TPG Goldman Sachs Principal Investment Area The Carlyle Group Kohlberg Kravis Roberts The Blackstone Group

Apollo Global Management Bain Capital CVC Capital Partners First Reserve Corporation Hellman & Friedman Apax Partners General Atlantic Warburg Pincus Cerberus Capital Management Advent International Permira Oaktree Capital Management Terra Firma Capital PartnersProvidence Equity Partners Clayton Dubilier & Rice Charterhouse Capital Partners Teachers' Private Capital Madison Dearborn Partners TA Associates Silver Lake Lone Star Funds Thomas H. Lee Partners Cinven Riverstone Holdings JC Flowers & Co. AXA Private Equity AlpInvest Partners 3i Nordic Capital Fortress Investment Group EnCap Inve stments Onex Partners Lindsay Goldberg Citi Capital Advisors Ares Management Summit Partners Bridgepoint Marfin EQT Partners NGP Energy Capital Management Energy Capital Partners Stone Point Capital Abraaj Capital Golden Gate Capital GTCR Golder Rauner HIG Capital Management Sequoia Capital Lion Capital Centerbridge Capital PartnersCredit Suisse Private EquityBC PartnersPacific Equity PartnersLeonard Green & Partners GI Partners Matlin Patterson Global AdvisersKelso & Co. New Mountain Capital New Enterprise Associates Sun Capital Partners Actis HgCapital Investcorp Bank BSC Wayzata Capital Management ArcLight Capital Partners Triton Partners TCW Group Mount Kellett Capital Baring Private Equity Asia Barclays Private Equity Altor Equity Partners CDH Investments Doughty Hanson ABRY Partners WL Ross & Co.Francisco Partners Babson Capital Management Oak Hill Capital PartnersAvista Capital Partners PAI Partners Tower Brook Capital Partners CPP Investment Board CCMP Capita lEurazeo Quantum Energy PartnersHony Capital Draper Fisher Jurvetson Arcapita Citadel Capital Morgan Stanley Investment Management Kleiner Perkins Caufield & Byers Welsh Carson Anderson & Stowe The Jordan Company Irving Place Capital Yorktown Partners Aquiline Capital Partners The Gores Group IDG Ventures Montagu Private Equity Kayne Anderson Capital Advisors Oak Investment Partners Insight Venture Partners AEA Investors Softbank Group MBK Partners GP Investments Court Square Capital Partners Berkshire Partners TDR Capital Partners LS Power Group Mid Europa PartnersOne Equity PartnersTechnology Crossover Ventures Bessemer Venture Partners Bregal Capital LBO France Audax Group EnerVest, Ltd. Affinity Equity PartnersPartners Group Platinum Equity Partners KSL Capital Partners Castle Harlan Advantage PartnersLime Rock Partners Trilantic Capital Partners SAIF Partners Energy Investors Funds Yucaipa Companies Crestview Partners Astorg PartnersGavea InvestimentosHopu Investment Management BAML Capital Partners The Riverside

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private equity international

may 2011

The PEI 300

Welcome to our fifth annual ranking of the worlds largest private equity firms
his highly anticipated list has quickly become an industry benchmark as the PEI 300 is the only global "apples-toapples comparison of private equity direct investment programmes. Measuring capital raised over the preceding five-year period (see p. 46 for the methodology), the PEI 300 reflects an industry that has undergone dramatic shifts and evolution. Launched in 2007, the PEI 300 has tracked firms during the private equity industrys biggest boom-phase as well as the period of great volatility and uncertainty that followed the credit collapse and global financial crisis.That dark period was marked by a dearth of deal activity, scores of distressed portfolio companies and widespread fund write-downs, all of which fuelled intense scrutiny as to whether the private equity model still worked. While the industry thankfully turned a corner in 2010, fundraising has remained incredibly tough, with many firms opting to put off new offerings

until absolutely necessary. Readers perhaps wont find it hard to believe this is the second year in a row that the five-year fundraising total of the PEI 300s top 50 firms has shrunk (see p. 38). Many of the firms on this list have maintained or improved their standing, but not necessarily because they have raised fresh capital. In some cases their rank is because capital raised in the heady days of 2006 to 2008 remains under management, while peers and rivals may have fallen in the ranking because large funds raised pre-2006 no longer count towards the PEI 300 total. That said, this years list showcases many firms that have indeed found success on the fundraising trail an increasing number of which focus on niche strategies or emerging markets. It once again reminds us that regardless of market cycle, institutional investors continue to turn to the best and brightest private equity fund managers to produce exceptional returns.

pei 300 the top 50

2011 PEI 300 rank 1 p 2 q 3 q 4 q 5 p 6 q 7 p 8 q 9 p 10 p 11 q 12 p 13 q 14 vw 15 q 16 vw 17 p 18 p Fund manager TPG Capital Goldman Sachs Principal Investment Area The Carlyle Group Kohlberg Kravis Roberts The Blackstone Group Apollo Global Management Bain Capital CVC Capital Partners First Reserve Corporation Hellman & Friedman Apax Partners General Atlantic Warburg Pincus Cerberus Capital Management Advent International Permira Oaktree Capital Management Terra Firma Capital Partners Headquarters Fort Worth (Texas) New York Washington DC New York New York New York Boston London Greenwich (Connecticut) San Francisco London Greenwich (Connecticut) New York New York Boston London Los Angeles London PEI 300 five-year fundraising total ($m) $50,553.20 $47,224.00 $40,540.94 $40,215.90 $36,418.68 $33,813.00 $29,402.69 $25,068.77 $19,063.50 $17,200.00 $16,637.67 $15,100.00 $15,000.00 $14,900.00 $14,519.51 $13,572.40 $13,045.97 $12,249.90

pHigher rank than 2010

qLower rank than 2010

vwSame rank as 2010 PEI 50 debut

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page 34

private equity international

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pei 300 the top 50

2011 PEI 300 rank 19 q 20 q 21 p 22 q 23 p 24 p 25 p 26 p 27 p 28 p 29 vw 30 p 31 vw 32 p 33 p 34 p 35 q 36 37 p 38 p 39 q 40 41 p 42 q 43 p 44 p 45 q 46 47 48 p 49 50 p Fund manager Providence Equity Partners Clayton Dubilier & Rice Charterhouse Capital Partners Teachers' Private Capital Madison Dearborn Partners TA Associates Silver Lake Lone Star Funds Thomas H. Lee Partners Cinven Riverstone Holdings JC Flowers & Co. AXA Private Equity AlpInvest Partners 3i Group Nordic Capital Fortress Investment Group EnCap Investments Onex Partners Lindsay Goldberg Citi Capital Advisors Ares Management Summit Partners Bridgepoint Marfin EQT Partners NGP Energy Capital Management Energy Capital Partners Stone Point Capital Abraaj Capital Golden Gate Capital GTCR Golder Rauner Headquarters Providence (Rhode Island) New York London Toronto Chicago Boston Menlo Park Dallas Boston London New York New York Paris Amsterdam London Stockholm New York Houston Toronto New York New York Los Angeles Boston London Athens Stockholm Dallas Short Hills (New Jersey) Greenwich (Connecticut) Dubai San Francisco Chicago PEI 300 five-year fundraising total ($m) $12,100.00 $11,404.00 $11,268.08 $10,758.62 $10,600.00 $10,547.50 $10,500.00 $10,410.00 $10,100.00 $10,033.80 $9,674.00 $9,300.00 $9,027.22 $8,867.98 $8,732.76 $8,732.76 $8,680.00 $8,472.80 $8,338.14 $7,870.95 $7,797.00 $7,786.44 $7,749.94 $7,717.69 $7,310.17 $7,200.21 $7,107.00 $6,585.00 $6,398.00 $6,203.90 $6,114.00 $6,000.00

pHigher rank than 2010

qLower rank than 2010

vwSame rank as 2010 PEI 50 debut

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private equity international

may 2011

pei 300 highlights the top 50

Reclaiming the crown

TPG has unseated Goldman Sachs as the largest private equity firm in the world

Coulter: co-leading the world's largest private equity firm into new territories

The behemoth is back. TPG Capital has regained the No. 1 spot on the PEI 300, which it had briefly relinquished to Goldman Sachs Principal Investment Area in last years ranking. The Fort Worth-headquartered buyout firm, formerly known as Texas Pacific Group, has raised an impressive $50.5 billion for direct

private equity investment since January 2006. Thats up from the $45 billion that earned it fourth place last year. TPG is among the few private equity firms that can lay claim to being a truly global player, as evidenced recently by the success it continues to enjoy in Asia. It launched not just one but two

RMB funds last year, continues to push deeper into Asia's emerging economies as well as agree blockbuster transactions that last year included a $1 billion club deal for a significant stake in Chinese investment bank China International Capital Corporation. It has also made rivals green with envy on some of its exits, notably booking more than 16.5x on its original investment in Shenzhen Development Bank. As if to emphasise its global credentials, TPG recently sold a 4.5 percent stake in itself to the Government of Singapore Investment Corporation and the Kuwait Investment Authority. The deal gave TPG access to a pot of permanent capital and also cemented its strategic relationship with two of the worlds most active sovereign wealth funds. Founded in 1992 by David Bonderman, James Coulter and William Price, TPG continues to grow and diversify. In February, its credit-focused affiliate raised a $604 million aviation finance fund, substantially larger than the $400 million it had originally targeted, and it continues to build its real estate team. Many peers and would-be private equity professionals are surely taking notes. n

Energising the ranks

Limited partners have a big appetite for energy, as evidenced by the number of energy-focused fund managers among the top 50 firms
EnCap Investments and Energy Capital Partners breezed through fundraisings over the past year, catapulting them into the rankings of the top 50 largest private equity firms in the world. They join Riverstone Holdings, which is the 29th-larget private equity firm in the world; NGP Energy Capital Management, ranked 44th; and First Reserve, which remains by far the largest of the energy-focused firms at number nine. Many of those firms are expected to move further up the ranks next year with various fund offerings already in the market or expected soon. Texas-based EnCap moved up dramatically this year to number 36 from its position last year as the 70th-largest private said at the time. The firm also raised $792 million for its EnCap Energy Infrastructure Fund in March 2010. Goldman Sachs spin-out Energy Capital Partners, meanwhile, moved up to no. 45 from its ranking of 59 last year. The New Jersey-based firm held a final close on its second fund on $4.3 billion in August 2010, blowing through its original target of $3.5 billion. Theses firms recent successes in attracting capital are reflective of limited partners desire for diversity and hedges against inflation in the post-recession environment. Energy firms also have been scoring solid returns in the areas of oil field services, renewable power and even oil and gas drilling and exploration. The promise of North American shale gas plays, market particpants say, make the sector particularly interseting at present. n

US shale plays: tapping into LP appetite

equity firm globally. The firm closed its eighth fund on $3.5 billion earlier this year, its largest to date. We were very fortunate in a tough fundraising environment to be so substantially oversubscribed, David Miller, one of the firms four managing partners,

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page 38

private equity international

may 2011

pei 300 highlights the top 50

Slowing at the top

Capital raised among the worlds 50-largest firms has dropped nearly 5% compared to the previous five-year window
The biggest private equity firms in the world have been raising less capital over the past few years as the fundraising environment tightened and they continued to invest the massive amounts of dry powder raised prefinancial crisis. Some GPs in recent years even scaled back those same mega-funds, post-crisis, to allow liquidity-starved LPs relief from large commitments. The top 50 firms raised $734 billion between 1 January 2006 and 15 April 2011, down from $772 billion for the prior fiveyear period starting 1 January 2005 and $813 billion for the five-year period beginning 1 January 2004. The cumulative number is expected to shrink again next year for two reasons: a growing number of pre-crisis mega-funds will not count towards firms 2012 five-year fundraising totals, and new offerings, in general, are expected to be more modest in size going forward. Limited partners in the past two years

or so have been making fewer and smaller commitments to private equity funds including lighter re-ups with existing managers forcing many large firms to revise fundraising expectations. The Blackstone Group, for example, has collected more than $14.6 billion for its Fund VI, which is expected to close on around $15 billion a formidable sum to be sure, and likely to set records for the year, but at $15 billion it would still be some 30 percent smaller than its $21.7 billion Fund V closed in 2007. Likewise Kohlberg Kravis Roberts has indicated a target of $8 billion to $10 billion for its latest mega-fund, a far cry from the $17.6 billion the firm raised in 2006. n

Going back to market

Some of Europes most veteran private equity firms featured in the top 50 as well as some notable names absent from the list plan to replenish dry powder this year
This year, 13 European-headquartered private equity firms were among the PEI 300s top 50, down from 16 firms last year. Among the 13 who did make it there were few surprises, for the roster reads like a whos who of European private equity firms (see table). Perhaps more interesting were which names were not among the top 50 this year: PAI Partners suffered the greatest drop, falling to 84th place from 38th last year, while BC Partners came in at 54th place, down from its 2010 rank of 34th. Both BC and PAI are likely to rank differently next year, for BC has already collected two-thirds of a 6 billion fund currently in the market, while PAI is widely expected to begin fundraising later this year. In fact, a large number of the heavyweight European firms in the top 50 are planning a return to market. Apax Partners, Permira and Cinven are all expected to begin fundraising in coming months, while CVC Capital Partners, which only closed its 10.75 billion fifth fund in 2008, is understood to be mulling a new fundraising for next year. One firm whose fundraising future remains unclear, however, is Terra Firma. Following the loss of EMI to lender Citi, which meant the loss of 30 percent of the equity in its 5.4 billion third fund, founder Guys Hands has been clear Terra Firmas chances of raising another fund are based on its ability to make around 2x on the funds remaining dry powder. Our aim is to get back to flat and make a small margin, he recently told PEI in an in-depth interview.When you wipe out 30 percent of your fund, getting back to flat is not easy. n

europes top tier

Many of the European GPs making up the PEI 300s top 50 firms, as measured by capital raised in a five-year window, are expected to start raising new funds this year PEI 300 rank 8 11 16 18 21 28 31 32 33 34 42 43 44 Firm name CVC Capital Partners Apax Partners Permira Terra Firma Capital Partners Charterhouse Capital Partners Cinven AXA Private Equity AlpInvest Partners 3i Group Nordic Capital Bridgepoint Marfin EQT Partners Headquarters London London London London London London Paris Amsterdam London Stockholm London Athens Stockholm Capital raised ($bn) $25.1 $16.6 $13.6 $12.2 $11.3 $10 $9 $8.9 $8.7 $8.7 $7.7 $7.3 $7.2

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Silver bullet
Technology-focused Silver Lake continues to broaden its geographic reach and diversify its business lines
Eleven years ago Silver Lake Partners sparked the interest of some of the worlds most notable technology investors, including Bill Gates, Larry Ellison and Michael Dell. In a short time period, the firm rounded up an eye-popping $2.3 billion for its debut fund an offering so hot that one LP was reportedly clamouring for access while climbing Mount Everest. Fast-forward to the present to find a firm still in favour with LPs it has moved up in the ranks to no. 25 this year from the 33rd spot in 2010, with respective fiveyear fund raising totals of $10.5 billion this year compared to $9.3 billion last year and confidently broadening its franchise in line with its original focus on mature technologies. In 2008 Silver Lake raised a $9.3 billion Fund III, double the size of Fund II. Its midmarket arm, Silver Lake Sumeru, raised to provide growth capital to companies creating ways to increase energy efficiency, reduce waste and emissions and harness renewable energy. Dubbed Silver Lake Kraftwerk, it will operate from offices in Silicon Valley and mainland China. Silver Lake has already been actively pursuing deals in Asia, as well as Latin America, for its other strategies. Firm co-founder Jim Davidson previously told PEI that his passion for mature technologys potential has only expanded as technology businesses have further globalised , prompting Silver Lake to both expand its business lines and ramp up its activities outside of the US, primarily in Asia. Our belief is that technology leadership can emerge anywhere and our goal is to know where it is emerging and to be part of it and not at the venture level, but where companies have proven technologies. n

Davidson: tracking proven technologies

a $1.1 billion debut fund the same year, and the firm also launched a distressed technology credit-focused arm, Silver Lake Financial. This year, it announced a partnership with billionaire George Soros

page 40

private equity international

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2011 PEI 300 rank 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101

Fund manager HIG Capital Management Sequoia Capital Lion Capital Centerbridge Capital Partners Credit Suisse Private Equity BC Partners Pacific Equity Partners Leonard Green & Partners GI Partners MatlinPatterson Global Advisers Kelso & Co. New Mountain Capital New Enterprise Associates Sun Capital Partners Actis HgCapital Investcorp Bank BSC Wayzata Capital Management ArcLight Capital Partners Triton Partners TCW Group Mount Kellett Capital Baring Private Equity Asia Barclays Private Equity Altor Equity Partners CDH Investments Doughty Hanson ABRY Partners WL Ross & Co. Francisco Partners Babson Capital Management Oak Hill Capital Partners Avista Capital Partners PAI Partners TowerBrook Capital Partners CPP Investment Board CCMP Capital Eurazeo Quantum Energy Partners Hony Capital Draper Fisher Jurvetson Arcapita Citadel Capital Morgan Stanley Investment Management Kleiner Perkins Caufield & Byers Welsh Carson Anderson & Stowe The Jordan Company Irving Place Capital Yorktown Partners Aquiline Capital Partners The Gores Group

Headquarters Miami Menlo Park London New York New York London Sydney Los Angeles Menlo Park New York New York New York Chevy Chase (Maryland) Boca Raton (Florida) London London Manama (Bahrain) Wayzata (Minnesota) Boston Frankfurt Los Angeles New York Hong Kong London Stockholm Hong Kong London Boston New York San Francisco Boston Stamford (Connecticut) New York Paris New York Toronto New York Paris Houston Beijing Menlo Park Manama (Bahrain) Cairo New York Menlo Park New York New York New York New York New York Los Angeles

PEI 300 five-year fundraising total ($m) $5,895.11 $5,868.75 $5,778.13 $5,700.00 $5,680.00 $5,634.04 $5,386.71 $5,300.00 $5,200.71 $5,165.00 $5,125.00 $5,121.80 $5,007.26 $5,000.00 $4,923.50 $4,896.59 $4,683.78 $4,650.00 $4,582.65 $4,577.66 $4,550.00 $4,471.01 $4,465.00 $4,443.81 $4,436.81 $4,426.20 $4,410.00 $4,350.00 $4,300.00 $4,300.00 $4,209.96 $4,204.40 $4,200.00 $4,105.67 $4,100.00 $4,098.52 $4,006.83 $3,959.32 $3,830.97 $3,806.30 $3,774.84 $3,690.90 $3,598.36 $3,596.00 $3,564.95 $3,548.52 $3,500.00 $3,475.00 $3,470.00 $3,418.62 $3,363.00

Pioneered The Market Now Leading Its Evolution

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depended on Credit Suisse to help raise capital; the US mid-market 2011 PEI 300 rank Fund manager firms fund five was its largest-ever, collecting $1.2 billion from institutional investors in the US, Canada, Europe, Japan and Australia. 102 IDG Ventures Another US fund raised by Credit Suisse in 2010 was Newbury 103 Montagu Private Equity Partners second secondaries vehicle, which collected $1 billion, 104 Kayne Anderson Capital Advisors beating its $800 million target and attracting new LPs. 105 Oak Investment Partners Credit Suisse also raised London-based Phoenix Equity Partners 106 Insight Venture Partners 2010 fund, which was oversubscribed and collected 450 million. 107 AEA Investors The investment banks private equity third-party fundraising 108 Softbank Group team is led by Anthony Bowe and John Robertshaw. The group 109 MBK Partners generally takes on fund size mandates of $300 million to $ 2 billion. 110 GP Investments The team is spread out among offices in NewYork, San Francisco, 111 Court Square Capital Partners Chicago, Los Angeles, Dallas, London, Tokyo and Melbourne.
112 113 114 115 Berkshire Partners LS Power Group TDR Capital Partners Mid Europa Partners

HarbourVest made headlines in other parts of the world, too, Headquarters PEI 300 five-year fundraising listing its Amsterdam Euronext-traded vehicle HarbourVest Global total ($m) Private Equity (HVPE) on the London Stock Exchange. The dualBoston $3,356.00 listing was meant to provide access to a greater number of typical London $3,326.55 listed private equity investors, such as wealth management and Los Angeles $3,319.86 asset management firms. Westport (Connecticut) $3,310.00 The firms other activities during the year included the launch New York $3,307.40 of HarbourVest Senior Loans Europe, a vehicle to invest in senior New York $3,259.32 secured loans of up to 30 European small- and mid-market private Tokyo $3,191.76 equity-backed companies. It also invested $300 million to acquire Seoul $3,160.00 minority interests in five companies owned by Bahrain-based So Paulo $3,142.00 investment firm Arcapita Bank. HarbourVest and Arcapita created New York $3,100.00 a new fund to effect the transaction, with Arcapita continuing to Boston $3,100.00 manage the portfolio.
London London $3,098.72 $3,085.00 $3,002.10 $3,000.00 $3,000.00 $2,950.00 $2,929.70 $2,890.26 New York New York

FUND OF FUNDS OF THE YEAR

1. HarbourVest Partners 116 One Equity Partners 2. Adams Street Partners 117 Technology Crossover Ventures 3. Neuberger Berman
118 119 Bessemer Venture Partners Bregal Capital

SECONDARIES FIRM OF THE YEAR

1. Landmark Partners Palo Alto 2. Lexington Partners Larchmont (New York) 3. AXA Private Equity
London Paris

Boston-headquartered HarbourVest Partners received a strong vote 120 LBO France of confidence from the NewYork StateTeachers Retirement System in 121 Audax Group November: it received a total of $225 million in commitments from US 122 EnerVest, Ltd. public pension, $125 million of which went to HarbourVest/NYSTRS 123 Affinity Equity Partners Co-Invest fund, with the remaining $100 million going to HIPEP Select 124 Partners Group Asia Fund .That brought the pensions total commitment with Harbour125 Platinum Equity Partners Vest to about $1 billion across several funds.
126 KSL Capital Partners

Landmark Partners, one of the oldest secondaries firms in the New York $2,858.00 industry, last year closed its 14th fund with commitments totalling Houston $2,817.77 $2 billion. The Connecticut-headquartered firm has already Hong Kong $2,800.00 agreed at least eight transactions for Fund XIV that together Zug $2,771.95 comprise 67 interests in 62 funds managed by 37 different GPs. Los Angeles $2,750.00 Among the transactions it closed last year was the acquisition
Denver $2,700.24

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private equity international

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2011 PEI 300 rank 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177

Fund manager Castle Harlan Advantage Partners Lime Rock Partners Trilantic Capital Partners SAIF Partners Energy Investors Funds Yucaipa Companies Crestview Partners Astorg Partners Gavea Investimentos Hopu Investment Management BAML Capital Partners The Riverside Company JAFCO Co., Ltd. Southern Cross Group Tenaska Capital Management Sageview Capital LP Capital International Pine Brook Road Partners IK Investment Partners HarbourVest Partners American Securities Capital Partners Investindustrial AAC Capital Partners CITIC Private Equity Funds Management Navis Capital Partners Catterton Partners Matrix Partners Accel Partners Littlejohn & Co Longreach Group Denham Capital Management KPS Capital Partners Clessidra SGR Gilde KRG Capital Birch Hill Equity Partners Moelis Capital Partners Vision Capital Herkules Capital Norwest Venture Partners Great Hill Partners CHAMP Private Equity Pamplona Capital Management Diamond Castle Holdings Levine Leichtman Capital Partners Energy Spectrum Partners Wind Point Partners Blue Ridge China Battery Ventures The Catalyst Capital Group Inc.

Headquarters New York Tokyo Westport (Connecticut) New York Hong Kong Boston Los Angeles New York Paris Rio de Janeiro Beijing Charlotte (North Carolina) New York Tokyo Buenos Aires Omaha (Nebraska) Palo Alto London New York Stockholm Boston New York Milan Amsterdam Beijing Kuala Lumpur Greenwich (Connecticut) Waltham (Massachusetts) Menlo Park Greenwich (Connecticut) Hong Kong Boston New York Milan Utrecht (Netherlands) Denver Toronto Los Angeles London Oslo Palo Alto Boston Sydney New York New York Beverly Hills Dallas Chicago Beijing Waltham (Massachusetts) Toronto

PEI 300 five-year fundraising total ($m) $2,624.30 $2,620.21 $2,612.00 $2,600.00 $2,593.77 $2,583.00 $2,542.40 $2,535.90 $2,535.32 $2,521.61 $2,500.00 $2,500.00 $2,490.30 $2,469.39 $2,431.00 $2,400.00 $2,400.00 $2,380.00 $2,363.00 $2,359.25 $2,337.81 $2,326.50 $2,324.04 $2,278.69 $2,271.22 $2,270.00 $2,225.00 $2,200.00 $2,195.45 $2,190.00 $2,086.74 $2,022.10 $2,020.00 $1,990.22 $1,971.91 $1,963.80 $1,936.55 $1,904.00 $1,882.61 $1,850.51 $1,850.00 $1,850.00 $1,846.87 $1,831.06 $1,825.00 $1,825.00 $1,799.67 $1,793.72 $1,750.00 $1,750.00 $1,729.80

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2011 PEI 300 rank 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 Fund manager ARC Financial Corp. Waterland Private Equity Investments Archer Capital Pty Ltd Norwest Equity Partners Unison Capital Partners Headland Capital Partners Black Diamond Capital Management Greylock Partners CITIC Capital Veronis Suhler Stevenson Essex Woodlands Health Ventures VantagePoint Venture Partners Corsair Capital Partners CapMan Private Equity Genstar Capital Index Ventures Olympus Partners Khosla Ventures 21 Partners Charlesbank Capital Partners Odyssey Investment Partners Friedman Fleischer & Lowe Kohlberg & Co. Primus Financial Holdings JMI Equity Fund Headquarters Calgary Bussum (Netherlands) Sydney Minneapolis Tokyo Hong Kong Greenwich & Lake Forest San Mateo (California) Hong Kong New York Palo Alto San Bruno (California) New York Helsinki San Francisco Geneva Stamford (Connecticut) Menlo Park Venice Boston New York San Francisco Mount Kisco (New York) Hong Kong Baltimore PEI 300 five-year fundraising total ($m) $1,724.96 $1,724.02 $1,704.25 $1,700.00 $1,698.28 $1,689.50 $1,682.00 $1,650.00 $1,635.21 $1,612.00 $1,587.60 $1,585.30 $1,571.60 $1,562.18 $1,550.00 $1,549.36 $1,530.00 $1,525.00 $1,524.99 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,475.00

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private equity international

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2011 PEI 300 Rank 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252

Fund Manager GIMV HitecVision AS Climate Change Capital Austin Ventures Global Investment House New Horizon Capital Baring Vostok Capital Partners New Silk Route Partners Dubai International Capital Swicorp Quadriga Capital Duke Street Institutional Venture Partners Mercapital Duff Ackerman & Goodrich Golub Capital Phoenix Equity Partners Ironbridge Capital Vitruvian Partners Vista Equity Partners Pamodzi Investment Holdings Foundation Capital Exponent Private Equity Quadrant Private Equity Polaris Venture Partners Flexpoint Ford Lightspeed Venture Partners Newstone Capital Partners ICICI Ventures Lightyear Capital MidOcean Partners Snow Phipps Group AnaCap Financial Partners Veritas Capital Electra Partners Wellspring Capital Management Unitas Capital Vector Capital Paine & Partners Domain Associates Aisling Capital Park Square Capital Magnum Industrial Partners The Sentient Group Mayfield Fund Sterling Partners Andreessen Horowitz OrbiMed Advisors, LLC Brait Private Equity Ptria Investimentos

Headquarters Antwerp (Belgium) Stavanger (Norway) London Austin (Texas) Safat (Kuwait) Beijing Moscow New York Dubai Riyadh St. Helier, Jersey London Menlo Park Madrid San Francisco Chicago London Sydney London San Francisco Athol (South Africa) Menlo Park London Sydney Boston Chicago Menlo Park Los Angeles Mumbai New York New York New York London New York London New York Hong Kong San Francisco Foster City (California) Princeton (New Jersey) New York London Madrid Grand Cayman Menlo Park Baltimore Menlo Park New York Johannesburg So Paulo

PEI 300 Five-Year Fundraising Total ($m) $1,472.31 $1,461.00 $1,448.34 $1,425.00 $1,421.47 $1,402.36 $1,402.00 $1,400.00 $1,398.83 $1,379.13 $1,365.94 $1,356.40 $1,350.00 $1,338.08 $1,326.00 $1,325.00 $1,318.24 $1,303.28 $1,302.87 $1,300.00 $1,300.00 $1,294.78 $1,286.29 $1,282.55 $1,280.75 $1,280.00 $1,275.00 $1,272.30 $1,261.00 $1,257.14 $1,250.00 $1,232.70 $1,232.45 $1,225.00 $1,224.11 $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,197.23 $1,197.23 $1,191.00 $1,164.00 $1,162.45 $1,152.20 $1,150.00 $1,138.03 $1,134.77

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2011 PEI 300 Rank 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300

Fund Manager Axcel Industriinvestor Hudson Clean Energy Partners IVF Advisors Private Limited Pamlico Capital General Catalyst Partners Venrock Huntsman Gay Capital Partners Clearwater Capital Partners Lee Equity Partners IDFC Private Equity SV Life Sciences North Bridge Venture Partners Enterprise Investors Thoma Bravo Cartesian Capital Redpoint Ventures Balderton Capital Water Street Healthcare Partners BLUM Capital Partners Roark Capital Group Argos Soditic SA JLL Partners Resource Capital Funds Greenbriar Equity Group Olympus Capital Holdings Asia Quintana Capital Ventizz Capital Everstone Capital CLSA Capital Partners Quad-C Management Edgewater Funds KERN Partners Marlin Equity Partners ACON Investments Aureos FountainVest Partners ChrysCapital Palamon Capital Partners Silverfleet Capital DCM Graphite Capital Management Orchid Asia Alchemy Partners BOC International Holdings Limited Ignition Partners H&Q Asia Pacific TSG Consumer Partners Industrial Growth Partners

Headquarters Copenhagen Teaneck (New Jersey) Mumbai Charlotte (North Carolina) Boston Palo Alto Boston New York New York Mumbai Boston Waltham (Massachusetts) Warsaw Chicago New York Menlo Park London Chicago San Francisco Atlanta Paris New York Denver Rye (New York) Hong Kong Houston Duesseldorf Mumbai Hong Kong Charlottesville (Virginia) Chicago Calgary Los Angeles Washington DC London Hong Kong New Delhi London London Menlo Park London Hong Kong London Hong Kong Bellevue (Washington) Palo Alto San Francisco San Francisco

PEI 300 Five-Year Fundraising Total ($m) $1,133.32 $1,132.34 $1,125.00 $1,115.00 $1,115.00 $1,114.00 $1,108.50 $1,105.40 $1,100.00 $1,095.20 $1,095.00 $1,070.00 $1,067.65 $1,050.90 $1,050.00 $1,050.00 $1,025.00 $1,018.70 $1,009.80 $1,004.00 $1,002.86 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $994.00 $977.51 $975.00 $975.00 $972.57 $971.00 $970.28 $959.00 $956.58 $954.00 $950.00 $950.00 $943.70 $936.66 $930.47 $929.96 $927.00 $926.76 $926.34 $920.00 $910.00 $900.00 $900.00

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Rules of the game

What the PEI 300 does and does not measure
As we ask each year, would you believe that ranking 300 private equity firms by size is not an easy task? First one needs to define private equity and size.Then one needs to gather accurate capitalformation information on hundreds and hundreds of firms in what is among the most opaque markets in the world. The result of this hard work is the PEI 300, an annual ranking conducted by Private Equity International in conjunction with sister data service PE Connect. In compiling the rankings, we are certain that we missed some important details, but we are equally certain that we exhausted every available resource in sourcing the best information. Private equity remains a non-transparent asset class, but it is getting more transparent with each passing year. We therefore believe that the PEI 300 is the authoritative guide to the most important investment firms in the global private equity market. A firms rank among the largest 300 private equity firms in the world is determined by how much private equity direct-investment capital that firm has raised over a roughly five-year window ending at our press date last month. total figures, upon which the PEI 300 rankings are based, we rely on the most accurate information available.We give highest priority to information that we receive from or confirm with the private equity firms themselves, always on background. When the private equity firms themselves confirm details, we still seek to trust but verify. Some details simply cannot be verified by us, and in these cases we defer to the honour system. In order to encourage cooperation from private equity firms that might make the PEI 300, we do not disclose which firms have aided us on background and which have not. Lacking confirmation of details from the firms themselves, we seek to corroborate information using any available resources, including the firms own websites, press releases, news reports, third-party databases, limited partner disclosures, etc.

definitions
To help answer this question How much private equity capital has the firm raised since 1 January 2006? we needed to set some definitions: Private equity: The definition of private equity for the purposes of the PEI 300 means capital raised for a dedicated programme of investing directly into businesses. This includes equity capital for diversified private equity, buyouts, growth equity, venture capital, turnaround or control-oriented distressed investment capital, and mezzanine debt. Our rankings do not take into account funds of funds capital, capital raised for primarily real estate strategies, hedge fund capital, infrastructure and debt capital. Capital raised: This means capital definitively committed to a private equity direct investment programme. In the case of a fundraising, it means the fund has had a final or official interim close after 1 January 2006. We count the full amount of a fund if it has a close after this date. We also count the full amount of an interim close that has occurred recently, even if no official announcement has been made.We also count capital raised through other means, such as LP co-investment vehicles, deal-by-deal LP co-investment capital, publicly traded vehicles and earmarked annual contributions from a sponsoring entity, when we are able to access this information. Where capital is raised in partnership with an affiliated entity, we take into consideration the economic relationship between the two entities, as well as how the fundraising was marketed to investors. We count mezzanine debt raised by firms that are primarily engaged in private equity investing. We only count equity raised for these funds, not the leveraged buying power. Mezzanine debt frequently involves warrants for equity stakes, and has historically been counted alongside buyout capital by industry media and data services groups. n

what is the pei 300?

The PEI 300 is a ranking of private equity firms globally by size. It is the only apples-to-apples comparison of dedicated, direct investment private equity programmes.The rankings began in 2007 as the PEI 50 and were expanded to the PEI 300 in 2009 due to demand for more information about private equity firms globally. The PEI 300 is not a performance ranking, nor does it constitute investment recommendations.The PEI 300 includes private equity firms with varying structures and strategies around the world.While the list is mostly made up of private equity firms that manage private equity limited partnerships, it also includes firms with multiple strategies and business lines, and firms with publicly traded vehicles. However, only a defined type of private equity capital is counted in determining the PEI 300 rankings, as described below. The PEI 300 only measures capital raised or formed within a five-year window spanning from 1 January 2006 until 15 April 2011. Last years rankings were also drawn from a 64-month window, but the window started on 1 January 2005 and ended on 22 April 2009. Where two firms have raised the same amount of capital over this time period, the higher PEI 300 rank goes to the firm with the largest active pool of capital raised since 2006 (i.e., the biggest single fund). If there is still a tie after taking into account size of single fund, we give greater weight to the firm that has raised the most capital most recently. In coming up with our key 2010 PEI 300 five-year fundraising

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Capital magnets
While many private equity firms the world over are fretting about the difficult fundraising market, some familiar names are proving investors still have a healthy appetite for private equity. Leading the pack was the Blackstone Group, whose FundVI had raised $14.7 billion as of February, when it held its full-year 2010 earnings call. The firm indicated at the time it was rounding up the last couple of LP commitments to the vehicle, with Blackstone president and chief operating officer Tony

p e i 3 0 0 h i g h l i g h t s t r e n d a n a ly s i s
A look into last years biggest fundraisers
James saying he expected the fund to close on around $15 billion. In terms of final closes in the past year, Energy Capital Partners took the top spot, closing its second fund on $4.3 billion, well above its original target of $3.5 billion. It was one of many energy funds to have found favour with investors recently (see p. 36), whove been largely pleased with the sectors returns. Returns were also the reason why investors came out in full force for Stone Point Capitals latest offering, Trident V. The financial services-focused firm which is led by Charles Davis, former head of investment banking at Goldman Sachs, and Steve Friedman, former Goldman chairman blew past its original $3 billion hard-cap to raise $3.5 billion from investors including the Canada Pension Plan Investment Board, the Kuwait Investment Authority, TIAACREF, Caisse de Dpt, General Electric and HarbourVest Partners. The funds predecessor,Trident IV, was generating a 1.2x cash-on-cash multiple as of 30 June 2010, sources told PEI late last year. n

record setters
The three largest fund closings on record in 2010 PEI 300 rank 46 23 47
Source: PE Connect

Fund manager Energy Capital Partners Madison Dearborn Partners Stone Point Capital

Fund name Energy Capital Partners II Madison Dearborn Capital Partners VI Trident V

Fund size ($bn) $4.3 $4.1 $3.5

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p e i 3 0 0 h i g h l i g h t s t r e n d a n a ly s i s

Gaining ground
Firms focused on emerging markets are commanding a larger slice of the private equity fundraising pie, with Asia-based managers leading the charge
Emerging market firms are invading the global fundraising scene, as evidenced by the shifting make-up of the PEI 300.There are now 10 percent more emerging market firms on the list compared to last year. While the number of emerging market private equity firms to make the list from Central and Eastern Europe, Sub-Saharan Africa and MENA remained constant in 2011, Latin America and Asia were the two regions where the number of firms on the PEI 300 increased compared to last year. Newcomers include Sydney-based Quadrant Private Equity, which ranked number 226 and closed its sixth fund on A$750 million ($745 million; 558 million) in December. The fund, which was only in the market for two months, beat its A$600 million target and was the first Quadrant fund to raise money from overseas investors.Around one-third of its LPs are from Europe and Asia. Mumbai-based Everstone Capital also debuted on the list this year, ranking 280th.The firm closed its second India-focused fund on its $550 million hard-cap in March, attracting capital exclusively from limited partners outside of India. Hong Kongs CLSA Capital Partners, which had dropped off the PEI 300 list in 2010, reclaimed a spot this year with $975 million in fundraising under its belt.The firm placed 281overall. Elsewhere in China, RMB fever continued to boost fundraising totals. Beijing-based Hony Capital in November held a first close on RMB7 billion (774.8 million; $1.05 billion) for its second RMB-denominated fund, which has a hard-cap target of RMB10 billion. Hony came in at 109 in the PEI 300 and ranks sixth out of emerging market firms. Brazil-focused Patria Investimentos, in which The Blackstone Group recently purchased a 40 percent stake, was the only nonAsian emerging market firm to debut on the PEI 300 this year. The Sao Paulo-based firm landed in the 252 spot, with $1.1 billion raised over the past five years. Middle Eastern behemoth Abraaj Capital, meanwhile, continues to dominate the emerging market global fundraising scene, taking an impressive 52nd spot on the overall PEI 300 list. Despite having to right size its flagship fourth buyout fund in the second quarter to around $2 billion from an original $4 billion target, Abraaj still amassed $6.2 billion, representing the largest haul by an emerging market firm by almost $1 billion. Sydney-based Pacific Equity Partners was the emerging market runner up with $5.38 billion raised. Elsewhere in MENA, Bahrain based firms Investcorp Bank BSC and Arcapita came in at 59 and 66 respectively, putting them both firmly among the top 10 emerging market managers ranked on the PEI 300. n

the emerging market top 10

PEI 300 rank 48 57 67 73 76 90 92 93 108 109
Source: PE Connect

Firm Abraaj Capital Pacific Equity Partners Investcorp Bank BSC Baring Private Equity Asia CDH Investments Hony Capital Arcapita Citadel Capital Softbank Group MBK Partners

Headquarters Dubai Sydney Manama (Bahrain) Hong Kong Hong Kong Beijing Manama (Bahrain) Cairo Tokyo Seoul

Five-year fundraising total $6.2bn $5.4bn $4.7bn $4.5bn $4.4bn $3.8bn $3.7bn $3.6bn $3.2bn $3.2bn

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pei 300 data

Number crunching
STACKING UP
The PEI 300 five-year fundraising bar chart
Capital raised over the last five years ($bn) 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300
Source: PE Connect

CONNECT

Sister data service PE Connect provides analysis on how the PEI 300 firms relate to one another, to last year's rankings and to the broader deal economy

$0

$10

$20

$30

$40

$50

$60

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pei 300 data

CONNECT
top 50 vs. next 250
From 1 January 2006 to 15 April 2011, the largest 50 firms in the world raised 77.5% more equity capital than the next 250 firms. In 2010 and 2009, the proportions were 70.3% and 64.5%, respectively

mega-slowdown
Many of the top 50-firms raised significant amounts of capital in the five years preceding 2008 and 2009, but have largely stayed off the fundraising trail since. A large number of the top 50 are expected to market new vehicles in 2011 and 2012
$900

$900 $800 Five-year fundraising total ($bn) $700 $600

$812.5

$771.5

$810

$813

$733.9 Five-year fundraising total ($bn)

$800 $700 $600 $500 $400 $300 $200 $100

$772

$734

$523.9

$542.5

$568.5

$551

2009

$500 $400 $300 $200 $100 $0

2010

2011

2009

2010

2011

PEI 50

NEXT 250

$0

2007 2008
Source: PE Connect

PEI 50

PEI 50

2009 2010 2011

PEI 50

PEI 50

PEI 50

Source: PE Connect

capital centres
New York- and London-based firms continue to raise the bulk of the private equity industrys capital. Hong Kong, meanwhile, is cementing its reputation as one of the worlds largest centres of private equity capital: in 2010 it accounted for $19.2bn of five-year fundraising totals; this year it accounts for $27.2bn
$500 $450
Five-year fundraising total ($bn)

74
$441.9

80 70 60 50
Number of firms

$400 $350 $300 $250 $200 $150 $100 $50 $0

Greater New York London Greater Boston Greater San Francisco Texas

34
$168.1

34 22
$111.8 $93.4

40

9
$87.4

30

12
$48.6
Los Angeles

$47.4
Greater Washington DC

14
$27.2
Hong Kong

20

5
$26.9
Toronto

78
$24
Chicago

10 0

Five-year fundraising total ($bn)

Number of firms

Source: PE Connect

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pei 300 data

CONNECT
performance on the rise
Global market recovery has led largely to better private equity fund performance, according to the State Street Private Equity Index. The largest rallies were recorded by buyout, mezzanine and distressed funds. The PEI 50 IRR is based on the pooled longterm average performance of the top 50 firms in this years rankings, according to State Street Private Equity Index; the PEI 300 IRR is based on the pooled long-term average performance of all firms in this years PEI 300 ranking; and the SSPEI IRR is based on the pooled long-term average performance of the more than 1600 private equity funds tracked by State Street PEI 50
Pooled IRR By Investment Focus Buyout Venture Capital Mezzanine/ Distressed 2011 15.63% 2010 13.91% 2009 13.45% 2011 15.06%

PEI 300
2010 13.23% 2009 13.38% 2011 11.77%

SSPEI
2010 10.03% 2009 12.92%

15.10% 20.84% 11.61%

13.34% 20.45% 9.62%

13.50% 14.13% 12.69%

14.77% 17.70% 12.71%

12.75% 17.58% 10.89%

13.29% 12.87% 13.55%

12.35% 9.20% 11.70%

10.27% 9.05% 9.69%

13.38% 12.01% 10.60%

By Investment Origin US 15.82% Non-US 14.33%

13.43% 16.29%

13.36% 15.67%

15.14% 14.62%

13.02% 14.29%

13.31% 15.48%

11.94% 10.92%

9.95% 10.40%

12.47% 15.61%

Notes: Based on data on private equity funds, including fully liquidated partnerships, formed between 1980 and Q3 2010. Data for 2010 is based on funds formed between 1980 and Q3 2009. Pooled IRR is net of fees and carried interest. Source: State Street Private Equity Index

big drops
These top 50 firms have fallen at least 12 spots in our rankings from the previous year Fortress Investment Group Citi Capital Advisors Bridgepoint

two years of climbing

These top 50 firms have advanced in our rankings for two consecutive years

new entrants
These firms made it to the top 50 for the first time this year

out of the top 50

These firms appeared in last year's top 50 but not in this year's top 50 BC Partners Sun Capital Partners WL Ross & Co. Oak Hill Capital Partners PAI Partners Welsh Carson Anderson & Stowe HarbourVest Partners

The Blackstone Group Hellman & Friedman General Atlantic Oaktree Capital Management Charterhouse Capital Partners Madison Dearborn Partners TA Associates Thomas H. Lee Partners Cinven JC Flowers & Co. AlpInvest Partners Nordic Capital Lindsay Goldberg Summit Partners Marfin Energy Capital Partners Abraaj Capital

Ares Management EnCap Investments Energy Capital Partners Golden Gate Capital Stone Point Capital

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pei 300 data

CONNECT
making a comeback
Deal activity slowed to a crawl following the financial crisis, but 2010 marked the turning point when PEI 300 firms gradually began returning to the fray

$800 $700 $600

PEI 300 deal volume ($bn)

5.8% 10.5%

5.8% 12.2%

$500 $400 $300 $200 $100 $0 9.8% 83.7% 82% 3.6% 16% 80.4% 9.6% 30.7% 59.7% 30.6% 59.7% 14.5% 39% 46.5%

2006

2007
M&A

2008
Debt

2009
IPO

2010

2011 YTD

Source: Dealogic

deal fees in focus

Fees paid to investment banks by the PEI 300 have so far this year been predominantly related to M&A advisory services
$4 $3 $3
PEI 300 fees paid ($bn)

7% 28.6%

6.8% 15%

8.2% 28.8%

$2 $2 9.5% $1 $1 $0 64.4% 78.1% 0.7% 9.3% 90.1% 63% 27.9% 62.6% 5% 27.5% 67.5%

2006

2007
M&A

2008
Debt

2009
IPO

2010

2011 YTD

Source: Dealogic

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pei 300 data

CONNECT
pe vs. the rest: m&a
The largest 50 and 300 private equity firms were responsible for approximately 7.4% and 9.2%, respectively, of global M&A over the past five-year window
$20 $18 $16 $14 $12 $bn $10 $8 $6 $4 $2 $0 1,746 $1.3 PEI 50 4,819 $1.6 PEI 300 $bn $1.9 All PE All M&A 11,074 10 5 0 $1.8 15 24,173 25 20

pe vs. the rest: ipos

The top 50 firms have sponsored nearly 10% of all IPO activity in the five-year window ending in April 2011, while the PEI 300 sponsored just over 13%
$12 Number of deals (in hundreds) $10 $8 4 $bn $6 $4 $2 $0 $1.1 3 2 236 $0.11 PEI 50 454 $0.15 PEI 300 $bn 696 $0.18 All PE All IPO 1 0 7 6 5 Number of deals (in hundreds)

pe vs. the rest: debt

The top 50 firms issued just 1% of all debt activity in the five-year window ending in April 2011, while the PEI 300 sponsored nearly 1.2%

30

6,518

$35 $30 $25 $20 $bn $15 $10 $5 $0

115,563 $31.2

140 120 100 80 60 40 20 0

Number of deals (in hundreds)

480 $0.31 PEI 50

705 $0.36 PEI 300 $bn

861 $0.41 All PE All Debt

Number of deals

Number of deals

Number of deals

Source: Dealogic

Source: Dealogic

Source: Dealogic

where they call home

North American-headquartered private equity firms continue to comprise the bulk of the PEI 300

how they spent it

The most popular sectors among PEI 300 firms to invest over the five-year period (in $bn) continued to be telecoms and healthcare. Financial services sector deals, however, edged out last years third-most popular sector, computers and electronics

n MENA n Asia

n Latin America n Sub-Saharan Africa n Dining & Lodging n Real Estate / Property $91 n Professional $102 Services
$114 $117 $128 $81 $62 $181

n Transportation n Telecommunications

n Europe ex-UK

n Healthcare
$146

n UK n North America

n Retail

$136

n Finance

n Utility & Energy

Source: PE Connect

n Computers & Electronics

PEI 300 contributors included Nicholas Donato, Kristen Reidlinger, Eduardo Roman, Oliver Smiddy, Christopher Witkowsky and Graham Winfrey