PREQIN SPECIAL REPORT: PRIVATE EQUITY IN EMERGING MARKETS JULY alternative assets. intelligent data.

PREQIN SPECIAL REPORT: PRIVATE EQUITY IN EMERGING MARKETS JULY 217 alternative assets. intelligent data.

PREQIN SPECIAL REPORT: PRIVATE EQUITY IN EMERGING MARKETS FOREWORD When Preqin profiled private equity* in emerging markets** in June 216, macroeconomic and geopolitical uncertainty had only just begun to impact the industry in these regions. On the private equity side, fundraising and buyout deal activity had been slowing; however, significant sums of capital were still being secured and invested. Contrastingly, the venture capital sector was flourishing, with record deal flow recorded despite decreasing fundraising levels. As we reach the halfway mark in 217, many of these trends have persisted: full-year 216 fundraising failed to surpass 2; aggregate buyout deal value fell 39% in 216; and the value of venture capital financings reached new heights. However, these figures must be placed in the context of the rapid expansion of private equity in emerging markets; since the end of 2, assets held for emerging markets-focused investment have grown nearly 9x to total $64bn as at Q3 216. Uncertainty has not been conducive to improving investor sentiment. has still not shaken off economic growth concerns, and faces fresh challenges over the rising national debt. Brazil is currently in recession and political upheaval following the impeachment of former president Dilma Rousseff, while Russia still faces financial and geopolitical challenges. However, investors remain committed as they recognize the opportunities arising from the long-term changes occurring in many emerging economies, including a rising middle class and an increasingly young workforce. As such, a fifth of investors surveyed at the end of 216 intended to increase their allocation to emerging markets over 217, while a further 7% planned to maintain their level of investment. Crucially, though, emerging markets-focused investment has demonstrated an ability to deliver attractive returns for investors: median net IRRs are only slightly below those seen for North America- and Europe-focused vehicles, reaching 1% for post-crisis vintages, while top-quartile vehicles are pushing 2% for the same period. Positively for institutions, 2 was the first year in which emerging marketsfocused funds have distributed more capital back to investors than was called up, and net cash flow for the first three quarters of 216 (the latest data available) has already surpassed this total. This report provides a detailed look at the private equity environment in emerging markets, including fundraising, institutional investors, deals and performance, supplementing the information on Preqin s Private Equity Online service. For more information, please visit www.preqin.com or contact info@preqin.com. p3 p p6 p8 p9 p1 p11 p12 p13 p14 p Fundraising Fund Managers Investors Performance Buyout Deals & Exits Venture Capital Deals & Exits Central & Eastern Europe Emerging Asia Latin America DEFINITIONS * Private equity includes buyout, venture capital, growth, turnaround, balanced, co-investment, co-investment multi-manager, direct secondaries, private equity secondaries and private equity funds of funds. It excludes private debt, real estate, infrastructure and natural resources. ** Emerging markets includes all countries in, Asia (excluding Hong Kong, Japan and Singapore), Central & Eastern Europe, Latin America (South and Central America, the Caribbean) and the (excluding Israel). For a full list of countries included in this report please contact info@preqin.com. All rights reserved. The entire contents of Preqin Special Report: Private Equity in Emerging Markets, July 217 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 Special Report: Private Equity in Emerging Markets, July 217 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 financial 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 Special Report: Private Equity in Emerging Markets, July 217. While reasonable efforts have been made to obtain information from sources that are believed to be accurate, and to confirm the accuracy of such information wherever possible, Preqin Ltd. does not make any representation or warranty that the information or opinions contained in Preqin Special Report: Private Equity in Emerging Markets, July 217 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 Special Report: Private Equity in Emerging Markets, July 217 or for any expense or other loss alleged to have arisen in any way with a reader s use of this publication. 2 Preqin Ltd. 217 / www.preqin.com

DOWNLOAD DATA PACK: www.preqin.com/peem17 FUNDRAISING Private equity fundraising focused on emerging markets has slowed over recent years, both in terms of the proportion of total fundraising it represents (Fig. 1) and the total number of funds raised and capital secured (Fig. 2). Since 211, when emerging marketsfocused fundraising reached its zenith representing 1% of all private equity funds closed and 4% of capital raised globally its share of both the total number and value have fallen steadily. In 216, 187 emerging markets-focused funds held a final close, raising $4bn, representing just a fifth of all funds closed and 12% of capital raised the lowest annual total in the period examined. While 217 so far has seen just 61 emerging markets-focused funds close, securing $16bn, this represents 21% of all private equity funds closed so far this year. REGIONS AND FUND TYPES TARGETED Emerging Asia has dominated the emerging markets-focused private equity landscape (Fig. 3), representing 77% of aggregate capital raised by such funds since 28. While Emerging Asia s share of total capital raised has increased in recent years from 73% of capital raised in 213 to a record 8% in 217, the value has declined by 4% since 214, potentially a result of the uncertainty generated from s revised growth prospects and commodity price declines that have affected the country in recent years. Fundraising figures for the remaining subregions include: Latin America: Second only to Emerging Asia in prominence, although the region represents just 8% of capital raised since 28 and 4% in 216. : Capital raised reached record levels in 2 ($4.6bn), before declining to $1.7bn in 216. Central & Eastern Europe: Geopolitical situation dampened Fig. 1: Emerging Markets-Focused Fundraising as a Proportion of All Private Equity Fundraising, 28-217 (As at May 217) Proportion of Total 6% % 4% 3% 2% 1% % 31% 38% 18% % 1% 44% 42% 4% 3% 31% 29% 18% 3% 29% 22% 18% 2% 21% 12% 1% 28 29 21 211 212 213 214 2 216 217 No. of Funds Closed Aggregate Capital Raised Fig. 2: Emerging Markets-Focused Private Equity Fundraising, 28-217 (As at May 217) 4 4 3 3 2 2 1 32 7 291 32 368 4 482 87 399 68 28 29 21 211 212 213 214 2 216 217 No. of Funds Closed Aggregate Capital Raised ($bn) 34 33 79 289 6 187 4 61 16 Fig. 3: Emerging Markets-Focused Private Equity Fundraising by Geographic Focus, 28-217 (As at May 217) Aggregate Capital Raised ($bn) 9 8 7 6 4 3 2 1 28 29 21 211 212 213 214 2 216 217 Emerging Asia Central & Eastern Europe Latin America Diversified Emerging Markets Fig. 4: Emerging Markets-Focused Private Equity Fundraising by Fund Type, 28-217 (As at May 217) Proportion of Total 1% 9% 8% 7% 6% % 4% 3% 2% 1% % 216 44 11 191 1 3 31 842 1,11 No. of Funds Closed 174 188 128 Aggregate Capital Raised ($bn) Other Private Equity Secondaries Fund of Funds Buyout Growth Venture Capital 3

PREQIN SPECIAL REPORT: PRIVATE EQUITY IN EMERGING MARKETS investor enthusiasm, with fundraising falling from $.6bn in 213 to $1.3bn in 216. : Similar to Central & Eastern Europe, concerns surrounding stability have seen fundraising fall from $2.9bn raised in 212 to just $.2bn in 216. Diversified: Funds with no specific mandate have represented just % of emerging markets-focused capital raised since 28. Venture capital funds represent the largest number (1,11) of emerging marketsfocused vehicles closed since 28, although the 842 growth funds closed have raised the most capital: growth funds have secured $188bn in the period compared with $128bn raised by venture capital funds (Fig. 4). Furthermore, illustrative of the development of some markets, there has been a shift in emerging markets-focused fundraising over the last decade. From 28 to 212, growth funds raised the most capital ($117bn), followed by buyout ($78bn) and venture capital ($73bn) funds; however, since 213, buyout funds have secured nearly 4% ($96bn) of capital raised, while growth and venture capital funds have secured significantly less ($71bn and $bn respectively). Fig. : Emerging Markets-Focused Private Equity Fundraising by Firm, 28-217 (As at May 217) Proportion of Funds Closed 1% 9% 8% 7% 6% % 4% 3% 2% 1% % 26% 2% 74% 7% 19% 16% 2% 81% 84% 8% TIME ON THE ROAD Among all private equity funds closed since 28, emerging markets-focused funds have generally spent more time on the road: a fifth of developed marketsfocused vehicles reached a final close in less than six months, compared with % of emerging markets-focused funds. This is more pronounced for funds currently raising capital: 9% of developed marketsfocused funds in market have spent less than a year and a half seeking capital compared with 48% of emerging marketsfocused funds. GP LOCATION Managers based in emerging markets have raised the majority (7%) of emerging markets-focused funds closed since 28, although developed markets-based GPs have been increasing their share annually: the proportion of emerging marketsfocused funds closed by GPs based outside an emerging market rose for five consecutive years from 16% in 211 to 34% in 216 (Fig. ). 27% 28% 29% 73% 72% 71% 34% 66% 28% 72% 28 29 21 211 212 213 214 2 216 217 Emerging Markets Based Developed Markets Based OUTLOOK There are 82 emerging markets-focused private equity funds in market as at May 217, seeking an aggregate $26bn from institutional investors (Fig. 6). As with funds closed historically, Emerging Asia is the predominant geographic focus for emerging markets funds in market, as sought by eight of the 1 largest funds. Conversely, the recession in Brazil Latin America s largest economy appears to have affected GPs appetite for Latin American investment. The 61 Latin America-focused funds in market are seeking $.bn, representing just 3% of capital targeting emerging markets. Fig. 6: Emerging Markets-Focused Private Equity Funds in Market by Geographic Focus (As at May 217) Proportion of Total 1% 9% 8% 7% 6% % 4% 3% 2% 1% % No. of Funds Raising Aggregate Capital Targeted ($bn) Diversified Emerging Markets Latin America Emerging Asia Central & Eastern Europe Fig. 7: Emerging Markets- vs. Developed Markets-Focused Private Equity Funds in Market by Type (As at May 217) Proportion of Total 1% 9% 8% 7% 6% % 4% 3% 2% 1% % Emerging Markets Focused Developed Markets Focused No. of Funds Raising Emerging Markets Focused Developed Markets Focused Aggregate Capital Targeted ($bn) Other Private Equity Secondaries Fund of Funds Buyout Growth Venture Capital 4 Preqin Ltd. 217 / www.preqin.com

DOWNLOAD DATA PACK: www.preqin.com/peem17 FUND MANAGERS Fig. 8: Number of Emerging Markets-Based Private Equity Fund Managers by Sub-Region Central & Eastern Europe 37 North 64 Caribbean 17 Central Asia 12 Greater 883 Central America 76 South America 2 Sub-Saharan 233 South Asia 33 17 Far East 278 Fig. 9: Private Equity Fund Manager Experience by Firm Headquarters Proportion of Fund Managers 1% 9% 8% 7% 6% % 4% 3% 2% 1% % 4% % % 6% 8% 13% 31% 3% Emerging Markets Firm Headquarters 3% 41% Developed Markets 9 Funds or More 6-8 Funds Raised Previously 4- Funds Raised Previously 2-3 Funds Raised Previously First-Time Fund Manager Fig. 11: Five Largest Emerging Markets-Based Fund Managers by Aggregate Capital Raised for Private Equity Funds in the Last 1 Years* Firm Reform Fund Management Headquarters Total Capital Raised for Private Equity Funds in Last 1 Years ($bn)* Beijing, 2.2 Hony Capital Beijing, 1.4 Inventis Investment Holdings () Shanghai, 9.2 CDH Investments Beijing, 9.1 MBK Partners Seoul, South Korea 8.4 *Includes capital raised by funds that have held at least one interim close. Fig. 1: Fund Manager Views on How Institutional Investor Appetite for Private Equity Has Changed over the Past 12 Months by Investor Proportion of Respondents 1% 9% 8% 7% 6% % 4% 3% 2% 1% % 39% 38% 4% 2% 7% 1% North America Europe 3% 43% 22% 19% 2% 72% 7% 69% 9% 81% 4% 7% 11% 11% 1% Asia Australasia Latin America MENA Sub-Saharan Increased No Change Decreased Investor Source: Preqin Fund Manager Survey, November 216 Fig. 12: Consistent Performing Emerging Markets-Based Private Equity Fund Managers Firm Headquarters Average Quartile Rank DGF Investimentos São Paulo, Brazil 1. Trustbridge Partners Shanghai, 1.2 AJU IB Investment Seoul, South Korea 1.33 Ethos Johannesburg, South 1.4 Enfoca Inversiones Lima, Peru 1.6

PREQIN SPECIAL REPORT: PRIVATE EQUITY IN EMERGING MARKETS INVESTORS Preqin s Private Equity Online contains detailed information on the investment preferences and past investments of 883 emerging markets-based investors that are active in the private equity asset class, which collectively manage more than $2tn in assets from 71 individual countries around the world. INVESTOR UNIVERSE Fourteen percent of the global investor population is based in an emerging market. The greatest concentration can be found in Emerging Asia and, in particular, Greater, which is the largest single contributor to the total 244 institutions based in the region are actively investing in the asset class (Fig. 13). Understanding the differences between investors in emerging and developed markets can help those fund managers that are seeking to raise capital. Foundations and endowment plans (categorized under Other in Fig. 14) as well as pension funds (both public and private sector) are the dominant investors in developed markets; however, in emerging markets, the most prevalent LPs are banks, corporate investors and investment companies. INVESTMENT PREFERENCES Furthermore, buyout funds are more attractive investments for institutions in developed markets than those in emerging markets, whereas a greater proportion of emerging markets-based investors have a preference for venture capital vehicles than investors in the rest of the world (Fig. ). Funds of funds are utilized by a significantly larger proportion of investors in developed markets. OUTLOOK Preqin surveyed over 2 private equity investors at the end of 216 to determine their views on the private equity market and future activity in the asset class. Institutions are still favouring opportunities in developed markets over Fig. 13: Number of Emerging Markets-Based Investors in Private Equity by Sub-Region Proportion of Investors 1% 9% 8% 7% 6% % 4% 3% 2% 1% % Central America 23 South America 82 Emerging Markets Based Central & Eastern Europe 8 North 29 Caribbean Sub-Saharan 7 emerging markets: 61% and 42% stated that North America and Europe were presenting the best opportunities in the market, compared with 21% for emerging markets (Fig. 17). Within emerging markets, Emerging Asia was at the forefront of investors minds, with and India specifically mentioned as presenting the best opportunities (Fig. 18). Conversely, regions that have been beset by significant geopolitical risk (, Central Central Asia 6 Developed Markets Based South Asia 73 147 Fig. 14: Private Equity Investors by Type: Emerging Markets- vs. Developed Markets- Based Investors Other Sovereign Wealth Fund Wealth Manager Public Pension Fund Asset Manager Fund of Funds Manager Family Office Private Sector Pension Fund Government Agency Insurance Company Investment Company Corporate Investor Greater 244 Far East 131 Bank/Investment Bank & Eastern Europe and Russia) as well as economic instability (Brazil) were cited by the smallest proportions of investors as presenting the best opportunities. 6 Preqin Ltd. 217 / www.preqin.com

DOWNLOAD DATA PACK: www.preqin.com/peem17 Fig. : Strategy Preferences of Emerging Markets- vs. Developed Markets-Based Investors in Private Equity Proportion of Investors 8% 7% 6% % 4% 3% 2% 1% % 7% 9% Balanced 46% 6% Buyout 4% 4% 42% 16% Fund of Funds Emerging Markets Based Growth 12% 28% Secondaries Strategy Preference 13% % Turnaround 7% 66% Venture Capital Developed Markets Based 11% % Other Private Equity Fig. 16: Investors Plans for their Private Equity Allocations over the Next 12 Months by Proportion of Respondents 1% 9% 8% 7% 6% % 4% 3% 2% 1% % 2% 68% 31% 6% 18% 2% 77% 7% 7% 4% % % North America Europe Asia Emerging Markets Increase Allocation Maintain Allocation Decrease Allocation Source: Preqin Investor Interviews, December 216 Fig. 17: Regions* and Markets that Investors View as Presenting the Best Opportunities Fig. 18: Countries and Regions* within Emerging Markets that Investors View as Presenting the Best Opportunities North America 61% Emerging Asia 41% 39% Europe 42% India 17% 2% Asia 18% Latin America 17% Rest of World 7% Brazil 11% 11% Emerging Markets 21% Central & Eastern Europe Russia 2% 9% % 2% 4% 6% 8% Proportion of Respondents Source: Preqin Investor Interviews, December 216 % 1% 2% 3% 4% % Proportion of Respondents Source: Preqin Investor Interviews, December 216 Fig. 19: Sample Emerging Markets-Based Investors in Recently Closed Private Equity Funds Investor Type Fund Fund Type Geographic Focus Sanabil al-saudia Saudi Arabia Sovereign Wealth Fund Softbank Vision Fund Hybrid Global Caisse Nationale de Prévoyance Sociale (CNPS) Shanghai New Culture Media Group Cameroon Public Pension Fund French-n Investment Fund Growth, France Corporate Investor Sailing New Culture Private Equity Fund Buyout Global Fig. 2: Sample Emerging Markets-Based Investors Targeting Private Equity Funds in the Next 12 Months Investor Type Investment Plans for the Next 12 Months Malaysia Venture Capital Management State Oil Fund of the Republic of Azerbaijan Transnet Retirement Fund Kuala Lumpur, Malaysia Baku, Azerbaijan Johannesburg, South Government Agency Sovereign Wealth Fund Private Sector Pension Fund Plans to commit MYR 1.7-2.6bn across two funds, with a preference for ASEANfocused venture capital vehicles targeting technology-related industries, although it will also consider opportunities in Japan, Korea and Taiwan. Plans to invest in two or three buyout funds to gain exposure to Europe and North America. Will invest up to ZAR 1bn in three or four -based early stage venture capital, growth or buyout funds. *Respondents were not prompted to give their opinions on each region/market individually but to name those they felt best fit these categories; therefore, the results display the regions/ markets at the forefront of investors minds at the time of the survey. 7

PREQIN SPECIAL REPORT: PRIVATE EQUITY IN EMERGING MARKETS PERFORMANCE Fig. 21: Emerging Markets-Focused Private Equity Assets under Management, 2-216 6 Fig. 22: Capital Called up and Distributed by Emerging Markets- Focused Private Equity Funds, 2 - Q3 216 1 Assets under Management ($bn) 4 3 2 1 36 2 27 41 Dec- Dec-6 129 13 16 39 3 13 274 36 86 12 221 148 174 7 73 98 Dec-7 Dec-8 Dec-9 Dec-1 Dec-11 Dec-12 163 142 Dec-13 Dec-14 2 Dec- 173 Sep-16 Dry Powder ($bn) Unrealized Value ($bn) 8 6 4 2-2 -4 2 26 27 28 29 21 211 212 213 214 2 Q1-Q3 216 Capital Called-up ($bn) Capital Distributed ($bn) Net Cash Flow ($bn) Fig. 23: Emerging Markets-Focused Private Equity Funds: Median Net IRRs and Quartile Boundaries by Vintage Year 2% Fig. 24: Private Equity Risk/Return: Emerging Markets- vs. North America- and Europe-Focused Funds (Vintage 2 onwards) 17% Net IRR since Inception 2% % 1% % % 2 26 27 28 29 21 211 212 213 Top Quartile Net IRR Boundary Median Net IRR Bottom Quartile Net IRR Boundary Risk - Standard Deviation of Net IRR 16% % 14% 13% 12% 11% 1% 9% 8% 6% 8% 1% 12% Emerging Markets Focused North America Focused Europe Focused Vintage Year Return - Median Net IRR Fig. 2: Emerging Markets-Focused Private Equity Funds to Watch (Vintage 2-217) Fund Firm Vintage Fund Size NSI Ventures Northstar Group 2 8 USD Type Early Stage: Start-up Emerging Markets Targeted Net Multiple (X) Date Reported ASEAN, Far East 1.84 Sep-16 Ventech III Ventech 2 22 USD Early Stage Greater 1.6 Jun-16 Hillhouse Fund II Hillhouse Capital Management 2 2, USD Growth 1.29 Sep-16 East Ventures East Ventures 216 28 USD Early Stage: Seed Emerging Asia 1.27 Mar-17 Softbank Venture Capital Fund V Softbank Venture Capital 2 USD Venture Capital Greater 1.9 Jun-16 8 Preqin Ltd. 217 / www.preqin.com

DOWNLOAD DATA PACK: www.preqin.com/peem17 BUYOUT DEALS & EXITS -39% Decline in aggregate buyout deal value from 2 to 216, despite 18 more buyout deals occurring in emerging markets. 111 n buyout deals completed in 216, a new record for the region, representing nearly a quarter of buyout deals in emerging markets. 227 private equity-backed buyout exits took place in emerging markets in 216, the lowest number since 21, while aggregate exit value fell 47% from 2. Fig. 26: Private Equity-Backed Buyout Deals in Emerging Markets, 28-217 (As at May 217) 8 7 6 4 3 2 1 34 396 67 699 64 8 2 461 479 7 28 29 21 211 212 213 214 2 216 217 Aggregate Deal Value ($bn) 6 4 3 2 1 Aggregate Deal Value ($bn) Fig. 27: Private Equity-Backed Buyout Deals in Emerging Markets by Sub-Region, 28-217 (As at May 217) Proportion of Deals 1% 9% 8% 7% 6% % 4% 3% 2% 1% % 28 29 21 211 212 213 214 2 216 217 Central & Eastern Europe Emerging Asia Latin America Fig. 28: Private Equity-Backed Buyout Exits in Emerging Markets, 28-217 (As at May 217) No. of Exits 3 2 2 1 28 29 21 211 212 213 214 2 216 217 Sale to GP Restructuring IPO Trade Sale Aggregate Exit Value ($bn) 6 4 3 2 1 Aggregate Exit Value ($bn) Fig. 29: Largest Private Equity-Backed Buyout Deals in Emerging Markets, 2-217 (As at May 217) Qihoo 36 Technology Co. Ltd Investment Type Deal Date Public-to-Private Dec- 9,3 USD Completed Homeplus Buyout Sep- 4,24 GBP Completed Wuxi PharmaTech Co., Ltd Public-to-Private Aug- 3,3 USD Completed Deal Status Investor(s) Cathay Capital Group, Renaissance Partners, CITIC Securities, Golden Brick Capital Management, Huatai Ruilian Fund Management, Ping An Insurance Group, Sequoia Capital, Sunshine Insurance, Taikang Life CPP Investment Board, MBK Partners, National Pension Service, Public Sector Pension Investment Board, Temasek Holdings Ally Bridge Group, Boyu Capital, Hillhouse Capital Management, Ping An Insurance Group, Temasek Holdings South Korea Primary Industry Software Retail Pharmaceuticals 9

PREQIN SPECIAL REPORT: PRIVATE EQUITY IN EMERGING MARKETS VENTURE CAPITAL DEALS & EXITS +8% Growth in aggregate venture capital deal value from 2 to 216 to a record $7bn. 9% of venture capital deals in emerging markets in 216 were located in Emerging Asia. 238 venture capital-backed exits took place in emerging markets in 216, down on the record 318 seen in 2. Fig. 3: Venture Capital Deals* in Emerging Markets, 28-217 (As at May 217) 4, 4, 3, 3, 2, 2, 1, 1, 694 641 972 1,392 1,446 1,697 2,419 3,964 3,8 1,39 28 29 21 211 212 213 214 2 216 217 Aggregate Deal Value ($bn) 7 6 4 3 2 1 Aggregate Deal Value ($bn) Fig. 31: Venture Capital Deals* in Emerging Markets by Sub- Region, 28-217 (As at May 217) Proportion of Deals 1% 9% 8% 7% 6% % 4% 3% 2% 1% % 28 29 21 211 212 213 214 2 216 217 Central & Eastern Europe Emerging Asia Latin America Fig. 32: Venture Capital Exits by Sub-Region, 28-217 (As at May 217) No. of Exits 3 3 2 2 1 28 29 21 211 212 213 214 2 216 217 Central & Eastern Europe Emerging Asia Latin America Aggregate Exit Value ($bn) 4 4 3 3 2 2 1 Aggregate Exit Value ($bn) Fig. 33: Largest Venture Capital Deals* in Emerging Markets, 2-217 (As at May 217) Stage Didi Chuxing Ant Financial Services Group Meituan-Dianping Apr-17 Apr-16 Jan-16 Unspecified Round Series B/ Round 2 Unspecified Round, USD 4, USD 3,3 USD Investor(s) Primary Industry Bank of Communications, Merchants Bank, Silver Lake, Softbank CCB Trust, Development Bank Capital, Investment Corporation, Life Insurance Company, Post Capital, Primavera Capital Baillie Gifford, Capital Today, Development Bank Capital, CPP Investment Board, DST Global, Hillhouse Capital Management, Sequoia Capital, Temasek Holdings, Tencent, Trustbridge Partners Telecoms Internet Internet *Figures exclude add-ons, grants, mergers, secondary stock purchases and venture debt. 1 Preqin Ltd. 217 / www.preqin.com

DOWNLOAD DATA PACK: www.preqin.com/peem17 AFRICA Fig. 34: -Focused Private Equity Fundraising, 28-217 (As at May 217) 3 2 2 1 21 11 1.2 1. 18 19 2.3 2.1 18.8 27 3. 16 16 1.6 4.6 11 1.7 2.2 28 29 21 211 212 213 214 2 216 217 No. of Funds Closed Aggregate Capital Raised ($bn) Fig. 3: Assets under Management of - vs. Developed Markets-Based Private Equity Investors (As at May 217) Proportion of Investors 1% 9% 8% 7% 6% % 4% 3% 2% 1% % 2% 4% 4% 3% % 13% 12% 34% 33% Based 8% 27% 4% Developed Markets Based $1bn or More $-99.9bn $1-49.9bn $-9.9bn $1-4.9bn Less than $1bn Fig. 36: n Private Equity-Backed Buyout Deals, 28-217 (As at May 217) Fig. 37: n Venture Capital Deals*, 28-217 (As at May 217) 12 1 8 6 4 2 79 8 48 62 73 77 92 78 111 34 7 6 4 3 2 1 Aggregate Deal Value ($bn) 6 4 3 2 1 14 19 21 26 46 41 41 7 3 17 7 6 4 3 2 1 Aggregate Deal Value ($mn) 28 29 21 211 212 213 214 2 216 217 Aggregate Deal Value ($bn) 28 29 21 211 212 213 214 2 216 217 Aggregate Deal Value ($mn) Fig. 38: Largest n Private Equity-Backed Buyout Deals, 2-217 (As at May 217) Tenke Fungurume Mining S.A.R.L. Nov-16 1,136 USD Democratic Republic of Congo Tsebo Sep-16,2 ZAR South Oando's Downstream Business North Hospital Holdings Group Oando Gas and Power Limited Jun- 276 USD Nigeria Mar- 2 USD Egypt Sep-16 116 USD Nigeria Fig. 39: Largest n Venture Capital Deals*, 2-217 (As at May 217) *Figures exclude add-ons, grants, mergers, secondary stock purchases and venture debt. ** 37mn financing round includes a 7mn round announced in February 216, a 22mn round announced in March 216 and a 7mn round announced in April 216. Internet Group** Apr-16 37 EUR Nigeria Takealot Online (Pty) Ltd. Takealot Online (Pty) Ltd. Smile Telecoms Holdings Limited Travelstart Online Travel Operations Pty LTD. Apr-17 96 ZAR South Jun- 716 ZAR South Sep- USD Mauritius Feb-16 4 USD South 11

PREQIN SPECIAL REPORT: PRIVATE EQUITY IN EMERGING MARKETS CENTRAL & EASTERN EUROPE Fig. 4: Central & Eastern Europe-Focused Private Equity Fundraising, 28-217 (As at May 217) 3 3 2 2 1 31.7 21 3.3.7 29 2.4 2 4.7 28.6 21 2 2.6 2.2 28 29 21 211 212 213 214 2 216 217 No. of Funds Closed 9 1.3 Aggregate Capital Raised ($bn) 1 Fig. 41: Assets under Management of Central & Eastern Europevs. Developed Markets-Based Private Equity Investors Proportion of Investors 1% 9% 8% 7% 6% % 4% 3% 2% 1% % 4% 8% 3% 8% 13% 2% 8% 29% 2% Central & Eastern Europe Based 27% 4% Developed Markets Based $1bn or More $-99.9bn $1-49.9bn $-9.9bn $1-4.9bn Less than $1bn Fig. 42: Central & Eastern European Private Equity-Backed Buyout Deals, 28-217 (As at May 217) Fig. 43: Central & Eastern European Venture Capital Deals*, 28-217 (As at May 217) 14 12 1 8 6 4 2 12 61 11 127 99 91 76 73 78 33 9 8 7 6 4 3 2 1 Aggregate Deal Value ($bn) 2 2 1 2 4 138 181 2 17 126 146 38 7 6 4 3 2 1 Aggregate Deal Value ($mn) 28 29 21 211 212 213 214 2 216 217 Aggregate Deal Value ($bn) 28 29 21 211 212 213 214 2 216 217 Aggregate Deal Value ($mn) Fig. 44: Largest Central & Eastern European Private Equity- Backed Buyout Deals, 2-217 (As at May 217) Allegro Group Sp. z oo Oct-16 3,23 USD Poland Slovak Telekom May- 9 EUR Slovakia Profi Rom Food Group Nov-16 33 EUR Romania PKP Energetyka Jul- 1,96 PLN Poland Pharmathen Jun- 4 EUR Greece Fig. 4: Largest Central & Eastern European Venture Capital Deals*, 2-217 (As at May 217) Food Union Group Feb-17 22 USD Latvia Virtus.pro Oct- 1 USD Russia Dauria Aerospace Oct- 7 USD Russia 2GIS Oct- 4 USD Russia CarPrice Jul- 4 USD Russia *Figures exclude add-ons, grants, mergers, secondary stock purchases and venture debt. 12 Preqin Ltd. 217 / www.preqin.com

DOWNLOAD DATA PACK: www.preqin.com/peem17 EMERGING ASIA Fig. 46: Emerging Asia-Focused Private Equity Fundraising, 28-217 (As at May 217) 4 3 3 2 2 1 22 22 1 23 296 41 379 7 31 26 4 243 64 26 144 39 42 28 29 21 211 212 213 214 2 216 217 No. of Funds Closed Aggregate Capital Raised ($bn) Fig. 47: Assets under Management of Emerging Asia- vs. Developed Markets-Based Private Equity Investors Proportion of Investors 1% 9% 8% 7% 6% % 4% 3% 2% 1% % 9% 9% 2% 6% 22% 28% Emerging Asia Based 4% 3% 13% 8% 27% 4% Developed Markets Based $1bn or More $-99.9bn $1-49.9bn $-9.9bn $1-4.9bn Less than $1bn Fig. 48: Private Equity-Backed Buyout Deals in Emerging Asia, 28-217 (As at May 217) Fig. 49: Venture Capital Deals* in Emerging Asia, 28-217 (As at May 217) 4 4 3 3 2 2 1 221 26 313 399 362 326 29 226 21 6 4 4 3 3 2 2 1 Aggregate Deal Value ($bn) 4, 3, 3, 2, 2, 1, 1, 91 2 79 3,622 3,484 2,47 1,27 1,13 1,72 92 6 4 3 2 1 Aggregate Deal Value ($bn) 28 29 21 211 212 213 214 2 216 217 Aggregate Deal Value ($bn) 28 29 21 211 212 213 214 2 216 217 Aggregate Deal Value ($bn) Fig. : Largest Private Equity-Backed Buyout Deals in Emerging Asia, 2-217 (As at May 217) Qihoo 36 Technology Co. Ltd Dec- 9,3 USD Homeplus Sep- 4,24 GBP South Korea Wuxi PharmaTech Co., Ltd McDonald's Outlets in and Hong Kong Woori Bank Co., Ltd Aug- 3,3 USD Jan-17 2,1 USD Nov-16 2,4, KRW South Korea Fig. 1: Largest Venture Capital Deals* in Emerging Asia, 2-217 (As at May 217) Didi Chuxing Apr-17, USD Ant Financial Services Group Apr-16 4, USD Meituan-Dianping Jan-16 3,3 USD Didi Chuxing Jun-16 2,8 USD Didi Chuxing Jul- 2, USD *Figures exclude add-ons, grants, mergers, secondary stock purchases and venture debt. 13

PREQIN SPECIAL REPORT: PRIVATE EQUITY IN EMERGING MARKETS LATIN AMERICA Fig. 2: Latin America-Focused Private Equity Fundraising, 28-217 (As at May 217) 4 3 3 2 2 1 26.3 2.4 27 7.1 3 1.3 34 2 4.1 3.3 29 7.7 28 13 2.8 1.8 28 29 21 211 212 213 214 2 216 217 No. of Funds Closed Aggregate Capital Raised ($bn) 7. Fig. 3: Assets under Management of Latin America- vs. Developed Markets-Based Private Equity Investors Proportion of Investors 1% 9% 8% 7% 6% % 4% 3% 2% 1% % 4% 4% 3% 22% 13% 8% 32% 3% Latin America Based 8% 27% 4% Developed Markets Based $1bn or More $-99.9bn $1-49.9bn $-9.9bn $1-4.9bn Less than $1bn Fig. 4: Latin American Private Equity-Backed Buyout Deals, 28-217 (As at May 217) Fig. : Latin American Venture Capital Deals*, 28-217 (As at May 217) 1 9 8 7 6 4 3 2 1 8 6 76 9 88 6 69 7 76 29 9 8 7 6 4 3 2 1 Aggregate Deal Value ($bn) 16 14 12 1 8 6 4 2 28 37 41 83 113 2 137 127 143 6 9 8 7 6 4 3 2 1 Aggregate Deal Value ($mn) 28 29 21 211 212 213 214 2 216 217 Aggregate Deal Value ($bn) 28 29 21 211 212 213 214 2 216 217 Aggregate Deal Value ($mn) Fig. 6: Largest Latin American Private Equity-Backed Buyout Deals, 2-217 (As at May 217) Odebrecht Ambiental S.A. Aug-16,3 BRL Brazil Fermaca May- USD Mexico Rede D'Or Sao Luiz Apr- 499 USD Brazil BR Properties Dec- 1,87 BRL Brazil Petrobras Chile Distribuición Ltda May-16 47 USD Chile Fig. 7: Largest Latin American Venture Capital Deals*, 2-217 (As at May 217) 99Taxis Jan-17 1 USD Brazil Nubank Brasil Dec-16 8 USD Brazil Hotel Urbano Jul- 6 USD Brazil Linio International Marketplace Sep-16 EUR Mexico Nubank Brasil Jan-16 2 USD Brazil *Figures exclude add-ons, grants, mergers, secondary stock purchases and venture debt. 14 Preqin Ltd. 217 / www.preqin.com

DOWNLOAD DATA PACK: www.preqin.com/peem17 MIDDLE EAST Fig. 8: -Focused Private Equity Fundraising, 28-217 (As at May 217) 14 12 1 8 6 4 2 13 3. 8 1.4 6 1.8 1. 9 2.9.2 1.3 9 3 2.3.2.1 28 29 21 211 212 213 214 2 216 217 No. of Funds Closed Aggregate Capital Raised ($bn) Fig. 9: Assets under Management of - vs. Developed Markets-Based Private Equity Investors Proportion of Investors 1% 9% 8% 7% 6% % 4% 3% 2% 1% % 1% 4% 22% 11% 2% 32% Based 4% 3% 13% 8% 27% 4% Developed Markets Based $1bn or More $-99.9bn $1-49.9bn $-9.9bn $1-4.9bn Less than $1bn Fig. 6: ern Private Equity-Backed Buyout Deals, 28-217 (As at May 217) Fig. 61: ern Venture Capital Deals*, 28-217 (As at May 217) 3 2. 4 8 3 2 2 1 29 1.8 2 1.6 23 1.4 2 21 21 1.2 14 1. 13.8.6.4 1.2. 28 29 21 211 212 213 214 2 216 217 Aggregate Deal Value ($bn) Aggregate Deal Value ($bn) 3 3 2 2 1 34 32 7 29 6 24 24 4 3 9 11 1 8 2 1 28 29 21 211 212 213 214 2 216 217 Aggregate Deal Value ($mn) Aggregate Deal Value ($mn) Fig. 62: Largest ern Private Equity-Backed Buyout Deals, 2-217 (As at May 217) Kudu Feb- 4 USD Saudi Arabia Al Borg Medical Laboratories Jun-16 27 USD Saudi Arabia FINE May- 17 USD Jordan QNIE's Frozen Distribution Business Middlesex University Dubai Oct- 14 USD Qatar Sep-16 USD United Arab Emirates Fig. 63: Largest ern Venture Capital Deals*, 2-217 (As at May 217) Careem Dec-16 3 USD Souq.com FZ-LLC Feb-16 27 USD Wadi.com Feb-16 67 USD Careem Nov- 6 USD United Arab Emirates United Arab Emirates United Arab Emirates United Arab Emirates MSPharma May-17 4 USD Jordan *Figures exclude add-ons, grants, mergers, secondary stock purchases and venture debt.

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