Preqin Research Report

Q1 2011 Private Equity Fundraising Update

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Fig. 1: Funds Achieving a Final Close on $1bn or More in Q1 2011 Fund EnCap Energy Capital Fund VIII Golder Thoma Cressey Rauner X Baring Asia Private Equity Fund V Gores Capital Partners III Yunfeng Fund InSight Venture Partners VII Astorg V Sequoia Capital 2010 Birch Hill Equity Partners IV Catalyst Fund III KKR China Growth Fund Audax Mezzanine Fund III Firm EnCap Investments GTCR Golder Rauner Baring Private Equity Asia Gores Group Yunfeng Capital InSight Venture Partners Astorg Partners Sequoia Capital Birch Hill Equity Partners Catalyst Capital Group Kohlberg Kravis Roberts Audax Group Type Natural Resources Buyout Balanced Buyout Early Stage Venture Buyout Early Stage Buyout Distressed Debt Growth Mezzanine Amount Closed (mn) 3,500 USD 3,250 USD 2,460 USD 2,064 USD 10,000 CNY 1,500 USD 1,050 EUR 1,358 USD 1,040 CAD 1,000 USD 1,000 USD 1,000 USD Manager Country US US Hong Kong US China US France US Canada Canada US US Fund Focus US US ROW US ROW US Europe US US US ROW US

Fig. 2: Quarterly Fundraising, Q1 2007 - Q1 2011

Fig. 3: Q1 2011 Fundraising by Fund Type Fund Type No. Funds Raised 20 27 4 16 2 4 11 2 2 2 3 Aggregate Capital Raised ($bn) 12.6 9.4 5.1 4.3 2.9 2.4 2.0 2.0 0.6 0.2 0.9

450 400 350 300 250 200 150 100 50 0 126.5 259 268 211.7 381

417 350 285 260 206.1 194.9 173.6 209 186 176 166.0 141 77.2 94.8 54.8 142 161 125 54.7 72.4 93 47.1 42.3 155 344

123.7

124.1

69.3 76.7

Buyout Venture Natural Resources Real Estate Balanced Distressed PE Funds of Funds Mezzanine Infrastructure Secondaries Other

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 No. Funds Raised Aggregate Capital Raised ($bn)

12 funds closed having raised $1bn or more in Q1 2011 details can be seen in Fig. 1. Quarterly fundraising from 2007 to Q1 2011 is illustrated in Fig. 2. Both the number of funds closed and the aggregate capital raised in Q1 2011 are the lowest for any of the quarters shown, but as more information becomes available we expect the quarter to approximately match Q4 2010s gures. The largest proportion of funds closed were venture funds; 27 such funds held a nal close in the quarter raising an aggregate $9.4bn. Buyout funds accounted for the largest proportion of capital

raised in the quarter the 20 funds that closed raised a combined $12.6bn. A breakdown of funds closed by type is shown in Fig. 3. As shown in Fig. 4, the number of funds on the road is currently at a higher level than at any other point shown. The aggregate capital sought by funds currently in market stands at $663bn. Fig. 5 shows fundraising by fund primary regional focus Europefocused fundraising contributed the lowest proportion of capital raised; the same number of funds closed focusing on Europe and Asia and Rest of World.

Preqin provides information, products and services to private equity firms, fund of funds, investors, placement agents, law firms, advisors and other professionals across the following areas: > Fund Performance > Fundraising > Buyout Deals > Fund Manager Profiles > Investor Profiles > Fund Terms > Compensation and Employment

Available as: > Online Database Services > Hard Copy Publications > Consultancy and Research Support > Tailored Data Downloads For more information and to register for a demo, please visit:www.preqin.com/privateequity

Full results and report on Q1 2011 fundraising will be available in Preqins monthly newsletter, Spotlight. To register to receive Spotlight please visit: www.preqin.com/spotlight 2011 Preqin Ltd. / www.preqin.com

Preqin Research Report

Q1 2011 Private Equity Fundraising Update
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Fig. 5: Q1 2011 Fundraising by Fund Primary Regional Focus
1,649

Fig. 4: Funds on the Road over Time

1,800 1,624 1,600 1,400 1,200 1,000 800 600 400 200 0 Jan 2007 Jan 2008 Jan 2009 Jan 2010 Jan 2011 April 2011 396 918 705 888 699 959 663 Aggregate Capital Sought ($bn) 1,304 No. Funds Raising 1,561 1,592

50 45 40 35 30 25 20 15 10 5 0

45 No. Funds Raised 25.9 24 24 Aggregate Capital Raised ($bn)

9.9 6.5

North America

Europe

Asia & Rest of World

Fig. 6: Average Time Taken for Funds to Close (Months)

25 20.4 20 14.9 10.6 10 11.1 11.4 15.5 16.1

Fig. 7: Investor Allocation Expectations: 2011 vs. 2010

15

0 2005 2006 2007 2008 2009 2010 Jan - Mar 2011

Fig. 8: Investor Satisfaction With Private Equity Portfolio Returns

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Dec 07 Dec 08 Dec 09 Dec 10 7% 2% 7% 10% 24% 22% 23% 13% Fell Short of Expectations Met Expectations 74% 78% 71% 70% Exceeded Expectations

Preqin provides information, products and services to private equity firms, fund of funds, investors, placement agents, law firms, advisors and other professionals across the following areas: > Fund Performance > Fundraising > Buyout Deals > Fund Manager Profiles > Investor Profiles > Fund Terms > Compensation and Employment

Funds are currently taking an average 16.1 months to reach a nal close, as shown in Fig. 6. This gure has fallen since last year, when funds were taking an average of 20.4 months to complete the fundraising cycle. Fig. 7 shows investor allocation expectations this year compared

to last; 32% intend to allocate the same amount of capital as they did last year, 36% will allocate more. The proportion of investors that were satised with returns generated by their investment portfolios is shown in Fig. 8. As of December 2010, 78% felt that their investments had met their expectations.

Available as: > Online Database Services > Hard Copy Publications > Consultancy and Research Support > Tailored Data Downloads For more information and to register for a demo, please visit:www.preqin.com/privateequity

Full results and report on Q1 2011 fundraising will be available in Preqins monthly newsletter, Spotlight. To register to receive Spotlight please visit: www.preqin.com/spotlight 2011 Preqin Ltd. / www.preqin.com