the accuracy of such information wherever possible, Preqin Ltd. does not make any representation or warranty that the information or opinions contained in Preqin Quarterly Update: Private Equity, 216 are accurate, reliable, up-to-date or complete. Although every reasonable effort has been made to ensure the accuracy of this publication Preqin Ltd. does not accept any responsibility for any errors or omissions within Preqin Quarterly Update: Private Equity, 216 or for any expense or other loss alleged to have arisen in any way with a reader s use of this publication Preqin Ltd. /

3 Download the data pack at: The Preqin Quarterly Update: Private Equity, 216 Managing Potential Pitfalls of Operational Diligence - Tiffany Lauterbach, Chief Compliance Officer, Capstone Partners Over the last couple of years we have seen an increased level of regulatory scrutiny on private equity managers. Given this, are you doing anything differently with your clients during or after a capital raise? We are defi nitely spending more time talking to our clients about regulatory matters, but let me qualify all of my comments by saying that our number one piece of advice is to consult with Counsel as they are equipped with regulatory experts. We do not provide legal, accounting or regulatory advice; however, as Chief Compliance Offi cer at Capstone, an important part of my role is to stay current on the evolving private equity regulatory environment and to make sure that our clients are aware of regulatory hot topics and are actively coordinating with the appropriate experts to ensure fi rm and fund compliance. What specific suggestions are you making to your clients? With headlines over the last year surrounding SEC settlement cases, we believe that now, more than ever, private equity fi rms must be diligent in ensuring a robust compliance and operational platform. This is critical not only to avoid potentially costly sanctions and fi nes from regulators, but also to avoid negative press and potential diligence issues during a capital raise. We also make sure they are aware that although the registration deadline resulting from the Dodd Frank Act was not effective until May 212, the regulatory framework under which fi rms must operate will apply to all funds actively managed by the registered advisor. That means that regulators can and have evaluated all active vehicles managed by advisors during recent presence exams and will continue to do so as part of its risk-based examination program. For this reason, we are encouraging fi rms to execute a comprehensive evaluation of their policies and procedures to ensure they are: a) being executed as defi ned in the relevant fund documents (LPA, Management Agreement etc.) and b) acceptable based upon the SEC s recommendations and assumptions resulting from recent exam fi ndings. Are there any specific areas that you see receiving heightened scrutiny by prospective investors and likely SEC examiners? Yes, there are a number of areas that have increasingly become a focal point during operational due diligence, including: Third-Party Compliance Consultants: The SEC appears to be comfortable with the use of third-party compliance providers to ensure proper policies and procedures are in place; however, if utilized, it is important that a fi rm s policies and procedures are suffi ciently specifi c to the fi rm s business and not generic templates. Regardless of whether a fi rm engages a third-party compliance consultant, it is critical that a professional within the fi rm be designated to take responsibility for the review, approval and implementation of all compliance policies and procedures. Valuation Methodology/Track Record Disclosure: Fund managers should ensure that the valuation methodology utilized in practice is consistent with the valuation methodology promised to investors. Some of the most common valuation issues cited include cherry picking of comparable companies and inconsistent application of the methodology. It is also important that track record reporting in marketing presentations be consistent with SEC guidelines and include applicable footnotes. Co-Investment Allocation: Increasingly, examiners are focusing on the methodology utilized when allocating coinvestment opportunities, including scrutiny of side letter agreements that provide priority to select investors and evaluation of the fund s allocation vs. allocation offered to co-investors. Fund managers that generate co-investment opportunities should consult with Counsel to ensure that their allocation methodology and related communication to investors is compliant. Allocation of Fees and Expenses: This is a real hot button and the SEC has noted that it is by far the most noted defi ciency in exams. There has also been a great deal of pressure from LPs to be more transparent in the disclosure of fees and expenses. It is imperative that fund managers have suffi ciently detailed policies relative to the allocation of fees and expenses. AML Programs: Under a proposed rule, likely to be instituted sometime during the fi rst half of 216, all Registered Investment Advisors will be required to establish Anti-Money Laundering (AML) programs. Fund managers that already have an AML program in place should review the provisions of the proposed rule to ensure its program meets the minimum requirements; those without an AML program should begin planning to develop and implement one. FATCA and CRS Tax Compliance: For foreign fund structures, recent US tax regulations (FATCA) and international tax regulations (CRS) have added signifi cant complexity and risk. It is imperative that fund managers have comprehensive policies and effective procedures that are well documented and implemented to address these tax regulations. Demonstration of a culture of compliance, along with active self-monitoring and corrective action, can help fi rms mitigate any issues that may arise during a diligence exercise. Capstone Partners Founded in 21, Capstone Partners is a leading independent placement agent focused on raising capital for private equity, credit, real assets and infrastructure fi rms from around the world. Tiffany Lauterbach is responsible for regulatory compliance of Capstone Partners global platform and provides regulatory and operational guidance to Capstone s clients worldwide Preqin Ltd. / 3

4 The Preqin Quarterly Update: Private Equity, 216 Download the data pack at: Fundraising in 216 The fi rst quarter of 216 was relatively slow for private equity fundraising, with 15 funds reaching a fi nal close and securing an aggregate $66bn (Fig. 1). Although this represents a substantial drop in the number of funds raised compared with 215, the average fund size has grown since last year ($475mn in 216 versus $388mn in 215). More venture capital funds closed than any other fund type in 216, with 54 funds securing $1.5bn in institutional capital commitments (Fig. 2). Despite fewer buyout funds reaching a fi nal close (41), the $39.bn secured is approximately $12bn more than all other private equity funds combined. Furthermore, Fig. 3 illustrates that 216 has had the best fi rst quarter for buyout fundraising in the last six years. Funds primarily focused on North America raised the greatest amount of capital in : 87 funds secured $32bn in capital commitments. This was followed by 37 Europe-focused funds, which raised $28bn, and 14 Asia-focused funds, which raised $3bn. The largest fund to reach a fi nal close in 216 was Advent Global Private Equity VIII, which collected $13bn (34% of all buyout capital raised in ), making it the fi fth largest buyout fund to close since 21, and securing substantially more than the second largest fund, BDT Capital Partners Fund II, which secured $5.2bn (Fig. 4). Fig. 1: Global Quarterly Private Equity Fundraising, Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q Date of Final Close No. of Funds Closed Aggregate Capital Raised ($bn) Fig. 2: Private Equity Fundraising in 216 by Fund Type Fig. 3: Buyout Fundraising, Buyout Venture Capital Growth Fund of Funds Other No. of Funds Closed Aggregate Capital Raised ($bn) No. of Funds Closed Aggregate Capital Raised ($bn) Fund Type Date of Final Close Fig. 4: Five Largest Private Equity Funds Closed in 216 Fund Firm Final Size (mn) Type Geographic Focus Headquarters Advent Global Private Equity VIII Advent International 13, USD Buyout Global US BDT Capital Partners Fund II BDT Capital Partners 5,26 USD Buyout US US Partners Group Secondary 215 Partners Group 2, USD Secondaries Global Switzerland Carlyle US Equity Opportunity Fund II Carlyle Group 2, USD Buyout US US Investindustrial Fund VI Investindustrial 1,8 EUR Buyout Europe Luxembourg Preqin Ltd. /

5 Global private equity fundraising Capstone Partners ( is a leading independent placement agent focused on raising capital for private equity, credit, real assets and infrastructure firms. The Capstone team includes 3 experienced professionals in North America, Europe and Asia. Centre Lane Partners We congratulate the Centre Lane team on the successful closing of Centre Lane Partners IV at its hard cap. Americas Europe Middle East Asia Pacific Securities placed through CSP Securities, LP Member FINRA/SIPC Authorised by FINMA

6 The Preqin Quarterly Update: Private Equity, 216 Download the data pack at: Funds in Market At the beginning of Q2 216, there were 1,684 private equity vehicles looking to raise an aggregate $476bn, representing a record number of funds in market (Fig. 1). However, the $476bn targeted by these vehicles represents a slight reduction on the $483bn sought by fund managers in 216. Half of the funds in market will primarily invest in North America; 846 vehicles are seeking $232bn from institutional investors (Fig. 2). There are 326 Asia-focused funds looking to raise an aggregate $78bn, and although there are fewer Europefocused funds in market (39), the aggregate target capital ($127bn) is greater than for vehicles primarily targeting Asia. Fundraising remains competitive in 216; 67% of funds have been seeking capital for over a year (Fig. 3). Eighteen percent of funds that have not held an interim close have been raising capital for less than six months, while 78% of funds that have held at least one interim close have been raising capital for over a year, including just over half that have been in market for over two years. The largest private equity fund currently seeking capital is KKR Americas Fund XII, targeting $1bn for control-oriented buyout investments in a range of industries across North America and Latin America (Fig. 4). Should this fund achieve its target, it will be KKR s second largest private equity fund ever raised. Fig. 1: Private Equity Funds in Market over Time, Q ,8 1,6 1,4 1,2 1, ,64 1,611,684 1,529 1,145 1,198 1,278 1,35 1,398 1,398 1,439 1,3 1,352 1, Q2 Q4 Q2 Q4 Q2 Q4 Q No. of Funds Raising Aggregate Target Capital ($bn) Fig. 2: Private Equity Funds in Market by Primary Geographic Focus Fig. 3: Private Equity Funds in Market by Time Spent on the Road % North America Europe 127 Asia Rest of World Primary Geographic Focus Diversified Multi- Regional No. of Funds Raising Aggregate Target Capital ($bn) Proportion of Funds 9% 8% 7% 6% 5% 4% 3% 2% 1% % 41% 11% 15% 22% 11% All Funds 32% 8% 17% 25% 18% 51% 14% 13% 19% 3% Funds Yet to Funds that Have Hold an Interim Held at Least Close One Interim Close More than 24 Months Months Months 7-12 Months 6 Months or Less Fig. 4: Five Largest Private Equity Funds Currently in Market Fund Firm Target Fund Size (mn) Fund Type Geographic Focus KKR Americas Fund XII KKR 1, USD Buyout Central America, North America, South America Ardian Secondary Fund VII Ardian 9, USD Secondaries Global Green Equity Investors VII Leonard Green & Partners 8,5 USD Buyout US TPG Partners VII TPG 8, USD Buyout Global Vista Equity Partners Fund VI Vista Equity Partners 8, USD Buyout North America Preqin Ltd. /

7 Download the data pack at: The Preqin Quarterly Update: Private Equity, 216 Institutional Investors in Private Equity The majority (64%) of investors planning to commit to private equity funds in the next 12 months will seek exposure through buyout funds, although this is a slight reduction in investor appetite compared to 215, when 7% of investors targeted the fund type (Fig. 1). Similarly, demand for venture capital vehicles has dropped 1 percentage points from 215. Fund of funds and secondaries vehicles have both seen an increase in investor appetite, rising 13 and four percentage points respectively. As of March 216, Europe is the most targeted region for private equity investment (56% of investors), while North America has seen a reduction of 21 percentage points from 215: 47% of active investors are seeking exposure to North America in the next 12 months. There has been greater investor appetite for global opportunities since 215, with 43% trying to build global exposure into their private equity allocation. The majority (58%) of investors plan to commit less than $1mn to private equity funds in the next 12 months, although just over a fi fth of investors plan to commit $3mn or more (Fig. 3). However, investors are targeting a large number of vehicles, with 62% planning to commit to four or more vehicles, including 13% planning to invest in 1 funds or more (Fig. 4). Data Source: Preqin s Private Equity Online tracks in-depth data on over 6,2 active investors in private equity. For more information, please visit: Fig. 1: Strategies Targeted by Private Equity Investors in the Next 12 Months, 215 vs. 216 Fig. 2: Regions Targeted by Private Equity Investors in the Next 12 Months, 215 vs. 216 Proportion of Fund Searches 8% 7% 6% 5% 4% 3% 2% 1% % 7% 64% Buyout 49% 39% Venture Capital 43% 35% Growth 15% 28% Fund of Funds 17% 13% 12% 6% Secondaries Turnaround 9% 3% Other Private Equity Proportion of Fund Searches 8% 7% 6% 5% 4% 3% 2% 1% % 68% 47% North America 64% 56% Europe 35% 25% Asia-Pacific 14% 7% Rest of World 29% 19% Emerging Markets 35% 43% Global Strategy Targeted Region Targeted Fig. 3: Amount of Capital Investors Plan to Commit to Private Equity Funds in the Next 12 Months Fig. 4: Number of Private Equity Funds Investors Plan to Commit to in the Next 12 Months 9% 13% 1% 12% Less than $5mn 1 Fund 41% $5-99mn 2-3 Funds $1-299mn 28% 4-9 Funds 2% $3-599mn 1 Funds or More $6mn or More 49% 17% 216 Preqin Ltd. / 7

8 The Preqin Quarterly Update: Private Equity, 216 Download the data pack at: Buyout Deals and Exits The fi rst quarter of 216 witnessed 874 private equity-backed buyout deals globally, with an aggregate value of $43.9bn (Fig. 1). This represents a signifi cant decrease (68%) from the postcrisis quarterly record of $136.8bn seen in Q4 215, and is the lowest quarterly fi gure since 212 ($43.6bn). The decline in aggregate deal value was seen across all regions; North American deals contributed $28bn towards the total transaction value in 216, a 72% decrease from the $1bn recorded in the previous quarter (Fig. 2). Similarly, the aggregate value of Asian deals declined by 74% to $4.5bn in, while European deals saw their the lowest quarterly value since 29. The substantial decline in aggregate deal value may be partially attributed to a relatively small number of large cap ($1bn or more) deals, with only eight recorded in 216, the lowest quarterly number of such deals since 212. The number of private equity-backed exits also declined by 19% in 216, from 421 in Q4 215 to 343 (Fig. 3). The aggregate value of exits reached $62bn, 14% lower than in Q4 215 and representing a decline for the third consecutive quarter. Trade sales were the most prominent exit route for fund managers, accounting for 63% of all exits in terms of number, an increase of 12 percentage points from Q Fig. 2: Quarterly Aggregate Value of Private Equity- Backed Buyout Deals by Region, Fig. 1: Quarterly Number and Aggregate Value of Private Equity-Backed Buyout Deals Globally, No. of Deals 1,2 1, No. of Deals Aggregate Deal Value ($bn) Aggregate Deal Value ($bn) Fig. 3: Global Number of Private Equity-Backed Exits by Type and Aggregate Exit Value, Aggregate Deal Value ($bn) North America Europe Asia Rest of World No. of Exits IPO & Follow-on Restructuring Sale to GP Trade Sale Aggregate Exit Value ($bn) Aggregate Exit Value ($bn) Fig. 4: Five Largest Private Equity-Backed Buyout Deals Announced in 216 Portfolio Company Investment Type Deal Date Deal Size Investor(s) Bought from/ Exiting Company Location Primary Industry ADT Security Services, Inc. Merger Feb-16 15, USD Apollo Global Management, Koch Equity Development LLC, Protection 1 / ASG Security - US Electronics The Priory Group Add-on Jan-16 1,275 GBP Acadia Healthcare, Waud Capital Partners Advent International UK Healthcare Plains All American Pipeline, L.P. PIPE Jan-16 1,6 USD Encap Flatrock Midstream, EnCap Investments, First Reserve Corporation, Kayne Anderson Capital Advisors, The Energy & Minerals Group - US Oil & Gas The Fresh Market, Inc. Public-to- Private Mar-16 1,36 USD Apollo Global Management - US Retail Airbus Defence Electronics Unit Buyout Mar-16 1,1 EUR KKR Airbus France Defence Preqin Ltd. /

9 What does the busy private equity professional need? Improved data quality. How? By automating workflows. MONITORING Automate your portfolio monitoring reporting process. Access dashboards from any device. Integrate the latest performance information from your investments and Excel models. VALUATION Save time, shorten the valuation cycle and ensure the consistency, transparency and traceability of each valuation exercise. FUND ANALYSIS Track fund returns and benchmark performance against peers. Analyse IRRs, model portfolio returns and plan exits with a dynamic reporting engine. Discover how our experience in private equity and portfolio management can connect you to the full potential of your data, contact us at info@baxonpe.com info@baxonpe.com T. +44 () London Buenos Aires New York Singapore San Francisco Baxon Solutions is a Family Company

10 The Preqin Quarterly Update: Private Equity, 216 Download the data pack at: Venture Capital Deals During the fi rst quarter of 216, 2,48 venture capital fi nancings were announced globally, a slight increase on the 2,366 seen in Q4 215 (Fig. 1). Notably, the aggregate value in 216 ($34bn) is the third highest quarterly aggregate deal value on record, surpassed only by the $37bn and $42bn recorded in Q2 and 215 respectively. 216 saw 957 venture capital fi nancings take place in North America, representing 4% of the global total (Fig. 2). The aggregate value of these fi nancings equated to $15bn, or 44% of the global market share in the quarter. Greater China recorded its second highest quarterly aggregate value on record ($12bn) representing 36% of the global aggregate value of venture capital fi nancings in the quarter and the largest proportion ever displayed by the region. Nonetheless, Europe witnessed the largest increase (16%) in the number of deals compared with the previous quarter. The most common stage of fi nancing remains angel/seed, representing 36% of the total number of deals (Fig. 3). Series A and Series B fi nancings both witnessed their highest quarterly aggregate value on record, at $5.5bn and $7.bn respectively, with all early to mid-stage fi nancings (angel/seed to Series C) witnessing the highest average quarterly values on record. Fig. 2: Quarterly Number of Venture Capital Deals* by Region, Fig. 1: Quarterly Number and Aggregate Value of Venture Capital Deals* Globally, No. of Deals 3, 2,5 2, 1,5 1, No. of Deals Aggregate Deal Value ($bn) Fig. 3: Proportion of Number of Venture Capital Deals by Stage, Aggregate Deal Value ($bn) 3, Add-on & Other No. of Deals 2,5 2, 1,5 1, 14% 6% 3% 4% 8% 36% Angel/Seed Grant Growth Capital/Expansion PIPE Series A/Round 1 5 Series B/Round North America Europe Greater China India Israel Other 26% 1% 1% 1% Series C/Round 3 Series D/Round 4 and Later Venture Debt Fig. 4: Notable Venture Capital Deals* in 216 Portfolio Company Stage Deal Date Deal Size (mn) Investor(s) Location Primary Industry Meituan-Dianping Unspecifi ed Round Jan-16 3,3 USD Baillie Gifford, Capital Today, China Development Bank Capital, CPP Investment Board, DST Global, Hillhouse Capital Management, Sequoia Capital, Temasek Holdings, Tencent, Trustbridge Partners China Internet Letv Sports Culture Develop (Beijing) Co. Series B/ Round 2 Mar-16 8, CNY HNA Group China Media Shanghai Lujiazui International Financial Asset Exchange Series B/ Round 2 Jan-16 1,216 USD Bank of China Group Investment, China Minsheng Banking Corp, COFCO Limited, Guotai Junan Securities China Financial Services JD Finance Series A/ Round 1 Jan-16 6,65 CNY Harvest Fund Management, Sequoia Capital, Taiping Life Insurance China Internet *Figures exclude add-ons, mergers, grants, secondary stock purchases and venture debt Preqin Ltd. /

11 Download the data pack at: The Preqin Quarterly Update: Private Equity, 216 Fund Performance and Dry Powder The estimated level of dry powder in the industry continues to rise, with $775bn of capital available for investment as of March 216 an increase of $3bn from December 215 (Fig. 1). Buyout dry powder, which makes up the largest proportion of available capital, has increased by $18bn to $477bn in 216, while venture capital and growth funds now have $152bn and $98bn, an increase of $9.6bn and $3.3bn, respectively, since the end of 215. Fig. 2 illustrates the widening gap between the top- and bottomquartile performing funds for vintages , emphasizing the importance of LP fund selection. Venture capital funds have posted the highest annualized return over the one-year period to June 215 (+2.5%), refl ecting the resurgence seen in the industry in recent years. All private equity fund types outperformed the S&P 5 Index over the short term, which has fallen -2.6% in the past 12 months. In the six months to June 215, investors have received estimated distributions of $189bn from their private equity portfolios, 4% of the record amount that was distributed in the whole of 214 ($475bn), as shown in Fig. 4. The growing unrealized value in the industry suggests that high distributions may continue into Q Buyout, venture capital and fund of funds vehicles show strong short-term performance over one and three years (Fig. 3). Fig. 1: Private Equity Dry Powder by Fund Type, December 26 - March Fig. 2: Private Equity Median Net IRRs and Quartile Boundaries by Vintage Year 3% 25% Dry Powder ($bn) Other Growth Venture Capital Buyout Net IRR since Inception 2% 15% 1% 5% Top-Quartile IRR Boundary Median Net IRR Bottom-Quartile IRR Boundary 1 % Dec-6 Dec-7 Dec-8 Dec-9 Dec-1 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Mar-16-5% Vintage Year Fig. 3: Private Equity Horizon IRRs by Fund Type (As of 3 June 215) Fig. 4: Private Equity: Annual Amount Called-up, Distributed and Unrealized Value (As of 3 June 215) Horizon IRR 25% 2% 15% 1% 5% Buyout Venture Capital Fund of Funds All Private Equity Benchmark* Annual Amount Called-up/Distributed ($bn) ,8 1,6 1,4 1,2 1, Unrealized Value ($bn) % 1 Year to Jun-15 3 Years to Jun-15 5 Years to Jun-15 1 Years to Jun H1 215 Capital Called-up Capital Distributed Unrealized Value *All Private Equity Benchmark comprises Private Equity, Real Estate, Infrastructure and Private Debt (excl. Direct Lending). 216 Preqin Ltd. / 11

12 The 216 Preqin Quarterly Update: Private Equity alternative assets. intelligent data. Preqin Private Equity Online If you want any further information, or would like a demo of our products, please contact us: With global coverage and detailed information on all aspects of the private equity asset class, Preqin s industry-leading Private Equity Online services keep you up-to-date on all the latest developments in the private equity universe. Source new investors for funds and co-investments Find the most relevant investors, with access to detailed profi les for over 6,2 institutional investors actively investing in private equity, including future fund searches and mandates, direct contact information and sample investments. Identify potential investment opportunities View in-depth profi les for over 1,6 unlisted private equity funds currently in market, including information on investment strategy, geographic focus, key fundraising data, service providers used and sample investors. Find active fund managers in private equity Search for fi rms actively targeting private equity investments. View information on key contacts, fi rm fundraising and performance history, and applied strategies of the fi rm when investing in portfolio companies and assets. Analyze the latest private equity fundraising activity See which fi rms are currently on the road raising a private equity fund and which will be coming to market soon. Analyze fundraising over time by fund strategy and location. See the latest buyout and venture capital deals and exits View details of more than 149, buyout and venture capital deals, including deal value, buyers, sellers, debt fi nancing providers, fi nancial and legal advisors, exit details and more. Identify forthcoming exits and expected IPOs. Benchmark performance Identify which fund managers have the best track records, with performance benchmarks for private equity funds and performance details for over 7,9 individual named funds. Examine fund terms See the typical terms offered by funds of particular types, strategies and geographic foci, and assess the implications of making changes to different fees. Find out how Preqin s range of private equity products and services can help you: New York: One Grand Central Place 6 E 42nd Street Suite 63, New York NY 1165 Tel: Fax: London: 3rd Floor Vintners Place 68 Upper Thames Street London EC4V 3BJ Tel: +44 () Fax: +44 () Singapore: One Finlayson Green, #11-2 Singapore Tel: Fax: San Francisco: One Embarcadero Center Suite 285 San Francisco CA Tel: Fax: Hong Kong: Level 9, Central Building 1-3 Pedder Street Central, Hong Kong Tel: Fax: Manila: Pascor Drive Sto. Niño Parañaque City Metro Manila 17 Philippines info@preqin.com Web: