Partners Group Global Value SICAV

Transcription

1 Société d'investissement d Capital Variable ("SICAV") Audited Annual Report 2013 Audited financial statements for the year ended 31 December 2013 R.C.S. Luxembourg B No subscription can be accepted on the basis of the financial reports. Subscriptions are only valid if they are made on the basis of the current prospectus accompanied by the latest annual report and the latest semi-annual report, if published thereafter.

2 TABLE OF CONTENTS Management and Administration 2 Board of Director's Report 3 Audit report 6 Statement of net assets as at 31 December Statement of operations and changes in net assets for the year ended 31 December Statement of investments as at 31 December Breakdown of investments by region as a percentage of net assets for the year ended 31 December Statement of net asset value per share for the year ended 31 December Statement of changes in the number of shares outstanding for the year ended 31 December Notes to the financial statements as at 31 December

3 Management and Administration Registered office 2, Place Dargent, L-1413 Luxembourg Board of Directors Chairman Sérgio Raposo Partners Group (Luxembourg) S.A r.l. Directors Dr. Helene Müller-Schwiering Advokatgruppen Luxembourg Roland Roffler Daniel Van Hove Partners Group AG Orionis Management S.A. Administration and Advisors Investment Advisor Legal Advisor Custodian and Paying Agent, Registrar and Transfer Agent Administrator and Domicilary Agent Partners Group AG Zugerstrafle 57, CH 6341 Baar, Switzerland Elvinger, Floss & Prussen 2, Place Winston Churchill, L Luxembourg M.M.Warburg & CO Luxembourg S.A. 2, Place F.J. Dargent, L-1413 Luxemburg WARBURG INVEST LUXEMBOURG S.A. 2, Place F.J. Dargent, L-1413 Luxemburg Auditor PricewaterhouseCoopers, Société coopérative 400, route d'esch, L-1471 Luxembourg - 2 -

4 Board of Director's Report Search for yield lead to "assetflation" 2013 was characterized by bullish public markets which flourished further towards the end of year as the S&P 500 saw its best performance in nearly two decades, gaining 30%. However, the strong financial markets were not driven by fundamentals, but by high liquidity and the search for yield. As a result, the US Federal Reserve (Fed) announced the tapering of monthly asset purchases in December 2013, but initial repercussions have been milder than that experienced in summer 2013 after the Fed first hinted at its plans with economic indicators pointing towards further growth momentum. Across the Atlantic, signs of an economic recovery are also further evolving in the Eurozone, including the periphery, with manufacturing purchasing manager indices in December surprising positively in Germany, Italy and Spain. M&A activity down slightly in 2013 Global M&A activity in the year 2013 totaled USD 2.2 trillion, down slightly (by 3.2%) on the previous year. While M&A confidence increased each quarter until September, deal volume decreased by 12.7% to USD billion in the fourth quarter, resulting in the first yearly overall decline since At the same time, acceptance of bid offers was generally high, with only 105 lapsed deals in 2013, the lowest level since Nevertheless, global average deal size in 2013 dropped after two annual increases, down 4.2% to USD million compared to Most active private equity buyout market since 2007 In contrast to the M&A market in 2013, global private equity buyout activity increased by 3.8% to USD 274 billion, the highest annual volume since 2007, according to Preqin. The year was marked by a notable increase in largecap transactions, as total volume reached a post-crisis high albeit that the number of transactions decreased by 11% compared to The top buyout deals completed during the year were the privatizations of US-based H.J. Heinz (USD 28.0 billion) through 3G Capital and Berkshire Hathaway, and IT specialist Dell (USD 24.9 billion) through MSD Capital and Silver Lake. In terms of geographic focus, the largest increase of aggregate volume in relative (9.6%) and absolute (to USD 171 billion) terms was recorded in North America. With 62% of the total transaction volume and the largest five private equity-backed buyout deals in 2013, the US further proved its dominance as the most active buyout market. US and European IPO markets picked up in 2013 Global IPO activity saw USD 163 billion of capital raised through a total of 864 deals in 2013, an increase of 26.8% and 3.2%, respectively, compared to the previous year, according to Ernst & Young. At the same time, the number of larger scale IPOs rose significantly, with 34 deals raising more than USD 1 billion, compared to 18 such deals in Private equity-backed IPOs accounted for 21.1% of the number of listings and 34.6% of the total capital raised. Both values represent steep increases of 70.1% and 191.2%, respectively, over the prior year. Fund development Partners Group Global Value SICAV (the "Fund") had yet another positive year, increasing in value by 9.1% to EUR for the share class I (EUR) and to EUR for the share class R (EUR), representing the fourth consecutive annual gain following the Fund's favorable performance in 2012 (+6.0%), 2011 (+12.4%) and 2010 (+20.5%). Since its inception in 2007, this resulted in a net performance of 48.2% for the class I (EUR), outperforming the MSCI TR by 24.1% across market cycles at a significantly lower volatility. This positive development in 2013 was mainly driven by a significant number of successful realizations, which were conducted above holding value, such as the exit of AHT Cooling, Bausch & Lomb and Twitter. In November 2013, Twitter, the social communication service provider and one of the 20 largest portfolio companies, priced its IPO on the NYSE at significantly above the initial price range, and raised more than double the amount originally intended. The IPO was well received by investors with the share price increasing to over USD 63 by the end of December, leading to an additional valuation uplift of more than 100 percent. Twitter has about 500 million users worldwide and has a proven strategy in the mobile advertising market, an area that is considered crucial for the future commercial success of websites. This competitive edge has strengthened the company's monetization -3..

5 efforts, with revenues exceeding expectations in The Fund continues to hold a stake in the company, and will fully exit its position over time. Other key drivers of the strong performance in 2013 were positive operating results from the Fund's portfolio companies as well as several value-creation initiatives starting to bear fruit. For example, Universal Services of America (USA), in close collaboration with Partners Group, completed several key acquisitions in 2013 which led to significant cost-saving synergies. As such, the security services provider has already been written up substantially since its acquisition in July In total, the positive development of the net asset value (NAV), coupled with continuous strong investor demand, led the Fund size to increase by roughly 20% year on year to a total of EUR million as of 31 December Capturing attractive opportunities In line with Partners Group's relative value approach to invest capital in the most attractive segments at any point in time, the Fund committed EUR 114 million in 2013, significantly increasing its investment pace over the year, with over EUR 77 million deployed in the second half alone. Overall, the Fund invested in nine direct equity opportunities, seven secondary transactions and four new primary commitments. Furthermore, the Fund participated in select debt transactions. In February, for example, the Fund made a new direct equity investment in Softonic. The company operates a global multiplafform software guide that allows users to explore, download and manage software applications on multiple devices. Softonic is a world market leader in this business segment and is one of the global top 40 websites with 90m unique clicks per month. Since its acquisition and with active support from Partners Group, Softonic launched a new mobile application, implemented a new controlling framework and strengthened the company's sales team internationally. The measures have already strengthened the company's performance, with revenues increasing significantly in the fourth quarter of 2013 compared to the previous one. The company is expected to see strong growth driven by increasing demand for software applications going forward. Besides launching the guide in new languages over the coming years, the company plans to increase its presence in existing markets and focus on creating new products and services. Furthermore, in July 2013, the Fund invested EUR 4.2 million in the equity of USA, a provider of diversified security services to some of the largest real estate management companies in the United States. USA offers its clients manned guard services, janitorial services and security systems, with the majority of its revenues deriving from the provision of guard services. The security services provider reported strong earnings growth in the fourth quarter of the year, which has already resulted in an uplift of the company's valuation. Additional value is expected to be created through efficiency-enhancement initiatives, such as improving the IT and business intelligence infrastructure. In September, the Fund committed EUR 8.6 million to Project Bonhomme, a multi-fund secondary transaction comprising assets managed by reputable investment partners including Permira, Sun Capital Partners, Technology Crossover Ventures and Lightyear Capital, among others. The transaction offers exposure to a welldiversified portfolio of companies in North America, Europe and Asia. Partners Group remained selective in handpicking the assets and secured a favourable reference date (end-2012) for pricing the portfolio as well as a deferred payment to the seller that benefits the returns for investors. Project Bonhomme, which was 92% drawn at acquisition, offers excellent visibility and significant value-creation potential. During 2013, the project already saw realization events and valuation uplifts. Record level of distributions The Fund reported a record year of distributions in 2013, with an increase of 33% year on year to EUR 55.8 million, translating into a distribution rate of 28% of the total value of investments as of 31 December Total proceeds exceeded capital calls from existing fund investments by EUR 47.7 million, demonstrating the sound liquidity base of the Fund. In May 2013, Bausch & Lomb (B&L), one of the largest global providers of eyecare products, announced that it was to be acquired by NYSE-listed Valeant Pharmaceuticals for USD 8.7 billion. B&L has undergone significant value creation since the Fund's investment in During the investment period, the company introduced new products, expanded into new markets and strengthened its relationships with eyecare professionals globally. One of the largest distributions during the year came from the sale of AHT Cooling, which was announced in September. The global market leader for commercial plug-in cooling equipment for the retail food industry was sold to Bridgepoint for EUR 585 million, resulting in an IRR of 25%. Since its investment in 2007, Partners Group - 4 -

6 set In motion and supported a number of strategic initiatives to further strengthen Al-IT CoolIng's market position. During the holding period and throughout the economic downturn, the business expanded successfully and its EBITDA Increased by 70%. During the same period, AHT Cooling internationalized Its production facilities, significantly increased its employee base and doubled the energy efficiency of its products. Besides the exit of some of the Fund's largest portfolio companies, the Fund also received significant proceeds from its mezzanine debt Investments. As the Fund managed to close these deals at attractive terms, ft benefited from early repayments and prepayment penalties, which resulted In double-digit returns for the majority of the Investments. For example, one of the largest mezzanine repayments was received from CPA Global in December Partners Group provided mezzanine financing to the legal and intellectual property support services provider In March Increased focus on direct Investments In line with Partners Group's relative value assessment to focus on direct private equity Investments in mid-sized companies with strong or leading market positions, the allocation to direct investments increased by 11% to 27% as of the end of The majority of the Fund's portfolio remains (as at year-end 2013) In secondary transactions, accounting for 44%, down from 48% in 2012, while primaries stand at 29%, down from 35%. Geographically, the bulk of investments remain In North America (50%), followed by Europe (40%) and Asia and Rest of World (100/c). The Fund's focus on buyout investments is unchanged with an allocation 01 65%, white debt and special situations account for 23% (2012: 21%) and venture capital for 12% (2012:14%). Outlook The Fund will continue to pursue attractive investments with the focus remaining an direct opportunities predominantly in the mid-cap space where value-creation potential still exists. With an increased focus on direct Investments, the overall cost for Investors Is generally expected to decrease, due to the elimination of a double fee layer. Geographically, Partners Group will concentrate on the US and within Europe on the more robust regions, including Scandinavia, the UK and Germany. Also, in the emerging markets, where valuations have come down In line with a weaker economic growth outlook, attractive Investments can be found, especially in export-oriented companies and non-cyclical industries. Opportunities can also be identified in certain Industries such as the IT sector, which has seen strong growth, an increased demand for outsourcing and many attractive business models with high margins. On the secondaries side, the focus Is more on complex transactions with Inflection assets where bidder competition Is limited and at the same time operational improvements still have a meaningful Impact. The Fund Is currently in advanced due-diligence stages for several opportunities and is expected to increase Its Investment level to over 90% by the end of the first quarter. Given the continued high level of liquidity In financial markets, M&A and buyout activity are set to remain at relatively elevated levels in Due to the afore-mentioned trends, private equity exit markets look to be continuously strong in The Fund's mature portfolio with a weighted-average maturity of 3.4 years Is wellpositioned to capitalize on these favorable conditions. For instance, some of the Fund's largest holdings such as the music recognition service Shazam are already working towards an exit This and other realizations are expected to materialize above current holding values which should, next to ongoing value-creation initiatives, positively impact the value development of the Fund, _.._ /2, SergRAI5Cīt t.. frin. Membek,f the Bo1 ' d -'(S? 0 5?oi 1 y /, _ - 5 -

7 pwc Audit report To the Shareholders of Partners Group Global Value SICAV We have audited the accompanying financial statements of Partners Group Global Value SICAV, which comprise the statement of net assets and the statement of investments as at 31 December 2013 and the statement of operations and changes in net assets for the year then ended, and a summary of significant accounting policies and other explanatory notes to the financial statements. Responsibility of the Board of Directors of the SICAV for the financial statements The Board of Directors of the SICAV is responsible for the preparation and fair presentation of these financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements and for such internal control as the Board of Directors of the SICAV determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Responsibility of the "Réviseur d'entreprises agréé" Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted for Luxembourg by the "Commission de Surveillance du Secteur Financier". Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the judgment of the "Réviseur d'entreprises agree", including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the "Réviseur d'entreprises agree" considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors of the SICAV, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. PricewaterhouseCoopers, Société coopérative, 400 Route d'esch, B.P. 1443, L-1014 Luxembourg T , : , Cabinet de révision agréé. Expert-comptable (autorisation gouvernementale ) R.C.S. Luxembourg B TVA LI

8 pwc Opinion In our opinion, the financial statements give a true and fair view of the financial position of Partners Group Global Value SICAV as of 31 December 2013, and of the results of its operations and changes in its net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements. Other matters Supplementary information included in the annual report has been reviewed in the context of our mandate but has not been subject to specific audit procedures carried out in accordance with the standards described above. Consequently, we express no opinion on such information. However, we have no observation to make concerning such information in the context of the financial statements taken as a whole. PricewaterhouseCoopers, Société coopérative Luxembourg, 18 March 2014 Represented by _ Valérie Tixier 7

9 Statement of net assets as at 31 December 2013 Assets Notes EUR Investments in securities at market value ,031,425 Cash at bank 20,006,108 Receivable on investments 4,310,753 Receivable on subscriptions 475,796 Total assets 310,824,082 Liabilities Management fees payable 3 2,438,207 Performance fee payable 3 914,019 Performance fees provision 3 7,546,559 Expenses payable 440,039 Net unrealized loss on forward foreign exchange contracts 2.5, 7 605,344 Payable on investments 562 Payable on redemptions 108,241 Subscriptions received in advance 161,876 Other payables 92,966 Subscription tax payable 4 73,253 Total liabilities 12,381,066 Total Net Assets 298,443,016 The accompanying notes form an integral part of these financial statements

10 Statement of operations and changes in net assets for the year ended 31 December 2013 Notes EUR Income Income on investments 2.7 7,769,325 Other income 88,879 Total income 7,858,204 Expenses Management fees (4,445,800) Professional fees (249,168) Administration/Domicilation/Transfer Agent fees 5 (215,255) Custody fees 5 (96,571) Subscription tax 4 (140,402) Performance fees 3 (3,437,695) Bank and loan interest expenses 10 (268,656) Transaction fees (17,529) Other expenses (1,172,356) Total expenses (10,043,432) NET INVESTMENT INCOME/LOSS (-) (2,185,228) Realized gain/ loss (-) Realized gain/ loss (-) on investments 6,202,457 Realized gain/ loss (-) on currency 391,051 Realized gain/ loss (-) on forward foreign exchange contracts (1,147,385) Total realized gain/ loss (-) 5,446,123 Unrealized gain/ loss (-) Change in unrealized gain/ loss (-) on investments 15,757,244 Change in unrealized gain/ loss (-) on forward foreign exchange contracts 898,870 Total change in unrealized gain/ loss (-) 16,656,114 NET INCREASE/ DECREASE (-) IN NET ASSETS RESULTING FROM OPERATIONS 19,917,009 Capital Transactions Net capital subscriptions/ redemptions (-) I Shareholders (684,672) R Shareholders 16,961,758 I (USD) Shareholders (4,242,439) R (USD) Shareholders 13,045,415 D (GBP) Shareholders 1,933,871 I (AUD) Shareholders 1,964,745 NET INCREASE/ DECREASE (-) IN NET ASSETS RESULTING FROM CAPITAL TRANSACTIONS 28,978,678 Net Assets Beginning of the year 249,547,329 Total increase in net assets 48,895,687 NET ASSETS AT THE END OF THE YEAR 298,443,016 The accompanying notes form an integral part of these financial statements

11 Statement of investments as at 31 December 2013 Market value as a percentage of net Transferable securities admitted to an Market Value assets official stock exchange PGA *) Currency in EUR in % Partners Group Private Investments - Listed Equity EUR 897, Penta CLO I S.A. EUR 1,115, Total transferable securities admitted to an official stock exchange 2,012, Private Equity Funds 31 Eurofund Vb 210/direct EUR 2,302, i Europartners IIIA, L.P. 210 EUR 3, Acacia EUR 2,245, Advanced Technology Ventures VII, L.P. 378 USD 206, Advent International GPE V-C, L.P. EUR 708, AIF VII Private Investors Offshore, L.P. (JPM) 347 USD 91, Amadeus III, L.P. GBP 1,043, American Capital Equity I USD 1,808, Apollo Overseas Partners VIII, L,P. 560 USD 112, Ares Corporate Opportunities Fund II, L.P. 126/direct USD 1,329, Ares Corporate Opportunities Fund III, L.P. 65 USD 2,991, Astorg III 127 EUR 64, Astorg IV 128/direct EUR 3,086, Avista Capital Partners (Offshore), L.P. 11 USD 2,548, Avista Capital Partners, L.P. 106 USD 852, BC European Capital VII (1) 38 EUR 13, BC European Capital VII Top Up Fund 38 EUR 3,178, Blackstone Capital Partners V/C, L.P. 131 USD 242, Blackstone Capital Partners VIE, L.P. 210 USD 404,381, Blackstone Capital Partners V/F, L,P, 316 USD 474, Blackstone Capital Partners V/G, L.P. 210 USD 943, Blackstone Capital Partners V-S, L.P. 131/210 USD 246, Canaan Equity III 378 USD 32, Candover 2001 Fund UK No. 2, L.P. EUR 357, Candover 2005 Fund, L.P. EUR 1,554, Carlyle Partners VI, L.P. USD 26, CCMP Capital Investors II L.P. USD 1,090, CCMP II Private Investors Offshore, L.P. 347 USD 28, Centennial Ventures VII, L.P. 378 USD 135, Coller International Partners IV USD 797, ComVentures V, L.P. 378 USD 55, Creo Capital Partners II, L.P. 36 USD 640, CVC Capital Partners VI (A) 546 EUR CVC European Equity Partners IV, L.P. 116/direct EUR 964, CVC European Equity Partners Tandem Fund (A), L.P. 226 EUR 656, CVC European Equity Partners Tandem Fund (B), L.P. 116 EUR 759, ,25 CVC European Equity Partners V, L.P. 116/226 EUR 907, Cybernaut Growth Fund L.P. USD 6,100, DCM III, L.P. 378 USD 70, Development Capital I EUR 175, Doughty Hanson & Co V_.,4 EUR 2,953, , -10-

12 Market value as a percentage of net Market value assets PGA Currency in EUR in % Duffy Capital, L.P. 608 USD 341, Duke Street Capital VI No 1, L.P. EUR 373, Edison Venture Fund IV, L.P. 378 USD 70, Edison Venture Fund V, L.P. 378 USD 69, Edison Venture Fund VI, L.P. 378 USD 169, Energy Future Holding Corp (1) (**) USD 40, Energy Future Holding Corp (2) (**) USD 4, Energy Future Holding Corp (3) (**) USD 44, EnerTech Capital Partners II, L.P. 378 USD 45, EQT VI (No.1) Limited Partnership 346 EUR 827, Financial Technology Ventures Ill L.P. 378 USD 52, First Reserve Fund XI, L.P. USD 1,480, First Reserve Fund XII, L.P. USD 1,646, Foundation Capital II, L.P. 378 USD 55, Fourth Cinven Fund, L.P. 130/192 EUR 1,719, Gabriel Venture Partners II, L.P. 378 USD 61, Global Real Estate Hybrid Co-Investment Fund V (**) 96 USD 595, Global Real Estate Hybrid Fund V (** ) 96 USD 1,455, Hamilton Lane Private Equity Plc USD 116, Hellman & Friedman Capital Partners VI, L.P. USD 1,968, ICG European Fund 2006, L.P. 64 EUR 528, KKR 2006 (Premium) USD 368, KKR 2006 Private Investors Offshore, L.P. 347 USD 68, KKR 2006/D Fund, L.P. 177 USD 1,232, Kohlberg TE Investors VI USD 2,128, Lexington Capital Partners II USD 193, Macquarie Advanced Investment Partners, L.P. USD 836, Macquarie Global Opportunities Partners, L.P. USD 41, Menlo Ventures IX, L.P. USD 358, Menlo Ventures X, L.P. USD 516, Montagu III, L.P. 116 EUR 102, Nordic Capital VIII EUR Noro-Moseley Partners V, L.P. 378 USD 2, Noro-Moseley Partners VI, L.P. 378 USD 119, Nth Power Technologies Fund II, L.P. 378 USD 48, Paduba Ind Ltd CAI CAP CAD Paduba Ind Ltd CAI CAP III CAD 253, Pamlico Capital II Parallel Fund, L.P. USD 573, Pamlico Capital II, L.P. USD 472, Pamlico Capital Secondary Fund, L.P. USD 59, Partners Group Access 105 L.P. (**) 105 USD 575, ,19 Partners Group Access 116 L.P. (**) 116 EUR 749, Partners Group Access 17 L.P. (**) 17 GBP 2,701, Partners Group Access 181 L.P. (**) 181 USD 546, Partners Group Access 210 L.P. (**) 210 GBP 3, Partners Group Access 210 L.P. (**) 210 USD 499, Partners Group Access 231 L.P. (**) 231 USD 2,780, Partners Group Access 347 L.P. (**) 347 EUR 685, Partners Group Access 378 L.P. (**) 378/direct USD 416, Partners Group Access 378 L.P. (**) 378 USD 41, Partners Group Access 39 L.P. (**) 39 USD 69,

13 Market value as a percentage of net Market value assets PGA Currency in EUR in % Partners Group Access 49 L.P. (**) 49 USD 2,772, Partners Group Access 88 L.P. (**) 88 USD 1,220, Partners Group Access 96 L.P, (**) 96 USD 6,428, Partners Group Access 107 L.P. (**) 107 USD 1,119, Partners Group Access 409 L.P. (**) 409 EUR 1,251, Partners Group Access 470 L.P. (**) 470 USD 1,518, Partners Group Asia Pacific 2005, L.P. USD 5,242, Partners Group Client Access 5, L.P. EUR 3,109, Partners Group Client Access 9, L.P. Inc. USD 4,642, Partners Group Direct Investments 2006, L.P. EUR 1,974, Partners Group Emerging Markets 2007 L.P. USD 9,598, Partners Group European Buyout 2005, L.P. EUR 8,094, Partners Group Fondue Access, L.P. USD 1,625, Partners Group Longhorn Access, L.P. USD 3,108, Partners Group Madison Access, L.P. USD 1,197, Partners Group Princess Learning IC Limited EUR 50, Partners Group Providence Access, L.P. USD 4,561, Partners Group Secondary 2004, L.P. EUR 1,583, Partners Group Secondary 2006, L.P. EUR 2,071, Partners Group Snowball Access L.P. USD 2,169, Partners Group U.S. Venture 2004, L.P. USD 1,057, Partners Group U.S. Venture 2006, L.P. USD 12,610, Partners Group Wallaby 5 Access, L.P. USD 1,441, Pelion Ventures V 378 USD 12, Polish Enterprise Fund VI EUR 2,011, Prism Venture Partners V, L.P. USD 804, Quad Partners II, L.P. 378 USD 70, Quad Partners Ill, L.P. 378 USD 22, RIC Global Energy & Power Private Invs Offshore IV, L.F 347 USD 104, RBS Special Opportunities Fund F, L.P. GBP 904, Saints Capital Falcon, L.P. USD 168, Saints Rustic Canyon, L.P. USD 862, Saskia ll Limited Partnership Inc. (STAR I) EUR 9, Silver Lake Partners Ill, L.P. 181 USD 796, SLP Ill Private Investors Offshore, L.P. (JPM) 347 USD 97, Southeast Interactive Technology Fund III, L.P. 378 USD 61, STAR ll UK Limited Partnership No. 1 EUR 493, Summit Ventures VI, L.P. 378 USD 103, TCW/Crescent Mezzanine Partners IVB, L.P. USD 845, Third Cinven Fund (No.4), L.P. 129/192 EUR 86, Thomas H. Lee Fund VI L.P. 93 USD 1,609, Thomas H. Lee Parallel (DT) Fund VI L.P. USD 723, Thomas H. Lee Parallel Fund VI L.P. USD 3,615, TPG Partners V, L.P. 474/direct USD 2,816, TPG Partners VI, L.P. 67/472 USD 3,976, Trident Capital Fund IV, L.P. 378 USD 4, Trident IV, L.P. USD 1,704, UV Partners IV Financial Institutions Fund, L.P. 378 USD 123, Warburg Pincus Private Equity X, L.P. 35 USD 3,281, Total private equity Funds 170,907,

14 Market value as a percentage of net Market value assets Direct private equity investments PGA Currency in EUR in ' Yo Abertis 328 EUR 800, AcadeMedia AB / Shares 211 SEK 923, Action 424 EUR 3,210, AWAS Aviation Holding EUR 1,131, Biffa Newco 1 A Ordinary Shares Paduba GBP Caesars Entertainment Corporation USD 543, China Forestry Holdings Co. Ltd. (***)(****) 119 USD 151, Delsey/Shares EUR 148, Delsey/Shares March 2012 EUR Direct private Equity Investment (**) SEK Duffy Capital (Direct) 608 USD 119, Duffy Capital (Direct) Warrant 608 USD Expro International Group / P Shares 101 USD 19, Expro International Group / P Shares (Aug 11) 101 USD 84, Expro International Group / PTI 101 USD 13, Expro International Group/ PTI (Sept 10) 101 USD 21, Expro International Group/Shares 101 USD 63, Freescale / Shares Ill USD 482, Genesys / Equity Common Shares 358 USD 279, Kaffee Partner AG 191 EUR 1,261, Kofola Hoop / Shares 108 EUR Kofola Hoop CPECs / shares 108 EUR 254, Luxury good company (**) EUR Measurement machinery company (**) USD 765, Media and communications company (**) USD 301, Medical device company 1 (**) 73 USD 92, NXP Semiconductors ll EUR 188, Ono / 2010 Equity Injection 198 EUR 9, Ono/Shares EUR 453, Partners Group Access 103 L.P. (**) 103 USD 203, Partners Group Access 20 L.P. (**) 20 USD 1,938, Partners Group Access 209 L.P. (**) 209 EUR Partners Group Access 387 L.P. (**) 387 EUR 121, Partners Group Access 393 L.P. (**) 393 AUD 203, Partners Group Access 558 L.P. (**) 558 USD 2,106, Partners Group Access 613 L.P. (**) 613 USD 2,902, Partners Group Access 79 L.P. (**) 79 USD 55, Partners Group Access VI (**) VI EUR 6,000, Partners Group Sapphire (Mauritius) Limited (**) USD 1,284, Qol Meds 606 USD 2,612, Softonic International Search EUR 1,977, SunGard / Shares USD 846, Truck Pro / NC Stock (Nov 11) 212 USD Truck Pro / P Stock (Nov 11) 212 USD 482, TSA / (Equity) Shares USD 199, Universal Services of America USD 5,381, Univision/Shares USD 412, US entertainment company (**) USD 610, Vita Cayman / Shares EUR 26, Vita Cayman / Warrants EUR 34, Waste Management Company 101 GBP

15 Market value as a percentage of net Market value assets PGA Currency in EUR in % Aenova Group EUR 6,025, B&M Retail Limited Planeta GBP 2,436,476, Biffa Junior Note Facility Paduba GBP BSN Medical GmbH & Co. KG EUR 1,972, Delsey Group Paduba EUR 2,134, Duffy Capital (Direct) 608 USD 303, Expro Intern. Group/Mezz Paduba USD 1,303, Genesys/Mezz 422 EUR 1,418, Healthcare operator 3 (**) EUR 4,013, Iceland Foods Group Planeta EUR 1,010, I MCD EUR 1,521, Materne Mont Blanc EUR 5,590, Partners Group Access 195 L.P. (**) 195 EUR 1,058, Partners Group Access 393 L.P. (**) 393 AUD 913, Photonis Holding S.A.S. 586 EUR 6,000, Securitas Direct 421 EUR 2,602, Springer Science+Business Media EUR 3,032, Trescal. EUR 2,364, TSA / (Mezz) loan_1 USD 686, Total direct private equity investments 83,111, Coupon Description Maturity Currency rate (%) Nominal Market Value Dutch Treasury Certificate Kingdom of the EUR ,000, ,999, Netherlands Belgian Treasury Certificate EUR ,000, ,000, Total Bonds 30,000, ,999, Total investments (Cost EUR 222,211,211.57) 286,031, *) PGA means a Partners Group Access LP and describes cases where the Fund does not invest directly in the underlying but via such an access vehicle **) The investment has not been disclosed due to confidentiality reasons; for further details see Note 6 *"*) Official trading on the underlying listed investments has been suspended since 26 January 2011 due to financial irregularities. "***) At the end of the reporting period, the Fund has an investment in China Forestry Holdings Co., Ltd. ("China Forestry"), valued at USD 209,218 based on a fundamental price per book value analysis. Breakdown of investments by region as a percentage of net assets for the year ended 31 December 2013 Europe 45.50% North America 41.25% Rest of World 4.44% Asia 4.66% Total 95.84% The accompanying notes form an integral part of these financial statements

16 Statement of net asset value per share for the year ended 31 December 2013 Total net assets as at 31 December 2011 I Shareholders 45,003,013 EUR R Shareholders 79,551,815 EUR I (USD) Shareholders 16,630,178 USD R (USD) Shareholders 4,632,515 USD D (GBP) Shareholders 9,392,631 GBP 152,209,105 EUR Total net assets as at 31 December 2012 I Shareholders 65,615,749 EUR R Shareholders 93,546,971 EUR I (USD) Shareholders 67,579,990 USD R (USD) Shareholders 23,971,894 USD D (GBP) Shareholders 13,193,836 GBP I (AUD) Shareholders 6,078,408 AUD 249,547,329 EUR Total net assets as at 31 December 2013 I Shareholders 70,957,805 EUR R Shareholders 119,065,127 EUR I (USD) Shareholders 68,790,068 USD R (USD) Shareholders 44,565,375 USD D (GBP) Shareholders 16,262,345 GBP I (AUD) Shareholders 10,190,625 AUD 298,443,016 EUR Net asset value per share as at 31 December 2011 I Shareholders EUR R Shareholders EUR I (USD) Shareholders USD R (USD) Shareholders USD D (GBP) Shareholders GBP Net asset value per share as at 31 December 2012 I Shareholders EUR R Shareholders EUR I (USD) Shareholders USD R (USD) Shareholders USD D (GBP) Shareholders GBP I (AUD) Shareholders AUD Net asset value per share as at 31 December 2013 I Shareholders EUR R Shareholders EUR I (USD) Shareholders USD R (USD) Shareholders USD D (GBP) Shareholders GBP I (AUD) Shareholders AUD -15-

17 Statement of changes in the number of shares outstanding for the year ended 31 December 2013 Number of shares outstanding at the beginning of the year I Shareholders 482, R Shareholders 717, I (USD) Shareholders 351, R (USD) Shareholders 132, D (GBP) Shareholders 105, I (AUD) Shareholders 58, Total number of shares outstanding at the beginning of the year 1,848, Net change in number of shares during the year I Shareholders (4, ) R Shareholders 125, I (USD) Shareholders (28, ) R (USD) Shareholders 92, D (GBP) Shareholders 12, I (AUD) Shareholders 23, Total net change in number of shares during the year 222, Number of shares outstanding at the end of the year I Shareholders 478, R Shareholders 842, I (USD) Shareholders 323, R (USD) Shareholders 225, D (GBP) Shareholders 118, I (AUD) Shareholders 82, Total number of shares outstanding at the end of the year 2,

18 Notes to the financial statements as at 31 December General Partners Group Global Value SICAV (the "Fund") was incorporated on 1 February 2007 and is organized as an open-ended société anonyme under the laws of the Grand Duchy of Luxembourg and qualifies as a Société d'investissement à Capital Variable ("SICAV"). The Fund is authorized as an undertaking for collective investment under Part II of the law of 17 December The Fund's investment objective is to obtain superior returns and to achieve capital growth over the medium and long-term by investing in private equity. The allocation of the Fund's assets shall provide a broad diversification and follow the principle of risk spreading. The Fund currently offers: - Class I Shares reserved to investors who qualify as institutional investors available in the base currency of EUR, USD, JPY and AUD: - Class R Shares to all investors available in the base currency EUR and USD; and - Class D Shares to all investors available in the base currency GBP. With effective date of 1 January 2012 the Fund was merged with Partners Group Global Private Equity SICAV, according to the Board of Directors' resolution as of 19 October Shareholders in Partners Group Global Private Equity SICAV were allocated shares in the Fund. The Luxembourg law of 12 July 2013 on alternative investment fund managers entered into force on 15 July 2013, the date of publication in the Mémorial. It implements Directive 2011/61/EU of 8 June 2011 on alternative investment fund managers (AIFMD) and introduces a number of other changes to existing Luxembourg legislation, including the laws governing regulated investment vehicles. The Board of Directors of the Fund is currently taking the necessary steps to comply, as applicable, with the provisions of the law within the transitional period. 2. Accounting methods The financial statements are prepared in accordance with Luxembourg regulations relating to investment funds, including the following significant accounting policies: 2.1 Valuation of Investments Securities which are quoted or dealt in on a stock exchange are valued at the latest available dealing price or the latest available mid-market quotation (being the midpoint between the latest quoted bid and offer prices) on the stock exchange which is normally the principal market for such security. Investments in unquoted private equity funds (or any funds of private equity funds) and in limited partnerships are initially valued at cost and thereafter by reference to the most recent net asset value as reported by the general partner or manager of the relevant investment as adjusted for subsequent net capital activity and other event to reflect fair value. Regarding the underlying cash movements the administrator's usual practice is to book the capital call for investment in the cost. All fees occurred by the capital call will also be included in the cost. Distributions received from the underlying investments will be reflected as decrease of cost. As soon as the acquisition is recovered, subsequent returns of investments are accounted for according to the general partners' information. This proceeding is only valid for partnerships (primaries as well as secondaries), not for direct investments. The Board of Directors of the Fund, on the basis of advice received from the Investment Advisor, will make its own estimation of the value of any Direct Investment held by the Fund and will typically not obtain independent valuation of such Direct Investment. The Board of Directors shall determine prudently and in good faith the estimated realization value of such assets. Mezzanine Direct Investments will initially be - 17-

19 valued at cost (face value of loan plus accrued interest, if any) and thereafter typically adjusted for any change, if any, in (i) accrued pay-in-kind interest, in (ii) value of warrants and/or (iii) in the face value of the loans. In selecting investments, the Board of Directors has taken into consideration the accounting and valuation basis of the underlying partnerships and direct investments and select only those investments, which adopt an internationally recognized standard. In the event that the Board of Directors determines that the above valuation guidelines are not appropriate in relation to a particular asset of the Fund, then the Board of Directors shall determine prudently and in good faith the fair value of such asset. The Administrator authorised to conclusively rely on such net asset valuations reported by the general partner or manager of the relevant investment, or the Board of Directors, as the case may be. Critical accounting estimates and judgments There is significant subjectivity in the valuation of investments in limited partnerships and directly held investments with very little transparent market activity to provide support for fair value levels at which willing buyers and sellers would transact. The estimates and judgments employed therein are therefore continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Board of Directors make estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. Valuation method For the valuation of such investments, the Board of Directors review the latest information provided by underlying partnerships and other business partners, which frequently does not coincide with the valuation date, and applies widely recognized valuation methods to such data such as time of last financing, multiple analysis, discounted cash flow method and third party valuation as well as market prices to estimate a fair value as at the balance sheet date. As part of the fair valuation of such investments the Board of Directors use observable market and cash flow data to consider and determine the fair values of the underlying investments. Furthermore the investment manager considers the overall portfolio against observable data and general market developments to determine if the values attributed appear fair based on the current market environment. The Board of Directors make reasonable efforts to obtain the latest available information from the underlying investment. As part of the continuous evaluation of the fair value of the underlying unquoted investments the fair value assessment procedures are determined by the Board of Directors. In addition, the Board of Directors is also responsible for ensuring that these procedures are adhered to during the assessment of the fair values. Based on an assessment of relevant applicable indicators of fair value, the Board of Directors estimate the fair values as at the valuation date. Such indicators may include, but are not limited to: - limited partnership's most recent reporting information including a detailed analysis of underlying company performance and investment transactions with the fund between the latest available fund reporting and the balance sheet date of the Fund; - review of a direct investment's most recent accounting and cash flow reports and models, including date supplied by both the sponsor and the company and any additional available information between the date of these reports and the balance sheet date of the Fund; - review of recent transaction prices and merger and acquisition activity for similar direct investments; - review of the limited partnership's application of generally accepted accounting principles and the valuation method applied for its underlying investments such as discounted cash flow and multiple analysis, which are based on available information; and - 18-

20 - review of current market environment and the impact of it on limited partnerships, their investments and the Fund's direct investments The variety of valuation bases adopted, quality of management information provided by the underlying partnerships and the lack of liquid markets for the investments held mean that there are inherent difficulties in determining the fair values of these investments that cannot be eliminated. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities, and therefore the amounts realized on the sale of investments, could differ from the fair values reflected in these financial statements and the differences may be significant. Accounting policies Investments in limited partnerships and direct investments are derecognized when the rights to receive cash flow from investments have expires or where substantially all risks and rewards of ownership have been transferred. Amounts realized on the sale of directly held investments and limited partnerships may differ from the values reflected in these financial statements and the differences may be significant. All transactions relating to investments in limited partnerships are recognized on the settlement date. 2.2 Conversion of foreign currencies The Fund maintains its accounting records in Euro (EUR) and its financial statements are expressed in this currency. All assets and liabilities in currencies other than EUR are translated into this currency at the exchange rates prevailing as at the end of the period. Income and expenses in currencies other than EUR are translated into EUR at the exchange rates prevailing at the transaction date. The resulting profits and losses are included in the Statement of Operations and Changes in Net Assets. The prevailing exchange rates as at 31 December 2013 are between AUD and EUR, between CAD and EUR, between CHF and EUR, between GBP and EUR, between SEK and EUR, between SGD and EUR, between HKD and EUR, between NOK and EUR, between DKK and EUR and between USD and EUR at the end of the period. 2.3 Realized profit/loss (-) on sale of investments Realized profit/loss (-) on sale of investments is the difference between the cost of investment and the sale proceeds. The cost of investment for target funds is defined as the original cost less distributions received from target funds. The capital call transactions for the target funds are recorded at the date they are due to be paid. 2.4 Unrealized profit/loss (-) on investments In accordance with current practices, unrealized profit/loss at the end of the financial period are accounted for in the Statement of Operations and Changes in Net Assets. 2.5 Forward foreign exchange contracts The unrealized gain or loss on forward foreign exchange contracts is calculated as the difference between the contracted rate and the rate to close out the contract. Realized profit or loss includes realized gain or loss on forward foreign exchange contracts that have been settled. -19-

21 2.6 Dividend and distribution income Returns of investments, including return of capital and capital gain distributions but excluding dividends, received from underlying limited partnerships are accounted for under the cost recovery method. This means that such distributions are accounted for as a reduction of the acquisition cost. Any rebates from manager fees on underlying limited partnership are also recorded as a reduction of the acquisition cost. As soon as the acquisition is recovered, subsequent returns of investments are accounted for according to the general partners' information. This proceeding is only valid for partnerships (primaries as well as secondaries), not for direct investments. 2.7 Interest Income Interests on investments are accounted on an accrual basis. 3. Management Fees and Performance Fees The Investment Adviser is entitled to receive from the Fund a fee calculated and paid quarterly in arrears at a rate of up to 1.25% per annum for Class I Shares, Class D (GBP) Shares and Class A (GPB) Shares and up to 1.95% per annum for Class R Shares, on the greater of the pro-rata share of the respective share class (i) the Fund's Net Asset Value and (ii) the Fund's Net Asset Value less cash and cash equivalents plus the total of all commitments made by the Fund but not yet drawn for investments. In addition the Investment Adviser is entitled to a Performance Fee. The Performance Fee shall be calculated and paid in respect of each Direct Investment and in respect of each Secondary Investment (i.e. on a deal-by-deal basis), whether or not such investments are made through any Pooling Vehicle. The Performance Fee in respect of Direct Investments shall be determined in the currency of the respective transaction and as described at page 26 of the Prospectus in clause (i) to (iii). The Performance Fee in respect of Secondary Investments shall be determined in the same manner, save that a rate of 10% is used. No Performance Fee will be payable in respect of any Investment of the Fund other than for Direct Investments and Secondary Investments. Performance Fees become payable when the underlying deal is realised. As at year end the Fund's Net Asset Value includes a performance fee accrued of EUR 7,546,559 and in comparison to the last year end increased by EUR 2,243,808. For the year 2013, performance fees amounted to EUR 3,437, Taxation The Fund is subject to the fiscal legislation of Luxembourg. Under the prevailing laws and regulations, the Fund is subject to an annual subscription tax of 0.05% for all Share Classes per annum of its total net assets, calculated and payable at the end of each quarter. Under the current law and practice, the Fund is not liable to Luxembourg taxes on income or capital gains, nor are dividends paid by the Fund liable to any Luxembourg withholding tax. Dividends and interest, if any, received by the Fund from investments may be liable to withholding taxes in the countries concerned at varying rates, such withholding taxes are usually not recoverable. 5. Administrative, Custodian and Transfer Agent expenses The Fund shall pay the fees of the Administrator, the Domiciliary and the Registrar and Transfer Agent as well as fees of service providers and fees incurred in places where the Fund is registered. In its capacity as Custodian, M.M.Warburg & CO Luxembourg S.A. is entitled to remuneration in accordance with normal banking practice in Luxembourg at rates agreed from time to time with the Fund