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The Leading LP/GP Relations Private Equity & Venture Capital Forum Is Coming To Asia!

The Leading LP/GP Relations Private Equity & Venture Capital Forum Is Coming To Asia!

SuperInvestor Asia Main Conference: 29-30 January 2013 Fundraising Summit: 28 January 2013 Shangri-La Hotel, Singapore

Dear Spotlight reader,

We are very pleased to offer a 15% discount to Spotlight readers for places at the SuperInvestor Asia conference in Singapore, 28 – 30 January 2013.

With a pan-Asian focus and digging deep into the current dynamics of the LP/GP relationship, SuperInvestor Asia 2013 will bring together the very best local and international managers with the global LP community.

This is your chance to learn from 100+ global and regional expert speakers, divulge in our excellent networking opportunities and hear about the biggest topics in private equity. Whether there to fundraise in the region or deploy capital, SuperInvestor Asia offers delegates the perfect opportunity to meet key regional contacts, including LPs currently investing in private equity.

I’ll be delivering a Data Presentation at the Fundraising Summit on January 28 th , giving an analysis of fundraising performance within & across Asia, as well as chairing the LP Perspectives Stream on Day 1 of the main conference, which will host panels to discuss Allocation To Asia, Managed Accounts & Preferential Deals plus Funds Of Funds Strategies. I hope to see you there!

Kindest regards

Mark O’Hare Managing Director, Preqin

For all bookings & enquiries, please contact the SuperInvestor Asia Team Quote VIP: FKR2336PRQS for your 15% discount Tel: +44 (0) 20 7017 7200 Fax: +44 (0) 20 7017 7807 Email: info@icbi.co.uk Web: http://www.superinvestorasia.com/FKR2336PRQS

Welcome to the latest edition of Private Equity Spotlight, the monthly newsletter from Preqin providing insights into private equity performance, investors, deals and fundraising. Private Equity Spotlight combines information from our online products Performance Analyst, Investor Intelligence, Fund Manager Pro les, Funds in Market, Secondary Market Monitor, Buyout Deals Analyst and Venture Deals Analyst.

November 2012 Volume 8 - Issue 11

FEATURED PUBLICATION:

The 2013 Preqin Private Equity Compensation & Employment Review

www.preqin.com/compensation

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Private Equity Spotlight

November 2012

Feature Article

Private Equity Compensation and Employment Review

In this month’s feature article we review the ndings from the 2013 Preqin Private Equity Compensation and Employment Review. We examine the current levels of employment across the private equity industry and analyze current compensation practices.

Page 3.

Preqin Industry News

Each month Preqin’s analysts speak to hundreds of investors, fund managers and intermediaries from around the world, uncovering vital, exclusive intelligence. This month we focus on news regarding early stage venture capital funds.

Page 7.

Lead Article

Strong Growth in Emerging Markets Challenges Developed Markets

This month we examine recent developments in the private equity industry across Asia and Rest of World, exploring fundraising trends and investor sentiment throughout emerging markets.

Page 9.

The Facts

IPO Pipeline - We explore the public listing of private equity-backed companies. Page 14.

Forthcoming Exits - Analysis of the latest data on potential buyout-backed exits. Page 16.

Secondaries - A breakdown of current fundraising data for secondaries funds. Page 17.

Corporate Investors - Key stats on these types of LPs. Page 19.

Performance Update - A look at Preqin’s latest performance gures. Page 20.

Conferences - Details of upcoming private equity conferences. Page 21.

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Feature Article

Private Equity Compensation and Employment Review

Download Data

Equity Compensation and Employment Review Download Dat a Private Equity Compensation and Employment Review Jessica

Private Equity Compensation and Employment Review

Jessica Sutro provides a summary of the findings from Preqin’s latest review on the private equity industry’s current employment levels and remuneration practices.

Private Equity Fundraising Moves Towards Stabilization

Private equity rms and their employees have certainly been impacted by the recent slowdown in the private equity fundraising market that followed the nancial crisis in 2008; the number of funds closed fell from 1,366 in 2008 to 878 in 2009, with the capital raised falling by over half in the same time period (Fig. 1). However, fundraising gures for 2011 showed a small uptick, with 870 funds closing on an aggregate $306.7bn compared to the 835 funds that closed on $285.2bn in 2010.

Although this is not a large increase, it demonstrates that the private equity market is no longer experiencing the dramatic year-on-year decreases that occurred immediately following the nancial crisis. The gures from 2012 so far are slowly approaching those seen in 2011, with 530 funds having already raised an aggregate $254.4bn in capital commitments. This suggests that the fundraising gures from 2012 will likely be similar to both 2010 and 2011. Rather than experiencing signi cant increases or decreases, the private equity fundraising market appears to be moving towards stabilization. However, the fundraising levels in recent years are still signi cantly lower than those witnessed during the peak years of the private equity fundraising market.

Number of Active Private Equity Firms

With private equity fundraising plateauing in recent years, it is unsurprising that the number of active private equity rms has experienced a similar pattern, with the growth in the number of active rms slowing in recent years. Fig. 2 shows the number of new fund managers joining the private equity sector each year (calculated using the vintage of their rst fund to represent their

Fig. 1: Annual Private Equity Fundraising, 2000 - October 2012 1,600 1429 1366 1,400 1275
Fig. 1: Annual Private Equity Fundraising, 2000 - October 2012
1,600
1429
1366
1,400
1275
1,200
1056
No. of Funds
Closed
1,000
878
860
870
846
835
800
696
678.9
663.6
630
600
555
546.7
Aggregate
530
Capital
Raised ($bn)
400
360.1
311.5
306.7
285.2
250.6
254.4
217
181.4
200
138.2
106.1
0
Year of Final Close
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Jan-Oct
2012

Source: 2013 Preqin Private Equity Compensation and Employment Review

3 Private Equity Spotlight, November 2012

year of establishment). The consistent growth in the number of active private equity rms in the lead-up to the nancial crisis has tapered off, with 2012 seeing a small decrease in the total number of active private equity rms compared to 2011 so far; however, the amount is still similar to 2011, at around a little over 4,800 rms in total. A number of rms are deemed to have become inactive in 2012 (meaning they have not raised a fund in the past 10 years), further contributing to the small decrease in the total number of active private equity rms.

Perhaps more signi cantly, the number of new private equity rms launching in 2012 to date fell in comparison to 2011, with 146 new rms so far in 2012 compared to 278 in all of 2011. (The 2012 gure only includes rms that have reached one or more interim closes on their debut funds in order to begin making investments.) Uncertain conditions in the private equity fundraising market may be impacting the number of new private equity rms choosing to bring funds to market.

Employment Levels at Private Equity Firms

The pool of over 4,800 active private equity rms grows to over 8,000 when private equity rms that do not raise, or have not yet raised, distinct private equity funds (i.e. those that manage corporate or personal capital and those that manage third-party capital without pooling into commingled private investment vehicles) are included. These 8,000 rms currently employ an estimated 89,000 individuals around the world.

However, the average number of staff at each private equity rm varies signi cantly based on the assets under management of that rm. Fig. 3 shows that rms with the largest assets under

Fig. 2: Number of Active Private Equity Firms over Time (by Vintage of First Fund
Fig. 2: Number of Active Private Equity Firms over Time (by Vintage of
First Fund Raised)
5,000
4,500
4,000
3,500
3,000
New
2,500
2,000
Existing
1,500
1,000
500
0
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012

Source: 2013 Preqin Private Equity Compensation and Employment Review

© 2012 Preqin Ltd. www.preqin.com

Feature Article Private Equity Compensation and Employment Review Download Data management, of $10bn or more,
Feature Article
Private Equity Compensation and Employment Review
Download Data
management, of $10bn or more, have the largest average number
of staff, standing just over 270 people. Although these fi rms’
average number of staff is dramatically higher than fi rms of other
sizes, there are only an average of 10.8 employees per $1bn of
the firm’s AUM. The staff levels at these larger firms are balanced
by the income they receive from charging management fees to
their funds’ investors, which are usually based on a percentage of
investor commitments.
Fig. 3: Average Number of Employees by Firm Assets under
Management
300
273.5
250
200
Average No. of
Staff
150
99
100
Despite having lower average numbers of staff, funds with smaller
assets under management have a much higher average number
of staff per each $1bn of their assets under management. Firms
with assets under management of less than $250mn only have an
average number of employees of around nine, but have an average
of around 77 staff members per $1bn of their AUM, a much higher
77.3
Average No. of
Staff per $1bn
AUM
50
38
35.8
27.1
18.6
19.4
16.5
13.2
9.1
10.8
0
fi gure than that of funds with assets under management of $10bn
Source: 2013 Preqin Private Equity Compensation and Employment Review
Less than
$250mn
$250-499mn
$500-999mn
$1-4.9bn
$5-9.9bn
$10bn or More

or more. Smaller sized rms may have fewer employees, but their management fees are also charged based on smaller amounts of investor commitments compared to the larger private equity rms; this means that the operating economics of the largest funds, with higher income from management fees, are often more favourable for their managers.

Compensation on an Individual Level

The operating economics described above, which vary by a rm’s assets under management, also impact the remuneration available to individuals at each private equity rm. For example, a managing general partner at rms participating in the survey conducted for the 2013 Preqin Private Equity Compensation and Employment

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Feature Article

Private Equity Compensation and Employment Review

Download Data

Equity Compensation and Employment Review Download Data Review could have a median base salary at a

Review could have a median base salary at a rm with assets under management of $1bn or more that is almost double the median base salary of an individual in the same position at a rm with assets under management of under $150mn.

Preqin has undertaken detailed analysis of the compensation practices at participating private equity rms. Fig. 4 shows a breakdown of average rm-wide changes in base salaries at participating rms between 2011 and 2012. In a similar fashion to both the private equity fundraising market and the number of active private equity rms worldwide, base salaries at participating rms

are generally maintaining their current level or reporting only small increases. Only a very small proportion (1%) of participating rms reported a decrease in base salaries between 2011 and 2012, and

a substantial 42% reported no change. The largest proportion of

participating rms, 45%, reported an increase in base salaries that ranged between 1% and 10%.

Fig. 5 shows the projected average rm-wide changes in base salaries for participating rms between 2012 and 2013. Participating rms’ projections for changes in base salaries in the coming year mostly parallel changes recorded between 2011 and 2012. Participating rms expecting to see an increase in base salaries of 1-10% between 2012 and 2013 make up 46% of all participating rms, a similar proportion to the 45% of participating rms which saw increases of 1-10% between 2011 and 2012.

Forty-three percent of participating rms expect to see no changes in base salaries between 2012 and 2013, and only 1% expect to see a decrease in the same time period. A small proportion of participating rms anticipate a more substantial increase in base salaries between 2012 and 2013, with 9% expecting an increase of between 11% and 20%, and 2% an increase of 21-50%.

Participating rms also largely reported either an increase or no change in their bonus pool size in the calendar/ scal year 2011 compared to 2010, as shown in Fig. 6. Thirty-four percent of

participating rms reported that bonus pool sizes increased at their rm compared to the previous year, but 19% reported a decrease

in their bonus pools in the calendar/ scal year 2011 compared to

2010. Almost half (47%) of rms reported no change over the same time period.

Data Source:

This article features data and analysis taken from Preqin’s latest publication, the 2013 Preqin Private Equity Compensation and Employment Review.

Compiled in collaboration with FPL Associates, the publication provides an insight into the current compensation practices within the private equity industry and analysis of growth and employment levels for private equity globally.

For more information, please see p.6 or visit:

www.preqin.com/compensation

Fig. 4: Breakdown of Average Firm-Wide Changes in Base Salaries at Participating Firms between 2011
Fig. 4: Breakdown of Average Firm-Wide Changes in Base Salaries at
Participating Firms between 2011 and 2012
50%
45%
45%
42%
40%
35%
30%
25%
20%
15%
10%
8%
5%
4%
1%
1%
0%
Decrease
No Change
1-10%
11-20%
21-50%
Increase
Increase
Increase
More than 50%
Increase

Source: 2013 Preqin Private Equity Compensation and Employment Review

Fig. 5: Breakdown of Projected Average Firm-Wide Changes in Base Salaries at Participating Firms between
Fig. 5: Breakdown of Projected Average Firm-Wide Changes in Base
Salaries at Participating Firms between 2012 and 2013
50%
46%
45%
43%
40%
35%
30%
25%
20%
15%
10%
9%
5%
2%
1%
0%
0%
Decrease
No Change
1-10%
11-20%
21-50%
Increase
Increase
Increase
More than 50%
Increase

Source: 2013 Preqin Private Equity Compensation and Employment Review

Fig. 6: Proportion of Participating Firms Reporting an Increase, a Decrease, or No Change in Bonus Payouts for Performance in Calendar/Fiscal Year 2011 Compared to Previous Year

19% 34% 47%
19%
34%
47%

Increase in Bonus Payouts Payouts

No Change in Bonus Payouts Payouts

Decrease in Bonus Payouts Payouts

Source: 2013 Preqin Private Equity Compensation and Employment Review

2013 Preqin Private Equity Compensation and Employment Review

2013 Preqin Private Equity Compensation and Employment Review alternative assets. intelligent data. Produced in

alternative assets. intelligent data.

Produced in collaboration with leading compensation specialists FPL Associates, the 2013 Preqin Private Equity Compensation and Employment Review is the industry’s most comprehensive guide to compensation practices, featuring detailed benchmark remuneration data for 40 positions, including 15 real estate-specific positions, incorporating information from over 200 leading firms globally. A source of reliable and accurate information on the latest trends in private equity compensation and employment is a vital tool enabling decision-makers and advisors to examine existing compensation practices against wider industry benchmarks.

Key content includes:

• Compensation data by position, including base salary, bonus, carry, and quartile splits.

• Compensation data split by firm type, region and size where possible.

• Survey of compensation practices at private equity firms.

• Current employment within the private equity industry.

• Growth of the industry.

The 2013 Preqin Private Equity Compensation and Employment Review In association with: alternative assets. intelligent
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Preqin Private Equity Compensation and Employment Review
In association with:
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News

Preqin Industry News

Preqin Industry News

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News Preqin Industry News Preqin Industry News Download Data Olivia Harmsworth delivers a round-up of the

Olivia Harmsworth delivers a round-up of the latest early stage venture capital news, featuring exclusive intelligence on deals, investor activity and recently launched and closed funds, uncovered by Preqin’s analysts. Preqin Online subscribers can click on the investor/firm names to view the full profiles.

An analysis of venture capital deals focusing on early stage

nancing, as shown in the Chart of the Month, shows clearly that

the number and aggregate value of these deals has been steadily increasing since Q1 2009, when the number of deals taking place that quarter stood at 226 and their aggregate value was just over $880mn; in Q3 2012 the number of deals was more than double that seen in Q1 2009 with 544 deals, and the aggregate value of these deals was just under $1.7bn. The increase in the number of deals taking place each quarter can be seen to be fairly incremental, with particular growth occurring more recently in Q2 and Q3 2012, with 548 and 544 deals respectively. In comparison, the aggregate value of deals taking place in a quarter peaked in Q2 2011 at over $1.7bn, largely due to two particularly large deals: 55tuan. com, a Chinese group deals website, and Ascletis, an infectious disease research centre. They received $200mn and $100mn each respectively in early stage funding.

Looking at early stage deals throughout October, a number of North America-based companies have recently raised seed nancing capital. Notable among these is Monogram, an iPad application developer, which raised $400k in seed nancing led by Quest Venture Partners, with participation from Great Oaks Venture Capital, Initialized Capital, Innovation Camp, 500 Startups and several individual investors. Advertising company AdverCar also received $2mn in seed funding in October 2012 from a syndicate led by Canaan Partners; other investors included Branford Castle Private Equity, New Orleans Startup Fund and TiE Angels. In August 2011, mobile advertising solutions company ThinkNear raised $1.6mn in seed nancing led by IA Ventures; the company was acquired in October 2012 by Telenav for $22.5mn.

2012 has seen a signi cant increase in the amount of capital early stage funds have been able to attract, with 58 funds closing on $10.0bn so far this year compared to 73 funds closing on $8.7bn throughout the whole of 2011. A number of funds focusing on early stage nancing have recently closed above target. Trinity Ventures XI reached a nal close in October 2012, having raised $325mn, $25mn above its original target. The fund, raised by Trinity Ventures, focuses on investments in cloud and mobile infrastructure, social commerce, digital media and other technology opportunities in the US. Investors in the fund include San Francisco City & County Employee’s Retirement System, which committed $20mn; the investor previously committed $10mn to the predecessor fund, Trinity Ventures X. China-focused fund Innovation Works Development Fund II also recently closed $25mn above target, having raised an aggregate $275mn in capital commitments.

Chart of the Month: Number and Aggregate Value of Early Stage Deals, 2009 - 2012 YTD (as of 9 November 2012)

600 2000 1800 500 1600 1400 400 Aggregate Deal Value ($mn) 1200 300 1000 800
600
2000
1800
500
1600
1400
400
Aggregate Deal Value ($mn)
1200
300
1000
800
200
600
400
100
200
0
0
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2009
2010
2011
2012
No. of Deals
Aggregate Deal Value ($mn)
No. of Deals

Source: Preqin Venture Deals Analyst

Notable among the early stage funds currently in market is Fondo Amerigo Innvierte Spain Technologies, launched by Kibo Ventures

in October 2012 targeting €45mn; the fund has already made a rst

close of €42mn, and concentrates on internet-based businesses and mobile platforms. Another Europe-based early stage fund on the road is Elaia Alpha Fund targeting between €50mn and €60mn; the French-focused vehicle provides seed stage nancing to the digital economy, and recently held a rst close of €45mn.

A number of investors are also expressing an interest in early

stage fund investments, including KLP Asset Management, a

Norway-based insurance company which is looking to make six

or seven new fund commitments over the next 12 months. The

rm will consider a variety of fund types, including early stage funds, and has previously committed to a number of venture funds, such as early stage fund Northzone V. KLP will re-up with existing managers in its portfolio over the coming year, and will also form new relationships with GPs it has not previously worked with.

Do you have any news you would like to share with the readers of Spotlight? Perhaps you’re about to launch a new fund, have implemented a new investment strategy, or are considering investments beyond your usual geographic focus?

Send your updates to spotlight@preqin.com and we will endeavour to publish them in the next issue.

alternative assets. intelligent data. Preqin Global Data Coverage As of 7 November 2012 Fund Coverage:

alternative assets. intelligent data.

Preqin Global Data Coverage

As of 7 November 2012

Fund Coverage:

27,447
27,447

Funds

13,291 Private Equity* Funds 9,569 Hedge Funds 3,952 PE Real Estate Funds
13,291 Private Equity* Funds
9,569 Hedge Funds
3,952 PE Real
Estate Funds

Firm Coverage:

13,721
13,721

Firms

1,679 PERE 6,709 PE Firms 4,984 Hedge Fund Firms Firms
1,679 PERE
6,709 PE Firms
4,984 Hedge Fund Firms
Firms

635 Infrastructure

Funds

349 Infra. Firms

Performance Coverage:

9,792
9,792

Funds (IRR Data for 4,710 Funds and Cash Flow Data for 2,179 Funds)

999 PERE 4,947 PE Funds 3,722 Hedge Funds Funds
999 PERE
4,947 PE Funds
3,722 Hedge Funds
Funds
10,996
10,996

Fundraising Coverage:

Including 1,944 Closed-Ended Funds in Market and 491 Announced or Expected Funds

Funds Open for Investment/Launching Soon

941 PERE 1,643 PE Funds 8,162 Hedge Funds Funds
941 PERE
1,643 PE Funds
8,162 Hedge Funds
Funds

124

Infra. Funds

250

Infra. Funds

Deals Coverage:

63,339
63,339

Deals Covered; All New Deals Tracked

27,345 Buyout Deals** 33,675 Venture Capital Deals***
27,345 Buyout Deals**
33,675 Venture Capital Deals***

2,319 Infra. Deals

10,034
10,034

Investor Coverage:

Including 7,194 Verified Active**** in Alternatives and 74,264 LP Commitments to Partnerships

Institutional Investors Monitored,

1,826 Active 4596 Active PE LPs 3,850 Active Hedge Fund Investors 3,505 Active RE LPs
1,826 Active
4596 Active PE LPs
3,850 Active Hedge Fund Investors
3,505 Active RE LPs
Infra. LPS

Alternative Investment Consultant Coverage:

424
424

Consultants Tracked

Fund Terms Coverage: Analysis Based on Data for Around

6,500
6,500

Funds

Best Contacts: Carefully Selected from Our Database of over

220,163
220,163

Active Contacts

Plus
Plus

Comprehensive coverage of:

- Placement Agents

- Dry Powder

- Fund Administrators

- Compensation

- Law Firms

- Plus much more

- Debt Providers

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Lead Article

Strong Growth in Emerging Markets

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Lead Article Strong Growth in Emerging Markets Download Data Strong Growth in Emerging Markets Challenges Developed

Strong Growth in Emerging Markets Challenges Developed Markets

With Asia and Rest of World-focused fundraising levels set to exceed that of Europe-focused funds for a third consecutive year in 2012, Kamarl Simpson examines investor sentiment and fundraising trends outside the traditional markets of North America and Europe.

Private equity investment in Asia and Rest of World has grown considerably over recent years and the current data held on Preqin’s Fund in Market database suggests that 2012 is likely to represent the third year in succession that annual fundraising for Asia and Rest of World surpasses Europe.

The global nancial crisis and its subsequent effects have resulted in increasing numbers of private equity investors committing capital to Asia and Rest of World-focused funds, as these economies are widely perceived to have been better protected from the negative impact of the crisis. While the number of funds closed and aggregate capital raised are still below the gures seen during the industry’s ‘boom period’ of 2007 and 2008, there has been a resurgence in the amount of capital raised by Asia and Rest of World-focused funds in recent years.

The private equity industry’s investment activity has expanded rapidly over the past decade, particularly in South America and Asia, alongside wider nancial growth in the regions. Correspondingly, there has also been an expansion in the number of sophisticated institutional investors based in these locations. The prolonged uncertainty in Western nancial markets, exacerbated by the eurozone sovereign debt crisis, has further ampli ed the LP interest in Asia and other Rest of World regions, often at the expense of allocations to funds targeting the traditional private equity hubs of North America and Europe. Consequently, Preqin has seen the reduction of the gap between fundraising levels in Europe compared to Asia and Rest of World. In this article, we analyze these shifts further using Preqin’s data on funds with a main focus on Asia and Rest of World, which does not necessarily include those funds that invest in the region as part of a global investment strategy.

Asia and Rest of World Fundraising

Fig. 1 shows the percentage breakdown of private equity capital raised for investment in regions worldwide by year, as well as the proportion of capital currently being sought by GPs for investment in each region. It demonstrates that the proportion that Asia and Rest of World fundraising accounts for all of private equity fundraising has increased signi cantly over the last decade. Only 9% of capital raised in 2003 was raised by funds that primarily focused on investment in Asia and Rest of World; this percentage has progressively increased over the years, reaching a high of 25% in 2011, with 307 funds raising an aggregate $76.9bn in capital commitments.

In both 2010 and 2011, Asia and Rest of World-focused fundraising accounted for a greater percentage of capital raised than Europe. In 2010, Asia and Rest of World-focused fundraising represented 23% ($65.2bn) of all private equity capital raised, while Europe accounted for 21% ($59.8bn). It is important to note that while North America remains the largest private equity market in the world, its economy has experienced a downturn in the rate of growth, and intense competition for suitable deals in the region has prompted many LPs to become more open to investment in emerging markets.

Conversely, China’s strong growth in GDP over recent years has led to an increase in private equity investment, as the country was seen as having the potential to generate higher returns in comparison to the traditional, more mature markets of North America and Europe. Investment in Asia and other Rest of World markets is also proving bene cial to LPs as a means of geographically diversifying their portfolios.

Outside the traditional markets of North America and Europe, Asia is the most attractive region for private equity investment, followed by Latin America. Asia has consistently attracted at least 10% of all private equity capital raised year on year since 2005. In 2011, Asia-focused fundraising peaked, with 221 Asia-focused vehicles reaching a nal close raising an aggregate $54.1bn in capital commitments; this accounted for 18% of all private equity capital raised that year.

Of the vehicles currently in market, both Asia- and Rest of World- focused funds are seeking slightly less capital than Europe-

Fig. 1: Breakdown of Aggregate Private Equity Capital Raised by Region, 2003 - Octocber 2012
Fig. 1: Breakdown of Aggregate Private Equity Capital Raised by
Region, 2003 - Octocber 2012 (Including Funds Currently Raising)
100%
90%
Diversified Multi-
Regional
80%
Africa
70%
Middle East &
Israel
60%
Australasia
50%
Latin America
40%
Asia
30%
Europe
20%
North America
10%
0%
Proportion of Capital Raised/Raising
2003
2004
2005
2006
2007
2008
2009
2010
2011
Jan-Oct
2012
Funds in
Market

Source: Preqin Funds in Market

Lead Lead Article Article

Strong Growth in Emerging Markets

Fig. 2: Asia and Rest of the World Fundraising by Region and Country Focus, 2005 - October 2012 ($bn)

100% 90% 80% 24.9 230.8 70% 28.9 24.5 60% 18.0 50% 39.1 40% 30% 38.4
100%
90%
80%
24.9
230.8
70%
28.9
24.5
60%
18.0
50%
39.1
40%
30%
38.4
182.4
20%
15.0
8.8
10%
1.7
0%
Africa
Latin
Asia
Australasia
Middle East
Diversified
America
& Israel
Multi-Regional
Country-Specific
Regional Focus
Diversified Multi-Regional
Proportion of Capital Raised

Source: Preqin Funds in Market

focused funds, targeting aggregate commitments of $193.7bn and $205.1bn respectively; this represents 24% and 26% respectively of the aggregate capital targeted by all private equity funds on the road. The largest fund that is primarily focused on investing outside North America and Europe and is currently in market is KKR Asia Fund II. Managed by Kohlberg Kravis Roberts, the fund aims to raise $6bn in capital commitments for management

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$6bn in capital commitments for management Download Data buyouts and growth equity investments, concentrating

buyouts and growth equity investments, concentrating primarily on Japan, China and Australia.

Country-Specific and Regional Fundraising

A breakdown of the proportion of capital raised across Asia and

Rest of World which is focused on country-speci c investment or regional investment from 2005 to present is shown in Fig. 2. In both Asia and Latin America fundraising, country-speci c funds account for the greatest proportion of capital raised, with these funds representing 44% ($182.4bn) and 61% ($38.4bn) respectively of the total capital raised for investment in each

region. It is unsurprising that a large proportion of country- speci c funds target investments in Brazil, India or China (BIC), which have become more established private equity markets for investment within Asia and Rest of World regions. India-focused and China-focused funds combined account for 75% ($137bn) of the capital raised for country-speci c investment in the Asia region.

Fig. 2 shows that GPs investing in the regions of Africa,

Australasia and the Middle East (including Israel) generally adopt

a broader opportunistic approach. These GPs invest across

whole regions in order to avoid being susceptible to the risk of

The Hong Kong Venture Capital and Private Equity Association is delighted to announce the Asia
The Hong Kong Venture Capital and Private Equity Association is delighted to announce the Asia Private Equity Forum 2013 to be
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Topics to be addressed include:
- A Global Fund Manager’s Perspective on Investing in China
- Southeast Asia: Indonesia and the Rest
- How General Partners Think about the China Market Today
- India: Survival of the Fittest
- What are Limited Partners Concerns about Investing in China
- Liquidity and the Rise of the Secondaries Market in Asia
- What’s Behind the Increased Activity in Korea
- What Limited Partners Want to See in Asian General Partners
- Is Private Equity in Japan Finally Ready for Prime Time
- The Future of Private Equity in China

Lead Article

Strong Growth in Emerging Markets

focusing investments solely within individual countries situated in these emerging markets. Ninety-two percent of capital raised for investment in Africa is for funds that focus on investing across the continent rather than in speci c countries. Region-wide funds in Australasia account for 66% of the capital, and in the Middle East (including Israel) regional funds represent 74%.

It is important to note that some GPs invest across more than one emerging market region in search of strong returns. Since 2005, $39.1bn in aggregate commitments has been raised by funds that seek investment opportunities in more than one region across Asia and Rest of World. The largest multi-regional fund to close since 2005 is Citigroup International Growth Partnership II. The $4.3bn fund held a nal close in 2008, and invests across South America, Asia and Eastern Europe, with Chile, China, India and Estonia as particular countries of interest.

Brazil, India and China continue to attract large proportions of the investor capital that is committed to investments in Asia and Rest of World, and will likely continue to see a signi cant proportion of the fundraising activity in the region over the coming years. However, there is evidence to suggest that funds will increasingly look for investment opportunities outside these three countries, primarily due to concerns regarding intense competition for assets

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regarding intense competition for assets Download Data Fig. 3: Countries and Regions within Emerging Markets that

Fig. 3: Countries and Regions within Emerging Markets that Investors View as Presenting Attractive Opportunties*

40% 38% 38% 35% 30% 29% 29% 25% 21% 21% 20% 17% 15% 10% 7%
40%
38%
38%
35%
30%
29%
29%
25%
21%
21%
20%
17%
15%
10%
7%
7%
5%
5%
0%
Proportion of Respondents
Asia
China
South
America
India
Africa
Brazil
Central &
Eastern
Europe
Middle
East
Russia
Other

Source: Preqin Investor Outlook: Private Equity, H2 2012

and in ated deal prices, slowing economic growth, dif culties with IPO exits, and regulatory restrictions for foreign investors.

LP Sentiment towards Asia and Rest of World

In mid 2012, Preqin conducted a survey of over 100 investors to analyze the key geographies LPs will consider for investment

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Lead Article

Strong Growth in Emerging Markets

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Lead Article Strong Growth in Emerging Markets Download Data Fig. 4: Five Largest Asia and Rest

Fig. 4: Five Largest Asia and Rest of World-Focused Private Equity Funds in Market

Fund Name

Firm Name

Fund Type

Fund Focus

Target Capital (mn)

KKR Asia Fund II

Kohlberg Kravis Roberts

Buyout

Asia

6,000 USD

TPG Asia VI

TPG

Buyout

Asia

4,000 USD

RRJ Capital Master Fund II

RRJ Capital

Buyout

Asia

4,000 USD

Actis 4

Actis

Growth

Diversi ed Multi-Regional

3,500 USD

Af nity Asia Paci c Fund IV

Afnity Equity Partners

Buyout

Asia

3,500 USD

Source: Preqin Funds in Market

over the following 12 months, published in Preqin Investor Outlook: Private Equity, H2, 2012. Fig. 3 presents the regions and countries within emerging markets that investors view as presenting attractive opportunities*. A substantial 72% of LPs surveyed will invest or consider investing in emerging markets. Of these LPs, 95% aim to increase their exposure to emerging market regions over the next 12 months. Another encouraging sign is that none of these LPs plan to reduce their exposure in the long term. China and, more broadly, Asia remain attractive locations for investment to the largest proportion of LPs (38%). Good investment opportunities are also viewed to be on offer in India and South America, each named by 29% of investors that have an appetite for emerging markets.

Outlook for Asia and Rest of World Private Equity

It is evident that Asia and Rest of World regions are viewed as attractive investment propositions for many LPs, with growing interest in recent years in these regions. Asia particularly has been buoyed by the strong growth of many of its constituent

economies and the increasing maturity of the domestic private equity industry. The recent turmoil that has prevailed in more developed nancial markets has inclined LPs and GPs alike to pursue investment opportunities in the less developed private equity markets in the regions of Asia and Rest of World. There has also been signi cant growth in the number of GPs based in these regions. As investors gain greater con dence and experience of investing in Asia and Rest of World, the way they access these investments is likely to evolve, and exposure to the region may become a staple in the investment portfolios of many LPs.

*Respondents were not prompted to give their opinions on each fund type/country/ region individually; therefore the results display the fund types, countries and regions at the forefront of investors’ minds at the time of the survey.

Subscriber Quicklink:

Subscribers to Funds in Market can click here to access details on the 590 private equity funds in market with a main focus on Asia and Rest of World.

Funds in Market is the industry’s leading source of intelligence on private equity fundraising. Not yet a subscriber? For more information on how Preqin’s Funds in Market can help you, please visit:

www.preqin.com/fim

New Coverage

Future Fund Searches and Mandates

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New Coverage Future Fund Searches and Mandates Download Data Future Fund Searches and Mandates The diff

Future Fund Searches and Mandates

The difference between success and failure in attracting institutional commitments can be the ability to identify which investors are most likely to be interested in your fund.

To help with this task, Preqin’s Investor Intelligence now allows subscribers to identify likely investors in their fund by searching for institutional investors by their future investment plans.

Preqin updates these details by speaking directly to investors – saving you time and ensuring our intelligence is up to date and accurate.

• Future Investment Plans - Investor profiles include details of investors’ future fund searches, detailing
• Future Investment Plans - Investor profiles include details of
investors’ future fund searches, detailing whether they are
targeting specific private equity strategies and/or regions of
focus, and also contain summaries of their plans for the next
12 months.
• Future Fund Searches and Mandates - Forward-looking search for
all the institutional investors that are looking to invest in funds
that match your criteria.
• Filter potential investors by location, investor type, fund type
preferences for the next 12 months, regional preferences for
the next 12 months, and likely timeframe for their next fund
commitment.

Whether you’re hoping to secure new commitments for a US-focused buyout fund or launch a China-focused growth vehicle, access to Preqin’s Investor Intelligence can help.

For more information and to arrange a walkthrough of the service, please visit:

www.preqin.com/ii

The Facts

IPO Pipeline

IPO Pipeline

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The Facts IPO Pipeline IPO Pipeline Download Dat a Jessica Hull looks at recent buyout and

Jessica Hull looks at recent buyout and venture capital-backed portfolio companies that have filed for IPOs

Initial public offerings (IPOs) are an important method used by private equity rms to exit an investment in a buyout- or venture capital-backed company and involve the sale of stock by a private company in the public market via listing on a stock market. Over the last four years, IPOs and follow-on share sales have, on average, accounted for 15% of all global exit activity in both buyout- and venture capital-backed companies. An IPO is an exit strategy that relies on favourable market conditions, and so far this quarter, IPO activity has witnessed an uptick in momentum largely due to improved public market conditions in North America.

At the start of November 2012, Preqin’s IPO pipeline data reveals that there are 42 buyout- and venture capital-backed companies globally set to list in the coming weeks, looking to raise $10.3bn in initial public offerings. Of these 42 companies, 21 are buyout- backed, with an aggregate targeted IPO value of $6.6bn. Currently, 21 venture capital-backed companies have also led for an IPO, seeking to raise $3.7bn. Over three-quarters (76%) of companies in the IPO pipeline are based in North America, making the region the most prominent for forthcoming IPO activity. The 32 buyout- and venture capital-backed companies based in North America are targeting an aggregate IPO value of $8.3bn. Additionally, there are currently ve Europe-based buyout- and venture capital- backed companies that have led to list in the coming weeks, planning to raise $400mn, and a further ve companies based in Asia in the IPO pipeline; this puts Asia on par with Europe in terms of forthcoming IPO activity. Interestingly, these Asia-based companies are seeking to raise $1.6bn in public offerings, four times the aggregate targeted IPO value of companies based in Europe.

As of 2 November 2012, 23 buyout- and venture capital-backed companies have completed their IPOs or follow-on share sales, raising $5.5bn from their offerings so far in Q4 2012. This amount is notably close to the aggregate IPO and follow-on share sales amount raised throughout the entirety of Q3 2012, which amounted

to $6.5bn. This indicates that Q4 2012 looks set to see a rebound in IPO activity globally, particularly given the healthy number of IPOs in the pipeline. It is likely that Q4 2012 will surpass the previous quarter in terms of IPO activity and could approach the levels witnessed in the last two quarters of 2011, where over $10bn was raised from IPOs in each quarter, as shown in Fig. 2. Even so, IPO activity will struggle to reach the post-Lehman peak witnessed in Q2 2011, when 79 buyout- and venture capital-backed public offerings raised $33.8bn, or the more recent secondary peak in the Facebook-led Q2 2012, which saw $27.6bn raised in public offerings. Facebook accounted for $16bn of this total in its public offering in May 2012.

Of the 23 IPOs and follow-on share sales that have occurred so far in Q4 2012, notable public offerings include the €915.8mn IPO of buyout-backed Ziggo and the $1.1bn IPO of US-based Realogy Corporation. In relation to venture capital-backed companies, the largest IPO so far this quarter was the $637mn IPO of Workday, Inc., which saw the company listing on the NYSE.

Between January and November 2012, North America-based buyout- and venture capital-backed IPOs accounted for 61% of the number and 62% of the value of public offerings globally. This is a marked increase in the prominence of North American IPOs in terms of both number and aggregate value, which since 2009 have accounted for less than 50% of global private equity-backed IPO activity. The increasing amount and value of IPOs in the US is probably due to improved market conditions in the region driven by the increased stimulus in the economy in the run up to the US elections.

European public offerings between January and November 2012 accounted for 12% and 16% of the number and aggregate value of public offerings respectively. This is in sharp contrast to the previous two years, in which the proportion of the number and aggregate value of deals was 19% and 35% respectively,

Fig. 1: IPO Pipeline Breakdown by Region

35% respectively, Fig. 1: IPO Pipeline Breakdown by Region   Buyout-Backed Venture Capital-Backed Region
 

Buyout-Backed

Venture Capital-Backed

Region

No. of Expected IPOs

Aggregate Targeted IPO Value ($mn)

No. of Expected IPOs

Aggregate Targeted IPO Value ($mn)

North America

13

4,805

19

3,504

Europe

4

200

1

200

Asia

4

1,584

1

-

Sub-Total

21

6,589

21

3,704

 

No. of Expected IPOs

Aggregate Targeted IPO Value ($mn)

Total (Buyout/Venture

 

42

 

10,293

Capital)

Source: Preqin Deals Analyst

The Facts

IPO Pipeline

highlighting a dip in the prominence of Europe-based IPO activity so far this year.

Twenty- ve percent of the number and 17% of the value raised in IPOs between January and November 2012 are attributed to companies based in Asia. So far this year, the Rest of World region, which includes Africa, Central and South America, Australasia and the Middle East, has accounted for 2% of the number and 5% of the aggregate value of IPOs and follow-on share sales.

IPO and follow-on share sales have always been an important route for private equity rms to exit their investments and between January and November 2012 have accounted for 13% of all buyout- and venture capital-backed exits, which is roughly on par with the last three years. From 2009 to November 2012, trade sales have been the most popular route for venture capital and buyout rms to exit their investments, with this exit type accounting for almost two-thirds of all global buyout and venture capital-backed exits.

Sales-to-GPs, otherwise known as secondary buyouts, have increased in prominence in the post-Lehman era. In 2009, sale-to- GPs accounted for 10% of all global buyout- and venture capital- backed exits, a much smaller proportion than the average of 20% that sales-to-GPs account for over 2010 to November 2012.

Restructurings often involve a private equity rm giving up its stake to a debt provider in a debt-to-equity swap, and account for only 3% of buyout- and venture capital-backed exits this year. In 2009, restructurings accounted for 13% of all buyout- and venture capital-back exits, owing to a higher number of companies facing nancial dif culty and bankruptcy at the height of the nancial crisis.

There has currently been $5.5bn raised from buyout- and venture capital-backed public offerings so far in Q4 2012, in comparison to an aggregate IPO amount of $6.5mn raised throughout the entirety of Q3 2012. These gures provide an indication that there will be a further uptick in buyout- and venture capital-backed IPO activity if improved market conditions persist, which will overshadow the low witnessed in Q3 2012. In addition, there are currently 42 buyout- and venture capital-backed companies which have led to list in the coming weeks looking to raise $10.3bn, which indicates a high potential that Q4 2012 could see further drive in exit activity via the public markets.

Subscriber Quicklink:

Subscribers to Preqin’s Buyout Deals Anlayst can view further details on the portfolio companies that have filed for IPOs here, and Venture Deals Analyst subscribers can do the same here.

Not yet a subscriber? For more information on how Buyout Deals Analyst and Venture Deals Analyst can help you, please visit:

www.preqin.com/deals

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help you, please visit: www.preqin.com/deals Download Data Fig. 2: Number and Value of Buyout- and Venture

Fig. 2: Number and Value of Buyout- and Venture Capital-Backed IPOs/Follow-ons, Q1 2009 - Q4 2012 (as of 2 November 2012)

120 40.0 35.0 100 30.0 80 25.0 60 20.0 15.0 40 10.0 20 5.0 0
120
40.0
35.0
100
30.0
80
25.0
60
20.0
15.0
40
10.0
20
5.0
0
0.0
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2009
2010
2011
2012
No. of IPOs
Aggregate IPO Amount Raised ($bn)
Aggregate Exit Value ($bn)
No. of IPOs/Follow-ons

Source: Preqin Deals Analyst

Fig. 3: Proportion of Number and Value of IPOs and Follow-ons by Region, 2009 - November 2012 (as of 2 November 2012)

100% 3% 2% 5% 5% 8% 7% 7% 14% 90% 14% 17% 25% 27% 28%
100%
3%
2%
5%
5%
8%
7%
7%
14%
90%
14%
17%
25%
27%
28%
80%
26%
30%
70%
16%
35%
12%
35%
60%
19%
19%
18%
35%
50%
13%
40%
30%
61%
62%
48%
48%
44%
44%
20%
38%
35%
10%
0%
No. of IPOs
Value of
No. of IPOs
Value of
No. of IPOs
Value of
No. of IPOs
Value of
IPOs
IPOs
IPOs
IPOs
2009
2010
2011
Jan - Nov 12
North America
Europe
Asia
Rest of World
Proportion of Total

Source: Preqin Deals Analyst

Fig. 4: Proportion of Number of Buyout and Venture Capital-Backed Exits by Exit Type, 2009 - November 2012 (as of 2 November 2012)

100% 13% 14% 13% 16% 90% 3% 4% 4% 80% 13% 21% 22% 70% 19%
100%
13%
14%
13%
16%
90%
3%
4%
4%
80%
13%
21%
22%
70%
19%
10%
60%
50%
40%
64%
63%
30%
61%
60%
20%
10%
0%
2009
2010
2011
Jan - Nov 12
Trade Sale
Sale to GP
Restructuring
IPO
Proportion of Deals

Source: Preqin Deals Analyst

The Facts

Forthcoming Buyout-Backed Exits

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The Facts Forthcoming Buyout-Backed Exits Download Data Forthcoming Buyout-Backed Exits Jonathan Parker analyzes the

Forthcoming Buyout-Backed Exits

Jonathan Parker analyzes the market for potential forthcoming exits from buyout-backed private equity deals, looking at the breakdown of these potential exits across industries and geographies.

Fig. 1: Proportion of Currently Held Buyout-Backed Portfolio Companies by Initial Investment Date, 2006 - 2012 YTD (as of 5 November 2012)

100% 1% 0% 4% 10% 14% 90% 20% 30% 80% 70% 60% 50% 99% 100%
100%
1%
0%
4%
10%
14%
90%
20%
30%
80%
70%
60%
50%
99%
100%
96%
90%
86%
40%
80%
70%
30%
20%
10%
0%
2006
2007
2008
2009
2010
2011
2012 YTD
Active Deals
Exited Deals
Source: Preqin Buyout Deals Analyst
Fig. 3: Composition of Potential Forthcoming Exits* by Industry
(as of 5 November 2012)
35%
32%
30%
25%
21%
20%
19%
17%
15%
13%
13%
11%
10%
10%
9%
8%
8%
7%
7%
6%
5%
5%
5%
3%
2%
2%
2%
0%
No. of Deals
Aggregate Deal Value
Proportion of Deals
Proportion of Number of Deals
Industrials
Consumer &
Retail
Business
Services
Healthcare
Information
Technology
Telecoms &
Media
Energy &
Utilities
Food &
Agriculture
Materials
Other

Source: Preqin Buyout Deals Analyst

Fig. 2: Composition of Potential Forthcoming Exits* by Region (as of 5 November 2012)

100% 3% 6% 3% 7% 90% 80% 27% 70% 34% 60% 50% 40% 68% 30%
100%
3%
6%
3%
7%
90%
80%
27%
70%
34%
60%
50%
40%
68%
30%
53%
20%
10%
0%
No. of Deals
Aggregate Deal Value
North America
Europe
Asia
Rest of World
Proportion of Deals

Source: Preqin Buyout Deals Analyst

Fig. 4: Composition of Potential Forthcoming Exits* by Initial Investment Date (as of 5 November 2012)

45% 40% 39% 38% 35% 34% 30% 25% 24% 20% 15% 15% 13% 12% 10%
45%
40%
39%
38%
35%
34%
30%
25%
24%
20%
15%
15%
13%
12%
10%
8%
7%
5%
4%
4%
2%
0%
2003 and Earlier
2004
2005
2006
2007
2008 and Later
No. of Deals
Aggregate Deal Value
Proportion of Deals

Source: Preqin Buyout Deals Analyst

*Preqin has estimated potential forthcoming exits using a combination of factors, including initial investment date and fund vintage data.

Looking to Source Potential Investments?

Buyout Deals Analyst features the Potential Forthcoming Exits tool that allows you to source deals by viewing portfolio companies that are likely to be exited in the near future.

Featuring 27,000 buyout deals across the globe from 2006 to present, Buyout Deals Analyst provides information on deal value, buyers, sellers, debt financing providers, financial and legal advisors, exit details and more.

For more information, please visit:

www.preqin.com/deals

16 Private Equity Spotlight, November 2012

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© 2012 Preqin Ltd. www.preqin.com

News

Secondaries Fundraising

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News Secondaries Fundraising Download Data Secondaries Fundraising Patrick Adefuye delivers a round-up of the latest

Secondaries Fundraising

Patrick Adefuye delivers a round-up of the latest fundraising statistics for private equity secondaries funds, examining historical fundraising trends and a breakdown of the current fundraising market.

Fig. 1: Annual Secondaries Fundraising, 2006 - 2012 YTD 25 22.2 22 20 20 19
Fig. 1: Annual Secondaries Fundraising, 2006 - 2012 YTD
25
22.2
22
20
20
19
15.8
15
15
14
13.7
12.8
10.2
10
10.0
10
8
7.3
5
0
2006
2007
2008
2009
2010
2011
2012 YTD
No. of Funds Closed
Aggregate Capital Raised ($bn)

Source: Preqin Secondary Market Monitor

Fig. 3: Five Largest Secondaries Funds Closed, January - November 2012

Fig. 2: Breakdown of Secondary Funds in Market by Fund Size

10% 34% 38% 17%
10%
34%
38%
17%

Source: Preqin Secondary Market Monitor

$100mn or less10% 34% 38% 17% Source: Preqin Secondary Market Monitor $101-500mn $501mn-1bn More than $1bn Fund Vintage

$101-500mn17% Source: Preqin Secondary Market Monitor $100mn or less $501mn-1bn More than $1bn Fund Vintage Year

$501mn-1bnPreqin Secondary Market Monitor $100mn or less $101-500mn More than $1bn Fund Vintage Year Manager Final

More than $1bnMarket Monitor $100mn or less $101-500mn $501mn-1bn Fund Vintage Year Manager Final Size ($mn)

Fund

Vintage Year

Manager

Final Size ($mn)

Primary Fund Focus

AXA Secondary Fund V

2011

AXA Private Equity

7,100

Europe

Coller International Partners VI

2012

Coller Capital

5,500

Europe

CS Strategic Partners V

2011

CS Strategic Partners

2,400

US

Permal Private Equity Opportunities IV

2011

Permal Capital Management

403

US

CS Strategic Partners V RE

2011

CS Strategic Partners

300

US

Source: Preqin Secondary Market Monitor

Fig. 4: Five Largest Secondaries Funds in Market

Monitor Fig. 4: Five Largest Secondaries Funds in Market Fund Vintage Year Manager Target Size ($mn)

Fund

Vintage Year

Manager

Target Size ($mn)

Primary Fund Focus

Vintage Fund VI

2012

Goldman Sachs Private Equity Group

4,500

US

Dover Street VIII

2011

HarbourVest Partners

2,900

US

Partners Group Secondary 2011

2011

Partners Group

2,824

Europe

Landmark Equity Partners XV

2012

Landmark Partners

2,500

US

Paul Capital Partners X

2012

Paul Capital

2,000

US

Source: Preqin Secondary Market Monitor

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Preqin’s Secondary Market Monitor is the industry’s leading source of intelligence on the private equity secondary markets. Subscribers can click here to view details of all secondaries funds currently in market.

Not yet a subscriber? For more information, please visit our website here or email info@preqin.com for a walkthrough of the databases.

www.preqin.com/smm

Quarterly

Latest Free Preqin Quarterly Report Out Now!

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Latest Free Preqin Quarterly Report Out Now! Download Data Preqin Quarterly - Q3 Edition Out Now!

Preqin Quarterly - Q3 Edition Out Now!

All the latest statistics, analysis and commentary on key industry trends can be found in the Q3 2012 Preqin Quarterly reports, covering the Private Equity, Private Real Estate and Infrastructure asset classes. Download your free copy today!

The latest industry trends from the alternative assets industry’s leading source of data and intelligence:

Investors

Fundraising

Fundraising Outlook

Buyout and Venture Capital Deals

Exits

Dry Powder

Performance

And Much More…

Click below to download your complimentary copy:

Q3 2012 OCTOBER 2012 The Preqin Quarterly Infrastructure Q3 2012 OCTOBER 2012 Insight on the
Q3 2012 OCTOBER 2012
The
Preqin Quarterly
Infrastructure
Q3 2012 OCTOBER 2012
Insight on the quarter from the leading provider of alternative assets data
The
Preqin
Quarterly
Content Includes
Real Estate
XX
xx
Q3 2012 OCTOBER 2012
Insight on the quarter from the leading provider of alternative assets data
ns
on
e
uar er rom
e ea
n
rov
er o
a erna ve asse s
a a
The
XX
Content Includes
Content
Includes
xx
Preqin Quarterly
Investor Outlook
Investor Outlook
XX
Private Equity
Investor sentiments on the
Investor sentiments on the
xx
performance of real estate
performance of real estate
investments, as well as key issues
investments, as well as key issues
Insight on the quarter from the leading provider of alternative assets data
facing the industry.
facing the industry.
Content Includes
Target IRRs
Target IRRs
We take a look at the targeted
We take a look at the targeted
Private Equity Assets under
Management Hit $3tn
IRRs IRRs of of active active real real estate estate funds, funds,
broken down by geographical
broken down by geograp
hical
For the first time ever the
focus focus and and vintage. vintage.
aggregate AUM of private
equity funds has surpassed $3tn
– an important milestone for the
Performance Update
Performance Update
industry at a time of heightened
A look at the most up-to-date
A look at the most up-to-date
regulatory, political and investor
private private real real estate estate performance performance
scrutiny.
figures.
figures.
Future Fund Searches and
Mandates
Fundraising Overview
Fundraising Overview
alternative assets. intelligent data.
alt
The private real estate
The private real estate
Q2 Special Guest Contributor: David Arthur, Brookfield Asset Management
How are private equity investors
fundraising fundraising market market remains remains a a
planning to commit to the
challenge for fund managers,
challenge for fund managers,
asset class in the future? Preqin
but but is is it it improving? improving?
explores fund types targeted and
expected capital outlay.
Consistent Performing
alternative assets. intelligent data.
Managers
Q2 Special Guest Contributor: David Arthur, Brookfield Asset Management
Preqin has compiled a list of the
most consistent performing fund
managers in the private equity
market.
alternative assets. intelligent data.
Q2 Special Guest Contributor: David Arthur, Brookfield Asset Management
Guest Contributor: David Arthur, Brookfield Asset Management Private Equity Private Real Estate Infrastructure

www.preqin.com/quarterly

The Facts

Corporate Investors

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The Facts Corporate Investors Download Data Corporate Investors Wang Ping Chia examines key data on corporate

Corporate Investors

Wang Ping Chia examines key data on corporate investors in private equity from around the world.

Fig. 1: Breakdown of Corporate Investors by Geographic Regions

7% 23% 46% 24%
7%
23%
46%
24%

Source: Preqin Investor Intelligence

North America7% 23% 46% 24% Source: Preqin Investor Intelligence Europe Asia Rest of World Fig. 3: Breakdown

Europe46% 24% Source: Preqin Investor Intelligence North America Asia Rest of World Fig. 3: Breakdown of

AsiaSource: Preqin Investor Intelligence North America Europe Rest of World Fig. 3: Breakdown of Corporate Investors’

Rest of WorldPreqin Investor Intelligence North America Europe Asia Fig. 3: Breakdown of Corporate Investors’ Fund Type

Fig. 3: Breakdown of Corporate Investors’ Fund Type Preferences by Geographic Regions 90% 86% 81%
Fig. 3: Breakdown of Corporate Investors’ Fund Type Preferences by
Geographic Regions
90%
86%
81%
80%
Venture
Capital
70%
70%
Buyout
60%
Growth
50%
48%
45%
44%
45%
40%
PE Fund of
Funds
40%
36%
35%
Distressed PE
30%
28%
27%
Mezzanine
19%
19%
18%
20%
18%
15%
Other
13%
10%
9%
10%
7%
5% 5%
4%
4%
1%
0%
0%
0%
North America
Europe
Asia
Rest of World
Proportion of Corporate Investors

Source: Preqin Investor Intelligence

Fig. 2: Breakdown of Corporate Investors by Assets Under Management

15% 16% 28% 31% 10%
15%
16%
28%
31%
10%

Source: Preqin Investor Intelligence

Less than15% 16% 28% 31% 10% Source: Preqin Investor Intelligence $250mn $250 - 999mn $1 - 4.9bn

$250mn

$250 -10% Source: Preqin Investor Intelligence Less than $250mn 999mn $1 - 4.9bn $5 - 9.9bn $10

999mn

$1 - 4.9bnPreqin Investor Intelligence Less than $250mn $250 - 999mn $5 - 9.9bn $10 - 49.9bn Subscriber

$5 - 9.9bnIntelligence Less than $250mn $250 - 999mn $1 - 4.9bn $10 - 49.9bn Subscriber Quicklink: Would

$10 -Less than $250mn $250 - 999mn $1 - 4.9bn $5 - 9.9bn 49.9bn Subscriber Quicklink: Would

49.9bn

Subscriber Quicklink:

Would you like to see the details of all 195 corporate investors

investing in private equity, including information on their areas of interest, key contacts, future plans and more? Click here to view

the full list.

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Fig. 4: Five Notable Corporate Investors that Are Considering Making New Private Equity Fund Commitments in 2013

Investor

Country

AUM ($mn)

Fund Type Strategy

Regional Strategy

ITOCHU Corporation

Japan

82,938

Opportunistic

Asia

SAP

Germany

31,119

FoF

Opportunistic

Swisscom

Switzerland

21,164

Venture

Europe

China Dongxiang (Group)

China

1,137

Venture

Asia

Oriental Union Chemical Corporation

Taiwan

952

Opportunistic

Opportunistic

Source: Preqin Investor Intelligence

The Facts

Performance Update

Performance Update

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The Facts Performance Update Performance Update Download Data Gary Broughton reviews private equity performance as of

Gary Broughton reviews private equity performance as of the end of Q1 2012, using horizon IRRs across fund type, J-curves by vintage and Preqin’s Private Equity Quarterly Index, PrEQIn.

Fig. 1: Private Equity Horizon IRRs as of 31 March 2012

25% 20% 15% 10% 5% 0% 1 Year to March 3 Years to March 5
25%
20%
15%
10%
5%
0%
1 Year to March
3 Years to March
5 Years to March
10 Years to March
2012 2012
2012
2012
Annualized Returns

Source: Preqin Performance Analyst

All Private Equity

Buyout

Venture Capital

Fund of Funds

Mezzanine

Fig. 3: PrEQIn Index: All Strategies (Rebased to 100 as of 31 December

2000)

400 350 300 250 200 150 100 50 0 Index Returns 31/12/2000 30/06/2001 31/12/2001 30/06/2002
400
350
300
250
200
150
100
50
0
Index Returns
31/12/2000
30/06/2001
31/12/2001
30/06/2002
31/12/2002
30/06/2003
31/12/2003
30/06/2004
31/12/2004
30/06/2005
31/12/2005
30/06/2006
31/12/2006
30/06/2007
31/12/2007
30/06/2008
31/12/2008
30/06/2009
31/12/2009
30/06/2010
31/12/2010
30/06/2011
31/12/2011

Source: Preqin Performance Analyst

PrEQIn All Private Equity

PrEQIn Buyout

PrEQIn Venture

Capital

PrEQIn Real Estate

PrEQIn Fund of Funds

PrEQIn Distressed

Private Equity

S&P 500

Fig. 2: All Private Equity - J-Curve: Annual Median Net IRRs by Vintage 15% 10%
Fig. 2: All Private Equity - J-Curve: Annual Median Net IRRs by Vintage
15%
10%
Vintage 2005
5%
0%
Vintage 2006
-5%
Vintage 2007
-10%
Vintage 2008
-15%
Vintage 2009
-20%
-25%
0
1
2
3
4
5
6
7
Median Net IRR

Investment Year

Source: Preqin Performance Analyst

Fig. 4: PrEQIn Index: Fund Quartiles (Rebased to 100 as of 31 December 2000) 600
Fig. 4: PrEQIn Index: Fund Quartiles (Rebased to 100 as of 31
December 2000)
600
Top Quartile
500
400
Second Quartile
300
Third Quartile
200
100
Fourth Quartile
0
Index Returns
31/12/2000
30/06/2001
31/12/2001
30/06/2002
31/12/2002
30/06/2003
31/12/2003
30/06/2004
31/12/2004
30/06/2005
31/12/2005
30/06/2006
31/12/2006
30/06/2007
31/12/2007
30/06/2008
31/12/2008
30/06/2009
31/12/2009
30/06/2010
31/12/2010
30/06/2011
31/12/2011

Source: Preqin Performance Analyst

Data Source:

Horizon returns, median net IRRs and the PrEQIn Index are available via Preqin’s Performance Analyst. With fund-level performance data for over 6,000 named private equity funds, Performance Analyst is the world’s most extensive and transparent database of private equity and venture capital fund performance. To find out how Performance Analyst can help you, please visit:

www.preqin.com/pa

Conferences

Conferences Spotlight

Conferences Spotlight

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Conferences Spotlight Conferences Spotlight Download Data Conference   Dates Location Organizer

Conference

 

Dates

Location

Organizer

Private Equity Partners Saudi Arabia Conference

25 - 27 November 2012

Saudi Arabia

IIR Middle East

SuperReturn Africa 2012

3 - 5 December 2012

Casablanca

ICBI

The PE Investor Relations Conference

13

December 2012

London

BIE Events

Asia Private Equity Forum 2013

16 January 2013

Hong Kong

HKVCA

16th Annual SuperReturn International 2013

25 - 28 February 2013

Berlin, Germany

ICBI

6th Annual Women's Private Equity Summit

14

- 15 March 2013

Half Moon Bay, CA

Falk Marques Group

SuperReturn China

 

8-11 April 2013

Beijing

ICBI

SuperReturn US

 

3-6 June 2013

Boston

ICBI

SuperReturn Emerging Markets

24-27 June 2013

Geneva

ICBI

The PE Investor Relations Conference

Date: 13th December 2012 Location: London Organiser: BIE Events

Information: www.bieevents.com/ir2012-details

This is our 4th annual PE Investor Relations Conference, not just for IR professionals. As investor relations grows in importance due to scarcer capital and greater LP demands, so does this conference. Seasoned veterans of the industry will cover all aspects of investor relations at this popular one-day event.

Asia Private Equity Forum 2013

Date: 16th January 2013 Location: Hong Kong Convention and Exhibition Centre, Hong Kong Organiser: Hong Kong Venture Capital and Private Equity Association (HKVCA)

Information: www.hkvca.com.hk/apef

The Hong Kong Venture Capital and Private Equity Association is delighted to announce the Asia Private Equity Forum 2013 to be held on January 16, 2013. APEF 2013 is organized by HKVCA in conjunction with Hong Kong’s major financial flagship event, the Asian Financial Forum, which will take place at the same venue on January 14 and 15.

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