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C A M B R I D G E

Cambridge Associates LLC


U.S. Private Equity Index®
And Benchmark Statistics
A S S O C I A T E S

September 30, 2008


L L C
Cambridge Associates LLC
U.S. Private Equity Index®
And Benchmark Statistics

September 30, 2008

Copyright © 2009 by Cambridge Associates LLC. All rights reserved.

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1

CAMBRIDGE ASSOCIATES LLC U.S. PRIVATE EQUITY INDEX®

As of September 30, 2008

End-to-End
Pooled Mean Net
Period to Limited Partners (%)*

One Quarter (8.04)


Year to Date (8.90)
One Year (5.55)
Three Year 13.29
Five Year 19.01
Ten Year 11.81

End-to-end calculation based on data compiled from 748 U.S. private equity funds (U.S. Buyouts, Private Equity
Energy, Growth Equity and Mezzanine), including fully liquidated partnerships, formed between 1986 and 2008.
*
Pooled end-to-end return, net of fees, expenses, and carried interest.

U.S. Private Equity Index® Compared to Other Market Indices


for the One Year Ended September 30, 2008

U.S. Private Equity Index® -5.55


Lehman Brothers Gov't/Corp Bond Index 2.41
Russell 2000® -14.48
Dow Jones Small Cap -16.63
Dow Jones Industrials Average -19.85
Dow Jones Wilshire 5000 -21.26
Dow Jones Top Cap -21.75
S&P 500 -21.98
Russell 1000® -22.10
Nasdaq Composite -22.57

-30 -25 -20 -15 -10 -5 0 5 10


Percentage (%)

Sources: Bloomberg, Cambridge Associates LLC U.S. Private Equity Index®, Lehman Brothers, Inc., Standard &
Poor's, Frank Russell Company, Thomson Datastream, The Wall Street Journal , and Wilshire Associates, Inc.

©2009 Cambridge Associates LLC. All rights reserved.


2

CAMBRIDGE ASSOCIATES LLC QUARTERLY END-TO-END RETURNS

U.S. Private Equity (inception since 1986)

As of September 30, 2008

Quarter End to End Quarter End to End


Ending Net To LP Ending Net To LP

1986 Q1 n/a 1994 Q1 0.99


1986 Q2 4.22 1994 Q2 2.84
1986 Q3 (1.64) 1994 Q3 1.99
1986 Q4 0.39 1994 Q4 5.94
1987 Q1 3.47 1995 Q1 3.72
1987 Q2 1.20 1995 Q2 3.81
1987 Q3 1.02 1995 Q3 4.46
1987Q4 (2.41) 1995 Q4 10.74
1988 Q1 2.13 1996 Q1 5.31
1988 Q2 3.58 1996 Q2 6.36
1988 Q3 3.21 1996 Q3 6.48
1988 Q4 2.69 1996 Q4 8.04
1989 Q1 2.15 1997 Q1 0.53
1989 Q2 3.62 1997 Q2 9.13
1989 Q3 1.98 1997 Q3 7.41
1989 Q4 2.01 1997 Q4 9.62
1990 Q1 0.46 1998 Q1 8.04
1990 Q2 4.67 1998 Q2 6.19
1990 Q3 (0.16) 1998 Q3 (5.75)
1990 Q4 0.44 1998 Q4 6.55
1991 Q1 2.67 1999 Q1 4.08
1991 Q2 1.29 1999 Q2 10.07
1991 Q3 2.13 1999 Q3 3.49
1991 Q4 3.61 1999 Q4 13.66
1992 Q1 2.00 2000 Q1 13.32
1992 Q2 0.85 2000 Q2 (1.35)
1992 Q3 2.51 2000 Q3 (1.29)
1992 Q4 8.91 2000 Q4 (6.54)
1993 Q1 3.38 2001 Q1 (5.42)
1993 Q2 5.87 2001 Q2 2.45
1993 Q3 6.23 2001 Q3 (8.28)
1993 Q4 6.76 2001 Q4 0.06

©2009 Cambridge Associates LLC. All rights reserved.


3

CAMBRIDGE ASSOCIATES LLC QUARTERLY END-TO-END RETURNS (continued)

U.S. Private Equity (inception since 1986)

As of September 30, 2008

Quarter End to End Quarter End to End


Ending Net To LP Ending Net To LP

2002 Q1 (0.33) 2006 Q1 4.77


2002 Q2 (3.43) 2006 Q2 4.03
2002 Q3 (4.27) 2006 Q3 4.28
2002 Q4 0.22 2006 Q4 11.76
2003 Q1 (0.02) 2007 Q1 5.81
2003 Q2 6.70 2007 Q2 8.00
2003 Q3 4.62 2007 Q3 1.49
2003 Q4 10.53 2007 Q4 3.89
2004 Q1 3.37 2008 Q1 (1.30)
2004 Q2 3.21 2008 Q2 0.98
2004 Q3 2.25 2008 Q3 (8.04)
2004 Q4 14.48
2005 Q1 1.88
2005 Q2 8.08
2005 Q3 7.02
2005 Q4 8.87

©2009 Cambridge Associates LLC. All rights reserved.


4

CAMBRIDGE ASSOCIATES LLC QUARTERLY END-TO-END RETURNS (continued)

U.S. Private Equity (inception since 1986)

As of September 30, 2008

End to End End to End End to End End to End


Returns Net To LP Year Ended Net To LP

1Yr (5.55) 9/30/2008 (5.55)


2Yr 9.37 9/30/2007 29.85
3Yr 13.29 9/30/2006 22.53
4Yr 18.44 9/30/2005 35.59
5Yr 19.01 9/30/2004 21.08
6Yr 17.70 9/30/2003 12.16
7Yr 13.63 9/30/2002 (7.87)
8Yr 9.45 9/30/2001 (16.67)
9Yr 10.74 9/30/2000 23.57
10Yr 11.81 9/30/1999 26.66
11Yr 12.18 9/30/1998 18.62
12Yr 12.88 9/30/1997 26.99
13Yr 13.77 9/30/1996 32.26
14Yr 14.02 9/30/1995 19.12
15Yr 13.98 9/30/1994 13.08
16Yr 14.48 9/30/1993 26.60
17Yr 14.28 9/30/1992 9.22
18Yr 14.01 9/30/1991 6.71
19Yr 13.81 9/30/1990 6.95
20Yr 13.75 9/30/1989 10.85
21Yr 13.69 9/30/1988 8.38
22Yr 13.66 9/30/1987 6.33

Source: Cambridge Associates LLC U.S. Private Equity Index®.

Note: End-to-end calculation based on data compiled from 748 U.S. private equity funds, including fully
liquidated partnerships, formed between 1986 and 2008. All returns are net of fees, expenses, and carried interest.

©2009 Cambridge Associates LLC. All rights reserved.


5

CAMBRIDGE ASSOCIATES LLC BENCHMARK STATISTICS


U.S. Private Equity
As of September 30, 2008

Equal-
Pooled Weighted Upper Lower Residual Total
Mean Median Pooled Mean Quartile Quartile Standard Distribution/ Value/ Value/
Vintage Net to Net to Net to Net to Net to Deviation Paid In Paid In Paid In Number
Year L Ps (%) L Ps (%) L Ps (%) L Ps (%) L Ps (%) Net to LPs Net to LPs Net to LPs Net to LPs of Funds

1986 19.08 11.03 13.03 17.69 6.60 7.73 3.45 0.00 3.45 10
1987 10.84 11.33 14.66 17.99 8.57 8.76 1.88 0.00 1.89 13
1988 14.54 12.02 13.02 15.24 9.95 5.83 1.90 0.02 1.91 16
1989 22.85 20.36 22.56 29.79 12.42 25.17 2.57 0.00 2.57 17
1990 14.47 15.06 15.22 19.24 10.71 5.42 1.73 0.07 1.80 8
1991 30.90 32.64 28.20 42.03 12.60 19.86 3.23 0.01 3.24 10
1992 27.33 16.06 23.31 27.56 12.85 20.40 2.41 0.01 2.42 12
1993 26.09 22.29 23.28 33.05 11.21 30.17 2.28 0.06 2.34 23
1994 8.99 9.94 10.73 21.71 1.08 13.09 1.42 0.10 1.52 22
1995 20.34 10.88 17.86 30.40 0.27 23.55 1.89 0.03 1.92 32
1996 10.09 8.67 9.13 13.40 (0.59) 18.59 1.39 0.13 1.53 36
1997 6.29 6.97 6.10 11.78 (1.58) 10.91 1.22 0.13 1.35 47
1998 7.33 9.79 10.86 14.31 1.31 12.18 1.18 0.22 1.39 46
1999 15.01 12.27 13.50 18.26 6.92 14.46 1.41 0.36 1.77 56
2000 16.80 13.67 14.39 21.75 6.26 11.18 1.08 0.60 1.68 67
2001 31.01 23.86 25.87 42.20 11.55 24.66 1.22 0.57 1.79 23
2002 26.05 21.92 22.45 31.39 12.63 16.27 0.92 0.78 1.71 32
2003 23.12 18.00 19.46 27.82 7.02 17.18 0.59 0.96 1.55 26
2004 12.35 10.47 15.88 18.62 4.30 15.49 0.25 1.01 1.26 60
2005 2.50 2.27 5.93 13.60 (6.72) 18.90 0.09 0.94 1.03 70
2006 (7.42) (1.85) (3.45) 7.21 (15.96) 29.48 0.03 0.89 0.92 60
2007 (25.61) (16.99) (21.08) (4.89) (23.22) 34.98 0.01 0.84 0.85 54

Notes: Based on data compiled from 740 U.S. private equity funds, including fully liquidated partnerships, formed between 1986 and 2007.
Returns are net of fees, expenses and carried interest.
Vintage year funds formed since 2004 are too young to have produced meaningful returns. Analysis and comparison of partnership returns to
benchmark statistics may be irrelevant.

©2009 Cambridge Associates LLC. All rights reserved.


6

CAMBRIDGE ASSOCIATES LLC


U.S. Private Equity Benchmark Statistics Based on Fund Capitalization

As of September 30, 2008

Pooled Pooled Pooled Pooled Pooled


Vintage Mean Net Number Mean Net Number Mean Net Number Mean Net Number Mean Net Number
Year to LPs (%) of Funds to LPs (%) of Funds to LPs (%) of Funds to LPs (%) of Funds to LPs (%) of Funds

All Funds 1 Small Cap Mid Cap Large Cap Mega Cap

1993 26.67 19 6.50 5 42.06 5 24.55 9 NA 0


1994 9.22 15 11.71 4 18.54 7 5.69 4 NA 0
1995 13.77 25 18.61 9 14.76 9 (4.95) 2 15.69 5
1996 10.23 29 7.42 12 21.86 8 8.98 6 8.79 3
1997 7.01 38 5.46 14 7.55 15 3.05 5 8.23 4
1998 7.40 39 12.02 8 12.81 10 10.10 16 3.73 5
1999 15.68 48 14.72 14 15.00 19 8.80 9 19.96 6
2000 18.14 52 11.96 12 21.87 18 13.25 15 21.59 7
2001 33.41 18 22.32 9 32.62 6 48.70 1 31.10 2
2002 27.28 28 25.93 8 25.48 12 28.50 8 NA 0
2003 23.47 23 18.63 7 20.58 9 36.30 5 15.63 2
2004 12.66 53 9.04 13 19.56 25 9.73 9 11.30 6
2005 1.98 54 16.33 15 1.87 24 12.31 9 (2.56) 6
2006 (7.55) 53 (7.81) 8 3.56 22 3.25 9 (9.76) 14
2007 (27.62) 46 0.16 7 8.90 14 (18.59) 13 (35.58) 12

Notes: 1 Based on data compiled from 540 U.S. private equity funds , including fully liquidated partnerships, formed between 1993 and 2007.
Returns are net of fees, expenses and carried interest and exclude U.S. Mezzanine and Growth Equity funds.
Vintage year funds formed since 2004 are too young to have produced meaningful returns. Analysis and comparison of partnership returns to benchmark
statistics may be irrelevant. Fund capitalization groupings for vintage years are as follows (figures in millions):

1993 - 94: Sm Cap is < or = $100, Mid Cap is > $100, < or = $500, Lg Cap is > $500.
1995 - 96: Sm Cap is < or = $200, Mid Cap is > $200, < or = $500, Lg Cap is > $500, < or = $1000, Mega Cap is > $1000.
1997 - 99: Sm Cap is < or = $250, Mid Cap is > $250, < or = $750, Lg Cap is > $750, < or = $2000, Mega Cap is > $2000.
2000 - 05: Sm Cap is < or = $300, Mid Cap is > $300, < or = $1000, Lg Cap is > $1000, < or = $2500, Mega Cap is > $2500.
2006 - 07: Sm Cap is < or = $300, Mid Cap is > $300, < or = $1000, Lg Cap is > $1000, < or = $3500, Mega Cap is > $3500.

©2009 Cambridge Associates LLC. All rights reserved.


7

U.S. PRIVATE EQUITY DOLLAR-WEIGHTED INTERNAL RATE OF RETURN


ON VINTAGE YEAR COMPANIES

As of September 30, 2008

By Industry

Pooled Gross Mean of Companies Receiving Initial Investment In

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Chemical/Materials 153.56 (19.49) (2.42) (9.57) (4.02) 9.88 30.32 26.69 55.30 136.31 32.82 0.72 12.67
Consumer/Retail 29.29 12.02 11.49 9.74 4.92 24.85 31.24 39.76 29.72 31.24 14.55 12.36 (3.08)
Electronics 26.66 34.93 30.18 (43.90) 15.45 0.82 86.31 26.43 21.92 42.25 13.30 (23.85) 17.46
Energy 16.06 17.17 20.10 21.13 12.64 25.94 31.23 65.26 78.82 154.42 54.06 11.01 25.72
Environmental (2.21) (100.00) 1.66 8.08 0.91 18.47 14.40 17.47 41.69 46.08 141.20 30.38 0.21
Financial Services (2.93) 60.26 1.04 31.09 0.54 20.30 26.36 22.73 (1.37) 16.44 31.96 1.79 (16.69)
Hardware/Systems 67.13 (0.18) (16.46) (3.53) 78.98 38.68 30.69 609.76 NA 5.93 23.25 100.13 (19.90)
Health Care/Biotech * 10.33 9.51 20.30 19.35 19.47 18.05 16.80 43.59 31.84 28.96 24.97 7.61 5.11
Industrial 16.32 89.63 7.07 6.08 30.32 17.39 42.52 14.80 28.37 26.37 33.49 17.26 (2.59)
Information Technology * 62.29 43.00 98.06 14.24 1.75 (8.06) 10.92 10.93 40.09 92.92 34.66 (1.30) (4.02)
Manufacturing 24.08 0.56 14.60 6.69 10.21 (0.06) (0.62) 23.97 40.07 26.68 32.41 17.23 (3.24)
Media/Communications 52.30 37.94 15.19 2.57 4.52 (2.97) 10.31 40.50 36.30 13.72 34.57 8.44 (7.80)
Software/Services 17.09 45.44 96.88 20.28 8.93 (0.11) 26.50 47.11 36.67 31.19 15.63 22.29 3.12
Other/Fund of Funds 20.96 21.99 18.76 19.11 (1.59) (0.53) 19.13 37.70 89.68 64.89 43.86 4.10 0.45

All Companies 37.50 17.61 27.42 12.69 7.39 7.36 22.45 35.09 38.27 44.21 28.35 7.05 1.04
Number of Companies 281 358 468 538 785 1,155 425 395 488 635 724 845 977

* See following exhibit for industry sub-groups.

NA indicates inadequate number of companies in sample.

©2009 Cambridge Associates LLC. All rights reserved.


8

U.S. PRIVATE EQUITY DOLLAR-WEIGHTED INTERNAL RATE OF RETURN


ON VINTAGE YEAR COMPANIES

As of September 30, 2008

By Healthcare/Biotech and Information Technology Industry Sub-Groups

Pooled Gross Mean of Companies Receiving Initial Investment In

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Biotechnology/Biopharm/R&D 32.62 NA 36.60 (7.95) 2.96 1.41 13.96 (29.92) 60.98 (22.04) 21.91 29.74 31.78
Health Care Devices 56.14 13.64 33.34 32.63 20.14 (0.70) 2.48 2.73 67.17 81.59 27.11 1.86 1.37
Health Care Services (5.78) 1.45 8.86 17.13 20.89 28.05 24.06 21.70 18.51 18.17 25.18 5.01 7.03
Health Care Software/Systems 22.18 1.03 3.85 (16.99) 9.11 (4.25) 49.13 NA 33.10 46.95 15.19 22.18 24.41
Pharmaceuticals 43.64 59.30 56.70 27.64 26.59 41.11 1.96 63.76 1.67 2.60 23.73 55.60 (2.10)

Internet-eBusiness NA 155.55 49.75 150.37 (14.37) (10.61) (26.47) 0.55 35.64 93.24 63.11 (17.94) 6.09
Internet-eCommerce (7.48) NA 21.81 (89.76) (15.51) (5.31) (5.84) (3.15) 41.86 65.12 30.86 9.07 (4.07)
Telecom Network/Systems 92.57 39.84 72.89 14.07 30.51 (2.65) 8.41 20.36 18.42 68.07 2.46 (15.11) (26.16)
Telecom Products (3.80) 68.92 123.19 (39.86) (26.83) (15.78) 3.77 14.99 96.27 1.80 151.29 43.80 (4.36)
Telecom Services 26.65 6.37 100.50 15.98 (6.51) (10.91) 18.47 13.46 53.21 105.71 37.26 (4.06) 5.51

NA indicates inadequate number of companies in sample.

©2009 Cambridge Associates LLC. All rights reserved.


9

DESCRIPTION OF PERFORMANCE MEASUREMENT METHODOLOGY

Cambridge Associates LLC (CA) has established a database to monitor investments made by venture capital and
other alternative asset partnerships. On September 30, 2008, 748 U.S. private equity funds from the years 1986
through 2008 were included in the sample. Users of the analysis may find the following description of the data
sources, the CA classification process, and the calculation techniques helpful to their interpretation of information
presented in the report:

1. Partnership financial statements and narratives are the primary source for information concerning partnership
cash flows, portfolio company investments, and investor transactions.

2. The performance calculation solves for the discount rate (IRR) which makes the Net Present Value of an
investment equal to zero. The calculation is based on cash-on-cash returns over equal periods, modified for
the residual value of the partnership's equity or portfolio company's net asset value (NAV). The residual value
attributed to each respective group being measured is incorporated at its ending value. The database accounts
for transactions on a quarterly basis, but adopts annualized values for reporting purposes. The End-to-End
performance calculation is similar to the IRR, however, it is measuring the return between two points in time.
The calculation takes into account the beginning NAV, the quarterly cash flows and the ending NAV. All
returns greater than one year are annualized.

3. Recognizing the alternative asset community's sensitivity to the distribution of information pertaining to
individual fund investments, as a matter of policy CA only releases aggregated figures in its benchmark
report.

4. Vintage year is defined as the legal inception date as noted in a fund's financial statement.

5. Definitions:
a. The pooled mean aggregates or "pools" all cash flows and ending NAVs to calculate a dollar-weighted
return.
b. The arithmetic mean is the average of the discrete returns of each fund for a particular vintage year.
c. The median is the middle fund return of the group of funds included in a vintage year.
d. The equal-weighted mean equal-weights all cash flows and ending NAVs based on paid in capital to
calculate a dollar-weighted return.
e. The realization ratios described below are measures of return or contributed capital. Ratios are based on
actual dollar values and not averages
1) Distribution to Paid-In Capital measures the cumulative investment return relative to contributed
capital.
2) Residual Value to Paid-In Capital measures the amount of contributed capital still tied up in the
equity of the fund.
3) Total Value to Paid-In Capital measures the residual value and distributions received to date relative
to contributed capital.

©2009 Cambridge Associates LLC. All rights reserved.