Preqin Private Equity Spotlight February 2013

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Private Equity Spotlight
February 2013
The 2013 Preqin Global Private Equity Report
Preqins Private Equity Online service
provides comprehensive data and
intelligence on all aspects of the
private equity industry.
For more information, please visit:
www.preqin.com/privateequity

alternative assets. intelligent data.
ISBN: 978-1-907012-62-4
$175 / 95 / 115
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2013 Preqin Global
Private Equity
Report
This months Private Equity Spotlight features sample pages from the 2013 Preqi n
Gl obal Pri vate Equi ty Report, the most comprehensive review of the private equity
asset class ever undertaken, including:
Table of Contents - Page 2
Private Equity in 2013 - The Year Ahead - Page 4
Assets under Management and Dry Powder - Page 5
Overview of Current Funds in Market - Page 6
Distressed Private Equity GPs Key Stats and Facts - Page 7
PrEQIn Private Equity Quarterly Index - Page 9
Private Equity Benchmarks - Page 11
The Evolution of the Limited Partner Universe - Page 13
Make-up of PE-Backed Buyout Deals in 2012 by Type, Value and Industry - Page 14
Conferences Spotlight - Page 15
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February 2013
Volume 9 - Issue 2
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.
Click here to sign up to receive your free edition of Private Equity Spotlight every month!
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Free Subscription:

You can download all the data in this months Spotlight in Excel.
Click on this symbol to download the datapack for the 2013
Preqin Global Private Equity Report sample pages. You are
welcome to use the data in any presentations you are preparing;
please cite Preqin as the source.
2
2013 Preqin Ltd. / www.preqin.com
The 2013 Preqin Global Private Equity Report - Sample Pages
2013 Global Private Equity Report
Contents
CEOs Foreword 5
Section One: The 2013 Preqin Global Private Equity
Report
Keynote Address - Moose Guen, CEO, MVision 7
Section Two: Overview of the Private Equity Industry
Private Equity in 2013: The Year Ahead - Helen
Kenyon, Preqin
11
Adapting and Thriving - Mark Florman, Chief
Executive, BVCA
12
Silver Linings in Storm Clouds - Steve Judge
and Bronwyn Bailey, PEGCC
13
Greater Communication was Best Response to
the US Elections - Drte Hppner, Secretary-
General, EVCA
14
Section Three: Assets under Management, Dry Powder,
Employment and Compensation
Assets under Management and Dry Powder 15
Employment and Compensation 17
Section Four: Fundraising
Patience is a Virtue - Tripp Brower, Partner,
Capstone Partners
19
Evolution of Fundraising Market in 2012 22
Overview of Current Fundraising Market 25
North American Fundraising 27
European Fundraising 28
Asian Fundraising 29
Rest of World Fundraising 30
Buyout Fundraising 31
Distressed Private Equity Fundraising 32
Growth Fundraising 33
Mezzanine Fundraising 34
Natural Resources Fundraising 35
Venture Capital Fundraising 36
Section Five: General Partners
Filling the Europe Credit Void - Rolf Nuijens,
Head of North Europe Mezzanine, ICG
37
League Tables - Largest GPs 39
Buyout GPs - Key Stats and Facts 43
Distressed Private Equity GPs - Key Stats and
Facts
44
Growth GPs - Key Stats and Facts 45
Mezzanine GPs - Key Stats and Facts 46
Natural Resources GPs - Key Stats and Facts 47
Venture Capital GPs - Key Stats and Facts 48
Section Six: Performance
Performance Overview 49
PrEQIn - Private Equity Index 52
Private Equity Horizon Returns 53
Private Equity Returns for Public Pension Funds 54
Private Equity Benchmarks 55
Consistent Performing Fund Managers 58
Section Seven: Investors in Private Equity
The Evolution of the Limited Partner Universe 61
Make-up of Investors in Recently Closed Funds 63
Investor Appetite for Private Equity in 2013 65
League Tables of Largest Investors by Region 70
League Tables of Largest Investors by Type 71
Investors to Watch in 2013 72
Section Eight: Separate Accounts
Investor Use of Separate Accounts 73
Section Nine: Investment Consultants
Overview of Alternatives Investment Consultants 75
Section Ten: Buyout Deals
Overview of Private Equity-Backed Buyout Deals 77
Global Buyout Exit Overview 79
Make-up of Private Equity-Backed Buyout Deals
in 2012 by Type, Value and Industry
81
Most Active Debt Providers and Deal Advisors 83
Largest Buyout Deals and Exits 84
Section Eleven: Venture Capital Deals
Overview of Venture Capital Deals 85
2
3
3
Venture Capital Deal Flow by Stage 87
Most Active Firms, Largest Venture Capital-
Backed Deals and Notable Exits
89
Section Twelve: Fund Terms and Conditions
Private Equity Fund Terms and Conditions 91
Investor Attitudes towards Fund Terms and
Conditions - December 2012 LP Survey Results
93
Leading Law Firms in Fund Formation 95
Section Thirteen: Funds of Funds
Evolution of Private Equity Funds of Funds 97
Funds of Funds Managers - Key Stats and Facts 99
Fundraising Review - Funds of Funds 100
Section Fourteen: Secondaries
Review of the Secondary Market and Investor
Appetite in 2013
101
Secondary Market Intermediaries 103
Secondaries Fund of Funds Managers - Key
Stats and Facts
104
Secondaries Fundraising Review 105
Section Fifteen: Cleantech
Overview of Cleantech Fundraising 107
Investors in Cleantech 109
Overview of Private Equity-Backed Cleantech
Deals
110
Section Sixteen: Placement Agents
Overview of Placement Agent Use in 2012 113
Prole of the Placement Agent Industry 115
Section Seventeen: Fund Administrators
Overview of Fund Administrators 117
Section Eighteen: Fund Auditors
Overview of Fund Auditors 119
Section Nineteen: Preqin Products
Order Forms 121
The data behind all of the charts featured in the 2013
Preqin Global Private Equity Report is available to
purchase in Excel format.
Please contact sales@preqin.com for more
information and to purchase your data pack
now.
The 2013 Preqin Global Private Equity Report
contains the most up-to-date data available at the
time of going to print. For the very latest statistics and
information on fundraising, institutional investors,
fund managers and performance, please visit
www.preqin.com/demo to register for a walkthrough
of Preqins online databases.
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4
Private Equity in 2013: The Year Ahead
- Helen Kenyon, Preqin
Since 2008 and the onset of the global
nancial crisis, private equity fundraising
levels have remained fairly consistent,
with $280-320bn raised by funds that
closed each year. Fundraising in 2012
exceeded this; over the course of the
year, 761 funds closed, raising an
aggregate $327bn.
While volatility in the wider nancial
markets and investor caution have
contributed to lower levels of fundraising
in recent years, what can we expect for
fundraising in 2013 and beyond?
Private Equity Returns
Private equity funds have generally
performed well over the longer term, as
illustrated by our PrEQIn Private Equity
Quarterly Index, shown on page 50, and
horizon IRRs over 10 years, shown on
page 51. This is reected in what LPs are
telling us: 74% of investors interviewed for
our December 2012 study were satised
with the returns they had received from
their private equity investments and a
further 11% told us returns had exceeded
their expectations.
The vast majority of investors are looking
to increase or maintain their private
equity allocations over both the short and
long term (87% and 81% respectively),
which is perhaps unsurprising as they
seek to meet their returns targets for
their overall investment portfolios in
this generally low-returns environment.
However, we have not seen this appetite
translate into an increasing volume
of new commitments being made to
funds. In fact, 40% of LPs surveyed in
December 2012 did not make a single
new commitment that year.
Deals and Exits
One reason for the low level of
commitment activity is the low level of
distributions LPs have been receiving
from their private equity investments,
meaning they have less capital to re-
inject into the asset class in new fund
commitments. However, Q2 2011 saw
record-breaking levels of private equity-
backed buyout exits, and during 2012,
exit levels remained fairly strong, with
a greater number of exits taking place
than in any year since 2006, though the
aggregate exit value for the year was
11% lower than in 2011. In the venture
capital space, we also saw exits reach
a ve-year high, with 650 exits taking
place during 2012. Buyout deal ow
in 2012 neared levels seen the year
before. Though the number of buyout
deals taking place remained fairly steady
throughout 2012, the second half of the
year saw aggregate deal value reach
$148bn, in comparison to $106bn in
H1 2012. Similarly, a greater number of
venture capital deals took place in 2012
than in 2011, though these deals were
valued at an aggregate $40bn, lower
than the $50bn worth of deals in 2011.
With positive signs for deal and exit
ow as we move into 2013, we may
see greater numbers of LPs with capital
available to invest in new funds in the
coming months.
Average Fund Size
A notable increase was seen in the
average fund size in the past year, with
funds closed in 2012 raising $464mn on
average, compared to $342mn for funds
closed in 2011. In Europe, the shift was
even more pronounced, from an average
of $368mn in 2011 to an average of
$585mn in 2012. We are seeing LPs
frequently invest more with fewer
managers, contributing to the increase in
average fund size; our PrEQIn Quartile
Indices on page 50 demonstrate the
importance of manager selection and
the considerable variation between the
returns received when backing either
the best or worst performing funds,
which can perhaps explain why LPs are
seeking to focus more capital on those
stronger performing managers.
Investor Appetite
Our latest investor study shows that
almost a quarter (24%) of investors plan
to commit more capital to funds in 2013
than they did in 2012, and a further 52%
intend to commit the same amount. Ten
percent of investors that intend to make
new commitments in 2013 did not commit
to any new funds in 2012, showing that
there are LPs set to return to the market
in the coming months.
The type and location of the most active
institutional investors in private equity
has continued to evolve over the past
couple of years. Incoming regulations,
such as Solvency II, the Dodd-Frank Act
and Basel III, have seen some of the key
backers of funds in the past, like banks
and insurance companies, become less
active, while others, such as sovereign
wealth funds and Asian investors, have
become more prominent sources of
capital. These shifts present challenges
for fund managers by drying up previous
sources of capital.
We are also seeing increasing numbers
of LPs explore methods of accessing the
asset class in addition to commitments
to blind pool funds. In particular, LPs
have shown strong interest in separate
accounts in the past year, though these
continue to be utilized only by those
LPs that are able to commit sizeable
sums of capital to the asset class. This
shift again presents challenges for fund
managers seeking to raise capital, and
the array of opportunities available also
makes investors private equity portfolio
allocation tasks ever more complex.
Outlook
Overall, it is clear that investors are
generally satised with the returns they
are receiving from their private equity
portfolios and the majority remain
committed to private equity over the short
and longer term. However, it is unlikely
that this will translate into considerable
growth in fundraising in 2013, particularly
as funds continue to take over 17 months
on average to fundraise, meaning any
gains now will take a while to be reected
in the fundraising gures for closed
vehicles. The number of funds on the
road continues to rise, with 1,940 funds
currently seeking an aggregate $795bn,
meaning we can expect a huge amount
of competition for investor capital in 2013.
The longer term future for private equity
and its ability to attract signicant
investment from institutional investors
seems secure, however, with the asset
classs demonstrated ability to produce
attractive returns over the longer term
ensuring that investors with high portfolio
returns targets will continue to allocate in
the coming years.
Preqins Private Equity Online
service provides comprehensive
information on all aspects of the
industry, including funds, managers,
investors, performance and deals.
www.preqin.com/privateequity
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5
Assets under Management
and Dry Powder
Assets under Management
For the rst time, assets under
management (AUM) of the entire
private equity industry, dened as the
uncalled capital commitments made to
private equity funds (dry powder) plus
the unrealized value of portfolio assets,
exceeded $3tn in December 2011. The
latest gures available, June 2012, show
private equity AUM at almost $3.2tn,
as shown in Fig. 3.1. This represents a
further increase of 5% from December
2011. The year-on-year growth in assets
under management has averaged around
10% between 2009 and 2011, lower than
the gures for the years preceding the
crisis, which saw AUM increases of as
much as 38% year on year.
As of June 2012, 69% of AUM was held
as unrealized portfolio value, and 31%
was attributed to dry powder. Since the
nancial crisis, the proportion of assets
under management represented by dry
powder has declined as fundraising for
new private equity funds has slowed; for
example, as of December 2006, 47% of
AUM was represented by dry powder.
Fig. 3.2 shows the assets under
management as of June 2012 split out by
fund type. Buyout funds hold the highest
proportion of the aggregate AUM, with
$1.29tn or 40% of the industry total. Real
estate funds have $557bn (18%), while
venture capital funds hold $384bn (12%).
Dry Powder by Fund Type

Current dry powder estimates show that
$946bn of capital is (as of December
2012) available to fund managers to make
investments, as displayed in Fig. 3.3,
considerably lower than the peak gure of
$1,071bn as of December 2008. Current
market conditions, which have resulted in
a sustained increase in the time that funds
are taking to raise capital, coupled with
deal activity remaining higher than it was
in the immediate aftermath of the nancial
298
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Unrealized
Value ($bn)
Dry Powder
($bn)
Fig. 3.1: Private Equity Assets under Management, 2000 - 2012
Source: Preqin Fund Manager Proles and Preqin Performance Analyst
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Dry Powder ($bn) Unrealized Value ($bn)
Other
Venture Capital
Real Estate
Mezzanine
Infrastructure
Growth
Distressed Private Equity
Buyout
Fig. 3.2: Private Equity Assets under Management by Fund Type,
June 2012
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Distressed Private Equity
Buyout
Fig. 3.3: Private Equity Dry Powder by Fund Type, 2003 - 2012
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Preqins Fund Manager Proles
database provides details of over
6,800 private equity rms, including
estimated dry powder, key contact
details, and much more.
www.preqin.com/fmp
6
Overview of Current
Funds in Market
There are a record 1,940 private equity
funds in market as of the start of 2013,
targeting aggregate capital commitments
of $795bn as Fig. 4.9 displays,
representing a signicant increase from
the previous year. The aggregate capital
sought by funds has also increased for
the second consecutive year.
Fund Type Breakdown
Buyout funds continue to seek the largest
amount of capital, $230bn, as shown in
Fig. 4.10. The second largest amount of
aggregate capital is being sought by real
estate funds; these funds are seeking
$147bn from investors, and represent
the largest number of funds in market of
any type, with 449 vehicles currently on
the road.

Regional Focus

Funds primarily focused on North
America are the most numerous, with 873
vehicles targeting $407bn in aggregate
capital. This is the regional focus with the
largest collective target, and represents
an increase of 17% in aggregate capital
targeted the previous year. At present
there are 456 Europe-focused funds on
the road seeking $196bn, representing an
increase of 11% compared to the number
of funds the previous year. There are 388
Asia-focused vehicles seeking $128bn
in aggregate capital from investors, and
$64bn is being sought by 233 Rest of
World-focused funds.
Time on the Road
Fig 4.11 shows the time spent on the
road so far by rst-time funds currently
in market compared to their experienced
counterparts. It highlights that 67%
of rst-time funds have spent over 12
months on the road thus far compared to
59% of non-rst-time funds.
Overall, competition in the fundraising
market in 2013 looks set to remain
intense. Nevertheless, 45% of the 1,940
funds in market have already held at least
one interim close, having so far secured
$167bn towards their nal targets, an
increase of 32% from the previous year.
This highlights that fund managers with a
compelling fund offering can still attract
investor capital.
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Aggregate
Target
Capital ($bn)
Fig. 4.10: Composition of Current Funds in Market by Fund Type
Source: Preqin Funds in Market
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50%
60%
70%
80%
90%
100%
All Funds in Market First-Time Funds Non-First-Time Funds
More than 24 Months
19-24 Months
13-18 Months
7-12 Months
Less than 6 Months
Fig. 4.11: Time Spent on the Road by Private Equity Funds Currently
in Market
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January 2009 January 2010 January 2011 January 2012 January 2013
No. of Funds
Raising
Aggregate
Target Capital
($bn)
Fig. 4.9: Private Equity Funds in Market Over Time, 2009 - 2013
Data Source:
Funds in Market provides
comprehensive information on all
1,940 funds currently in market,
including target size, interim closes,
investors, geographic focus and
much more. For more information,
please visit:
www.preqin.com/fim
4. Fundraising
7
Distressed Private Equity GPs
Key Stats and Facts
50%
35%
7%
8%
1 Fund
2-3 Funds
4-5 Funds
6 Funds or More
Fig. 5.21: Breakdown of Distressed Private Equity Firms by Number
of Funds Raised
Fig. 5.22: Number of Firms Actively Managing Distressed Private
Equity Funds by Country
GP Headquarters No. of Firms
US 101
UK 14
Japan 9
Hong Kong 6
Italy 6
India 5
South Korea 5
Germany 4
Netherlands 4
Australia 3
41%
40%
29%
22%
30%
47%
31%
28%
14%
29%
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10%
15%
20%
25%
30%
35%
40%
45%
50%
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Fig. 5.23 Distressed Private Equity Firms Industry Preferences for
Underlying Investments
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Distressed Debt Special Situations Turnaround
Fig. 5.24: Distressed Private Equity Firms by Type of Fund Raised
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Fig. 5.25: 5 Largest Distressed Private Equity Funds Raised of All Time
Fund Firm Year Closed Fund Size (bn) GP Location
OCM Opportunities Fund VIIB Oaktree Capital Management 2008 10.9 USD US
Cerberus Institutional Partners (Series Four) Cerberus Capital Management 2007 7.4 USD US
Avenue Special Situations V Avenue Capital Group 2008 6.0 USD US
CVI Global Value Fund I CarVal Investors 2007 5.8 USD US
MatlinPatterson Global Opportunities III MatlinPatterson Global Advisers 2007 5.0 USD US
Source: Preqin Fund Manager Proles Source: Preqin Fund Manager Proles
Source: Preqin Fund Manager Proles Source: Preqin Fund Manager Proles
Source: Preqin Fund Manager Proles
5. General Partners
Preqins Fund Manager Proles provides information on over 600 fund managers worldwide investing in distressed private
equity. For more information about this product and how it can assist you, please visit:
www.preqin.com/fmp
Data Source:
F E B R U A R Y 2 0
th
, 2 0 1 3
N E W YOR K
www.iglobalforum.com/distressed4
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Partners
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TPG
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KEYNOTE SPEAKERS
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Arif Naqvi Founder and Chief Executive, The Abraaj Group
Niklas Zennstrm CEO and Founding Partner, Atomico
Nikos Stathopoulos Managing Partner, BC Partners
PANELS
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Distressed Investing
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Featuring prominent panellists from:
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9
TH
ANNUAL
PRIVATE EQUITY &
VENTURE CAPITAL
CONFERENCE
NAVIGATING CHALLENGING TIMES:
IDENTIFYING POCKETS OF GROWTH AND DRIVING
RETURNS IN AN UNCERTAIN ENVIRONMENT
Friday 15 March 2013
Church House Conference Centre,
Westminster, London SW1P 3NZ
Media
Sponsors:
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9
PrEQIn Private Equity
Quarterly Index
Returns from private equity funds
are typically measured using IRRs
and multiples. These are appropriate
measures of the returns from these types
of long-term investments and enable
direct comparisons of private equity funds
to other private equity funds.
However, a different metric is needed
by investors seeking to compare their
private equity portfolios with their overall
investment portfolios. These asset
allocation tasks call for metrics that can
compare private equity returns and those
of other asset classes. The PrEQIn Index
captures in an index the return earned
by investors on average in their private
equity portfolios, based on the actual
amount of money invested in private
equity partnerships. This time-weighted
measure provides a straightforward
method of comparison of private equity to
other asset classes since a dened point
in time and across all vintages.
Fig. 6.8 shows the PrEQIn All Private
Equity, Buyout, Venture Capital, Real
Estate, Fund of Funds and Distressed
Private Equity Indices together with
the S&P 500 Index rebased to 100 as
of 31st December 2000. By examining
these indices, we gain an insight into the
performance of the main private equity
fund types in comparison to the whole
industry. The PrEQIn All Private Equity
Index shows an initial decline after the
dot-com crash in the early 2000s, but then
steadily increases until December 2007,
after which the nancial crisis of 2008 and
2009 caused signicant falls. The period
2009 to 2012 witnessed fairly steady
quarterly increases in the All Private Equity
Index, though there was a slight dip in Q2
2011 due to market instability resulting
from concerns over European sovereign
debt. The index reached its highest point
of 215.2 as of 30th June 2012.
It is apparent that the PrEQIn Buyout
Index closely follows the trends seen in
the All Private Equity Index, as a large
proportion of capital within the private
equity industry is held in buyout funds.
The PrEQIn Real Estate Index was the
best performer prior to the downturn, but
the sub-prime mortgage crisis resulted
in large quarterly decreases during 2008
and 2009. The other fund type indices
also show sharp declines during this time,
reaching their lowest points in early 2009.
However, the PrEQIn Real Estate Index
continued its decline after this, reaching its
lowest point in the latter half of 2010. The
PrEQIn Distressed Private Equity Index
shows that this fund type has consistently
outperformed the private equity asset
class as a whole and has been one of
the best performing strategies within the
industry. While this index also shows sharp
quarterly decreases between Q2 2008
and Q1 2009, the subsequent recovery
was achieved at a faster rate compared to
other fund types as managers sought to
take advantage of the relative abundance
of distressed investment opportunities
following the economic downturn. With
the exception of the PrEQIn Venture
Capital Index, all of the PrEQIn Indices
have outperformed the S&P 500 Index as
of Q2 2012 over the period shown.
PrEQIn Fund Quartile Indices
Fig. 6.9 shows the PrEQIn Private Equity
Quarterly Index rebased to 100 as of
31st December 2000 for funds within
each performance quartile ranking.
Following initial declines from Q4 2000,
the PrEQIn Top Quartile Index recovered
and moved back to above 100 in Q4
2002. Since the declines seen in each
index due to the nancial crisis in 2008
and 2009, the PrEQIn Top Quartile Index
has experienced signicantly higher
quarterly increases compared to other
fund quartiles, highlighting that the ability
to select the best fund investments results
in superior returns.
0
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2
PrEQIn All Private
Equity Index
PrEQIn Buyout
Index
PrEQIn Venture
Capital Index
PrEQIn Real
Estate Index
PrEQIn Fund of
Funds Index
PrEQIn Distressed
Private Equity
Index
S&P 500
Fig. 6.8: PrEQIn - Private Equity Quarterly Index: All Strategies
I
n
d
e
x

R
e
t
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2
PrEQIn Top
Quartile Index
PrEQIn Second
Quartile Index
PrEQIn Third
Quartile Index
PrEQIn Fourth
Quartile Index
Fig. 6.9: PrEQIn - Fund Quartile Indices
I
n
d
e
x

R
e
t
u
r
n
s

(
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b
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r

2
0
0
0
)
Source: Preqin Performance Analyst Source: Preqin Performance Analyst
PrEQIn is the rst quarterly
index for the whole private equity
industry, enabling comparison of
the performance of private equity
funds against other asset classes.
www.preqin.com/pa
Data Source:
6. Performance
Preqin Global Data Coverage
Plus
Comprehensive coverage of:
- Placement Agents - Dry Powder
- Fund Administrators - Compensation
- Law Firms - Plus much more...
- Debt Providers
- Over 150 research, support and development staf
- Global presence - New York, London and Singapore
- Depth and quality of data from direct contact methods
- Unlimited data downloads
- The most trusted name in alternative assets
New York: +1 212 350 0100 - London: +44 (0)20 7645 8888 - Singapore: +65 6305 2200 - Silicon Valley +1 650 632 4345
www.preqin.com

The Preqin Difference
Fund Coverage: Funds
13,604 Private Equity* Funds
4,032 PE Real
Estate Funds
661 Infrastructure
Funds

28,340
Firm Coverage: Firms
6,866 PE Firms
1,700 PERE
Firms
370 Infra. Firms

14,061
Deals Coverage: Deals Covered; All New Deals Tracked
28,455 Buyout Deals** 37,839 Venture Capital Deals***
2,452 Infra. Deals

68,746
As of 8 February 2013
Investor Coverage: Institutional Investors Monitored,
Including 7,408 Verified Active**** in Alternatives and 77,942 LP Commitments to Partnerships
4,822 Active PE LPs 3,948 Active Hedge Fund Investors 3,560 Active RE LPs

10,341
1,930 Active
Infra. LPS
Alternative Investment Consultant Coverage: Consultants Tracked
440
*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
227,754
Fund Terms Coverage: Analysis Based on Data for Around Funds
6,500
Fundraising Coverage: Funds Open for Investment/Launching Soon
Including 1,910 Closed-Ended Funds in Market and 467 Announced or Expected Funds
1,614 PE Funds
915 PERE
Funds
250 Infra. Funds

11,349
Performance Coverage: Funds (IRR Data for 4,926 Funds and Cash Flow Data for 2,234 Funds)
10,456
5,028 PE Funds
1,026 PERE
Funds
126 Infra. Funds
10,208 Hedge Funds
5,125 Hedge Fund Firms
4,276 Hedge Funds
8,570 Hedge Funds
11
Private Equity
Benchmarks
Vintage
No.
Funds
Median Fund Multiple Quartiles (X) IRR Quartiles (%) IRR Max/Min (%)
Called (%) Dist (%) DPI Value (%) RVPI Q1 Median Q3 Q1 Median Q3 Max Min
2012 22 6.3 0.0 84.4 0.99 0.84 0.54 n/m n/m n/m n/m n/m
2011 44 21.2 0.0 90.9 0.97 0.91 0.83 n/m n/m n/m n/m n/m
2010 34 38.1 0.0 96.4 1.13 1.04 0.88 n/m n/m n/m n/m n/m
2009 36 57.7 2.1 101.0 1.34 1.16 1.03 16.7 10.0 5.5 94.9 -11.3
2008 67 67.4 13.0 99.9 1.42 1.18 1.02 17.7 8.2 1.5 43.8 -31.1
2007 90 86.1 24.0 95.6 1.44 1.28 1.09 15.0 9.9 4.0 43.0 -25.9
2006 75 92.3 36.5 91.0 1.50 1.30 1.13 13.3 8.9 3.4 33.4 -27.1
2005 78 95.2 67.0 72.8 1.63 1.41 1.25 16.0 9.4 6.2 76.9 -3.6
2004 39 92.6 119.0 62.0 2.15 1.83 1.59 27.2 16.3 10.2 80.2 -7.0
2003 32 97.0 143.8 39.5 2.56 1.80 1.43 35.5 20.7 12.4 57.5 -86.2
2002 30 97.4 157.0 19.5 2.26 1.89 1.32 36.6 19.2 9.1 72.0 -4.8
2001 32 96.0 189.2 16.0 2.78 2.11 1.67 42.8 28.8 14.4 94.0 6.1
2000 58 97.3 166.0 10.5 2.28 1.77 1.45 26.7 19.3 11.4 57.5 -5.7
1999 38 100.0 149.8 1.1 2.06 1.60 1.05 17.4 12.8 5.0 36.4 -25.1
1998 52 98.4 145.8 0.0 1.97 1.47 0.98 18.7 8.5 -1.9 31.9 -100.0
1997 44 100.0 162.3 0.0 2.13 1.64 1.10 19.9 9.9 2.3 84.0 -21.6
1996 26 99.8 171.6 0.0 2.32 1.72 0.88 22.0 11.1 -0.4 147.4 -19.6
1995 26 100.0 131.3 0.0 2.18 1.31 1.08 19.8 9.2 2.3 59.9 -15.5
1994 33 100.0 169.0 0.0 2.15 1.69 1.45 29.2 17.9 9.9 92.2 -5.0
1993 17 100.0 207.0 0.0 2.88 2.02 1.39 26.7 16.9 7.7 58.0 0.8
1992 18 100.0 206.1 0.0 3.22 2.06 1.49 37.6 21.2 7.9 60.6 -49.9
1991 9 100.0 260.5 0.0 3.75 2.61 2.07 48.7 26.0 25.0 54.7 -0.5
1990 20 100.0 238.0 0.0 3.30 2.38 1.43 31.1 18.6 7.9 72.0 2.4
Fund Type: Buyout
Geographic Focus: All Regions
Benchmark Type: Median
As At: 30 June 2012
Vintage
Mega Buyout Large Buyout Mid-Market Buyout Small Buyout
Median Fund Weighted Fund Median Fund Weighted Fund Median Fund Weighted Fund Median Fund Weighted Fund
Multiple
(X)
IRR
(%)
Multiple
(X)
IRR
(%)
Multiple
(X)
IRR
(%)
Multiple
(X)
IRR
(%)
Multiple
(X)
IRR
(%)
Multiple
(X)
IRR
(%)
Multiple
(X)
IRR
(%)
Multiple
(X)
IRR
(%)
2012 n/a n/m n/a n/m 0.60 n/m 0.70 n/m 0.89 n/m 0.66 n/m 0.84 n/m 0.70 n/m
2011 0.95 n/m 0.95 n/m 0.93 n/m 0.91 n/m 0.91 n/m 0.89 n/m 0.87 n/m 0.79 n/m
2010 n/a n/m n/a n/m 1.03 n/m 0.98 n/m 0.90 n/m 0.93 n/m 1.01 n/m 1.02 n/m
2009 1.12 6.8 1.16 6.6 1.12 8.8 1.19 17.4 1.13 11.7 1.17 10.8 1.24 9.2 1.21 15.1
2008 1.06 3.1 1.19 7.8 1.23 11.4 1.22 10.1 1.14 8.0 1.10 7.8 1.23 10.1 1.09 9.7
2007 1.18 6.2 1.13 4.1 1.29 9.9 1.24 8.5 1.28 10.0 1.29 10.3 1.28 10.4 1.31 9.4
2006 1.10 2.8 1.08 0.6 1.30 8.0 1.21 6.1 1.17 5.6 1.28 6.4 1.33 9.0 1.44 9.8
2005 1.60 10.3 1.65 10.7 1.27 6.4 1.35 9.8 1.32 8.7 1.44 12.4 1.51 12.4 1.83 22.3
2004 1.60 10.9 1.71 15.3 1.74 16.6 1.58 9.3 1.78 14.2 1.35 8.6 1.80 18.4 1.44 7.3
2003 1.83 23.9 2.07 26.3 1.98 19.0 2.11 21.4 1.57 14.3 1.71 17.3 1.53 20.5 1.81 17.0
2002 1.86 24.0 1.82 23.6 1.91 21.9 1.91 20.9 2.07 23.7 1.80 21.6 1.78 17.4 2.13 27.7
2001 2.41 28.9 2.48 32.9 1.99 24.8 2.13 25.8 1.96 24.7 2.10 25.6 2.03 29.0 1.74 17.4
2000 2.00 18.6 1.98 18.3 1.75 17.0 1.75 15.4 2.07 20.0 1.98 18.2 1.98 18.9 1.73 29.6
1999 1.81 11.5 1.63 7.9 1.61 9.7 1.52 5.9 1.90 10.5 1.95 12.2 1.65 14.3 1.20 4.6
1998 1.45 5.8 1.39 5.0 1.36 7.9 1.25 1.4 1.46 7.4 1.52 4.2 1.64 11.4 1.72 11.1
1997 1.70 10.0 1.50 5.9 1.72 11.8 1.78 19.1 1.12 2.2 1.15 2.6 1.60 10.9 1.41 8.3
Fund Type: Buyout by Fund Size
Geographic Focus: All Regions
Benchmark Type: Median
Denition used for Mega, Large, Mid-Market, Small Buyout: Small Mid-Market Large Mega
Vintage 1992-1996 $200mn $201-$500mn > $500mn -
Vintage 1997-2004 $300mn $301-$750mn $751mn-$2bn > $2bn
Vintage 2005-2012 $500mn $501mn-$1.5bn $1.6-$4.5bn > $4.5bn
Source: Preqin Performance Analyst
Source: Preqin Performance Analyst
6. Performance
The Preqin Private Equity
Performance Benchmarks
module offers the most meaningful
benchmarking and comparative
tools available in the industry.
Get free access to median, pool,
weighted and average benchmarks
by fund type and region focus.
www.preqin.com/benchmarks
Data Source:
Asias leading private
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Co-located with:
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CEO
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Management Asia
Joyce Phillips
CEO
ANZ
Claude Haberer
CEO
Pictet Wealth
Management Asia
Rohit Bhuta
CEO
Religare Macquarie
Wealth Management
Anne Lee
Director
Sing Lun Investments
En Lee
Director, Impact Partners
Impact Investment
Exchange
Gina Fyffe
Executive Director
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Speakers include:
PRIVATE EQUITY
INVESTORS FORUM
March 14, 2013 | New York, NY
CENTER FOR INSTITUTIONAL INVESTOR EDUCATION
13
The Evolution of the
Limited Partner Universe
With stricter regulation affecting certain
LPs in North America and Europe,
fund managers have had to source
an increasing amount of capital from
different investor groups in a challenging
fundraising environment. Furthermore,
with LPs based in Asia and Rest of World
becoming more experienced in investing
in private equity, fund managers are now
securing a greater proportion of capital
from investors outside of traditional
nancial markets. As a result of this, the
make-up of the limited partner universe
has continued to evolve over the past few
years.
Types of Investors Active in Private Equity
Regulation of the industry and of its
investors is becoming increasingly
complex and stringent in developed
markets, with banks likely to be affected
signicantly by incoming regulations. The
Volcker Rule, set to come into effect this
year, will limit the amount of capital US
banks can place into private equity, while
Basel III will require European banks to
also hold more liquid assets by 2019. As
Fig. 7.1 displays, banks account for 6%
of investors active within private equity,
having fallen from 9% in Q1 2010.
Similarly, the proportion of overall capital
invested in the asset class by banks
has fallen over the past few years. The
aggregate amount of capital currently
invested in private equity is estimated to
be $1.64tn as of June 2012; this is the
amount invested in private equity and
does not include committed capital that
has yet to be called up by fund managers.
This gure is calculated using the sum
of the remaining value of portfolios of
private equity funds that have reached
a nal close (excluding funds of funds,
secondaries funds, real estate funds and
infrastructure funds).
In June 2008, banks accounted for 11%
($115bn) of this total capital invested
in private equity, whereas, as Fig. 7.2
displays, this gure had fallen to 6%
($100bn) as of June 2012, as many have
started to wind down their private equity
operations and sell fund interests on the
secondary market.
The private equity activity of European
insurance companies has also been
affected by regulation. The Solvency II
directive that is scheduled to come into
effect early in 2014 will require these
institutions to hold more liquid assets,
restricting the amount that can be invested
in private equity. In June 2008, insurance
companies accounted for 13% ($140bn)
of capital invested in private equity,
compared to just 8% ($131bn) of invested
capital in the asset class in June 2012.
While some types of investor have
become less prominent sources of
capital for private equity funds over
recent years, other investor types have
increased their activity in the asset class.
Sovereign wealth funds have increased
the amount of capital they have invested
in private equity year on year since 2008,
representing 8% ($131bn) of invested
capital as of June 2012, compared to just
5% ($50bn) in June 2008.
Locations of Investors Active in Private
Equity
Europe-based LPs now represent a
smaller proportion of active private
equity investors than they did in the past;
European LPs accounted for 32% of
active LPs in Q1 2011, but now account
for just 27%, as shown in Fig. 7.3. As
displayed in Fig. 7.4, the proportion of
total capital invested in the asset class
accounted for by European LPs has also
fallen, from 37% in June 2010 to 31% in
June 2012.
Although the proportion of investors in
private equity that are located in Asia and
Rest of World has increased only slightly
over recent years, the amount of capital
invested in the asset class by these LPs
has risen more substantially. In June
15%
12%
11% 11%
8%
7%
6%
5% 5%
4% 4% 4%
3%
2% 2%
1%
0%
2%
4%
6%
8%
10%
12%
14%
16%
F
o
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d
a
t
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s
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e

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e
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a
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F
a
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y

O
f
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h

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a
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q
u
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v
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r
e
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g
n

W
e
a
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t
h

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u
n
d
s
Fig. 7.1: Make-up of Limited Partner Universe by Investor Type
(Number of LPs)
P
r
o
p
o
r
t
i
o
n

o
f

I
n
v
e
s
t
o
r
s
Source: Preqin Investor Intelligence
29%
14%
9% 9%
8% 8%
6%
5%
4%
3% 3%
2%
0
50
100
150
200
250
300
350
400
450
500
P
u
b
l
i
c

P
e
n
s
i
o
n

F
u
n
d
s
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r
i
v
a
t
e

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e
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t
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r

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e
n
s
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o
n

F
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n
d
s
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n
d
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m
e
n
t

P
l
a
n
s
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o
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n
d
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t
i
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s
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r
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g
n

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e
a
l
t
h

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d
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n
s
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r
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n
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e

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s
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a
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s

&

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s
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C
o
r
p
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r
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t
e

I
n
v
e
s
t
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r
s
Fig. 7.2: Breakdown of Aggregate Capital Currently Invested in
Private Equity by Investor Type (Excluding Funds of Funds and Asset
Managers)
A
m
o
u
n
t

o
f

C
a
p
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t
a
l

I
n
v
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e
d

i
n
P
r
i
v
a
t
e

E
q
u
i
t
y

(
$
b
n
)
Source: Preqin Investor Intelligence
7. Investors
Preqins Investor Intelligence provides
detailed and up-to-date information on
investors current fund searches and
open mandates helping GPs to source
capital for funds.
www.preqin.com/ii
Data Source:
14
Make-up of PE-Backed Buyout Deals
in 2012 by Type, Value and Industry
Deal Flow by Type
As shown in Fig. 10.8, leveraged buyouts
(LBOs) continue to represent a signicant
proportion of both the number of private
equity-backed buyout deals and the
aggregate deal value, accounting for
43% and 62% respectively. This is an
increase in comparison to 2011, when
LBOs accounted for 41% and 55% of the
number and aggregate value of deals
respectively, showing the continued
interest in this traditional investment type.
Each year from 2008-2012, LBOs have
accounted for more than half of the
aggregate deal value, an increase in
comparison to 2006 and 2007, when
LBOs accounted for 41% of the total.
Notable leveraged buyout deals which
occurred during 2012 include the $7.15bn
acquisition of El Paso Corporations
oil and natural gas exploration and
production assets by Access Industries,
Apollo Global Management, Korea
National Oil Corporation and Riverstone
Holdings, and the $6.6bn acquisition of
Cequel Communications by BC Partners
and CPP Investment Board.
Add-on transactions continue to be an
important investment type for private
equity rms to enhance the value of
existing portfolio companies through
strategic acquisitions. 2012 follows
a similar trend to 2011; add-on deals
accounted for over 30% of the number of
deals in both years, in comparison to only
18% in the years prior to the economic
downturn. This rise in the prominence
of add-on transactions is a reection
of the increased importance that fund
managers are giving to consolidating
and strengthening their current portfolio
companies as market and credit
conditions remain volatile.
Growth capital deals make up a similar
proportion of the number and aggregate
value of deals to 2011: 15% of all
global private equity-backed deals and
accounting for 7% of the aggregate deal
value in 2012.
Public-to-private transactions accounted
for only 2% of all private equity-backed
buyout deals in 2012, yet represented
12% of global aggregate deal value. On
43%
62%
33%
11%
15%
7%
3%
4%
4%
4%
2%
12%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
No. of Deals Aggregate Deal Value
LBO Add-on Growth Capital Recapitalization PIPE Public To Private
Fig. 10.8: Breakdown of Number and Aggregate Value of Private Equity-Backed Buyout
Deals in 2012 by Type
58%
7%
20%
10%
8%
11%
6%
17%
8%
55%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
No. of Deals Aggregate Deal Value
Less than $100mn $100-249mn $250-499mn $500-999mn $1bn or More
Fig. 10.9: Breakdown of Number and Aggregate Value of Private Equity-Backed Buyout
Deals in 2012 by Value Band
P
r
o
p
o
r
t
i
o
n

o
f

T
o
t
a
l
Source: Preqin Buyout Deals Analyst
P
r
o
p
o
r
t
i
o
n

o
f

T
o
t
a
l
Source: Preqin Buyout Deals Analyst
10. Buyout Deals
Deals Analyst features details of over 60,000 buyout and venture deals globally,
including information on deal value, buyers, sellers, debt nancing providers,
nancial and legal advisors, exit details and more.
www.preqin.com/deals
Data Source:
15
Conferences Spotlight
Conference Dates Location Organizer
Global Distressed Debt Investing Summit 20 Feb 2013 New York iGlobal Forum
SuperReturn International 25-28 Feb 2013 Berlin ICBI
Emerging Manager Forum Middle East 2013 3 March 2013 Dubai Terrapinn
SuperReturn Latin America 4-6 March 2013 Brazil ICBI
Private Equity World Middle East 2013 4-5 March 2013 Dubai Terrapinn
IBA/ABA Conference on Private Investment Funds 11-12 March 2013 London International Bar Association
Clean Energy Finance & Development 2012 11-13 March 2013 London Informa
Private Equity Investors Forum 14 March 2013 New York US Markets
6th Asian Family Ofce & 9th Private Banking Asia
Conference 2013
12-14 March 2013 Singapore Terrapinn
9th Annual London Business School Private Equity & Venture
Capital Conference
15 March 2013 London London Business School
Private Banking Asia 2013
Date: 12-14 March 2013 Information: www.terrapinn.com/conference/private-banking-asia
Location: Singapore
Organiser: Terrapinn Singapore
Now in its 9th year, Private Banking Asia brings together Asias leading private banks, family offices and independent wealth managers
to discuss strategy, investment allocations, changing business models and new business opportunities in the Asian private wealth
sector. Co-located with the Asian Family Office Forum, for 8 years Private Banking Asia has been the premier forum for the leading
private banks, family offices and wealth managers to access Asias ever growing private wealth industry. For more information, please
visit www.terrapinn.com/privatebankingasia
Conferences
4th Global Distressed Debt Investing Summit
Date: 20 February 2013 Information: www.iglobalforum.com/distressed4
Location: New York
Organiser: iGlobal Forum
iGlobal Forum is pleased to announce the 4th Global Distressed Debt Investing Summit due to take place on February 20th, 2013 in
New York City. The summit will present the perfect platform for networking and face-to face discussions with the leading Distressed
Fund Managers, Private Equity Funds, Hedge Funds, Investment Banks, Bankruptcy Advisors, Loan Originators, Debt Providers, and
Rating Agencies.
16
Conferences
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 from sources that are believed to be accurate, and to conrm the 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.
The Private Equity Investor Forum
Date: 14 March 2013 Information: www.usmarkets.org/forums/private-equity-investor-forum/overview
Location: New York
Organiser: US Markets
US Markets Private Equity Investor Forum hosts some of the most well-respected allocators to PE today. This is a forum that puts the focus
back on the institutional investors understanding their objectives and constraints and how private equity is affecting their portfolios.
London Business School 9th Private Equity & Venture Capital Conference
Date: 15 March 2013 Information: www.londonpevcconference2013.org
Location: London
Organiser: London Business School Private Equity & Venture Capital Club
Hosted by the LBS Private Equity & Venture Capital Club, this flagship event attracts a variety of professionals from GPs to LPs,
recruiters, media, as well as enthusiastic business students and academic leaders, forming a diverse debate of trends, challenges and
opportunities in the private equity and venture capital space.

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