Preqin Private Equity Spotlight December 2012

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Dear Spotlight reader,
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Private Equity Spotlight
December 2012
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The 2013 Alternatives Investment
Consultants Review
www.preqin.com/aic
Preqin Industry News
This months industry news looks at the latest data on mid-market buyout funds,
including exclusive information on funds in market, investors and signicant deals.
Page 8.
Mid-Market Buyout Funds - The latest data on mid-market buyout fundraising. Page 12.
Private Equity-Backed Add-On Deals - Key stats on add-on deals. Page 13.
Secondaries Venture Capital Market - Data on buyers, sellers and transactions. Page 15.
Development Finance Institutions - We explore development nance institutions
investing in private equity. Page 16.
Performance Update - A look at the performance of buyout funds by size. Page 18.
Conferences - Details of upcoming private equity conferences. Page 19.
The Facts
The 2013
Preqin Alternatives Investment Consultant Review

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December 2012
Volume 8 - Issue 12
Feature Article
Venture Capital: Industry News and Investor Appetite
Although venture capital has been outperformed by other private equity fund types
in recent years, Preqins latest survey of LPs indicates a signicant proportion plan
to invest in venture capital in 2013. We examine the latest trends across the venture
capital industry and how investor sentiment has changed.
Page 3.
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
Proles, Funds in Market, Secondary
Market Monitor, Buyout Deals Analyst
and Venture Deals Analyst.
Lead Article
Investment Consultants: What Role Do They Play?
What attributes do clients consider the most important when reviewing consultants? How
successful do investors believe consultants are in fund selection? What are consultants
attitudes to investing in different fund types?
Page 9.
Click here to sign up to receive your free edition of Private Equity Spotlight every month!
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aspirational brands
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$360m
Venture investments in direct
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2012 Preqin Ltd. www.preqin.com 3
Feature Article
Venture Capital:
Industry Trends and Investor Appetite
With the launch of Preqins new office in Silicon Valley, Nicholas Jelfs explores the latest trends in fundraising,
performance and deal activity across the venture capital industry, as well as investor attitudes towards venture
capital, both over time and for the future.
Investment in young, high-risk, high-potential companies by venture
capital fund managers has historically been an important part of
the private equity industry. In addition to promoting innovation and
signicant growth within many companies and industries, it is also
an important component of many investors portfolios and a key
investment strategy for many general partners. Despite challenging
economic conditions following the onset of the nancial crisis in 2008,
the number of venture capital funds closing each year has remained
stable since the post-nancial crisis drop from 341 funds closed in
2008 to 235 funds closed in 2009, Fig. 1 shows. Additionally, the
aggregate capital raised by funds saw a notable increase in 2011,
with 221 funds raising an aggregate $38.9bn in 2011 compared to
the 220 that raised an aggregate $26.1bn in 2010.
Investors generally commit to venture capital funds as part of a
wider diversied private equity portfolio, but also to pursue the
larger returns the strategy has the potential to offer. However,
venture capital funds have produced lower returns for investors
over recent years compared to other private equity fund types,
particularly buyout. Preqins ten-year horizon IRR data to 31st
March 2012 indicates that for all strategies, private equity
generated a return of 12.8%. For buyout funds specically, this
return was 19.9%, yet for venture capital funds the horizon IRR
was 1.6%. However, Fig. 2 shows a recent improvement in general
venture capital performance, with the median and top quartile IRR
for venture capital funds with 2007 and 2008 vintages signicantly
higher than those of previous years.
Investor Appetite for Venture Capital
Despite lower returns, private equity investors still demonstrate
interest in venture capital investments. Sixty-three percent of
investors currently listed on Preqins Investor Intelligence database
have either expressed a preference for, or have previously invested
in, venture capital. Fig. 3 provides a breakdown by investor type of
LPs that have specied a preference for investing in venture capital
funds. Foundations make up the largest proportion of investors,
representing 13% of the total universe; endowment plans and
public pension funds account for 12% and 11% respectively.
Additionally, investor interest in venture capital investment has
grown recently. Preqin surveys private equity investors every six
months in order to gauge investor sentiment towards the asset
class and explore investor appetite and the outlook for specic
fund types and geographies going forward. Fig. 4 shows investors
attitudes towards investing in venture capital over time, from H1
2010 to H1 2013, compiled from the results of these surveys.
There has been a notable increase towards the end of 2012 in
Venture Capital: Industry Trends and Investor Appetite
Private Equity Spotlight, December 2012
202
258
297
303
358
341
235
220 221
153
14.3
29.9
38.0
45.9
55.4
49.4
25.8 26.1
38.9
26.8
0
50
100
150
200
250
300
350
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2003 2004 2005 2006 2007 2008 2009 2010 2011 Jan -
Nov 2012
No. of Funds
Closed
Aggregate
Capital Raised
($bn)
Year of Final Close
Fig. 1: Venture Capital Fundraising, 2003 - November 2012
Source: Preqin Funds in Market
13%
12%
11%
10%
10%
7%
7%
5%
25%
Foundations
Endowment Plans
Public Pension Funds
Fund of Funds Managers
Private Sector Pension Funds
Banks & Investment Banks
Insurance Companies
Investment Companies
Other
Fig. 3: Make-Up of Private Equity Investors With an Appetite for
Venture Capital Funds by Investor Type
Source: Preqin Investor Intelligence
-15
-10
-5
0
5
10
15
20
25
2002 2003 2004 2005 2006 2007 2008 2009
Top Quartile IRR
Boundary
Median IRR
Bottom Quartile
IRR Boundary
Vintage Year
Fig. 2: Venture Capital Median Net IRRs and Quartile Boundaries by
Vintage as of 31st March 2012
Source: Preqin Performance Analyst
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the proportion of LPs looking to invest in venture capital over the
following 12 months, with a quarter of respondents specifying an
appetite for the fund type midway through 2012, up from 15% at the
end of 2011. This is a signicant jump in appetite; however, it may
have been inuenced by the number of high-prole venture capital
exits in the rst half of 2012, such as Facebook, Instagram and
Zynga, Inc., which helped publicize the strong returns available to
venture capital investors. These exits also drove particular interest
in early stage venture capital investments, which have the potential
to produce larger returns than late stage investments. Investor
interest has since grown further, with 28% of investors interviewed
by Preqin at the end of 2012 planning to invest in venture capital
over the next 12 months.
Growing Prominence of Top Managers
Investors looking for strong returns are often looking to only commit
to funds being raised by top managers, which have demonstrated
a strong and consistent track record in venture capital investment.
Preqin has witnessed greater amounts of aggregate capital
being raised by larger fund managers in recent years. The top 20
largest venture capital fund managers by aggregate capital raised
throughout 2012 account for 60% of the total capital commitments
raised by venture capital funds closing during the year. Throughout
2010 and 2011, this proportion was 44% and 53% respectively,
indicating that the biggest rms are accounting for a signicant
proportion of total capital raised by venture capital funds. Fig. 5
Feature Article
Fig. 5: 10 Largest Venture Capital Fund Managers by Funds Closed,
2010 - 2012 YTD
Fund Manager GP Location
No. of Funds
Closed
Aggregate
Capital
Raised ($bn)
Kleiner Perkins Caueld & Byers US 7 2.9
Tiger Global Management US 2 2.7
New Enterprise Associates US 1 2.6
Sequoia Capital US 2 2.4
IDG Capital Partners China 4 2.2
Andreessen Horowitz US 2 2.2
Institutional Venture Partners US 2 1.8
Bessemer Venture Partners US 1 1.6
Insight Venture Partners US 1 1.6
Yunfeng Capital China 1 1.5
Source: Preqin Fund Manager Profles
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17%
23%
17%
20%
17%
17%
13%
28%
25%
15%
22%
28%
11%
20%
0% 5% 10% 15% 20% 25% 30%
H1 2013
H2 2012
H1 2012
H2 2011
H1 2011
H2 2010
H1 2010
Investing in the
Next 12 months
Presenting the
Best Opportunity
Proportion of Respondents
Fig. 4: Private Equity Investor Attitudes Towards Investing in Venture
Capital
Source: Preqin Investor Surveys - December 2009 - December 2012
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provides a list of the top 10 fund managers by total capital raised
for funds that closed throughout 2010, 2011 and 2012. Five of these
10 fund managers have consistently had funds ranked in Preqins
1st and 2nd quartiles for their specic fund types; New Enterprise
Associates transition, for example, from early stage vehicles to all
stage venture funds in 2004 has produced two top quartile funds
and one second quartile fund, according to Preqins Performance
Analyst. Institutional Venture Partners have produced two top
quartile expansion/late stage fund since 2000.
How are Venture Capital Fund Managers Investing?
Since the beginning of 2008, there have been over 23,000 venture
capital deals completed globally, with an aggregate value of almost
$210bn. Fig. 6 displays how the annual number of announced
venture capital nancings has changed since 2008, excluding
venture capital-backed add-on deals and venture debt funding.
There was a signicant increase in venture capital deal activity at
the start of 2012 compared to previous years, reaching a peak in
Q2 2012, when 1,423 deals were announced. Overall, the number
of venture capital deals announced each year has risen year-on-
year since 2009; 2012 YTD continues this pattern, with the number
of deals announced already surpassing the number announced in
2011. The value of these deals, however, still remains at subdued
levels, with $38.9bn in venture capital nancings made in 2012
compared to $50.6bn in 2011.
Focusing on Specific Sectors
The technology and healthcare industries have generally attracted
the greatest level of investment from venture capital fund managers.
Technology especially has remained at the forefront of innovation
and development in a growing digital culture. Throughout 2012,
$8.2bn and $3.2bn was raised for venture capital funds with a
primary focus on technology and healthcare respectively. Together,
these sector-specic funds accounted for 43% of the aggregate
capital raised between J anuary and December 2012. In general,
sector-specic funds account for a greater proportion of the venture
capital fundraising market than diversied funds. Out of the $52.1bn
currently being sought by venture capital vehicles in market, $31.6bn
is accounted for by funds with a specic sector focus.
The previously mentioned surge in the value of deals in the rst
half of 2011 was predominantly led by investments in technology
companies. This was largely due to the popularity of social media and
internet companies, such as Groupon, Inc., Facebook and Rovio,
being invested in at expansion/late stages following successful
early stage rounds. This has also encouraged a signicant increase
in the number of seed stage technology deals, as rms are looking
to invest early with these sorts of companies. Seed and angel stage
deals accounted for 26% of the number of all technology deals
made so far in 2012, compared to 8% of healthcare deals. As such,
the average size of technology deals has generally been notably
lower than that of healthcare deals. In 2012 to date, the average
size of healthcare deals was $11.4mn compared to $8.4mn for
technology deals.
Technology-focused funds have generally outperformed healthcare-
focused funds. Fig. 7 shows the median net IRRs by vintage year
for venture capital funds with a primary focus on the healthcare
industry compared to the equivalent for technology-focused funds.
Following the dot-com bubble, healthcare funds briey outperformed
technology funds, but since 2003, funds predominantly investing
in the technology sector have performed better; funds with a 2008
vintage currently have a median net IRR of 10.9% compared to a
return of 2.6% for healthcare-focused funds.
As previously noted, Preqin has seen a signicant increase in
the number of seed deals being made by venture capital rms in
recent years. Fig. 8, a breakdown of all venture capital deals made
globally by investment stage, shows growth in seed stage deals,
increasing from 8% of the total number of deals in 2009 to 21%
of deals made throughout 2012, as well as a notable drop in mid-
stage nancing. This perhaps suggests a general growth of interest
among investors in investing earlier on in a companys life cycle in
the hope of maximising potential longer term value and returns.
Outlook
The venture capital industry experienced some positive growth in
recent years, with the number of venture capital deals completed
in 2012 increasing in comparison to 2011. Investor sentiment
Feature Article
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15.0%
20.0%
25.0%
30.0%
35.0%
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Healthcare-Focused
Funds
Technology-
Focused Funds
Vintage Year
Fig. 7: Venture Capital - Median Net IRRs: Healthcare vs IT Funds
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Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
YTD
2008 2009 2010 2011 2012
No. of Deals Aggeregate Deal Value ($bn)
Fig. 6: Number and Aggregate Value of Venture Capital Deals
Globally, Q1 2008 - Q4 2012 (as of 7th December 2012)
Source: Preqin Venture Deals Analyst
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Subscribers to Preqins Funds in Market can click here to view all 383 venture capital funds currently in market, and subscribers to Investor
Intelligence can click here to access all 3,028 institutional investors that have a preference for, or previously invested in, venture capital funds.
This article draws on data and analysis from Preqins Private Equity online databases, including Venture Deals Analyst, Funds in Market,
Investor Intelligence and Performance Analyst.
Not yet a subscriber? For more information on how Preqins private equity services can help you, please visit: www.preqin.com/privateequity
Subscriber Quicklink:
Download Data
towards venture capital still remains buoyant and the recent
uptick in performance may demonstrate the potential for improved
returns going forward. There has been a slowdown in the number
of large late stage technology deals seen throughout 2011; these
deals seem to have been replaced by a surge in seed stage deals.
The technology sector remains at the forefront of the venture
capital universe, attracting larger levels of fundraising and deal
activity, and managing to generate better returns than specic
healthcare-focused funds. Venture capital continues to provide
young companies with nancing and support, and with recent
performance improving, fundraising and deal values may continue
to pick up throughout 2013.
Feature Article
6% 7% 7% 7%
9%
2%
2%
8%
4%
3% 7%
8%
10%
13%
21%
21% 17%
17% 17%
14%
18%
14%
13% 13%
9%
9%
8%
8%
7%
5%
6%
6%
5%
5% 4%
29%
34%
27% 31%
31%
3% 4% 5% 3% 4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010 2011 2012
Venture Debt
Unspecified
Series D or Later
Series C
Series B
Series A
Angel/Seed
Expansion
Add-on and Other
Year
Fig. 8: Breakdown of Venture Capital Deals by Stage, 2008 - 2012 (as
of 7th December 2012)
Source: Preqin Venture Deals Analyst
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The Preqin Difference
Fund Coverage: Funds
13,428 Private Equity* Funds
4,005 PE Real
Estate Funds
646 Infrastructure
Funds

27,932
Firm Coverage: Firms
6,708 PE Firms
1,683 PERE
Firms
356 Infra. Firms

13,789
Deals Coverage: Deals Covered; All New Deals Tracked
27,570 Buyout Deals** 35,041 Venture Capital Deals***
2,364 Infra. Deals

64,975
As of 6 December 2012
Investor Coverage: Institutional Investors Monitored,
Including 7,241 Verified Active**** in Alternatives and 74,853 LP Commitments to Partnerships
4636 Active PE LPs 3,882 Active Hedge Fund Investors 3,544 Active RE LPs

10,108
1,885 Active
Infra. LPS
Alternative Investment Consultant Coverage: Consultants Tracked
430
*Private Equity includes buyout, venture capital, distressed, growth, natural resources and mezzanine funds.
**Buyout deals: Preqin tracks private equity-backed buyout deals globally, including LBOs, growth capital, public-to-private deals, and recapitalizations. Our coverage does not include private debt and mezzanine deals.
***Venture capital deals: Preqin tracks cash-for-equity investments by professional venture capital frms in companies globally across all venture capital stages, from seed to expansion phase. The deals fgures provided by Preqin are based on
announced venture capital rounds when the capital is committed to a company.
****Preqin contacts investors directly to ensure their alternatives programs are active. We emphasize active investors, but clients can also view profles for investors no longer investing or with programs on hold.
Best Contacts: Carefully Selected from Our Database of over Active Contacts
223,068
Fund Terms Coverage: Analysis Based on Data for Around Funds
6,500
Fundraising Coverage: Funds Open for Investment/Launching Soon
Including 1,981 Closed-Ended Funds in Market and 497 Announced or Expected Funds
1,671 PE Funds
964 PERE
Funds
255 Infra. Funds

11,530
Performance Coverage: Funds (IRR Data for 4,710 Funds and Cash Flow Data for 2,179 Funds)
9,947
4,959 PE Funds
999 PERE
Funds
123 Infra. Funds
9,853 Hedge Funds
5,042 Hedge Fund Firms
3,866 Hedge Funds
8,640 Hedge Funds
Download Data
News
Olivia Harmsworth delivers the latest news on mid-market buyout funds, featuring exclusive intelligence on
deals, investor activity and recently launched and closed funds, uncovered by Preqins analysts. Preqin Online
subscribers can click on the investor/firm names to view the full profiles.
Mid-market buyout funds are proving increasingly attractive to
investors in the current nancial market. As the Chart of the Month
shows, over half of investors interviewed by Preqin (51%) indicated
that they are looking to invest in small to mid-market buyout funds in
the coming year. This is signicantly more than the next most cited
area of the market, venture capital funds, which 28% of interviewed
investors indicating an interest in investing in over 2013.
One example of an investor looking to invest in mid-market buyout
funds is Co-operative Insurance Society; the UK-based insurance
company will look to target small to mid-market buyout funds
focusing on opportunities in North America and Western Europe
over the next 12 months. It expects to commit between 10mn
and 20mn per fund but anticipates only re-upping with existing
managers in its portfolio. LUMA Capital is another such investor,
and is looking at making ten new commitments to buyout funds in
2013; it will focus on opportunities in North America, but will also
consider emerging markets and views Latin America favourably
at present. Insurance company Folksam plans to target Nordic-
focused small to mid-market buyout funds over the coming year,
and typically commits between 10mn and 50mn.
A number of mid-market buyout funds have recently closed after
having reached or exceeded their fundraising targets. Carlyle
US Equity Opportunity Fund closed in the last month on $1.1bn,
$100mn above target. The fund has an emphasis on buy-and-build
transactions, corporate divestures, corporate partnerships and
platform build-ups. Carlyle Group is also raising three other mid-
market buyout funds: Carlyle Global Financial Services Partners
II, Carlyle Asia Partners RMB Fund and Carlyle Sub-Saharan
Africa Fund, which are targeting $1.2bn, CNY5bn ($800mn), and
$500mn respectively. Other prominent funds to close recently are
Baring Vostok Private Equity Fund V and Baring Vostok Private
Equity Fund V Supplemental Fund, which closed on a combined
$1.5bn in October 2012. The funds, raised by Baring Vostok
Capital Partners, target companies operating in middle-market
enterprises based primarily in Russia, Kazakhstan and Ukraine as
well as other CIS and Baltic countries and Mongolia. The previous
mid-market buyout fund in the series, Baring Vostok Private Equity
Fund IV, raised a combined $1,352mn in 2007 from its main and
supplemental fund.
Of the mid-market buyout funds currently in market, Augusta
Columbia Capital Fund I is targeting $750mn in aggregate investor
commitments, and focuses on the following technology segments
in North America; healthcare information technology, IT services,
telecom equipment, internet infrastructure, web hosting, software,
semiconductors and nancial technology. Augusta Colombia
Capital was established in 2011 after spinning out of the Blackstone
Group. The rm has ofces in New York and San Francisco and
focuses on investments in the equity investment range of $30-
150mn. Another fund currently on the road is HIG Capital Partners
V, which was recently launched by HIG Capital. The fth mid-
market fund is targeting $1bn to invest in a broad range of North
American companies and is expected to reach a nal close in the
early part of 2013. This new fund is targeting slightly more capital
than its previous mid-market vehicle, HIG Capital Partners IV,
which raised $750mn in 2006.
Recent mid-market buyout deals include AEA Investors and
Teachers Private Capitals recent acquisition of Dematic from
fellow private equity investor Triton in November 2012. Although
nancial terms of the transaction were not disclosed, the company
was reportedly worth approximately 700mn at the time of sale.
Triton had acquired Dematic from Siemens AG in 2006. Also in
November 2012, Apax Partners announced the acquisition of Cole
Haan, a footwear designer and retailer, from Nike. The deal, valued
at $570mn in cash, is expected to close in early 2013.
16%
5%
7%
11%
14%
23%
23%
23%
28%
51%
0% 10% 20% 30% 40% 50% 60%
Other
Natural Resources
Mezzanine
Funds of Funds
Growth
Secondaries
Large to Mega Buyout
Distressed Private Equity
Venture Capital
Small to Mid-Market Buyout
Proportion of Respondents
Chart of the Month: Fund Types Institutional Investors in Private Equity
Are Seeking to Invest in Over 2013
Source: Preqin Investor Survey - December 2012
Do you have any news you would like to share with the readers
of Spotlight? Perhaps youre about to launch a new fund, have
implemented a new investment strategy, or are considering
investments beyond your usual geographic focus?
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endeavour to publish them in the next issue.
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Lead Article
Investment Consultants:
What Role Do They Play?
Dami Sogunro examines the changing attitudes of investors towards the use of alternatives investment
consultants, as well as private equity consultants current investment preferences.
As a result of the changing global investment landscape, investors
are approaching new investments with far more caution than
they did in the past, and automatic re-ups are becoming rare.
Other methods of accessing alternatives are being explored by
institutions keen to extract as much value from their investments
as possible. Alternatives investment consultants are often seen as
a useful tool for many investors seeking exposure to alternative
assets investments as they can offer investors both specialist and
broad investment advice that can be useful in navigating the broad
array of opportunities and products available in the alternatives
landscape.
A signicant proportion of investors across all of the alternative
asset classes utilize an external investment consultant when
making new investments. Fig. 1 shows that almost half (46%) of
private equity investors use an external investment consultant.
Comparatively, 61% of investors in hedge funds use an investment
consultant, along with the majority (51%) of real estate investors.
For some, it may be because they do not have the resources to
conduct their own research whereas others may be looking to tap
the expertise of a consultant on a particular market or method of
investment that they have not previously had exposure to.
When asked about the attributes they consider most important when
reviewing alternative investment consultants in a recent Preqin
survey, many investors highlighted the importance of consultants
expertise and skills; this is demonstrated in Fig. 2, which lists clients
responses by average score of importance. Client communication
and customer service continues to be one of the most important
factors for investors when considering consultants, with an average
score of 4.3 in 2012. Investment consultants relationships with top
fund managers is also an important factor for investors, receiving an
average score of 4.1 in 2012; this represents a signicant increase
from a score of 3.3 in 2011.
Clients also consider a strong track record in fund selection to
be particularly important in selecting an investment consultant,
receiving an average score of 3.8 in 2012. Fund selection is
therefore a core part of the service investment consultants offer
their clients. When asked whether consultants are fullling this
requirement, nearly three-quarters (73%) of investors that use
a consultant ranked their consultant as either above average or
excellent at fund selection (Fig. 3). This is an improvement on last
year, when two-thirds (66%) gave their consultant these rankings.
Given the saturated fundraising market, it is positive to see that
above satisfactory fund selection can be achieved.
When viewing the separate alternative asset classes independently,
it can be seen that investors are especially positive about the
private equity asset class, with 82% rating the advice received as
excellent or above average.
Investment Consultants
4.2
4.3
4.2
3.9
3.5
4.5
4.1
4.7
4.1
3.4
3.9
3.3
3.6
3.5
2.9
4.3
4.1
3.8 3.8
3.3
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Client
Communication/
Good Customer
Service
Good
Relationships
with Top
Managers
Proven Strong
Track
Record in Fund
Selection
Competitive
Price
International
Presence
2009
2010
2011
2012
Investment Consultant Attribute
Fig. 2: Attributes Clients Consider When Reviewing Alternatives
Investment Consultants (1 Low Importance; 5 High Importance)
Source: 2013 Preqin Alternatives Investment Consultant Review
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46%
61%
51%
38%
54%
39%
49%
62%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Private Equity Hedge Funds Real Estate Infrastructure
In-House
Team
External
Consultant
Used
Asset Class
Fig. 1: Proportion of Investors Using Alternatives Investment
Consultants by Asset Class
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30%
27% 29%
32%
30%
43% 47%
31%
50%
32%
23%
21%
26%
17%
31%
4% 3%
11%
1%
6%
1% 1%
3%
1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Overall Hedge Fund
Consultant
Infrastructure
Consultant
Private Equity
Consultant
Real Estate
Consultant
Poor
Below Average
Average
Above Average
Excellent
Consultant Type
Fig. 3: Investor Opinions Regarding Success of Alternatives
Investment Consultants in Fund Selection
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Download Data
Private Equity Investment Consultant Survey
Communicating with consultants can provide an important access
point for understanding investors changing demands, and
showcasing a fund to the appropriate investment consultants can
allow fund managers to approach a wider audience with potential
interest in their fund. The investment preferences of alternatives
investment consultants often determine which regions, strategies,
and, ultimately, fund managers that investors will commit capital to.
As a result, understanding consultants preferences will aid GPs in
raising capital in a difcult fundraising climate.
In order to gain a better understanding of investment consultants
preferences regarding investments, Preqin conducted a survey in
September 2012 with 80 alternative assets investment consultants
from around the world that have over $1.5tn worth of alternative
assets under advisement. The results of this survey are published
in The 2013 Preqin Alternatives Investment Consultants Review.
Consultants Regional Preferences
Similar to the results of Preqins survey in 2011, North America
(65%) and Asia (51%) were cited by consultants as the regions
presenting the best private equity investment opportunities over the
next 12 months, as shown in Fig 4. There was, however, a notable
drop in the proportion of rms naming Asia as presenting the best
opportunities, from 65% in last years survey to 51% this year.
South America also suffered a notable decrease of nine percentage
points in comparison to last year, with only 29% of respondents
rating it as a region which possesses the best opportunities.
However, emerging markets are still viewed relatively favourably,
and such regions can still expect to attract signicant levels of
investment in the coming year.
Attitudes towards Various Fund Strategies
Investment consultants were also asked which strategies they
believe are presenting the best opportunities in the current private
equity market (Fig. 5). They were asked to rank the level of
attractiveness of a specic list of fund types on a scale of one to
ve, with ve being the most attractive and one being the least
attractive. Consultants ranked small to mid-market buyout funds as
presenting the most attractive investment opportunities at present,
with the fund type receiving an average ranking of 3.7. In contrast,
large to mega buyout funds received the lowest ranking of all fund
types from investment consultants, with an average ranking of
2.3. Secondaries, distressed private equity and growth vehicles all
received relatively high rankings of 3.6, 3.4 and 3.2 respectively.
Interestingly, the fund types that consultants view as the most
attractive at present differ from the strategies being targeted by
investors in 2013. Preqins Chart of the Month (page 8) shows the
fund type preferences of institutional investors in private equity
throughout 2013 from Preqins December 2012 survey of 100
LPs. Similarly to investment consultants, the majority (51%) of
investors are targeting small to mid-market buyout funds. However,
a signicant 28% of investors are targeting venture capital funds,
a contrast to the low rating of 2.6 the fund type received from
surveyed investment consultants. In addition, though growth
received a higher rating from investment consultants than large to
mega buyout, a larger 23% of investors are targeting large to mega
buyout in 2013 compared to the 14% targeting growth investments.
Overall, it is possible to see that alternatives investment consultants
provide an important insight into the alternatives assets universe.
Situated between fund managers and investors, the unique
position of consultants means that they can provide insight into
key aspects of the market as well as taking on an inuential role.
With uncertain economic conditions continuing to prevail, it is
more important than ever for all groups in the alternative universe,
from fund managers, to investors, to the consultants themselves,
to understand the market from multiple perspectives in order to
ensure future success in their fundraising and investments.
Lead Article
Investment Consultants
Lead Article
64%
65%
49%
38%
5%
65%
51%
37%
29%
6%
0%
10%
20%
30%
40%
50%
60%
70%
North America Asia Europe South America Middle East
2011
2012
Fig. 4: Regions Viewed by Alternatives Investment Consultants as
Presenting the Best Opportunities in Private Equity, 2011-2012
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2.3
2.6
2.8
3.2
3.4
3.6
3.7
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0
Large to Mega Buyout
Venture
Fund of Funds
Growth
Distressed
Secondaries
Small to Mid-Market Buyout
Average Ranking
Fig. 5: Alternatives Investment Consultant Attitudes to Different Fund
Types at Present (5 - Most Attractive; 1 - Least Attractive)
Subscribers can click here to see access detailed profiles for 380
investment consultants advising on real estate investments.
This article draws upon information from the 2013 Preqin
Alternatives Investment Consultant Review. The Review
contains over 340 investment consultant profiles, offering the
most comprehensive source of intelligence on this important
section of the market.
To find out more, or to purchase your copy, please visit:
www.preqin.com/aic

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2013 Preqin Alternatives Investment
Consultant Review
The 2013 Preqin Alternatives Investment Consultant Review contains over 340 investment consultant profles, offering the most
comprehensive source of intelligence on this important section of the industry.
The Review provides consultant profles detailing information on the types of services offered, asset classes covered, key fnancial
information, direct contact information for relevant contacts and much more. It is also a vital tool for fund managers and marketers
looking to build relationships with these important custodians of institutional investor capital. The Review is also an important
resource for consultants seeking to maintain an accurate overview of the market, and for investors utilizing and considering the
services of consultants.
Key content includes:
Vital analysis on all aspects of the alternatives investment consultant universe. Includes key trends
plus information on the markets make-up.
Listings for 1,800 investors in alternatives showing which consultants they are advised by in specifc
asset classes.
Specifc intelligence on activity in private equity, real estate, hedge funds and infrastructure included
in all analysis and profles.
Comprehensive profles for over 340 investment consultants.
Profles include key individual contact information, areas of speciality, fnancial information, service
coverage etc.
Views on the current alternatives landscape from our recent survey of investment consultants.
Results of our in-depth investor survey showing investor satisfaction with their consultants and
other key information.
League tables.
The 2013
Preqin Alternatives Investment Consultant Review

www.preqin.com/aic

Visit www.preqin.com/aic for more information
I would like to purchase the 2013 Preqin Alternatives Investment Consultant Review:
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publication. Only available alongside
purchase of the publication.
12 2012 Preqin Ltd. www.preqin.com
Download Data
Mid-Market Buyout Fundraising
The Facts
Louise Maddy examines the latest statistics on mid-market buyout funds, including the latest fundraising data
and the ten largest funds on the road.
Mid-Market Buyout Fundraising
Subscribers can click here to see a list of the 279 buyout funds in
market on Preqins Funds in Market database.
Not yet a subscriber? To see how Funds in Market can help you,
please visit:
www.preqin.com/fim
Fig. 4: 10 Largest Mid-Market Buyout Funds Currently Seeking Capital by Target Size
Fund Firm Target Size (mn) Location Focus Firm Location
Carlyle Global Financial Services Partners II Carlyle Group 1,200 USD Global US
Catterton Partners VII Catterton Partners 1,200 USD North America US
Polish Enterprise Fund VII Enterprise Investors 826 EUR Central and East Europe Poland
2012 Riverside Capital Appreciation Fund VI Riverside Company 1,000 USD North America US
Aquiline Financial Services Fund II Aquiline Capital Partners 1,000 USD
North America, Europe & Emerging
Markets
US
Audax Private Equity Fund IV Audax Group 1,000 USD US US
Ford Financial Fund II Flexpoint Ford 1,000 USD North America US
Genstar Capital Partners VI Genstar Capital Partners 1,000 USD US US
LLR Equity Partners IV LLR Partners 1,000 USD US US
Sterling Capital Partners IV Sterling Partners 1,000 USD North America US
1.2
4.5
6.3
3.5
0.8
3.8
2.9 2.2
1.8
3.2
3.5
5.8
2.7
3.2 4.6
0.0
7.3
16.9
15.9
13.1
4.8
6.1 5.5
6.6
18.9
23.0
19.4
22.3
8.5
9.6
11.4
13.2
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
2005 2006 2007 2008 2009 2010 2011 Jan - Dec
2012 YTD
North America
Europe
Asia
Rest of World
Fig. 1: Mid-Market Buyout* Fundraising by Geographical Fund Focus
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25.3 29.6 29.5
23.7
13.5 13.8 12.7 10.2
40.4
29.1
47.6 45.2
44.8
16.7
22.8 24.4
22.0
33.5
46.5
49.2 49.4
50.8
30.1
25.2
30.6
19.4
70.0
42.3
99.3
119.0
113.7
48.8
16.2
11.0
30.3
83.8
0
50
100
150
200
250
300
2005 2006 2007 2008 2009 2010 2011 Jan - Dec
2012 YTD
Funds in
Market
Mega
Large
Mid-Market
Small
Fig. 2: All Buyout* Fundraising and Funds in Market by Aggregate
Capital Raised and Targeted
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Year of Final Close
8%
28%
8%
21%
8%
4%
4%
3%
9%
20%
12%
23%
24%
42%
12%
8%
9%
11%
19%
8%
4%
4%
3%
4%
72%
62%
59%
56%
40%
46%
55%
80%
9%
7%
10%
6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2005 2006 2007 2008 2009 2010 2011 2012 YTD
150% +
101-149%
100%
50-99%
1-49%
Abandoned
Fig. 3: Breakdown of Mid-Market Buyout Funds* Leaving the
Fundraising Market by Proportion of Target Size Achieved
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Year of Final Close
*Size ranges: Vintage 1992-1996: Small Buyout $200mn, Mid Buyout $200mn-$500mn, Large Buyout > $500mn
Vintage 1997-2004: Small Buyout $300mn, Mid Buyout $300mn-$750mn, Large Buyout $751mn-$2bn, Mega Buyout > $2bn
Vintage 2005-2012: Small Buyout $500mn, Mid Buyout $500mn-$1,500mn, Large Buyout $1,501mn-$4.5bn, Mega Buyout > $4.5bn
Download Data
Private Equity-Backed Add-on Deals
The Facts
As market and credit conditions remain challenging, fund managers have increasingly turned to add-on deals in
recent years to consolidate and strengthen their current portfolio companies. Jonny Parker investigates the wider
trends regarding add-on deals.
Subscribers to Buyout Deals Analyst can click here to see details
of over 4,500 add-on deals globally since 2006, valued at over
$160bn.
Not yet a subscriber? For more information on how Preqins
Buyout Deals Analyst can help you, please visit:
www.preqin.com/deals
Private Equity-Backed Add-on Deals
63%
60% 59%
52%
48%
44%
46%
19%
20% 21%
27%
28% 36% 33%
13%
13%
15%
15%
17%
14%
15%
5%
6%
5%
7% 6% 6% 7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2006 2007 2008 2009 2010 2011 2012 YTD
Buyout Add-on Growth Capital Public To Private
Fig. 2: Proportion of Number of Private Equity-Backed Deals by Type:
2006 - 2012 YTD (as of 4 December 2012)
Source: Preqin Buyout Deals Analyst
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0.0
2.0
4.0
6.0
8.0
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14.0
16.0
18.0
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50
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Q
1
Q
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Q
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Q
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Q
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Y
T
D
2006 2007 2008 2009 2010 2011 2012
No. of Deals Aggregate Deal Value ($bn)
Fig. 1: Number and Aggregate Value of Private Equity-Backed
Add-on Deals: 2006 - 2012 YTD (as of 4 December 2012)
N
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D
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34%
32% 31% 31%
27%
23%
19%
18%
17%
14%
13%
13%
11%
11%
13%
16%
13% 15%
17%
21%
20%
12% 10%
14% 14%
16%
15%
15%
10%
8%
8%
13%
10% 14%
16%
5%
6%
8%
5%
6%
4%
7%
3%
4%
3%
3%
4%
5%
3%
3%
5%
5%
4%
4% 2%
4%
3% 3% 4% 3% 4% 4% 4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2006 2007 2008 2009 2010 2011 2012 YTD
Industrials Consumer & Retail Business Services
Healthcare Information Technology Telecoms & Media
Energy & Utilities Food & Agriculture Other
Fig. 4: Proportion of Number of Private Equity-Backed Add-on Deals by
Industry: 2006 - 2012 YTD (as of 4 December 2012)
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71%
69%
66%
73%
66% 66%
69%
24%
27%
27%
22%
27% 27% 22%
2% 1%
2%
2%
3% 4%
5%
3% 3%
5%
3% 4% 3% 4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2006 2007 2008 2009 2010 2011 2012 YTD
North America Europe Asia Rest of World
Fig. 3: Proportion of Number of Private Equity-Backed Add-on Deals
by Region: 2006 - 2012 YTD (as of 4 December 2012)
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Included as part of Preqins integrated 360 online private equity
database, or available as a separate module, Buyout Deals Analyst
provides detailed and extensive information on private equity-
backed buyout deals globally. The product has in-depth data for
over 27,500 buyout deals across the globe from 2006 - present,
including information on deal value, buyers, sellers, debt fnancing
providers, fnancial and legal advisors, exit details and more.
Data Source:
Download Data
The latest industry trends from the alternative assets
industrys leading source of data and intelligence:
Investors
Fundraising
Fundraising Outlook
Buyout and Venture Capital Deals
Exits
Dry Powder
Performance
And Much More
Q2 Special Guest Contributor: David Arthur, Brookfield Asset Management
The
Preqin Quarterly
Insight on the quarter fromthe leading provider of alternative assets data
Content Includes....
XX
xx
XX
xx
XX
xx

Infrastructure
Q3 2012 OCTOBER 2012

aalte
The
Preqin Quarterly
Investor Outlook
Investor sentiments on the
performance of real estate
investments, as well as key issues
facing the industry.
Target IRRs
We take a look at the targeted
IRRs of active real estate funds,
broken down by geographical
focus and vintage.
Performance Update
A look at the most up-to-date
private real estate performance
figures.
Fundraising Overview
The private real estate
fundraising market remains a
challenge for fund managers,
but is it improving?

Real Estate
I i ht Insight o Insight o Insight o Insight o g th n the qua n the qua n the qua n the qua q t f rter from rter from rter from rter fromth l d the lead the lead the lead the leadi i ing provi ing provi ing provi ing provi g p d f l der of al der of al der of al der of alt ti ternative ternative ternative ternative t d assets d assets d assets d assets d t ata ata ata ata
Investor Outlook
Investor sentiments on the
performance of real estate
investments, as well as key issues
facing the industry.
Target IRRs
We take a look at the targeted
IRRs of active real estate funds,
broken down by geographical
focus and vintage.
Performance Update
A look at the most up-to-date
private real estate performance
figures.
Fundraising Overview
The private real estate
fundraising market remains a
challenge for fund managers,
but is it improving?
The
Preqin Quarterly

Private Equity
Private Equity Assets under
Management Hit $3tn
For the first time ever the
aggregate AUMof private
equity funds has surpassed $3tn
an important milestone for the
industry at a time of heightened
regulatory, political and investor
scrutiny.
Future Fund Searches and
Mandates
Howare private equity investors
planning to commit to the
asset class in the future? Preqin
explores fund types targeted and
expected capital outlay.
Consistent Performing
Managers
Preqin has compiled a list of the
most consistent performing fund
managers in the private equity
market.
Private Equity Private Real Estate Infrastructure
www.preqin.com/quarterly
Click below to download your complimentary copy:
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!
Latest Free Preqin Quarterly Report Out Now!
Quarterly
Download Data
News
Secondaries Venture Capital Market
Secondaries Venture Capital Market
Patrick Adefuye examines the latest statistics on secondaries venture capital market, including the make-up of
institutional investors interested in buying and selling venture capital fund interests.
27%
15%
11%
8%
8%
7%
7%
5%
11%
Asset Managers
Insurance Companies
Foundations
Family Offices
Investment Company
Endowment Plan
Banks and Investment Banks
Other
Fig. 1: Make-up of Institutional Investors Buying Venture Capital Fund
Interests on the Secondary Market over the Next 24 Months*
Source: Preqin Secondary Market Monitor
24%
14%
7%
7%
7%
7%
7%
5%
21%
Banks and Investment Banks
Foundations
Listed Fund of Funds Managers
Asset Managers
Government Agencies
Family Offices
Insurance Companies
Other
Fig. 2: Make-up of Potential Sellers of Venture Capital Fund Interests
on the Secondary Market over the Next 24 Months*
Fig. 3: Sample of 2012 Secondary Transactions involving Venture Capital Funds
Buyer Seller Fund
CS Strategic Partners Quilvest Private Equity Abingworth Bioventures III
Lexington Partners Alcatel-Lucent Pension Fund Advent Private Equity Fund III
Lexington Partners UniCredit Bank Austria Doughty Hanson & Co Technology
Ant Capital Partners, Industry Ventures US Small Business Administration Horizon Ventures Fund II
Socit Nationale de Crdit et d'Investissement Undisclosed Advent Life Sciences
Pictet & Cie Not Yet Identied WHEB Ventures Private Equity Fund II
Investec Not Yet Identied Herald Ventures
Subscribers to Preqins Secondary Market Monitor can click here to view details of all secondaries funds currently in market.
Secondary Market Monitor is the industrys leading source of intelligence on the private equity secondary markets. Get online
access to information on potential buyers, sellers and intermediaries, secondaries fundraising, secondary transactions, and pricing.
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
*Proportions based on investors that have specied to Preqin that they will, are likely to, or opportunistically will be buying or selling a venture capital fund commitment.
Download Data
Private equity investors are often an important source of capital
for private sector investment in developing economies. A number
of investors committing capital to these regions often focus heavily
on development and sustainable investing. International Finance
Corporation (IFC), an independent arm of the World Bank, is one
such organization; it aims to nance private sector investment in
emerging markets in order to encourage economic growth. The
US-based government agency is looking to commit $500mn across
20 to 25 private equity vehicles over 2013, an ongoing strategy
that it looks to implement every year. So far in 2012, IFC has made
commitments to funds focusing on opportunities in Africa, India,
Russia and Eastern Europe, as well a venture capital fund focusing
on rebuilding and recapitalizing Haitian businesses damaged by
the 2010 earthquake.
Organizations with a developmental agenda, such as IFC,
encourage growth in industries, while at the same time creating
jobs by expanding companies. Fig. 1 shows the 10 largest
development nance institutions (DFIs) by their allocation to private
equity; the geographical spread of these institutions is particularly
notable, with institutions located across Europe, North America,
and Asia. The rms current allocations to private equity provide
signicant amounts of capital to development and growth-focused
investments. For example, European Bank for Reconstruction and
Development, with an allocation to private equity of $3.5bn, invests
in small and medium companies in Central and Eastern Europe
and the CIS region in order to help establish market economies and
democracies. The bank was established in the early 1990s and it
primarily invests in private enterprises, often alongside commercial
partners, and provides project nancing for new ventures, existing
businesses, and the nancial sector.
DFIs also often play a key role in supporting rst-time fund
managers in emerging markets. IFC is one such example, with
more than half of all its private equity commitments being made to
teams that have not raised a fund together before, many of which
go on to become major players within their region, such as CDH
China and GP Investimentos. A number of other DFIs also show
support for rst-time fund managers as part of their private equity
investments; the African Development Bank views the support of
local entrepreneurs as a key component of its role, with the Asian
Development Bank and CDC Group taking similar standpoints. As
Fig. 2 illustrates, 68% of investors that have previously invested in
emerging markets either actively target rst-time funds (including
spin-offs), or would consider doing so if an attractive opportunity
were to arise, compared with 62% of all private equity investors.
With many DFIs looking to invest capital in developing emerging
economies, these investors provide an important source of capital
for these regions and the private equity fund managers looking to
raise capital for funds targeting them. In-ows of foreign capital
to under-developed regions can provide much-needed liquidity to
important industries and sectors, while supporting and encouraging
local entrepreneurs.
Development Finance Institutions
The Facts
Victoria Pitman explores how development finance institutions invest in private equity.
Development Finance Institutions
Source: Preqin Deals Analyst
Subscribers can click here to view the 129 government agencies
investing in private equity, many of which invest with a
developmental agenda.
Not yet a subscriber? To see how Investor Intelligence can help you,
please visit:
www.preqin.com/ii
52%
16%
32%
Will Invest in First-Time Funds
Considering Investing in First-
Time Funds
Will Not Invest in First-Time
Funds
Fig. 2: Investors in Emerging Markets-Focused Private Equity Funds
Attitudes Towards First-Time Funds
Fig. 1: 10 Largest Development Finance Institutions by Allocation to
Private Equity
Firm Location
Current Allocation
to Private Equity
($mn)
CDC Entreprises France 7,001
European Bank for Reconstruction and
Development
UK 3,517
International Finance Corporation (IFC) US 3,400
Overseas Private Investment Corporation US 2,721
DEG Germany 2,023
Korea Venture Investment Corporation South Korea 1,500
Pension Benet Guaranty Corporation US 1,459
Netherlands Development Finance Company
(FMO)
Netherlands 1,447
Norfund Norway 1,289
Argentum Fund Investments Norway 1,102
Download Data
New Coverage
Future Fund Searches and Mandates
Future Fund Searches and Mandates
The diference 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, Preqins 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.
Whether youre hoping to secure new commitments for a US-focused buyout fund or launch a China-focused
growth vehicle, access to Preqins Investor Intelligence can help.
Investor Intelligence
For more information and to arrange a walkthrough of the service, please visit:
www.preqin.com/ii
Future Investment Plans - Investor profles include details of
investors future fund searches, detailing whether they are
targeting specifc 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.
Download Data
Performance of Buyout Funds by Size
Vasilisa Starodubtseva evaluates the performance of private equity buyout funds by size using median net IRRs
by vintage year and the PrEQIn Index.
Performance of Buyout Funds by Size
The Facts
0%
5%
10%
15%
20%
25%
30%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Small
Mid-Market
Large
Mega
Vintage Year
Fig. 1: Buyout Funds by Size* - Median Net IRRs by Vintage Year
M
e
d
i
a
n

N
e
t

I
R
R
60
70
80
90
100
110
120
130
3
1
/
0
3
/
2
0
0
8
3
0
/
0
6
/
2
0
0
8
3
0
/
0
9
/
2
0
0
8
3
1
/
1
2
/
2
0
0
8
3
1
/
0
3
/
2
0
0
9
3
0
/
0
6
/
2
0
0
9
3
0
/
0
9
/
2
0
0
9
3
1
/
1
2
/
2
0
0
9
3
1
/
0
3
/
2
0
1
0
3
0
/
0
6
/
2
0
1
0
3
0
/
0
9
/
2
0
1
0
3
1
/
1
2
/
2
0
1
0
3
1
/
0
3
/
2
0
1
1
3
0
/
0
6
/
2
0
1
1
3
0
/
0
9
/
2
0
1
1
3
1
/
1
2
/
2
0
1
1
3
1
/
0
3
/
2
0
1
2
PrEQIn Small
Buyout Index
PrEQIn Mid-
Market Buyout
Index
PrEQIn Large
Buyout Index
PrEQIn Mega
Buyout Index
Fig. 2: Buyout Funds by Size* - PrEQIn Indices
I
n
d
e
x

R
e
t
u
r
n
s

(
R
e
b
a
s
e
d

t
o

1
0
0

a
s

o
f

3
1

M
a
r
c
h

2
0
0
8
)

All the data used in this analysis is available on Preqins Performance Analyst service, the most extensive and transparent database of
private equity and venture capital fund performance. To fnd out how Performance Analyst can help you, please visit:
www.preqin.com/pa
Data Source:
Fig. 1 shows the median net IRRs by vintage year for buyout
funds by size. Of the earlier vintages shown, mega buyout funds
are among the best performers, with a median net IRR of 28.9%
for vintage 2001 funds. From vintage 2004 onwards, however, the
median returns of mega buyout funds have fallen by more than
for the other size groups, and small, mid-market and large buyout
funds of vintages 2006 to 2008 are signicantly outperforming their
mega-sized counterparts.
While the median IRR gures shown in Fig. 1 provide a helpful
summary of the performance of the various buyout size groups
by vintage, for an overall picture of how funds across all vintages
have performed relative to each other since a certain point in time,
it is useful to view the PrEQIn Index gures. The PrEQIn Index
captures in an index the returns earned by investors on average in
their private equity portfolios, based on the actual amount of money
invested in private equity partnerships.
Fig. 2 shows the PrEQIn Small, Mid-Market, Large and Mega
Buyout Indices rebased to 100 as of 31st March 2008, and
demonstrates how mid-market buyout funds have been the best
performers overall in the period since then. As of 31st March 2012,
the PrEQIn Mid-Market Buyout Index stands at 129.4, compared
to 112.9 for small buyout funds, 117.2 for large buyout funds, and
105.8 for mega buyout funds. Following the low point for returns in
Q1 2009, the PrEQIn Mid-Market Buyout Index moved to become
the best performing of the buyout size groups in Q3 2009 and has
remained as such since then. Over the period from Q1 2008, mega
buyout funds have underperformed the other groups signicantly,
and suffered a further sharp dip between Q2 and Q3 2011.
* Size Ranges:
Vintage 1992-1996: Small Buyout $200mn, Mid-Market Buyout $201-500mn, Large Buyout > $500mn
Vintage 1997-2004: Small Buyout $300mn, Mid Buyout $301-750mn, Large Buyout $751mn-$2bn, Mega Buyout > $2bn
Vintage 2005-2012: Small Buyout $500mn, Mid Buyout $501mn-$1.5bn, Large Buyout $1.6-4.5bn, Mega Buyout > $4.5bn
Conferences Spotlight
Conference Dates Location Organizer
The Middle Market: Our World of Opportunity in 2013 14 - 17 J anuary 2013 Miami AM&AA
Asia Private Equity Forum 2013 16 J anuary 2013 Hong Kong HKVCA
SuperInvestor Asia 28 - 30 J anuary 2013 Singapore ICBI
Clean Tech Investor Summit 6 - 7 February 2013 Palm Springs, CA IBF Conferences
SuperInvestor US 11 - 13 February 2013 San Francisco ICBI
SuperReturn International 25 - 28 Feb 2013 Berlin ICBI
SuperReturn Latin America 4 - 6 March 2013 Brazil ICBI
Private Equity World Middle East 2013 4 - 5 March 2013 Dubai Terrapin
6th Asian Family Ofce & 9th Private Banking Asia
Conference 2013
12 - 14 March 2013 Singapore Terrapin
Investing in Secondaries 13 - 14 March 2013 New York World Congress
6th Annual Women's Private Equity Summit 14 - 15 March 2013 Half Moon Bay, CA Falk Marques Group
All rights reserved. The entire contents of Private Equity Spotlight 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 Private Equity Spotlight 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 nancial advisor and hereby agrees that he will not hold Preqin Ltd. responsible in law or equity for any decisions of whatever nature the reader makes or refrains from
making following its use of Private Equity Spotlight.
While reasonable efforts have been made to obtain information fromsources that are believed to be accurate, and to conrmthe accuracy of such information wherever possible, Preqin Ltd. does not make any representation or warranty
that the information or opinions contained in Private Equity Spotlight 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 Private Equity Spotlight or for any expense or other loss alleged to
have arisen in any way with a readers use of this publication.
Download Data
Conferences
Conferences Spotlight
AM&AA Winter 2013 Conference
The Middle Market: Our World of Opportunity in 2013
Date: 14th - 17th January 2013 Information: www.mandaconnection.org
Location: Hilton Miami Downtown, Miami, FL
Organiser: Alliance of M&A Advisors
Our conference theme, The Middle Market: Our World of Opportunity in 2013, was designed to reflect the opportunity for all of us who
help drive performance, value, and deal making in the middle market in the United States and around the globe to gather together
in Miami the U.S. gateway to Latin America for meaningful connections, education and exchange. We are always striving to offer
the most connections possible. We expect to have over 500 attendees at the 2013 Winter Conference representing countries from all
over the world with deal makers making up more than 60%.
Asia Private Equity Forum 2013
Date: 16th January 2013 Information: www.hkvca.com.hk/apef
Location: Hong Kong Convention and Exhibition Centre, Hong Kong
Organiser: Hong Kong Venture Capital and Private Equity Association (HKVCA)
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 Kongs 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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