Sample Pages PEI50book

8/6/2019 Sample Pages PEI50book

1/14

In conjunction with:

The LargesT

PrivaTe equiTy Firms

in The WorLdAnatomiing te impat of te PEI 50

Edited by Wanching Leong and David Snow

A PRIVATE EQUITY INTERNATIONAL PUBLICATION


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INTRODUcTION IV

ThE PEI 50 2008 VII

sEcTION A: PEI 50 By te Number 9

Fundraiing 10

Deal Ativity 12

Deal by Indutry 20

Deal by Region 25

Fee 28

Operation 30

Index of cart 33

SECTION B: PEI 50 Firm Proles 35

1. Te carlyle Group 37

2. Goldman sa Prinipal

Invetment Area 45

3. TPG 51

4. Kolberg Kravi Robert 57

5. cVc capital Partner 63

6. Apollo Global Management 69

7. Bain capital 75

8. Permira 81

9. Apax Partner 87

10. Te Blaktone Group 93

11. Warburg Pinu 99

12. 3i Group 105

13. Advent International 111

14. Terra Firma capital Partner 117

15. Amerian capital 123

16. Providene Equity Partner 129

17. silver Lake Partner 135

18. cerberu capital Management 141

19. AIG Invetment 147

20. Fortre Invetment Group 153

21. General Atlanti 159

22. PAI partner 165

23. Firt Reerve corporation 171

24. EQT Partner 17725. hellman & Friedman 183

26. cinven 189

27. Bridgepoint 195

28. clayton, Dubilier & Rie 201

29. Teaer Private capital 207

30. carteroue capital Partner 213

31. Leman Broter Private Equity 219

32. Toma h. Lee Partner 225

33. Bc Partner 231

34. AXA Private Equity 237

35. NGP Energy capital Management 243

36. Oaktree capital Management 249

37. Marn Investment Group 255

38. sun capital Partner 261

39. Dougty hanon & co. 267

40. Jc Flower & co. 273

41. TA Aoiate 279

42. Eurazeo 285

43. New Mountain capital 291

44. MatlinPatteron 297

45. WL Ro & co. 303

46. Encap Invetment 309

47. Madion Dearborn Partner 315

48. Barlay Private Equity 321

49. Onex 327

50. Wel, caron, Anderon & stowe 333

ABOUT DEALOGIc 339

ABOUT PEI MEDIA 340

content


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With the creation o the PEI 50, upon which this

report is based, we have sought to apply a single

standard o measurement to the private equity

rms we surveyed globally in search o the big-

gest 50. In brie, our standard is the amount ocapital raised or direct private equity invest-

ment in rolling ve year periods. In 2008, we

measured capital raised rom 1 January 2003

up to press time at 15 April 2008. In our inau-

gural PEI 50 ranking, we captured undraising

rom 1 January 2002 to mid-April 2007.

We selected this ve-year capital-raise stan-

dard or PEI 50 ater close consultation with a

number o industry experts. The PEI 50 meth-odology is, we believe, both orward-looking and

suciently inclusive o recent history. It accounts

or the dry powder that a rm has attracted

rom investors recently as well as indicates the

scope o its recent investment activity.

We certainly considered other approaches.

One was to combine the value o undrawn capi-

tal commitments with the value o unrealised

portolio investments a statistic that one ma- jor consultant has named exposure. There

were at least two problems with the exposure

approach. First, many contacts we spoke with

elt it would overly reward older private equity

programmes with vast portolio holdings but not

much new undraising to speak o. Second, gen-

eral partners today still do not ollow any one

standard or valuing their portolios, and hence

their portolio valuations remain highly subjec-tive, and oten change depending on who theyre

talking to and in what setting.

The PEI 50s methodology is fexible enough

to capture capital ormed or dierent private

equity strategies raised in dierent vehicles by

dierent kinds o rms (or example, 3i Group,

American Capital, Eurazeo, General Atlantic,

Marn and Teachers Private Capital). In these

cases we have estimated the amount o capitalormed or direct private equity investment over

the same time period. We think it is essential

that these rms be listed alongside the more

traditional limited partnership-based rms. The

private equity business will become more and

more varied as it develops, and we want the

PEI 50 to measure size regardless o whether

it comes in a limited partnership or a publicly

traded vehicle or some other innovative model.That said, the PEI 50 does have rules and we

have sought to apply these as consistently as

possible. We have also sought out the best in-

ormation available, with inormation provided

directly by the rms in question given highest

value. Where rms have not helped us on back-ground, we have sought out the best inorma-

tion available rom databases, press reports and

other publicly available sources.

Below are a number o additional denitions

and rules that we applied to the PEI 50. We are

certain that not all o our readers will agree with

these rules, and were also certain that we havent

been able to pinpoint every piece o inormation

we needed to build a pristine list. But we are cer-tain that we have been dogged in our pursuit o

the most comprehensive and accurate inorma-

tion possible, and we have endeavoured to apply

the PEI 50 methodology to this inormation in as

exacting a ashion as possible. We hope to see the

resulting PEI 50 list become a useul point o re-

erence in a growing and transorming industry.

PEI 50 RULEs AND DEFINITIONsThe PEI 50 is a ranking o private equity rms

globally by size. It is the only apples-to-apples

comparison o dedicated, direct-investment pri-

vate equity programmes.

The PEI 50 is not a perormance ranking, nor

does it constitute investment recommendations.

The PEI 50 rankings are based on the amount

o private equity direct-investment capital

raised over a roughly ve-year period leadingup to press time. For 2008, the ve-year window

spans rom January 1 2003 to 15 April 2008.

Where two rms are determined to have raised

an equal amount o capital, we give the higher

rank to the rm with the larger individual und.

AccURAcY AND cONFIDENTIALITY

We give highest priority to inormation that we

receive rom the private equity rms themselves,always on background. When the private equity

rms themselves conrm details, we seek to

trust, but veriy. Some details simply cannot be

veried by us, and in these cases we deer to the

honour system. In order to encourage coopera-

tion rom private equity rms that might make

the PEI 50, we do not disclose which rms have

aided us on background and which have not.

Lacking conrmation o details rom the rmsthemselves, we seek to corroborate inormation


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using available news reports, press releases,

third-party databases, etc.

DEFINITIONs & cLARIFIcATIONsPrivate equity: The denition o private equi-

ty, or the purposes o the PEI 50, means capital

raised or a dedicated programme o investing

directly into primarily private businesses. This

includes equity capital or buyouts, growth eq-

uity, venture capital, control-oriented distressed

investment capital and mezzanine debt. Further

denitions are below.

Capital raised: This means capital denitively

committed to a private equity direct investment

programme. In the case o a undraising, it means

the und has had a nal or ocial interim close

on or ater January 1, 2003. The ull amount o a

und may be counted i it has closed on or ater

this date. The ull amount o an interim close (a

real one, not a sot-circle) that has occurred re-

cently, even i no ocial announcement has beenmade, may also be counted. We also count capital

raised through other means, such as LP co-in-

vestment vehicles, deal-by-deal LP co-investment

capital, publicly traded vehicles, recycled capi-

tal, and earmarked annual contributions rom a

sponsoring entity. Further rules are below.

Why does mezzanine debt count as private

equity?We count mezzanine debt raised by rms that

are primarily engaged in private equity invest-

ing. We only count equity raised or these unds,

not the leveraged buying power. Mezzanine

debt requently involves warrants or equity

stakes, and has historically been counted along-

side buyout capital by industry media and data

services groups. Furthermore, a number o im-

portant private equity rms blend their equityand subordinated debt investment pools. It was

a tough call, but we eel that mezzanine capital

should be included in the measurement o a pri-

vate equity rms overall size in the market, and

so did most o our expert contacts.

What does not count as private equity direct

investment capital?

We do not count unds raised or strategies thatprimarily ocus on unds o unds, real estate,

debt, hedge unds and inrastructure.

What about opportunistic investors?

As with many hedge unds, some large entitieshave the ability to do private equity deals on

an opportunistic basis. We do not include these

groups in the rankings.

What counts as capital raised?

Limited partnerships: Most private equity

capital is raised through blind-pool unds.

Co-investment capital: Where possible and

appropriate, we count LP co-investment vehi-cles as well as opportunistic LP co-investment

capital raised by private equity sponsors.

Public entities: We count the capital raised

by private equity rms that happen to be pub-

licly traded. We also count capital raised in the

ormat o public vehicles controlled by private

equity rms so long as those public entities

primarily commit capital to direct private eq-

uity programmes. In some cases we have usedcapital deployed in direct private equity situ-

ations as a proxy or capital raised or such

opportunities.

Afliated programmes: We count private eq-

uity capital raised by aliated entities so long

as the rm has control over those entities, or the

vehicles raised bear the branding o the rm.

Contributions rom sponsoring entities:

Where a larger entity has earmarked capitalto the rm or a dedicated, direct private eq-

uity programme, we count the amount o capi-

tal the rm has drawn down rom that entity

or direct private equity deals over the dened

ve-year period.

What does not count as capital raised?

Expected capital commitments, or sot cir-

cled capital. Opportunistic capital: An entity that has the

ability to opportunistically do large private equity

deals, but does not have a dedicated programme

or team or doing so, will not be counted. In oth-

er words, a large group that has the ability to

tap $40 billion in equity wont be counted unless

that equity has been segregated into a specic

vehicle or programme and assigned a dedicated

private equity direct-investment team that is ac-tively scouting or deals.


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Te PEI 50 2008The PEI 50 is Private Equity International magazines ranking of the 50 largest private equity rms in the world. Our method of measuring size

is intended to capture a rms heft in the market going forward, as well as the scope of its recent deal activity. We use an apples-to-apples

methodology: the amount of private equity direct-investment capital raised or created over the past ve years (see p. IV for our methodology).

This list is global and includes a broad range of dedicated private equity investment platforms, from private managers of blind-pool limited part -

nerships to publicly-traded investment rms to public pension afliates. Now in its second year, the rankings show a vastly increased base

of capital controlled by the top 50, as well as a rearranged lineup of players, reecting a changing industry.

2008 capital raied over 2007Rank Name of rm Headquarters last ve years* Rank

1 The Carlyle Group Washington DC $52 billion 1

2 Goldman Sachs Principal Investment Area New York $49.05 billion 3

3 TPG Fort Worth (Texas) $48.75 billion 54 Kohlberg Kravis Roberts New York $39.67 billion 2

5 CVC Capital Partners London $36.84 billion 10

6 Apollo Global Management New York $32.82 billion 12

7 Bain Capital Boston $31.71 billion 8

8 Permira London $25.43 billion 6

9 Apax Partners London $25.23 billion 7

10 The Blackstone Group New York $23.3 billion 4

11 Warburg Pincus New York $23 billion 14

12 3i Group London $22.98 billion 13

13 Advent International Boston $18.32 billion 43

14 Terra Firma Capital Partners London $17 billion 15

15 American Capital Bethesda (Maryland) $17 billion 23

16 Providence Equity Partners Providence (Rhode Island) $16.36 billion 917 Silver Lake Partners Menlo Park (California) $15.6 billion 19

18 Cerberus Capital Management New York $14.9 billion 34

19 AIG Investments New York $14.22 billion N/A

20 Fortress Investment Group New York $14.0 billion 27

21 General Atlantic Greenwich (Connecticut) $13.3 billion 18

22 PAI partners Paris $12.98 billion 35

23 First Reserve Corporation Greenwich (Connecticut) $12.82 billion 22

24 EQT Partners Stockholm $12.47 billion 21

25 Hellman & Friedman San Francisco $12 billion 16

26 Cinven London $11.93 billion 11

27 Bridgepoint London $11.7 billion 36

28 Clayton, Dubilier & Rice New York $11.38 billion 47

29 Teachers Private Capital Toronto $10.69 billion 20

30 Charterhouse Capital Partners London $10.52 billion 24

31 Lehman Brothers Private Equity New York $10.22 billion 25

32 Thomas H. Lee Partners Boston $10.1 billion 30

33 BC Partners London $9.26 billion 29

34 AXA Private Equity Paris $9.24 billion N/A

35 NGP Energy Capital Management Irving (Texas) $8.84 billion N/A

36 Oaktree Capital Management Los Angeles $8.4 billion 49

37 Marn Investment Group Athens $8.15 billion N/A

38 Sun Capital Partners Boca Raton (Florida) $8 billion 28

39 Doughty Hanson & Co. London $7.44 billion 37

40 JC Flowers & Co. New York $7 billion N/A

41 TA Associates Boston $6.83 billion 3942 Eurazeo Paris $6.75 billion N/A

43 New Mountain Capital New York $6.69 billion N/A

44 MatlinPatterson New York $6.67 billion N/A

45 WL Ross & Co. New York $6.65 billion N/A

46 EnCap Investments Houston $6.58 billion N/A

47 Madison Dearborn Partners Chicago $6.5 billion 32

48 Barclays Private Equity London $6.43 billion N/A

49 Onex Toronto $6.17 billion 33

50 Welsh, Carson, Anderson & Stowe New York $5.88 billion 42

Legend: ame rank a 2007 iger rank tan 2007 lower rank tan 2007 PEI50 debut*Notes: Five years dened as 1 January 2003 to 15 April 2008.

All euro gures were converted to US dollars at 1.57 exchange rate. Other currencies were converted at current prices.


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PEI 50 BY ThE NUMBERs

TOP INDUsTRIEs FOR PEI 50 IPO ExITs1 Jnury 2003 - 15 april 2008

TOP INDUsTRIEs FOR aLL FINaNcIaL sPONsOR IPO ExITs1 Jnury 2003 - 15 april 2008

TOP 10 INDUsTRIEs FOR aLL IPOs

1 Jnury 2003 - 15 april 2008

Rnk Finnil sponor Del Vlue ($m) # Del

1 Industrials 18,879 362 Communications, Media & Entertainment 16,949 31

3 Consumer & Retail 15,517 33

4 Financial Institutions 14,381 26

5 Technology 11,593 52

6 Energy & Natural Resources 9,177 21

7 Healthcare 5,755 38

8 Transportation 3,513 8

9 Business Services 3,337 14


1 Industrials 33,026 113


3 Financial Institutions 21,940 67

4 Communications, Media & Entertainment 21,457 54

5 Technology 20,838 153

6 Energy & Natural Resources 20,346 54





1 Financial Institutions 264,346 1,302

2 Energy & Natural Resources 149,245 1,020

3 Industrials 116,109 1,198


5 Technology 66,910 1,138

6 Communications, Media & Entertainment 57,676 333




Source: Dealogic

Source: Dealogic

Source: Dealogic

DEaLs BY INDUsTRY

Note:IPO volumes do not represent the full enterprise value of the portfolio company; for nancial sponsor IPOs,number inlude ll IPO regrdle of weter te ponor old re or not in te offering


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PEI 50 BY ThE NUMBERs

FUNDRaIsINGsliing nd diing

step cnge

Lion sre

Fundriing Ft

10 Bigget Fund Ried by te PEI 50

DEaL acTIVITY

PEI 50 Del ativity t Glne

sutinble?

PEI 50 Del VolumeFeeonomi

PEI 50 Buyout Del Volume comprion

Buyout Del Dominne

PEI 50: Te 10 Lrget Buyout Del

PEI 50: Te 10 Mot ative PE sponor of Buyout Del

PEI 50 M&a Eit Volume comprion

M&a Eit Leder

PEI 50: Te 10 Lrget PE sponor of M&a Eit

PEI 50: Te Mot ative PE sponor of M&a Eit

PEI 50 IPO sponored Volume comprion

IPO Leder

PEI 50: Te 10 Lrget PE sponor of IPO Eit

PEI 50: Te Mot ative PE sponor of IPO Eit

DEaLs BY INDUsTRY

Top Indutrie for PEI 50 Buyout

Top Indutrie for all Finnil sponor Buyout

Top Indutrie for all M&a

Top Indutrie for PEI 50 M&a Eit

Top Indutrie for all Finnil sponor M&a Eit

Top Indutrie for all M&a

Top Indutrie for PEI 50 IPO EitTop Indutrie for all Finnil sponor IPO Eit

Top Indutrie for all IPO

Top 5 Finnil sponor aquiror by Indutry

DEaLs BY REGIONPEI 50 Del by Region

afri Top 5 Finnil sponor by Del Volume

autrli Top 5 Finnil sponor by Del Volume

cribben Top 5 Finnil sponor by Del Volume

Europe Top 5 Finnil sponor by Del Volume

Indi subontinent Top 5 Finnil sponor by Del Volume

Jpn Top 5 Finnil sponor by Del Volume

Ltin ameri Top 5 Finnil sponor by Del Volume

Middle Et Top 5 Finnil sponor by Del Volume

Nort ameri Top 5 Finnil sponor by Del Volume

Nort ai Top 5 Finnil sponor by Del Volumesoutet ai Top 5 Finnil sponor by Del Volume

FEEsPEI 50 Fee Pid to Invetment Bnk

Top 5 Reipient of PEI 50 Fee Pid

Top 10 Fee Pyer

PEI 50 v. Finnil sponor

OPERaTIONsage i but NumberDollr Ried per PE pro

Were te PEI 50 re Loted

New York/London v. te World

Ofce Stats

PEI 50 Inde of crt

INDEx


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PEI 50 prole:

Wels, Carson, Anderson & Stowe

50


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Wels, Carson,Anderson & Stowe

Founded

headquarters

Oter ofces

Website

Strategy

Afliates

SNAPShOT

1979

Welsh, Carson, Anderson & Stowe

320 Park Avenue, Suite 2500

New York, New York 10022

USA

Tel: +1 212 893 9500; Fax: +1 212 893 9575

N/A

www.welshcarson.com

Makes buyout, growth equity and venture capital investments in the information/business services

and healthcare industries in North America. Prefers to make control investments.

N/A

Welsh, Carson, Anderson & Stowe co-founders Bruce Anderson, Russell Carson and Patrick

Welsh know how to stick to their knitting. The New York-based rm has stayed committed to the

information/business services and healthcare sectors since its founding in 1979. The rm is now

investing its $3.5 billion, tenth equity fund alongside its $1.3 billion fourth subordinate debt fund.While busy building portfolios diversied by time, industry, thematic concentration and stage of

investment the rm is also reportedly hard at work raising a new fund. The rm says it avoids

participating in club deals or consortium investments. Its tenth fund only invested in three such

transactions.

502008 PEI 50 rank 50

2008 PEI 50 ve-year fundraising total $5.88 billion2007 PEI 50 rank 42

2007 PEI 50 ve-year fundraising total $4.7 billion


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WELSh, CARSON, ANDERSON & STOWE 50

Total partner level PE pros

Total PE professionals

Wole rm employee count

FUNDS

PE capital raised since inceptionCurrent PE dry powder

Value of unrealised PE investment portfolio

Stated assets under management, wole rm

Recent PE fundraising activity

Select LPs

15

50

60+

$15.9 billion$1.9 billion

$8.5 billion

N/A

Fund Date closed Amount raised

Welsh, Carson, Anderson & Stowe X May-08 $3.44 billion

WCAS Capital Partners IV July-08 $1.28 billion

California Institute of Technology, EDS Retirement Plan, John S. and James L.

Knight Foundation, Kansas Public Employees Retirement System, Memorial

Sloan Kettering Cancer Center, Orange County Employees Retirement System,Pew Charitable Trusts, Robert Wood Johnson Foundation, Tokio Marine &

Nichido Fire Insurance Co. Source: Private Equity Connect

KEY PEOPLE Name Function Location Previous EperienceBruce Anderson Co-Founder New York Executive vice president at Automatic Data Processing

Russell Carson Co-Founder New York Chairman and CEO of Citicorp Venture Capital

Patrick Welsh Co-Founder New York President at Citicorp Venture Capital

Anthony de Nicola Co-President New York Private equity group at Wiliam Blair & Co.

Paul Queally Co-President New York General partner at The Sprout Group

John Almeida, Jr. Partner New York Media & telecommunications banker at Lehman Brothers

John Clark Partner New York General partner at Saunders, Karp & Megrue

D. Scott Mackesy Partner New York Research analyst at Morgan Stanley

Sanjay Swani Partner New York Director at Fox Paine & Co.

Sean Traynor Partner New York Healthcare and insurance banker at BT Alex Brown

Eric Lee Partner New York M&A and high technology banker at Goldman Sachs

Thomas McInerney Partner New York President and CEO of Dama Communications Corp

Robert Minicucci Partner New York CFO of First Data Corp.

Thomas Scully Partner New York President and CEO of the Federation of American Hospitals

Jonathan Rather CFO New York COO and CFO at Goelet Investment Ofce

Fran Higgins Investor Relations New York JP Morgan Chase

PROFILE

WELSh CARSON ANDERSON & STOWE50


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WELSh, CARSON, ANDERSON & STOWE50

Notes:Brackets indicate number of deals.

Value($m)

#

deals

Notes: Brackets indicate value and number of deals. Notes:Brackets indicate value and number of deals.

Source: Dealogic

Source: DealogicSource: Dealogic

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2004 20052003 2006 2007 2008

0

1

2

3

4

5

6

$584

$1,469

$120

$1,025

$6,643

(6) (6)

(2)(2)

(0)

(3)

Value in $m

(#) of Deals

Financial Institutions ($4,235m; 2)

Healthcare ($3,094m; 4)

Business Services ($1,190m; 7)

Technology ($783m; 3)

Transportation ($500m; 1)

Others ($39m; 2)

43.0%

31.4%

12.1%

8.0%5.1%

0.4%

North America ($9,841m; 19)

100%

WELSh, CARSON, ANDERSON & STOWE DEAL ACTIVITY

Te following carts, provided by Dealogic, are based on deals, M&A eits and IPOs tat involved te equity participation of tis rm.

Wit te eception of IPO data, te deal volume represents te entire enterprise value of te announced deals in question, even if te

rm did not provide 100 percent of te equity involved.

Announced Deal Volume

1 January 2003 - 15 April 2008

DEAL ACTIVITY

Announced Deal Volume by Industry


Announced Deal Volume by Geograpy


WELSh CARSON ANDERSON & STOWE 50


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WELSh, CARSON, ANDERSON & STOWE 50

Notes:Brackets indicate number of deals.

V

alue($m)

#

deals

V

alue($m)

#

deals

Wels, Carson, Anderson & Stowe Fees Paid to Investment Banks


Total fees

Top ve fee recipients

Top ve fee total

Top ve % of total fees

Oter Details

Number of current portfolio investments

Portfolio investments since inception

Total equity invested since inception

Total deal value

$753 million

JPMorgan, Lehman Brothers, Banc of America, Wachovia, Citi

$440 million

58%

Notes:Fees paid on M&A advisory, debt, equity and syndicated loan under-

writing. Were fees are not disclosed, Dealogic uses a fee model to estimaterevenue on individual transactions.

Source: Dealogic

35

150+

N/A

N/A

Notes: IPO volumes do not represent te full enterprise

value of te portfolio company; Tis includes all IPOsregardless of weter te sponsor sold sares or not in

te offering; brackets indicate number of deals.

Source: Dealogic

Source: Dealogic

(0) (0)

0

2,000

4,000

6,000

8,000

10,000

12,000

2004 20052003 2006 2007 2008

0

1

2

3

$79

$11,453

$3,940

$701

(3) (3)

(1)

Value in $m

(#) of Deals

(2)

(0)(0)(0)

2004 20052003 2006 2007 2008

0

200

400

600

800

1,000

1,200

0

1

2(2)

$1,008

$583

$97

Value in $m

(#) of Deals

(1)

(1)

DEAL ACTIVITY

Announced M&A Eit Volume


Portfolio Company IPO Eit Volume



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Documents

Sample Pages PEI50book