Preqin Private Equity Spotlight August 2010

8/8/2019 Preqin Private Equity Spotlight August 2010

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Dear Spotlight reader,

Heres some good news!

Ill be speaking at The Capital Roundtables MasterClass on PE Investor Relations beingheld at the University Club in New York City on Thursday, September 30.

If youre in the city that day, Id enjoy seeing you. Weve negotiated a special rate for

friends of Preqin. To get the special rate, contact Shaina Mardinly at 212-832-7333 ext.103, or email her at [email protected]. Please be sure to use my name.

The full title of this year s conference is -- PE Investor Relations -- Actionable Tactics YouNeed to Use in 2011 To Keep Your LPs Interested.

This full-day conference is being co-chaired Martha Cassidy -- director in the investmentmanagement team at Capital Dynamics in New York, and Kate Goodall -- investorrelations manager at SVG Advisers in London. Along with Martha and Kate, youll hearfrom other prominent IR professionals and GPs from a variety of funds, leading LPs,

and other PE industry specialists who specialize in management, communication, andfundraising best practices.

For more details -- click here -- http://www.capitalroundtable.com/masterclass/Capital-Roundtable-Investor-Relations-Conference-2010.html

I hope to see you on the 30th for what promises to be a great day.

Best regards,

David Lawrence

Preqinwww.preqin.com

2010 Preqin Ltd. / www.preqin.com


2/22

Private EquitySpotlight

Welcome to the latest edition o Private Equity Spotlight, the monthly newsletter rom Preqin providing insights into private equity

perormance, investors and undraising. Private Equity Spotlight combines inormation rom our online products Perormance Analyst,

Investor Intelligence, Fund Manager Profles, Funds in Market, Secondary Market Monitor and Deals Analyst.

August 2010 / Volume 6 - Issue 8

DEALS PERFORMANCE INVESTORS FUNDRAISING FUND MANAGERS

www.preqin.com

Buyouts: A Changed Industry?

This months eature article looks at the uture o buyout unds,

and how the market has changed since the global fnancial crisis.

Feature Articlepage 5

Mega, Large, Mid-Market and Small Buyout Funds

Using Preqins new perormance benchmark, Perormance

Spotlight examines the perormance o dierent sized buyout

unds.

Performance Spotlightpage 9

Investor Newspage 22

Buyout Special

A detailed look at the und type preerences o buyers and sellers

in the secondary market.

Secondaries Spotlight page 16

Investor Views on Buyout Funds

Poor perormance during the fnancial crisis dented theconfdence o many investors in buyout unds; this survey looks

at how appetite or these unds has changed as a result.

Investor Spotlight page 17

OUT NOW

The 2010 Preqin Buyout Review

More inormation available at:

www.preqin.com/buyoutreview


What would you like to see in Private Equity Spotlight?Email us at: [email protected]

Fundraising Spotlight page 12

London:

Scotia House, 33 Finsbury Square, London, EC2A 1BB+44 (0)20 7065 5100

New York:

230 Park Avenue, 10th Floor, New York, NY 10169+1 212 808 3008

www.preqin.com

Join our group on: search for Preqin

Follow us on: www.twitter.com/preqin

You can now download all the data in

this months Spotlight in Excel.

The 2010 Preqin Private EquityBuyout Review

Fund Manager Spotlight page 14

Deals Spotlight page 10

Industrials Sector

This month we examine some o the characteristics o buyout

deals in the industrials sector.

Buyout Funds in Market

This months undraising spotlight examines the buyout

undraising market and looks at the average time taken or such

unds to close.

Buyout Firms

We take an in-depth look at buyout frms, including a breakdown

by size, location and investment preerences.

All the latest news on private equity investors.
http://www.preqin.com/go.aspx?lid=1258http://www.preqin.com/go.aspx?lid=1258http://www.preqin.com/go.aspx?lid=1258


3/22

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4

August 2010




This month Spotlight contains a detailed look at the global private equity-backed buyouts industry, featuring an in-depth look at the latest

developments in fundraising, performance and investor sentiment. We also take a look at the deals being done in 2010 speci fically

examining the industrial sector in our Deals Spotlight.

Our Performance article uses newly developed Preqin Benchmarks to examine how the performance of buyout funds varies by size. Dont

forget that we offer free access to our online private equity benchmarks service. If youre not already signed up you can do so at

www.preqin.com/benchmarks and view median and quartile returns (multiples and net IRRs) for different vintage years across fund types,geographies and now sizes.

Our Fundraising Spotlight examines buyout funds in market, including an analysis of funds with interim closes and how successful firms

have been in exceeding their targets.

The future of the buyout industry is closely linked to investor appetite for funds of this type in the future. Our investor survey examines both

short terms and long term preferences of LPs for buyout funds, and includes information on fund size preferences and how these have

changed since the onset of the financial crisis.

Much of the analysis in this months Spotlight is taken from our newest publication, the 2010 Preqin Private Equity Buyout Review. This newly

released premium publication provides a comprehensive overview of the industry, including profiles for the top 500 firms worldwide, and the

most important 600 LPs. For more information, please visit www.preqin.com/buyoutreview

We hope that you find this months issue of Spotlight to be informative and useful, and as ever we welcome any suggestions that you may

have for future issues.

Best Regards,

Tim Friedman,

Editor

P.S. Dont forget that you can download all the charts in Spotlight in Excel format to use in your own presentations. Just click the link at the

bottom of every page to get the file.

Editors Foreword:

Editors Foreword


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5


August 2010



Feature Article:

Buyouts: A Changed Industry?

Feature Article

Over the past 10 years, the buyout sector has undergone a

number of important changes, evolving into an industry of

increased significance on the global economic stage. After

suffering a dip in fundraising during the economic downturn

following the turn of the millennium, the market grew

significantly from 2003 onwards in terms of both the overall

capital being raised and the size of funds achieving a final

close. Fuelled by strong returns, institutional investor appetite

for funds reached its peak in 2008, when funds raised an

aggregate $248 billion overfive times the $44 billion whichmanagers garnered in 2003 (Fig. 1).

Dramatic Change

The abundance of leverage available in the markets amplified

the increase experienced in fundraising, and in 2006 the total

deal value for private equity-backed buyout deals reached a

peak of $685 billion worldwide over 10 times the $66 billion in

global PE-backed dealflow seen in 2001 (Fig. 2). Consequently,

when the global downturn struck, the effect was felt especially

hard by the global buyout industry. Fund managers lacked the

available financing or market stability required to undertake new

deals, and the value of portfolio companies bought at the height

of the market boom saw significant write-downs, sending fund

performance deep into the red. Investors that had previously

been pumping money into the asset class held back from

making new commitments.

2009 was a year of extreme uncertainty, with the value of global

deal flow falling to $81.6 billion only the second time since

the turn of the millennium that private equity-backed deal flow

was at sub-$100 billion levels. However, with fund managers

having around $500 billion in equity available to them to spend

in the form of uncalled commitments, this figure was especially

concerning, and with one-year performance of buyout funds

standing at -33% as of March 2009, the management fees

being charged on this vast outstanding amount became a

source of unrest for institutional investors, many of which were

halting new fund commitments altogether as a result of poor

performance, continued uncertainty and growing dissatisfaction

at fund terms and conditions.

The impact can clearly be seen in the total capital that the

industry was able to raise during the course of the year, with just

$107 billion being raised by funds holding a final close during

2009. With some of these funds having spent a considerable

amount of time on the road before closing, the real amount of

capital actually committed in 2009 specifically is likely to be

significantly lower than this figure would suggest. Many fund

managers had to abandon their fundraising efforts as conditions

became increasingly competitive, with the average amount of

time required to close a fund increasing to 18.8 months in 2010

up from 11 months in 2005.

The Bigger They Are...

A major contributing factor to the overall growth experienced

in the global buyout industry up to 2008 was the increase in

the number and size of both buyout funds and buyout deals.

Following the launch of Goldman Sachs $8.5 billion fund

in 2005, 24 funds have been raised with a size exceeding

$8 billion between 2005 and 2010. With these funds

typically employing the highest levels of leverage, they were

particularly affected by the market downturn and fund NAVs

Fig. 1:

90

121

181

228 228220

96

3644

69

147

223

246 248

107

31

0

50

100

150

200

250

300

2003 2004 2005 2006 2007 2008 2009 H1 2010

No. ofFunds

AggregateCapitalRaised($bn)

Source: Preqin

Annual Number and Value of Buyout Funds Raised:2003 - H1 2010

Fig. 2

0

100

200

300

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500

600

700

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1,000

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 H12010

No. of Deals Aggregate Deal Value ($bn) Source: Preqin

Number and Value of Exits: 2000 H1 2010

No.ofExits

AggregateExitValue($bn)


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August 2010



for these largest vehicles dropped by more than their smaller

counterparts. This prompted institutions to turn their backs on

the mega fund - only two vehicles with a size exceeding $8

billion held a final close in 2009 with a considerable proportion

of this capital having been raised before September 2008. The

proportion of private equity-backed deals occurring at values

above $1 billion fell to just 3% of the total, down from 8% in

2008. Smaller and mid-market deals saw their share of the total

number of deals grow, with deals valued at less than

$500 million accounting for 81% of the total in 2009,

up from 73% in 2008.

The Road to Recovery

As the global economy has begun to recover, with

equities prices increasing and the balance sheets of

banks being bolstered, the global buyout industry has

also started to show signs of improvement. Fund net

asset values have risen steadily following a turning

point in March 2009, and one-year performance for

the industry turned positive as of December 2009.

After the largest buyout funds were most affected

by the downturn, they are now showing the highest

recovery levels, with NAVs for mega buyout funds

consistently improving by the highest factor betweenquarter year periods. In the markets, the number

and value of private equitybacked deals has seen

improvement, with deals totalling $67 billion in value

having been announced in the first half of 2010,

compared with $81.6 billion for the whole of 2009.

Although some way short of the near $700 billion

levels being seen in 2006-2007, it is a positive and

encouraging trend that suggests the industry is on its

way to recovery.

Problems in the Fundraising Market

One area in which the buyout sector continues tostruggle is with new fundraising. The first half of 2010

saw just $31 billion being raised by new funds achieving a final

close. So with performance improving and deal flow picking up,

what are the reasons behind the sluggishness still apparent in the

fundraising market?

Although investors are still somewhat cautious when considering

making new investments, the results of Preqins survey of 300

leading LPs does indicate that the majority of investors (60%)

Fig. 3:

Source: Preqin

LPs Plans for Their Buyout Allocations in the Next 12 Months

Feature Article

Fig. 4:

0

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Q12008

Q22008

Q32008

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Q22010

Trade Sale Secondary Buyout Sale Restructuring IPO Aggregate Exit Value ($bn)Source: Preqin

Number and Value of Exits by Type: Q1 2008 Q2 2010

No.ofExits

AggregateExitValue($bn)

Register: 516-876-8006 or www.dealflow.com

Decreased activity in the IPO and M&A markets over the last several years has

left many private company stakeholders without a path to liquidity, creating a

growing secondary market for private company stock. While welcomed, this

comes with a host of legal, investment and tax considerations. These issues

and more are explored at The Private Company Stock Conference in Palo Alto.

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August 2010



are still seeking to maintain their allocations to private equity in the

next 12 months. There is even evidence that some investors are

seeking to increase their allocations to private equity, with 18% of

those polled indicating a planned rise in private equity investments

compared with only 10% that plan to reduce their exposure (the

remaining 12% are investing opportunistically) (Fig. 3).

The main reason for the drop off in new commitments being made

to buyout funds is therefore the cash flow position in which investors

are finding themselves in. With the majority of investors seeking to

simply maintain allocations for the time being, their commitments to

new vehicles will be driven by both the amount of capital that they

have called up in their funds and the distributions that they have

been receiving from maturing investments, as they will have to

reinvest this capital in order to maintain their allocations. An increase

in fundraising will therefore only really be seen once the number

of exits in the market begins to increase, and there is certainlyencouraging news on this front. Q2 2010 saw $40.5 billion in exits,

representing the second-highest quarter since the onset of the

financial downturn. Capital is once again beginning to churn through

the private equity machine, and as a result an upturn in private equity

fundraising is looking increasingly likely for the end of 2010 and into

2011.

A Changed Industry?

After emerging from the most dramatic global financial downturn in

living memory, the buyout industry does look somewhat different, and

has undergone changes as a result of the experiences of the past

two years. Investor attitudes to funds have changed significantly,

with institutions now taking far more time and care when selecting

fund managers to commit to. Automatic re-ups are a thing of the past

as institutions are scrutinizing their existing relationships and closely

examining all new opportunities. There has been a growth in appetite

for mid-market deals as opposed to mega-sized deals, and this has

been reflected in a growing number of smaller deals taking place,

both from dedicated mid-market players and also from some of the

larger fund managers with mega-sized funds.

In this ever-changing landscape, it is more important than ever

before for investors, fund managers, advisors, placement agents,

consultants, law firms and other private equity professionals to

access a comprehensive resource detailing all the latest trends

affecting this global market.

As a result, Preqin is launching a new publication specifically

examining the buyout industry. The 2010 Preqin Buyout Review

provides a comprehensive overview of this vital sector, includingprofiles for the most important 500 firms and 600 investors

worldwide. The Review also included detailed analysis of every

aspect of the market, plus fund listings, terms and conditions data,

performance plus much more.

For more information, to order or to view

sample pages, please visit:


Feature Article

Tim Friedman

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The 2010 Preqin Private Equity Buyout Review is the ultimate guide to the global buyout market, featuringdetailed analysis on all aspects of the market, comprehensive fund listings, plus profiles for the mostprominent and active fund managers and institutional investors worldwide.

Key features of this publication include:

Detailed analysis examining the history and development of the industry, fundraising trends,performance analysis, dealflow, fund manager universe, institutional investors, buyout serviceproviders, fund terms and conditions and much more...

Profiles for 500 buyout firms, including direct contact details, firm investment strategies, recent deals,fund details and more.

Listings for over 600 investors in buyout funds, including sample investments, fund size preferences

and direct contact details.

Listings for funds raised historically, funds currently raising, performance metrics for over 1000 funds,league tables for biggest firms and much more...

2010 PreqinPrivate Equity Buyout Review:Order Form

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August 2010



Preqin has launched a new performance benchmark forbuyout funds based on size, aiming to measure and comparereturns generated by mega, large, mid-market and smallvehicles. These benchmarks are calculated using data fromthe Performance Analyst database, which contains net returnsto LPs for 1,210 buyout partnerships. In terms of aggregate

value, this represents over 80% of all capital ever raised bybuyout firms.

The return multiples of buyout funds are generally between1.50x and 2.00x for vintages 1997 to 2002, with someexceptions (see Fig. 1). Mega and small buyout funds ofvintage 2001 have produced the highest returns, with multiplesin the region of 2.20x. Multiples have generally decreased foreach vintage year from 2003 to 2005, dropping from 1.50x toaround 1.00x. All but one of the median multiples are below1.00x from vintage 2006 onwards.

IRR returns for mega buyout funds with vintages 2000 to 2003are between 20% and 35%. Mega buyout funds of vintages2004 and 2005 have significantly lower returns, with medianIRRs of 6.9% and 9.7% respectively. Net IRRs of mega fundsof vintages 2006 and 2007 are currently in the red and belowthose of other fund sizes. Large, mid-market, and small buyoutfunds are all posting slightly lower returns than mega buyoutsfor the vintages 2000 to 2003. Small buyout funds of vintages2005 and onwards are performing better than larger funds. Asthey do not normally use a large amount of leverage, smallerfunds were less affected by the financial crisis.

It must be emphasized that the performance for recentvintages is not yet fully meaningful as these funds arerelatively immature and their performance is likely to improveover time. The information here shows that funds of differentsizes have produced characteristically different returns overtime, with the very largest funds performing best in certain

conditions but also being most affected by the current financialcrisis.

Private Equity Performance:

Mega, Large, Mid-Market and SmallBuyout Funds

Perormance Spotlight

Fig. 1:

0.00

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1.00

1.50

2.00

2.50

199719981999200020012002200320042005200620072008

Mega Buyout

Large Buyout

Mid-Market Buyout

Small Buyout

Median Net Multiple by Buyout Fund Size

Source: Preqin

NetMedianMultiplesinceInception

(X)

Vintage

Fig. 2:

-20%

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0%

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40%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Mega BuyoutIRR

Large BuyoutIRR

Mid Buyout IRR

Small BuyoutIRR

Median Net IRR by Buyout Fund Size

Source: Preqin

NetMedianIRRsinceInception(%)

Vintage

Preqins Performance Benchmark module is availablefree to industry professionals. To sign up for this freeprivate equity benchmark service please visit:

www.preqin.com/benchmarks

Etienne Paresys


10/22

10


August 2010



0.0

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Q32010QTD

No. of Dea ls Aggregate Deal Va lue ($bn)

Deals Spotlight: Industrial Deals

Fig. 1:

Source: Preqin

Number and Aggregate Value of Industrial Buyouts Globally:Q1 2008 - Q3 2010 QTD

Fig. 2:

57%67%

19%5%

14%

9%

5%9%

3%2%

2%8%

0%

10%

20%

30%

40%

50%

60%

70%

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90%

100%

No. of Deals Aggregate Deal Value

Bu you t Add-on Growth Capital Recapitalization PIPE Pu blic to Private

Source: Preqin

Each month Preqin focuses on a private equity sector to examine the nature of the industry in different areas and geographies. Thismonth we look at some of the characteristics of buyout deals globally in the industrials sector.

Number and Aggregate Value of Industrial Deals by Type:2010 YTD

Deals Spotlight

55%

8%

29%

22%

7%

11%

4%

14%

4%

45%

0%

10%

20%

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No. of Deals Aggregate Deal Value

Less than $100mn $100-249mn $250-499mn $500-999mn $1bn+

Fig. 3:

Source: Preqin

Number and Aggregate Value of Industrial Buyouts by ValueBand: 2010 YTD

Fig. 4:

Five Largest Industrial Buyouts Globally 2010 YTD

Name Location Type Deal Value Date Buyers Sellers Industry

Tomkins plc UK Buyout USD 4.5bn Jul-10CCP Investment Board, Onex

CorporationEngineering

Avolon Ireland Recapitalization USD 1.4bn May-10Cinven, CVC Capital Partners,

Oak Hill Capital PartnersTransportation

American TireDistributors

US Buyout USD 1.3bn Apr-10 TPGBerkshire Partners, Greenbriar

Equity Group, InvestcorpDistribution

BwayCorporation

US Public to PrivateUSD

915mnMar-10 Madison Dearborn Partners Kelso & Company Industrial

The HillmanCompanies, Inc.

US Buyout USD815mn

Apr-10 Oak Hill Capital PartnersCode Hennessy & Simmons,

Ontario Teachers' Pension PlanBoard

Distribution

Included as part of Preqins integrated 360 online private

equity database, or available as a separate module, DealsAnalyst provides detailed and extensive information on

private equity backed buyout deals globally.

The product has in-depth data for over 13,000 buyout

deals across the globe, including information on deal value,

buyers, sellers, debt financing providers, financial and legal

advisors, exit details and more.

For more information please visit:

www.preqin.com/deals

No.ofDeals

AggregateDealValue($bn)

Source: Preqin


11/22

Included as part of Preqins integrated 360 online private equity database, or available as a separatemodule, Deals Analyst provides detailed and extensive information on private equity backed buyout dealsglobally. The product has in-depth data for over 13,000 buyout deals across the globe, including information

on deal value, buyers, sellers, debt financing providers, financial and legal advisors, exit details and more.

Key features of this powerful database include:

Buyout Deals: View detailed information on over 13,000 deals globally, including comprehensive data on all buyouts

from 2007-present, and 10 year buyout data for the largest 100 global buyout firms.

Market Overview: Allows users to view quarterly and annual dealflow, plus details on global exit activity. Filter

results by region, deal type, location, value band and industry.

Search for Portfolio Companies: View extensive information regarding private equity investments made, including

key financial data relating to the company.

Search for Fund Managers: View current and historical investment data for private equity firms, including

comprehensive data on buyout investments, most frequently used advisors and debt financing providers, average

investment sizes, preferred deal industries, number and value of deals by location, value band, deal type and much

more.

Access League Tables: Largest deals, most active firms by investment size and number of deals, financial advisors,

debt financing providers, legal advisors.

Search for Service Providers: View details on financial and legal advisors in deals, including information on

whether they acted on behalf of the buyer or the seller on the transaction.

Search for Debt Financing and Mezzanine Providers: View details including

amount of debt provided in the transaction.

Recent Deals and Exits: View recently announced deals and recently realized

exits.

Advanced Search: Use our powerful search tool to access

information on buyout deals globally, including searching by

company and investor location, industry, deal size, date, deal

status, deal type, investment stake and key company financials.

Product In Focus: Deals Analyst

www.preqin.com

London: Scotia House, 33 Finsbury Square, London. EC2A 1BB+44 (0)20 7065 5100

New York: 230 Park Avenue, 10th floor, New York, NY 10169+1 212 808 3008

www.preqin.com

To find out more about Deals Analyst, or to register for a demo, please visit:

www.preqin.com/deals


12/22

12


August 2010



Fundraising Spotlight:

Buyout Funds in Market

Fundraising Spotlight

33%

6% 5%2%

49%

55%

64%

51%

0%

10%

20%

30%

40%

50%

60%

70%

Firs t C lose Second C lose Th ird C lose Fourth C lose

% of Buyout Fun ds onthe Road

% of Target Capita lCollected

Fig. 1:

Source: Preqin

Breakdown of Buyout Funds on the Road by Fund Status

Fig. 2:

11.4 10.611.8

14.8

18.519.5

11.0 10.7

12.014.1

17.919.2

0

5

10

15

20

25

2005 2006 2007 2008 2009 H1 2010

All PrivateEquity

Buyout

Source: Preqin

Average Time Spent on the Road, Buyout vs. All Private EquityFunds: 2005 - H1 2010

Funds on the Road by Fund StatusNearly half of buyout funds on the road have reached aninterim close. 33% of buyout funds in market have reacheda first close, with the average amount of capital collected bythese fund at first close totalling 49% of overall target fundsize. Funds that have reached a second close account for6% of total buyout funds on the road and have, at this stage,collected an average of 55% of target capital. Funds thathave reached a third close have collected an average of 64%of the total capital they are targeting, but funds that havereached a fourth close have raised an average of just 51%of their overall targets. This is a similar amount to funds ona first close and could be due to a tendency for funds thathave been in the market seeking capital for a long time tohold multiple interim closes along the way. The largest fundcurrently seeking capital to have reached an interim close

is Morgan Stanley Capital Partners V, which held afi

rstclose on $2.5 billion in July 2008 and has a target size of $6billion.

Length of Time Spent on the RoadFig. 2 shows the average time spent on the road by buyoutfunds. Since 2006, the average time taken by buyout fundsto reach a final close has steadily increased. In 2006 thisfigure stood at 10.7 months, but by H1 2010 it was 19.2months. During 2006 and 2007 buyout funds took slightlylonger to raise than the average private equity fund. Thedifference between the average length of time private equityfunds and buyout funds have taken to complete fundraisinghas never been more than seven months for the period

shown.

Initial TargetsFig. 3 illustrates that between 2005 and 2008 buyout fundswere not only meeting, but were also exceeding target sizes,and at the peak in 2006 the average amount by which buyoutfunds were surpassing their target capital amounts was 15%.Due to difficult conditions induced by the credit crisis, 2009saw funds struggling to meet their initial targets, with theaverage deficit between target capital and capital raised forfunds closed in 2009 at 11%. H1 2010 has shown signs of ahealthier fundraising environment, with funds exceeding theirtarget capital commitments by an average of 7%.

AverageTime(mo

nths)

Adam Counihan

Year of Final Close

Fig. 3:

11%

15% 14%

1%

-11%

7%

-15%

-10%

-5%

0%

5%

10%

15%

20%

2005 2006 2007 2008 2009 H1 2010

Source: Preqin

Average Difference between Target and Close Amount:2005 - H1 2010

Pe

rcentageDifferencefromTarget

Amount

Year of Final Close


13/22

13


August 2010



Fundraising Spotlight

Fig. 3

Final Close Barometer

121

64

41

126

66

46

0

20

40

60

80

100

120

140

Jan-Ju l 2008 Jan-Ju l 2009 Jan-Ju l 2010

No. of Fun dsRaised

AggregateCommitments($bn)

Funds on the RoadNorth

AmericaEurope RoW Total

Number of Funds 100 35 68 203

Aggregate Target($bn)

55 12 35 102

Average Size ($mn) 550 348 510 502

Buyout Funds on the Road

Fund Manager Target Size (Mn) Location Focus

Morgan Stanley Capital Partners V Morgan Stanley Private Equity 6,000 USD Global

Golder Thoma Cressey Rauner X GTCR 3,000 USD US

Metalmark Capital Partners Fund II Metalmark Capital 3,000 USD US

China Cultural Industry Investment Fund BOCI Private Equity 20,000 CNY China, Greater China

GP Capital China International Capital Corporation PrivateEquity

20,000 CNY China, Greater China

Lion Capital Fund III Lion Capital 2,000 EUR North America, Europe

Trident Fund V Stone Point Capital 2,250 USD North America, West Europe

Aquiline Financial Services Fund II Aquiline Capital Partners 2,000 USD North America, Europe,Global

Francisco Partners III Francisco Partners 2,000 USD US

Yucaipa American Alliance Fund II Yucaipa Companies 2,000 USD North America

Abraaj Buyout Fund IV Abraaj Capital 2,000 USD Middle East, North Africa

Blackstone Capital Partners VI

Manager: Blackstone GroupTarget Size (mn): 15,000 USDClosings (mn): First Close: 7,101 USD(Jul-08), Second Close: 8,718 USD (Jun-09), Third Close: 8,800 USD (Aug-09),Final Close: 13,500 USD (Jul-10)Geographic Focus: North America,Europe, GlobalIndustry Focus: DiversifiedPlacement Agent: Park Hill Group

Law Firm: Simpson Thacher & BartlettSample Investors: Alaska PermanentFund Corporation, Alberta InvestmentManagement Corporation

Madison Dearborn Capital Partners VI

Manager: Madison Dearborn PartnersTarget Size (mn): 7,500 USDClosings: First Close: 3,100 USD (Apr-08), Second Close: 3,200 USD (Oct-08),Final Close: 4,100 USD (May-10)Geographic Focus: North AmericaIndustry Focus: DiversifiedSample Investors: Conversus AssetManagement, Daniels Fund, GrupoGuayacn, Harvard Management

Company, Illinois State Board ofInvestment, Los Angeles CountyEmployees Retirement Association

Veritas Capital Fund IV

Manager: Veritas CapitalTarget Size (mn): 950 USDClosings: First Close: 300 USD (Dec-09), Second Close: 500 USD (Feb-10),Final Close: 1,225 USD (Jul-10)Geographic Focus: USIndustry Focus: Technology, Software,Defence, Aerospace, GovernmentServicesPlacement Agent: UBS Investment Bank

Private Funds GroupSample Investor: Teachers RetirementSystem of the State of Illinois

Fundraising Spotlight:

Buyout Funds

Recently Closed Buyout Funds

Source: PreqinLargest Buyout Funds on the Road

Source: Preqin

Source: Preqin


14/22

14


August 2010



Fund Manager Spotlight:

Buyout Firms

Fund Manager Spotlight

Fig. 1:

Source: Preqin

Breakdown of Buyout Firms by Size

Fig. 2:

Source: Preqin

Breakdown of Buyout Firms by Location

For the purposes of this analysis, buyoutfirms have been classified into one ofthree different groups, according to thesize of the largest buyout fund that theyhave raised. Small funds are deemedto be those with a size of less than$500 million, mid-sized funds are those

between $500 million and $1.5 billionin size, and large funds are those inexcess of $1.5 billion in size. More than850 buyout firms that have been activesince 2005 have been classified intocorresponding small, medium and largegroups based on the size of their largestfund. Fig. 1 shows that 65% of buyoutfunds fall into the small category, 24%are classified as mid-sized firms, and

11% are deemed to be large buyout fundmanagers.

Fig. 2 displays the breakdown of activebuyout firms by geographical region.Private equity buyout investmentswere pioneered in the US and the

buyout market is still predominatelyheadquartered in North America. Justunder a third offirms are based inEurope and 17% are based in Asia andRest of World.

Investment Criteria of Buyout Firms -Transaction Size, Annual Revenue andCompany ValueOn average, large buyout firms seek to

carry out buyout transactions that rangebetween $251 million and $3 billion.In comparison, mid-sized buyout firmsseek to make buyout deals with averagesizes between $69 million and $550million, and small buyout firms seekbuyout deals between $22 million and

$164 million. Large buyout firms targetaverage company values of between$269 million and $3.3 billion. Mid-sizedbuyout firms seek companies valued atbetween $84 million and $687 million onaverage. Full preference details can beseen in Fig. 3.

Transaction Size, Annual Revenue and Company Value Preferences by Buyout Fund Size

Buyout Firm SizeAverage

Transaction Size(Min $mn)

AverageTransaction Size

(Max $mn)

Average TargetedAnnual Revenue

(Min $mn)

Average TargetedAnnual Revenue

(Max $mn)

Average CompanyValue (Min $mn)

Average CompanyValue (Max $mn)

Mega/Large 251 2,976 124 1,401 269 3,335

Mid 69 550 50 571 84 687Small 22 164 21 217 31 241

Fig. 3:

Source: Preqin


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August 2010



Fund Manager Spotlight

Board Representation and ShareholdingPreferencesFig. 4 shows the shareholding preferences ofbuyout firms. 56% of large buyout firms requirea controlling interest in the companies theyinvest in, and a further 30% prefer a controllinginterest. 52% of mid-sized buyout firms requirecontrolling positions, while only 35% of smallbuyout firms do. Of the active large buyoutfirms, 86% require board representation in theirportfolio companies, followed by 85% of mid-

sized buyout firms and 78% of small buyoutfirms.

Industry FocusAs Fig. 5 displays, telecoms, media andcommunications is the most targeted industrysector with 32% of buyout firms investing in thisarea. 30% of the firms focus on the consumerproducts and consumer services sectors, makingit the second most targeted industry.

Board Representation and Shareholding Preferences by Buyout Fund Size

Board Representation Shareholding Preferences

Buyout FirmSize

Prefer Required Not Required Controlling Prefer Controlling MinorityPrefer

MinorityNo Preference

Mega/Large 14% 86% 0% 56% 30% 2% 0% 13%

Mid 15% 85% 0% 52% 35% 3% 1% 10%

Small 21% 78% 0.4% 35% 40% 3% 2% 20%

Fig. 4:

Source: Preqin

Included as part of Preqins integrated 360online private equity database, or available

as a separate module, Fund ManagerProfiles provides detailed and extensive

information on private equity fund managers.

For more information please visit:

www.preqin.com/fmp

Fig. 5:

32%

30%

21% 21%

14%

10% 10%

4%2%

0%

5%

10%

15%

20%

25%

30%

35%

Telecoms,

Mediaand

Communications

Consumer

Discretionary

Healthcare

BusinessServices

Industrial

Energy&Utilities

Food&Agriculture

Information

Technology

Materials

Source: Preqin

Percentage of Buyout Firms Investing in Each Industry

Lola Aboderin


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August 2010



61%

43%

34%

0%

10%

20%

30%

40%

50%

60%

70%

Buyout Venture Real Estate

Secondaries Spotlight:Preqins Secondary Market Monitor (SMM) comprises a comprehensive database of secondary market players. Included are bothtraditional and non-traditional buyers of private equity fund interests, potential sellers of fund interests, and secondary marketintermediaries.

According to Preqins unique pricing model, a $10,000,000 commitment to the median 2008 buyout fund - which would have called

$2,570,000 and has a reported net asset value (NAV) of $2,264,170 - would today fetch $1,766,000 on the secondary market, or

approximately 78% of its NAV.

F&C Private Equity has closed its first dedicated secondaries

fund.

The EUR 450 million fund of funds manager has closed TheAurora Fund on its target of EUR 45 million. The Aurora Fund isprimarily targeting European mid-market buyout funds, but willconsider purchasing stakes in other private equity fund types. Todate, through one secondary market transaction, the vehicle haspurchased 24 private equity fund stakes matching its mandate.Investors in the fund include Merseyside Pension Fund and RoyalCounty of Berkshire Pension Scheme. F&C Private Equity alsolooks to take part in secondary market transactions through itsprimary fund of funds vehicles, F&C European Capital Partnersand F&C Private Equity Trust.

Bank of America Equity Partners is looking to sell an

additional USD 1.2 billion in private equity fund stakes on thesecondary market.

This follows the banks recent sale of USD 1.9 billion of privateequity fund interests to AXA Private Equity and is part of anongoing effort to reduce its exposure to the asset class. Theportfolio consists of funds managed by private equity fundmanager Warburg Pincus. Lexington Partners and ChinaInvestment Corporation are reported to have an expressed aninterest in the portfolio and may purchase USD 600 million of theportfolio each.

Secondaries News

Secondaries Spotlight

39% of all investors considering the possibility of selling fund stakes onthe secondary market on the SMM have stated which fund types they arelooking to exit. Of those, 53% are looking to sell real estate fund stakes,31% are selling buyout funds and 27% are looking to exit venture funds.

Antonia Lee

Fig. 1:

53%

31%27%

0%

10%

20%

30%

40%

50%

60%

Real Estate Buyout VentureSource: Preqin

Although a large proportion of LPs take an opportunistic approachwhen buying fund stakes on the secondary market, a significant56% of all potential buyers on the SMM have stated fund typepreferences. Fig. 1 illustrates that buyout funds are the most popularamong these investors, with 61% having a preference for them.

Venture and real estate funds are also favoured fund types amonginvestors looking to purchase fund stakes in the secondary market.

Investor Buying Preferences by Fund Type Investor Selling Preferences by Fund Type

Fig. 2:

Source: Preqin

Secondary Market Monitor (SMM) is a service available free of charge to accredited LPs. The service enables LPs to obtain

indicative pricing indications on all or part of their private equity and private equity real estate portfolios. For more information,

please visit: www.preqin.com/smm.


17/22

17


August 2010



Investor Survey:

Investor Views on Buyout Funds

Buyout funds that reached a final close in 2009 raised $107 billion,less than half the $233 billion raised the year before. The financialcrisis made conditions for buyout investments more challengingand fundraising for the sector has suffered as a result. Distributionsfrom funds to LPs have fallen due to the difficult exit environment,meaning that LPs have not had to make new commitments tomaintain their allocations to the sector.

This, coupled with increased caution amongst LPs, has meant that

securing new commitments from LPs has become a challengingprospect for many GPs.

In order to ascertain investor attitudes towards buyout funds in thecurrent financial climate, Preqin surveyed 301 institutional investorsin private equity funds in May 2010, and sought to establish howtheir allocations to buyout funds are set to change in the future.

LPs Attitudes towards Buyout Funds in the Wake of theFinancial CrisisThe financial crisis has had a significant impact on investorattitudes towards private equity and on the areas of the market towhich they are seeking to gain exposure. As shown in Fig. 1, themajority (57%) of LPs feel that their attitudes towards small andmid-cap buyout funds have not changed following the financial

crisis and more than a third, 36%, have become more positive.Only 2% of the surveyed investors have become more negativetowards the smaller end of the buyout market. One such investortold us that the portfolio companies of small buyout firms will havea more difficult time accessing capital since they rely on bankfinance and not capital markets finance. Large portfolio companies(typically backed by large buyout funds) do not have this problem.

Perhaps unsurprisingly, LP attitudes towards large and megabuyout funds were more negatively affected by the credit crunch.

As shown in Fig. 2, almost half of LPs (48%) said they viewed largeand mega buyout funds more negatively following the financialcrisis. Just 3% of LPs told us they had become more positive aboutsuch funds.

Current LP Attitudes to the Buyout MarketA high proportion of investors are targeting small and mid-marketfunds, as Fig. 3 demonstrates. 95% of surveyed LPs that indicatedfund size preferences are targeting mid-market funds and 81%

are planning to invest in small funds. A number of LPs felt thatsuch funds were more appealing than large and mega funds. OneJapanese investor stated: Mega funds are not really creating valuebut just passing around portfolio companies. One German investorsuggested: There is currently a huge capital overhang in the megaand large end of the buyout market, whereas the very small end ofthe market has been able to consume capital.

Although a smaller proportion of LPs are targeting mega funds, it isstill an area of interest for some investors, with 29% of respondentsindicating that they will invest in such funds. Over half, 57%, saidthey would invest in large buyout vehicles. A European assetmanager that has always included small and mid-cap buyout fundsin its mandate stated: There are some interesting and experiencedlarge-cap buyout managers out there that we would look at.

Future Allocations to Buyout FundsIt is clear that the financial crisis has had an impact on investorappetite for buyout funds. In order to establish investors futureplans for investment in the sector, we asked LPs how theyenvisage their allocations to such funds changing in the next 12months.

Fig. 4 shows that 78% of respondents anticipate either increasingor maintaining their allocation to buyout funds and 12% of

Investor Spotlight

Fig. 1:

Change in LP Attitudes towards Small and Mid-Cap BuyoutFunds after the Financial Crisis

Source: Preqin

Fig. 2:

Change in LP Attitudes towards Large and Mega Buyout Fundsafter the Financial Crisis

Source: Preqin


18/22


19/22

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August 2010



Conferences Spotlight:

Forthcoming Events

Conerences Spotlight

CONFERENCE/EVENT DATES LOCATION ORGANISER

Nordic Investors Forum 2010 7 - 8 September 2010 Stockholm IQPC

2010 Investment Forum for Endowments, Foundations andPension Funds

14 September 2010 New York Argyle Executive Forum

Private Equity Summit for Institutional Investors 15 - 16 September 2010 San Francisco Opal Financial Group

Capital Creation 2010 15 - 17 September 2010 Monte Carlo Worldwide BusinessResearch

African Investor Index Series Summit 17 September 2010 New York African Investor Alternative Investments Summit 21 - 22 September 2010 San Diego IMN

Emerging Markets Summit: BRIC & Beyond 22 September 2010 New York iGlobal Forum

Investing in Distressed Debt 2010 22 - 23 September 2010 London IIR

PEI Turkey Forum 22 - 23 September 2010 Istanbul PEI Media

RAMESH CHETWANI

INK Business Media Pvt. Ltd.

T: +9 1 22 4208 1777

D: +91 22 4208 1702

M: +91 98202 28030

[email protected]

For Sponsorship & SpeakingOpportunities Contact: For Registration Contact:

28th -29th OCTOBER 2010

Taj President, Mumbai, INDIA

BHAVESH KOTHARI

INK Business Media Pvt. Ltd.

T: +91 22 4208 1777

D: +91 22 4208 1754

M: +91 98204 36076

[email protected]

Indian Private InvestorsConference (IPIC 2010) isa 2-Day event where GlobalSector Agnostic and Sector

LPs, GPs, FoFs, FamilyOffices, PE Funds, HedgeFunds and Advisors willmeet Indian PE and HedgeFunds and discuss statusand issues of investmentsin India.

IPIC is a director-level,interactive conferenceexperience. Speakers andpanellists are industryleaders drawn from Indiaand abroad. A highprofiled conference whereideas, intelligence andrelationships will reallymake a difference to yoursand your customers

Who Should Attend?Indian & Internationalffices

Discovering Sector SpecificOpportunities

Education

Cleantech

Core & Passive InfrastructureHealthcare

Fund Structuring, Tax &Regulatory Issues

DAY 2

SuggestedSessions & Topics

Macro Economic Factor

Fund Allocations to Indiapost GFC (LPs or FoF focused)

Deal Flow, Exits and DealStructuring

Secondary Market & ItsLiquidity

Corporate overnance andTalent anagement

DAY 1

Conceived, Produced & Organized byKnowledge PartnerMedia Partner

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MishalKanooTHEKANOO GROUP

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The Middle East, North Africa, Turkey &

South Asia Private Equity & Venture Capital Summit

Super Return Middle East is a very efficient way ofmeeting a large number of LPs in a short space of time

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Steve PagliucaBAINCAPITAL

Samir AssaadSamaanINVESTAD

DavidRubensteinTHECARLYLEGROUP

Global Titans

HisExcellency AbdallahAl-Moualimi

HBGHOLDINGS

LordCharlesFalconerGIBSONDUNN

& Formerly,LORD CHANCELLOR

OF THEUK

Mark YassinTHENATIONAL BANK

OF ABUDHABI

Unique Financial Perspectives

Why LPs Should Attend

Hear global titans give their verdict on thefuture of private equity

Focus on global emerging markets outsideof the MENA region

Network with the best international andlocal players in the industry

Hear from fellow LPs on how they aremanaging relationships with GPs in volatileconditions

Why GPs Should Attend

Three panels of regional i nvestors Now alternating between Dubai & AbuDhabi to attract a more diverse array ofwealth managers

More dedicated region focused content onSaudi Arabia, Turkey, North Africa & TheLevant

NEW! Promote your fund in 90 seconds to apanel of LPs in the Delegate QuickFireShowcase

Meet LPs through structured LP/GP speed net-working

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World Class Academics

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ncipal Sponsors: Principal Legal Sponsor:

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20


August 2010



Indian Private Investors Conference


Date: 27-28 October 2010

Location: Mumbai, INDIA

Organiser: INK Business Media Pvt. Ltd.

Indian Private Investors Conference (IPIC) is a 2-Day Conferencewhere Global Sector Agnostic and Sector Focussed and AsiaFocussed LPs, GPs, FoFs, Family Offices, PE Funds, HedgeFunds and Advisors will meet Indian PE and Hedge Funds anddiscuss status and issues of investments in India. IPIC is a director-level, interactive conference experience. Speakers and panellistsare industry leaders drawn from India and abroad. A high profiledconference where ideas, intelligence and relationships will really

make a difference to yours and your customers businesses.

Information:

www.inkbusinessmedia.com/ipic2010/index.html

Date: 18 - 20 October 2010

Location: The Fairmont Hotel, Bab Al Bahr, Abu Dhabi

Organiser: ICBI

Super Return Middle East 2010 tackles the hard questions aboutthe challenges the industry faces head on. Included in the agendaare two panels of regional investors, a formal debate betweenregional thought-leaders, and an increased focus on the keyregions of Saudi Arabia, Turkey, Egypt & North Africa.

Information:

www.icbi-events.com/KR2249PREWEB

Super Return Middle East 2010

UK Pensions & Investments Summit 2010

Date: 18 20 October 2010

Location: Wyndham Grand London Chelsea Harbour

Hotel, London, UK

Organiser: marcus evansIn time for a much needed ideas and strategies exchange, thehighly acclaimed UK Pensions & Investments Summit provides aunique interactive forum for the gate keepers of the UK pensionfunds and leading asset managers all aiming to explore investmentbest practices and their application as drivers for maximum returnand minimum risk.

Information:

www.ukpensions-summit.com/Preqinel

Date: 15 - 17 September, 2010

Location: Le Meridien Beach Plaza, Monte Carlo

Organiser: WBR

Since the last Capital Creation Monaco event in September 2009,the world of Private Equity has seen significant changes. Low creditavailability, a collapse in end-user demand, a shortage of viableexits and a lack of capital are all key factors in driving dramaticchange in the industry. Meet over 250 LPs and GPs at CapitalCreation 2010 to gauge the trends in your industry, find out how thedownturn has affected your competitors and what new strategieswill ensure success in the post-recession world.

Information: www.capitalcreationeurope.com

Capital Creation Monaco


21/22

21


August 2010



Investing in Distressed Debt

Date: 28 -29 September

Location: ETC Venues, The Hatton, London

Organiser: IIR Global Conferences

Investing in Distressed Debt brings together an exceptionalpanel of leading international distressed debt & restructuringexperts. Your experience wont stop with the content this eventis renowned as a superb place to network, so you can continueto benefit after the speeches. Now is the time to get ready toprofit from the credit cycle and to be prepared to grasp all theopportunities you can.

Information:www.informaglobalevents.com/KM2249PRE

Date: 27 September, 2010

Location: Four Seasons, Silicon Valley

Organiser: DealFlow Media

Decreased activity in the IPO and M&A markets over the lastseveral years has left many private company stakeholders withouta path to liquidity. This demand for liquidity has created a growingsecondary market for private company stock. The private stockmarket has become an attractive investment option for venturecapitalists, family offices, high-net worth individuals and otherinvestors. This conference explores the strategic, legal andinvestment issues related to the private stock market from the

perspectives of both buyers and sellers.Information:

www.dealflow.com/privatestock

The Private Company Stock Conference

Date: October 24-26, 2010

Location: The Breakers, Palm Beach, Florida

Organiser: DealFlow MediaNational Summit for Middle Market Funds is the premier nationalconference for practitioners in the middle market of the privateequity industry. The Summit offers a unique environment to networkwith 300+ private equity fund managers, investment bankers,institutional investors, and other limited partners, over the course ofthree days.

Information:

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National Summit for Middle Market Funds

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Europes premium Private Equity Conference, uncovering the hard facts behinddevelopments and trends in the Private Equity and Venture Capital industry

Financial News readers receive an additional 10% off their conference place Quote PQN when registering

Contact us to receive the conference agenda,find out who attends and how this event can benefit you:T. +44 (0) 20 7368 9465 www.capitalcreationeurope.com [email protected]

Peter Mckellar,

Chief InvestmentOfficer,

SL Capital Partners

Mark Boyle,Director, Private Equity

Funds, NorthwesternMutual

Jussi Saarinen,

Investor RelationsDirector,

EQT Partners

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Global Head ofEuropean Healthcare,

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Hear how industry-leading experts areresponding to the latest challenges, including:

For 10 successful years, this private equityconference offers you keynote addresses,industry-led panel debates and peer-to-peerroundtable discussions, focusing on the keypriorities for the industry and will highlight themost profitable strategies for investment in 2011.

Attracting over 250 senior-level GPs andLPs, Capital Creation is your ideal platformto network with thought leaders, establishnew relationships and increase your overallawareness of key market trends.



22/22

22

August 2010

GKM Newport is looking for investmentopportunities in Hawaii.The USD 1 billion California-based fund offunds manager will be investing USD 20-50million over the next 12 months throughits recently closed GKM Newport HitipFund I, which it manages as a separateaccount mandate on behalf of Employees

Retirement System of the State of Hawaii.The fund of funds plans to invest in fiveor six underlying vehicles and will look toinvest in venture capital funds that targetHawaiian-based early-stage technologycompanies. GKM Newports preceding fundof funds vehicles are all fully committed tounderlying funds.

Siguler Guff anticipates committing toeight new funds during the next year.The New York-based fund of fundsmanager, which manages private equityassets of USD 8.5 billion, expects toinvest USD 1 billion across eight private

equity funds over the next 12 months.It plans to approach new investmentsopportunistically, typically committing USD10-200 million to each fund. Siguler Guffis open to investing in venture, distresseddebt, special situation, turnaround andsmall-cap buyout funds around the world.The fund of funds managers latest vehicle,Siguler Guff Distressed Opportunities FundIV, held a first close in March.

Storebrand Kapitalforvaltning plans tocommit EUR 150 million during the next12 months.The Norwegian firm, which typically

makes commitments of approximatelyEUR 15 million, anticipates investingthe capital across eight to ten funds. Ithas a preference for buyout funds butalso invests in venture, growth capital,turnaround and distressed debt funds.Storebrand Kapitalforvaltning recentlyclosed Storebrand International PrivateEquity X having secured capital ofapproximately NOK 740 million. The fund offunds has a primary focus on opportunitiesin North America and Europe, with a lesserallocation to Asia and Latin America.The firm launches new private equityvehicles annually and plans to commencefundraising for its next fund of funds in early2011.

Capvent is seeking to commit a furtherUSD 20 million to opportunities in India.The Zurich-based fund of funds managerclosed its India-focused vehicle at theend of June and has already committedapproximately 70% of capital to sevenfunds and two co-investments. The USD 70million Capvent India Private Equity Fund

aims to make ten fund investments in totaland is open to participating in a variety offund types, including buyout, venture, andgrowth and expansion funds. Capvent isalso looking to gain further exposure to thewider Asia region. The firm, which managesassets totalling USD 2.2 billion, is nowseeking to raise capital for a fund of fundsthat will target opportunities in Asia. Thenew vehicle, Capvent Asia Private EquityFund, has a target of USD 400 million.

AEVWL anticipates increasing its privateequity allocation in the long term.The EUR 8.5 billion public pension fund

is currently below its target allocation toprivate equity with 3.8% of total assetsallocated to private equity investments.It expects to make new private equitycommitments in the second half of 2010.AEVWL expects to increase its exposureto the asset class over the coming year,and anticipates this increase to continue forthe next three to five years. AEVWL looksto invest in a range of private equity fundsand is particularly interested in distressedprivate equity vehicles at present. It has apreference for investing in Europe-focusedfunds and prefers to gain exposure to theUS via funds of funds.

International Finance Corporation (IFC)anticipates increasing its private equityactivities in Africa.The government agency currently has USD2 billion allocated to private equity fundsand has been actively investing in Africanfunds over the last 12 months. Having seenseveral good investment opportunities inAfrica, it is looking to increase its exposureto the region. IFC will also be seekingopportunities to invest in growth capitalfunds over the next 12 months. Over thecourse of the coming year, IFC expects toinvest USD 400-500 million across 20-25private equity funds, working with existingmanagers in its portfolio as well as looking

to forge some new relationships withmanagers it has not previously investedwith.

Ameritas Life Insurance Corporationis planning to re-up with some of itsexisting managers over the next 12months.

The USD 15.5 billion insurance companycurrently has less than 1% of total assetsallocated to private equity funds and islooking to increase its exposure to theprivate equity asset class in the comingmonths, having slowed such investmentsin 2008 and 2009. The insurance companyinvests in the asset class on an annualbasis and over the next 12 months islooking to invest up to USD 20 million withthree to four fund managers with which italready has a relationship. Ameritas LifeInsurance Corporation invests in a varietyof fund types including buyout and venture.

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Preqin Private Equity Spotlight August 2010