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wwwLPEQcom

Disclaimer

Important Information

LPEQ was established in 2006 to increase awareness and

understanding of listed private equity through research and

information The presentations herein are prepared and

issued by the speakers and represent their views rather than

the views of LPEQ

These presentations are made available to you as aProfessional Client and must not in any circumstances be

distributed to or relied upon by Retail Clients



wwwLPEQcom

Table of Contents

Conference Programme Pages 3 ndash 6

How can PE firms deliver amidst a fragile recovery Pages 7 - 43

Bain amp Company ndash Graham Elton Partner

Debt Markets How ldquoOpen for Businessrdquo are they Pages 44 - 54

Deloitte Corporate Finance Debt Advisory

James Douglas Partner

Private Equity Outlook Pages 55 - 62

Barwon ndash Sam Armstrong Managing Partner

Focus amp Findings Pages 63 - 68

LPEQ -Andrea Lowe Executive Director



LPEq London Investor Conference

Outlook for Alpha in Private Equity

AgendaHow can Private Equity firms deliver amidst a fragile recovery (930am)

Graham Elton Partner ndash Bain amp Company

Debt markets How ldquoOpen for Businessrdquo are they

James Douglas Partner Corporate Finance Debt Advisory ndash Deloitte LLP

What drives Private Equity returns

PANEL MODERATOR Andrew Lebus Partner Pantheon Ventures

Dear Delegate

Welcome to the inaugural LPEQ Investor Conference in association with

Singer Capital Markets

LPEQrsquos aim is to increase awareness understanding and interest in listed

private equity At a pivotal time for the asset class we invite you to consider

and debate the issues raised by todayrsquos expert speakers

We hope you find this conference valuable

For further information please visit wwwLPEQcom

Yours sincerely

Andrea Lowe

Executive Director LPEQ

T +44 (0) 20 8995 9466 E andrealoweLPEQcom

Guildhall London14 June 2011

LPEQ member companies

Aberdeen Private Equity Fund Ltd

Altamir Amboise

Conversus Capital LP

Deutsche Beteiligungs AG

Dinamia Capital Privado SCR SA

Dunedin Enterprise Investment Trust PLC

Electra Private Equity PLC

FampC Private Equity Trust plc

Gimv NV

Graphite Enterprise Trust PLC

HarbourVest Global Private Equity Ltd

HBM BioVentures AG

HgCapital Trust plc

JP Morgan Private Equity Ltd

JZ Capital Partners Limited



How can PE firms deliver amidst a fragile recovery


Graham Elton is a Partner at Bain amp Company in London and Head of

the European Private Equity Practice and the UK Media Practice

He joined the firm in 2001 Whilst at Bain Graham has lead

assignments in a variety of industries including consumer products

media retail and business services Prior to joining Bain amp Company

Graham was a partner of Evolution Global Partners CEO at Miller

Freeman UK Managing Director of FT Business Strategy Director at

Pearson and worked for the Boston Consulting Group

His experience includes corporate strategy value improvement

programs turn-around situations merger integration customer and

channel strategies and business transformation In the private equity

group Graham has led a number of teams in fund strategy strategic

due diligence and portfolio company improvement Graham earned an

MBA at Harvard Business School and his MA from Oxford University


James Douglas Partner ndash Corporate Finance Debt Advisory

Deloitte LLP

James Douglas joined Deloittersquos debt advisory business in 2005following seven years at JP Morgan Cazenove where he worked in

Corporate Finance focusing on debt advisory assignments for FTSE

350 companies During this period James advised UK companies on

fund raising for acquisitions refinancing and restructuring Prior to this

James worked in Debt Capital markets for ABN AMRO where he was

responsible for European Derivative Sales He also spent 6 years

trading derivatives for ABN AMRO Abbey National Financial Products

and Barings James qualified as a Chartered Accountant with Touche

Ross and is a Fellow of the Association of Corporate Treasurers


Moderator Andrew Lebus Partner ndash Pantheon Ventures

Andrew Lebus is a partner of Pantheon Ventures (UK) LLP and a

Director of various Pantheon funds based in Guernsey As a senior

Mark Freebairn Partner ndash Odgers Berndtson

Mark Freebairn is a Partner and Head of the Financial Management

Practice of Odgers Berndtson based in London The Financial

Management Practice appoints Finance Directors and CFOs across allsectors in a range of businesses both public and private and is a

leader in its market niche

Mark is also a member of the Board amp CEO Practice and is involved

with searches for non-executive directorships when the requirement is

to appoint a candidate with senior finance experience Mark was

recently appointed as a Non-Executive Director on the Board of

Progressive Digital Media Plc

Robert Morgan Chairman ndash HT Forrest Group amp Atlas Interactive

Energy

Robert Morgan is currently chairman of a number of PE owned

businesses in the B2B and healthcare sectors ranging from Social

Housing BPO SME services Compliance and Learning amp

Development in the Energy sector and previously Healthcare staffing

and complex care services Robert has worked in the legal and criminal

justice sectors in outsourcing also more recently around the Clementi

reforms He has been involved in new procurement models with the

Cabinet Office involving the private sector

Robert has acted as an Industry Operating Partner for HgCapital LLP

since 2002 on new and existing investments on value creation including

exits (former Chairman of Pulse Healthcare Services acquired by

Blackstone ICS at a 25x multiple in November 2010) He has worked

with the HM Treasury on Human Capital amp Small Business Taxation policy

and Compliance in relation to recent Finance Acts

Prior to this Robert was an Executive Director of Hays plc a leading

FTSE 100 Services Group Over a ten year period and as Chief Executive

of Hays DX (a document services group aimed at the legal and related

professions and sectors) he grew the business from pound3m operatingprofits to pound58m operating profits with cash 110 of profit This included

a 35000 subscription business where he organically grew the business

from 300 FTEs into 5000 FTEs over 6 EU countries

Gerry Murphy Senior Managing Director ndash The Blackstone Group

Dr Gerry Murphy is a Senior Managing Director in the Corporate Private

E i b d i L d H l Ch i f Th



Where is the value in Listed PE over the next 12-18 months

Moderator Alan Geeves Partner ndash Singer Capital Markets

Alan Geeves joined Singers in April 2009 and has specialised in Closed

End Funds for 22 years His early career was at Hambros Bank BZWand Hoare Govett as a Salesman He moved to Collins Stewart to head

the Sales team in 1999 and worked there until mid 2005 when he left to

co-found Fairfax the investment back which he left in late 2008 In

recent years Alan has worked with James Waterlow to raise over pound15bn

of new equity from UK and International clients for a wide variety of

Closed End Funds in areas as diverse as Private Equity Real Estate

Debt and Frontier Markets They have also been active participants in

the secondary market sector and over a long period have built a

reputation for successfully trading large shareholdings of Closed End

Funds between investors They have also advised Boards of Closed End

Funds across a variety of subjects including capital raising MampA

defence and attack and restructurings

Sam Armstrong Managing Partner ndash Barwon Investment Partners

Sam Armstrong has been involved in alternative investments since 1990

Until April 2005 Sam Armstrong was the Joint Managing Partner of Quay

Partners Pty Ltd a specialist private equity fund-of-funds group founded

in October 2000 Before forming Quay Partners Sam was Head of

Alternative Investments at Macquarie Funds Management where heworked for over 10 years At Barwon Sam oversees the private equity

team which is focused on global listed private equity investing and

secondary fund investing Barwon currently manages over US$S300

million sourced from Australian institutional clients in its global listed

private equity strategy Barwon is in the process of launching a UCITS

version of the Barwon Global Listed Private Equity Fund

Sam graduated with a BComm (Hons) from the University of Melbourne

and has an MBA from Columbia University New York

Adam Goldman Managing Director ndash Red Rocks Capital

Adam Goldman serves as a Co-founder and Managing Director of Red

Rocks Capital LLC Prior to forming Red Rocks Capital in 2003 he was

a General Partner and Managing Director in four separate venture funds

with Centennial Ventures managing over $1 billion Mr Goldman has

served on the boards of more than a dozen private and public

companies He is a past President and Chairman of the Board of the

Paul Craig Director of Fund of Funds ndash Henderson Global Investors

Paul Craig joined New Star in 2003 and the Henderson Multi-Manager

team as part of the Henderson New Star acquisition in April 2009 He

has 21 yearsrsquo investment experience including 10 years gained at

Exeter Investment Group At Exeter he focused on managing

investment trust shares and portfolios He employs a lsquobottom uprsquo

investment process in identifying securities overlaid with a lsquotop-downrsquo

view of general economic trends

LPEQrsquos latest findings and focus

Ian Armitage Chairman ndash LPEQ

Ian Armitage has led HgCapital since 1990 and developed a focused

control-oriented approach to private equity investment whilst

reorganising and divesting the portfolio of legacy investments He then

transformed Hg to be the first sector specialist private equity firm in the

mid market In 2000 Ian completed the buy-out of the business from

Merrill Lynch which resulted in HgCapital becoming independent Ian

became Chairman of Hg in September 2007 He previously spent 10

years with 3i plc in London and Dublin Ian has made over forty

investments across a wide range of industries

Ian has been the Chairman of LPEQ since it was established in 2006

and served as Chairman of the Investor Relations Committee of theBritish Venture Capital Association He has a degree in Politics

Philosophy and Economics from Oxford University

Andrea Lowe Executive Director ndash LPEQ

Andrea Lowe started LPEQ in 2006 with its mission to increase

awareness understanding and interest in listed private equity Andrea

brings over 20 years experience in investment management marketing

strategy research and communications resulting in LPEQrsquos focus on

seeking investor views through market research

After graduating from Dartmouth College in New Hampshire USA she

was a market research analyst for Pillsbury and Gillette later earning an

MBA from Stanford University in California Andrea joined fund manager

GT Management (later INVESCO) in London developing marketing

strategy in Europe the US and Asia She also served as editor of the

PricewaterhouseCoopers European Investment Management Newsletter

f A d i h d h f US di l d i




are pleased to work with LPEQ

to bring you the first


Covingtonrsquos investment funds group lawyers have acted as

counsel in transactions involving more than 2000 investment

funds located in over 30 jurisdictions worldwide

Our investment funds group has an interdisciplinary and

international approach to fund and investor representations We

offer our investor and sponsor clients in-depth expertise in fundis a proud sponsor of the

Singer Capital Markets is an integrated UK capital markets and

advisory partnership with a primary focus on UK Mid and Small Cap

companies

Established in 2006 the business comprises a team of sixty five

leading professionals It provides sales research execution

corporate finance and corporate broking advisory services to

institutional corporate hedge fund and high net worth clients

Singer Capital Markets is uniquely positioned by virtue of its

partnership structure where staff and managers own equity and

govern the business

The firm boasts a strong balance sheet at over four times the

required level of regulatory capital which allows the business to take

a long term view with clients

THE GUILDHALL LONDON

The City of London has been governed from the area occupied by

Guildhall for more than 800 years Today Guildhall is home to the City

of London Corporation ndash the provider of local government services to

the Square Mile and promoter of the City as the world leader in

international finance and business services

The present Guildhall was built between 1411 and 1430 although

evidence suggests that a civic hall has stood here since the late

13th century Local government developed here and its pattern hasserved as a model for many cities and towns

The crypt porch and medieval walls have twice emerged unscathed

from disastrous fires In 1666 Guildhall was caught up in the Great Fire

of London and in 1940 monuments windows and galleries were

damaged and the famous statues of Gog and Magog destroyed in a

single night of the Blitz Guildhall was restored in 1954

The Livery Hall

The Livery Hall was designed by Sir Horace Jones Architect and

Surveyor to the City Corporation It was built between 1870 and 1873

and is a listed Grade II structure

The crypts

Immediately beneath Guildhall are two crypts The western cryptis thought to date from the 13th century and was probably the

undercroft oan earlier Guildhall It completely collapsed in the

Great Fire but in 1973 was restored to its original state The eastern

crypt is 15th century and has survived the fires of 1666 and 1940

Restored in 1961 it is divided into 12 bays by six clustered pillars of

Purbeck marble



June 14 2011

How can PE firms deliver amidsta fragile recovery

Graham Elton



2LPEQ2011TOR

After hitting bottom in 2009 the PE marketbegan to recover in 2010

bull PE investments rebounded ndash plenty of dry powder

good-quality assets and available credit

bull Inflated prices prevented many deals from closing

bull PE exits also rebounded ndash strong momentum inthe last quarter of 2010

bull All three exit channels played a significant role

bull PE fundraising hit a cyclical low ndash tight PEallocations ongoing liquidity issues and lack ofcompelling investment opportunities

bull LPs re-evaluated their investment preferences

bull Recovery in portfolio valuations powered short-term PE returns

bull Lower incidence of default played a key role



3LPEQ2011TOR

Notes Excludes add-ons loan-to-own transactions and acquisitions of bankrupt assets Based on announcement date Includesannounced deals that are completed or pending with data subject to change Geography based on the location of targets

Source Dealogic

PE investment activity moved beyond itscyclical low



4LPEQ2011TOR

Fuelled by PE firms wielding over $1T of drypowderhellip

Note Distressed PE includes distressed debt special situation and turnaround fundsSource Preqin

S iff i i k h l i l



5LPEQ2011TOR

Stiff competition kept purchase multipleshigh

US Europe

Note Based on pro-forma trailing EBITDASource SampP LCD

D d i th h d f di i li d GP



6LPEQ2011TOR

0

20

40

60

80

100High pressure

to investbelow avg

performance

High pressureto investabove avg

performance

Lowpressureto invest

Percent of globalbuyout dry powder

Notes Analysis includes $1B+ buyout funds vintage 2005-2010 globally with sufficient data available lsquoHigh pressure toinvestrsquo includes 2005-2007 vintage funds lt23 called and 2008 vintages with lt13 called performance based onquartile of current fund at time of analysis primarily as of Q2 2010 vintage year refers to year of initial investment

Sources Preqin Bain analysis

bull GPs with funds nearing theend of their investment periodwill feel pressure to investtheir remaining dry powder(ldquouse it or lose itrdquo)

bull Faced with limited prospects

of raising another fund GPswith weak performance trackrecords will feel this pressuremost acutely

bull Pressured GPs are at risk ofbecoming undisciplined

investors distorting themarket by competing fiercelyfor deals and inflating prices

Dry powder in the hands of undisciplined GPsmight distort the market

E it ti it h i d t d



7LPEQ2011TOR

Exit activity has gained momentum andthere are continued signs of strength

Notes Excludes bankruptcies IPO value represents offer amountSource Dealogic

bull IPOs will continue to bea viable channel forhigh-quality companiesand high-growthstories

bull There is no reason to

believe that interest insponsor-to-sponsortransactions will fade

bull With growth firmlyback on corporateagendas and animproved macro-

economic environmentthere is optimism thatsales to strategicbuyers will increase

But many unrealised investments may not be



8LPEQ2011TOR

But many unrealised investments may not beripe for exit

Notes Fund vintages in sample range from 2002-2008 analysis includes unrealised investments and partially realizedinvestments for which lt90 of the total value of the investment is still unrealised valuation multiples are before fees

Source Bain analysis

bull Most ldquopregnant exitsrdquo havealready been realized

bull Remaining unrealised holdingsare likely afflicted by one ofmore of the following

-Purchased at high multiplesduring the peak

-In cyclical sectors hit hard by thedownturn and with performancethat has yet to stabilize

-Large companies that take longerto mature and face more limitedexit options

bull Overall it means that a largeportion of unrealised holdingsare currently valued below costor below the carry hurdle rate

Lack of market beta points to more modest



9LPEQ2011TOR

Lack of market beta points to more modestPE-industry returns going forward

bull Recent valuation multiples and purchase prices remain high

bull Further expansion in multiples expected to be limited

bull Debt markets have become more friendly to LBO financing

as investors hunt for yield with some evidence of increasingleverage lower cost of debt and looser terms

bull Conditions akin to recovering market of 2003-05 butunlikely to ease significantly more

bull Macro-economic recovery is expected to be tepid yet a

double-dip is unlikely to materialize in the near futurebull Recovery likely to show geographical differences

Leverage

Multipleexpansion

GDP growth

E x t e r n a l d r i v e r s

bullThe conditions of this recovery will not be as friendlyas the previous one

bullIt is hard to understand what will drive the nextreturn cycle ndash the historical sources of market betaare in short supply

How will top quartile funds continue to



10LPEQ2011TOR

-10

0

10

20

30

40

Overunder performance vs SampP 500(5-year rolling pooled net IRR)

868890929496980002040608101H

1st quartilefunds

All funds

-10

0

10

20

30

40

Overunder performance vs EU index(5-year rolling pooled net IRR)

98 00 02 04 06 08 101H

All funds

1st quartilefunds

Composite of FTSE CAC and DAX (equally weighted)Note Quartile position assigned based on ranking within region fund type and vintage yearSource Thomson Reuters

European buyout fundsUS buyout funds

Averagersquo97-rsquo10186



267


How will top quartile funds continue tooutperform by a substantial margin

Alpha will be created by four inter-related



11LPEQ2011TOR

Build repeatablevalue-creation

processes

Strengthen andprofessionalise the

organisation

Create truly proprietaryinvestment theses

supported by enhanceddue diligence

Develop an adaptiveinvestment strategybuilt on core strengths

Alpha will be created by four inter-relatedfactors

Develop an adaptive investment strategy



12LPEQ2011TOR

Develop an adaptive investment strategybuilt on core strengths

Key questions

bull How aligned is our strategy with our core strengths

bull What do our investors think

bull Is there a growth imperative

bull Which vectors of growth will be most valuable

- larger deals or more deals

- geographic expansion

- new asset classes

- deals with more risk

How to remain focused yet flexible

Strengthen and professionalise the



13LPEQ2011TOR

Strengthen and professionalise theorganisation

Generalmanagement

Investor relations

Resources tosupport

repeatable value-creation processes

Talentmanagement

bull Attract retain and motivate the best people

bull Address morale and incentives of junior partners many ofwhom have yet to earn any carry

bull Fundraise and manage investor relations 365 days per year

bull Dedicate resources to both of these efforts - more full-timeand senior talent

bull Create a strategic plan for mapping and segmenting theinvestor universe and then driving activity

bull Appropriately resource against the fund strategy

bull Move from ad hoc to repeatable model

bull Bolster general management functionscapability to set thefirmrsquos direction facilitate the sharing of insights acrossinvestment teams develop the programs to recruit andmotivate top talent and take the lead in fundraising andmanaging investor relations

Create truly proprietary investment theses



14LPEQ2011TOR

Create truly proprietary investment thesesand beef up due diligence

Enhanced due diligenceStrong investment

committee processes

bullInstitutionalized data-drivenapproach

bullEarly diligence to winnow

deals

bullFocused diligence to address ldquoanswer-changingrdquo issues

bullExtended diligence todevelop differentiatedinsights

bullClear investment strategiesand criteria that governdecisions

bullEffective and differingprocesses by round

bullKey analytics that enableconsistent and value-addeddiscussions

Avoid losers and develop proprietaryinsights required to stretch for winners

B ild t bl l ti



15LPEQ2011TOR

Build repeatable value-creation processes

Common pitfalls

bull Throw people at the challenge without resolving how best todeploy them Having a disciplined process is far more important thanthe volume of resources it consumes

bull With a focus on people over process the squeaking wheel alwaysgets the grease It is easier and more valuable to help a good company

on a path to 3X return boost its performance to 5X than to help astruggling company get from 05X back to par or above Achieving thiscalls for a process that reaches out to every portfolio company

bull One size fits all The complexities of dealing with different businessesand management-team personalities are immense A process that isboth disciplined and flexible enough to partner with management teams

to create value is crucial

bull Paralysis by analysis Not knowing how to get started and strugglingto change deeply entrenched operating norms some PE firms wind updoing nothing That is the worst pitfall of all

Si tf li h



16LPEQ2011TOR

Six portfolio approaches

Level of engagement(CEO guidance vs resources to help )

Amount ofintervention

(how close todoing)

lsquoFacilitatorrsquo

lsquoSeasonedmentorrsquo

Owneroperator Exec

Chairman

Functionalexpert

lsquoHands-off

6

lsquoMonitorrsquo

10

lsquoStrategic

architectrsquo

2

3 5

4

1 Adopt a prevalent approach that best suits your unique combination of firm

and portfolio company characteristics

2 Customize your approach to the unique needs of each portfolio company -calls for sophisticated assessment and decision-making skills

3 Flex your model to suit portfolio company needs at any stage in the ownershiplife cycle ndash calls for emotional intelligence

Successful models are a balancing act of 4



17LPEQ2011TOR

gcritical elements

Culture

Organisation and

Resourcing

Process amp Activities

Accumulated experienceamp judgment

Secondary

Enabler

Critical

Foundation

Primary

Enabler

Starting

point

No substitute for well-seasonedinvestors guiding decision-making

Key elements include ndashintellectual honestycollaboration and empowerment

Critical to have right resourcesat the right stage of deal cycleat the right time (no-one has just one hat)

Institutionalizing ldquowhat worksrdquo

creates a sustainable andrepeatable model

Four top of mind issues for GPs in 2011



18LPEQ2011TOR

Four top-of-mind issues for GPs in 2011



organisation



Develop an adaptive

investment strategybuilt on core strengths

bull Objectively vet any opportunity against your own

strengths and ability to competebull Gauge interest of LPs and get support before committing

to an opportunity


bull Make investor relations a priority

bull professionalise general management

bull Build resources to support repeatable post-acquisitionvalue-creation processes

bull Drive sector expertise to proprietary investment theses

bull Enhance due diligence to develop proprietary insightsrequired to stretch for winners and avoid losers

bull Strengthen investment committee processes

bull Adopt a prevalent model that best suits your firm andportfolio company characteristics

bull Flex the model to suit the unique needs of each portfoliocompany at any stage in the ownership life cycle

and unexpectedly robust debt markets



19LPEQ2011TOR

hellip and unexpectedly robust debt markets

Source Dealogic

High-yield bond issuance at

record high

Rebound in leveraged loan on the

back of a strong bond market

Exit activity picked up significantly



20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232

Global buyout-backed exits

Value by channel Total count

Sponsor-to-sponsor

IPO

Total count

Strategic

Difficult fundraising conditions persisted



21LPEQ2011TOR


Note Includes funds with final close represents year funds held their final closeSource Preqin

bull LPsrsquo willingness andcapacity to take on newcommitments remainedweak in 2010

bull The number funds on theroad and the amount ofcapital they sought to

raise remained high

bull This demand-supplyimbalance made for verydifficult fundraisingconditions in 2010

bull Funds that closed quicklyand successfully weregenerally smaller orgeographysector focused

There is still a huge amount of dry powder



22LPEQ2011TOR

D i s t r e s s e d P E

O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s

Notes Data as of December 2010 Distressed PE includes distressed debt specialsituation and turnaround funds

Source Preqin

fragmented amongst a large number of firms

Improving debt markets are enabling morel d i f LBO



23LPEQ2011TOR

leverage and easier terms for LBOs

Note Equity contribution includes both rollover and contributed equitySource SampP LCD

2011 could see more P2P deals



24LPEQ2011TOR

Note Other types of deals include secondary carve-out and private targetsSource Bain US LBO Deal Database

0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P

Buyout deal value of US-based PE firms bull Banks and lendersare increasingly opento writing largerchecks

bull PE firms are lured by

the inefficient capitalstructures of manypublic companies

bull Bain model confirmsthe window ofopportunity for P2Pdeals is wider in2011 (albeit verysensitive to changesin market valuations)


P2P deals largely drove the last boomand are essential to a strong recovery

Prevalence of secondary buyouts will likelyti



25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage

Percent of value created

(by type of effect)

319379

Notes Based on 236 primary buyouts and 50 secondary buyouts from 1989-2006 in Europe freecash flow effect refers to the impact of debt repayment and dividend payment on returns

Sources Golding Capital Partners amp CEFS ldquoPrivate Equity study Secondary buyouts offer attractivepotential for value creationrdquo November 2010 Bain analysis

Research suggests similar returnsamp value creation potential

bull More expeditious and certain than anIPO or sale to a strategic buyer

bull PE-owned companies represent a largeshare of all businesses and an evengreater share of businesses that comeup for sale

bull Limited holding periods can trigger the ldquoprematurerdquo sale of a company withstill significant upside to be realized

bull Some companies are better suited forprivate ownership than public

bull Different stages of a companyrsquos

development may be best supportedby PE firms with different particularskill sets

Fundamental reasons whysecondary buyouts make sense

Significant risks exist that could easily derailPErsquos deal recovery



26LPEQ2011TOR

PErsquos deal recovery

bull Sustainability of the USand EU economicrecoveries is not certain

bull Sovereign risk is stillpresent in Europe asovereign debt crisis

could spill over to thefinancial system

bull In Asia worries aboutinflation and the riskthat policy-makers maybe slow in responding to

the threat of assetbubbles forming couldincrease volatility

If past patterns remain a reliable guidefundraising is poised for a recovery



27LPEQ2011TOR

fundraising is poised for a recovery

Sources Preqin Dealogic

bull Recovery of PEinvestment andexit activity areleading indicatorsof a pickup infundraising

bull Growingmomentum in bothof these seen inthe latter half of2010 bodes well for

a recovery infundraising in 2011

Fundraising typically lags investment activity

LPsrsquo are budgeting for increasedcommitments in 2011



28LPEQ2011TOR

commitments in 2011

Source Preqin Investor Survey (n=100 December 2010)

LPs are budgeting to commit thesame or more capital in 2011

bull Increase (albeit modest) inLPsrsquo 2011 budgets for newcommitments is driven byexpectations of many high-quality GPs coming to market

bull Yet LP budgets continue to betempered by tight allocationslarge unfunded commitmentsand confidence in PE dentedby the downturn

bull Still for all the short-term

strains and a few challengingyears LPsrsquo conviction in PEremains solid

LPsrsquo investments are shifting towardssmaller more targeted funds



29LPEQ2011TOR

0 10 20 30 40 50

EuropeanIsraeli Venture CapitalTimber Funds

Mega Buyout Funds

Fund of FundsOther niche sectors

US Large BuyoutsCleantechGreen-Focused Funds

Secondary FundsEmerging Markets (Ex-Asia)

Infrastructure FundsUS Venture Capital

MezzanineCredit focused fundsEnergy Funds

Restructuring Funds

Pan-Asian FundsEuropean Middle Market Buyouts (pan-European)

Distressed Debt FundsAsian country focused funds

European Middle Market buyouts (country focused)US Small Market Buyouts

Growth Capital FundsUS Middle Market Buyouts

Percent of LPs surveyedNote Respondents asked not to choose more than 5Source Probitas Partners 2011 Institutional Investor Survey (N=180 November 2010)

Areas LPs will focus investment attention in 2011

bull LPs are notlooking to gainany moregenericexposure to PE

bull In particular

LPs are turningsharply awayfrom largebuyout funds

bull LPs are seekingGPs targeting aparticular

geographysector dealstage etc

smaller more targeted funds

Over-supply could make fundraisingconditions challenging in 2011



30LPEQ2011TOR

conditions challenging in 2011

Note Ratio calculated as aggregate capital sought globally for all PE types at the start of the yeardivided by the total global PE capital raised the prior year (sum of funds achieving final close)

Source Preqin Bain analysis

Ratio of funds-in-market to newcommitments suggest a continued

supply-demand imbalancebull Backlog of funds that

put off fundraising in2009-10 will likelywiden the supply-demand imbalance

bull Further compoundingthe challenge is thedisproportionatenumber of GPsexpected to come tomarket in 2011 that

are historically topperformers

0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26

GPs will face lower re-up rates



31LPEQ2011TOR

Note Based on a sample of 51 funds closed in 2009-2010Source Preqin

Re-up rates are expectedto slip further

62 average

bull Large and increasing proportion of

LPs are declining re-ups-84 of NA LPs 91 of EU LPs and70 of Asian LPs

bull Reflects ongoing flight to quality

-GPs on the losing end of the culling

process will be most affected

bull Will be difficult to fill the void withnew LPs

-Because LPs have earmarked a largeproportion of their 2011 newcommitments budgets they may

have little room to take on new GPrelationships

-While LPs are open to new GPrelationships they will be selective

LPs continue to be more discerning investors



32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs

Percent of LPs surveyed

Balance of power has

shifted in LPsrsquo favour

Source Preqin Survey of Investors on Fund Terms amp Conditions (May 2010 n=50)

Doing more with due diligencebull Verifiable returns

bull GPsrsquo investment discipline

bull GPsrsquo true operational skills

bull GPsrsquo organisational dynamics

and risks

Keep up the pressure for morefavorable terms amp conditions

bull Search for new GP-LP

alignment of interestsbull See more room for

improvement in financial terms

Distribution of PE fund returns has a longerand bigger tail of out-performers



33LPEQ2011TOR

and bigger tail of out performers

0

20

40

60

80

100

Net IRR (in )

Distribution of global buyout funds IRR(number of funds)

-50 -25 0 25 50 75 100

Notes Only mature vintages considered (1996-2005) n=435 buyout funds (with 1 fundwith IRR of 147 excluded) performance data as of December 2009

Sources Preqin Bain Analysis

Median=11 Mean=14

QuartileCutoff(min IRR)

MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30

Bain works with a diversified group offinancial investors



34LPEQ2011TOR

a c a es o s

Private equity

Sovereignwealth funds

Governmentinvestmentcorporations

Hedge funds

Third-partypension fund

managers

Privatefamily

financialholdings

Financialinvestors

Publicinvestmentcompanies

Pension funds

Bainrsquos Private Equity business



35LPEQ2011TOR

Critical component of Bainrsquos global business

ndash 25 of the firmrsquos business

ndash 11-fold growth since 1997

Global network of experience in firmfund strategy sourcingdue diligence and post-acquisition performance improvement

ndash 400+ professionals serving PE clients globally

High penetration of firms and transactions

ndash Advised on 50 of $500M+ buyout transactions in the last decade($1T+ enterprise value)

ndash Work with buyout funds representing 75 of equity capital

ndash 4X the next largest firm in due diligence and 35X in portfoliocompany performance improvement

Fully aligned incentives

ndash Bain partners have invested $500M+ in private equity deals and

funds over last ten years ndash superior returns

Very serious commitment to private equity

Clear market leader

Bain provides a full range of services insupporting private equity investors



36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit

bull Rightinvestmentfocusthesis

bull Augment dealflow

bull Better dealdecisions-Avoid dogs

-Hidden gems

-Right pricing

bull Drive forrapid dealreturns

bull Increasedcompanyvalue

bull Maximumdeal returns

bull 1-4 months bull 3-4 weeks bull 1-4 months bull 3-12 months bull 1-3 months

bull Due diligence-Market trends

-Competitivecost position

-Customerfranchise

-Operationalefficiency

-Managementorg capabilities

bull Improvementopportunities- Investmentthesis

- Post-acquisitionagenda

bull Blueprintvaluecreation plan-Clear direction

- Prioritizedinitiatives

-Org alignment

-Quick hits

- Programmanagement

bull Focused

initiativesbull Management

workshops-Alignment

- Prioritization

bull Focusedinitiatives-Revenueenhancement

-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development

bull Re-fresh valuecreation plan

bull Portfolio scan

bull Prepare for exit(position forperformance)

bull Identify optimalexit strategy

bull Prepare sellingdocuments-Vendor duediligence

bull Pre-qualifybuyers andcustomizeapproach

bull Sector profilingand investmenttheses

bull Targetidentificationand screening- Plan to approachtargets

Firmfund strategy and operations

Bain helps PE firms realize superior returns



37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X

Average gross deal multiple for

select top quartile Bain clients (n=283 deals)

Select Bain

clients totalreturn

Notes Includes partially or fully exited deals for four top quartile clients invested 1995 or later excludes two outliers with dealmultiple gt100X Bain involved in both Bain was involved in 80 of the 283 deals in analysis analysis completed Sept 2009with return data ranging from Q308 to Q109 industry mean based on 1995-2006 funds


Top quartile PE firmsby type of Bain involvement



copy 2011 Deloitte LLP Private and confidential

983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11

W e s t e r n E u r o p e a n l e v e r a g e d

f i n a n c e v o l u m e ( $ b n )

High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156

Leveraged finance volumes

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148



copy 2011 Deloitte LLP Private and confidential3

983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141

New issue ndash arbitrage CLO volume

0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

C L O V o l u m e ( $ B n )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity

Institutional liquidity

983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155

Leverage and equity contribution trends

61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37

Reverse flex 1 ndash Anchorinvestors

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33

Reverse flex 2 ndash Generalsyndication

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6

Sunrise Britax Vue Cinemas Novacap IMCD IDH Mivisa Picard Surgles Dorna R Cable

DebtEBITDA multiple Senior Mezz

Source LCD Loanconnector Debtwire Deloitte analysis

Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10

pound520mNordicCapital

Safetyequipment

Equitycushion

50

Nov 10

pound450mDoughtyHanson

Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11

pound490mBain Capital

Chemicalsdistribution

Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11

euro750mLion Capital

Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35

Benchmark transactions

983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

2) Liquidityshortfall

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155




Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (ldquoDTTLrdquo) a UK private company limited by guarantee and its network of member firmseach of which is a legally separate and independent entity P lease see wwwdeloittecoukabout for a detailed description of the legal structure of DTTL and

its member firms

Deloitte LLP is the United Kingdom member firm of DTTL

This publication has been written in general terms and therefore cannot be relied on to cover specific situations application of the principles set out will

depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any ofthe contents of this publication Deloitte LLP would be pleased to advise readers on how to apply the principles set out in this publication to their specific

circumstances Deloitte LLP accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of anymaterial in this publication

copy 2011 Deloitte LLP All rights reserved

Deloitte LLP is a limited liability partnership registered in England and W ales with registered number OC303675 and its registered office at 2 New StreetSquare London EC4A 3BZ United Kingdom Tel +44 (0) 20 7936 3000 Fax +44 (0) 20 7583 1198

Member of Deloitte Touche Tohmatsu Limited



Private Equity Outlook ndash 2011-12Barwon Investment Partners

June 2011

Underlying Companies ndash

Balance sheets are

54



being repaired

Across the board we have seen a focus on

deleveraging

Many PE managers took the opportunity to

buy back debt at deeply discounted prices

and use free cash flow to pay downbalances

From a sample of 19 companies under

SVGA management they have seen debt

levels reduced by almost 2 turns

Similarly weighted average netdebtEBITDA levels have fallen in Thomas

H Leersquos Fund V by 24x

Source SVG Advisers January 2011 data comprises of a sample of 19 companies

Source Thomas H Lee PartnersNote Excludes Ariel and impact of Dunkinrsquo refinancing

Rebound in credit markets has

surprised everybody



surprised everybody

Source Thomson Reuters LPC

Denotes peak CLO activity historical average excludes peak CLO years

Source Fitch Ratings

Leveraged loan market is returning tohistorical averageshellip

High Yield Bond issues have reachedhistorical highs

PE-backed companies weathered the

2008-2009 storm better



Annualized rate of default in

the 2008-09 recession ()

Lower default rate in the 2008-09 recessionhellip hellipconsistent with long-term default performance

Annualized rate of

default 1970-2002 ()

Sources Bain and Co Global Privat Equity Report 2011 ldquoThe Credit Performance of Private Equity-

backed Companies in the ldquoGreat Recessionrdquo of 2008-2009rdquo Jason M Thomas Private Equity Council

March 2010

Earnings have rebounded surprisingly

strongly

57



The broad and pre-emptive cost management

measures taken at investee companies through thedownturn reduced the impact to earnings

Poised to take advantage of the recovery many

private equity backed companies are also

experiencing greater profitability with the rebound in

revenue

Peak of Cycle Deals ndash back from the depths58

KKR I t t M lti l



The combination of refinancing low

default rates deleveraging andstronger equity markets has seen

private equity backed company

valuations rebound

As an example the top 10 portfolio

companies of KKR and SVG Capital

have all recovered strongly

Investments written down sharply have

been gradually written back up with

improved trading conditions

Companies that traded well through the

downturn such as Dollar General and

HCA have continued on their growth

trajectory

KKR

Portfolio Company Dec-08 Dec-09 Sep-10 Mar-11 ChangeNXP Semiconductor 01x 03x 05x 11x 1030

ProSiebenSat1 Media 01x 01x 02x 05x 412

HCA 08x 19x 25x 30x 274

Dollar General 11x 26x 33x 36x 225

The Nielsen Company 09x 11x 15x 18x 102

Alliance Boots 06x 08x 09x 10x 79

US Foodservice 08x 12x 10x 12x 50

Biomet 08x 10x 10x 10x 25

First Data 06x 06x 06x 06x 0

Energy Futures 07x 04x 02x 02x -71

Average 06x 10x 12x 14x 117

Investment Multiple

SVG Capital

Portfolio Company Dec-08 Dec-09 Sep-10 Mar-11 ChangeProSieben Sat1 Media 00x 00x 03x 05x NA

Galaxy Entertainment Group 01x 03x 08x 13x 885

Freescale Semiconductor 02x 02x 03x 05x 213

Provimi 08x 12x 15x 21x 181

Valentino Fashion Group 05x 06x 07x 10x 106

Arysta LifeScience 06x 06x 08x 09x 63Birds Eye Iglo 12x 18x 18x 20x 61

Legico 07x 06x 08x 10x 51

AA Saga 10x 14x 15x 13x 30

TeleDenmark 16x 22x 23x 17x 3


Investment Multiple

Source Company filings Barwon analysis

Earnings growth will continue to drive

NAV growth

59



Majority of leading

earnings indicators

suggest further earningsgrowth ahead and

surpassing 200607 peaks

in 2012

Earnings for SampP500

companies rose 30 in

2010 the fastest growth

since 1995 and accordingto analyst forecasts will

rise another 14 this

year

Similar growth is expected

across Europe

particularly in the

materials and technologysectors

US and European consensus EPS growth forecasts

2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27

Industrials 20 15 21 19 17 21Discretionary 15 16 32 16 16 71

Staples 11 11 43 8 11 32

Healthcare 7 5 39 8 7 27

Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US

Source IBES yoy as of 3rd January 2011

Dry powder ldquouse or loserdquo and ldquotrading downrdquo by

mega buyout funds are some of the reasons

purchase prices are high




$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160

2003 2004 2005 2006 2007 2008 2009 2010Cumulative Overhang Under $100M $100M-$250M $250M-$500M $500M-$1B $1B-$5B $5B+$ in Billion$ in Billion

As of 6302010

Mega Funds are

Trading Down into

Large BuyOut Segment

Capital Overhang of US PE Investors by Vintage Year



London Investor Conference14 June 2011

LPEQ Focus and Findings

Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom

What does LPEQ strive to do



bull LPEQrsquos mission is to increase awareness understanding

and interest in listed private equity (LPE) among investors

and other industry participants

Networking and sharing best practice across

companies markets and countries

Conducting ground‐breaking research on LPE sector

Maintaining leading compendium of publicly available

information on

LPE

at

wwwLPEQcom

Unified voice speaking to industry bodies press

regulators


Signature Achievements



Investor Relations

bull Listed Private Equity DaysmdashAmsterdam Stockholm Paris

Research

bull Surveyed Wealth Managers Family Offices Institutional Investors IFAs and Pension Consultants

bull Investors share

views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom

bull Comprehensive sector information and performance data

bull Member profiles

bull One‐stop shop for academic and industry research


Whatrsquos ahead for LPEQ



bull Publication of Investor Communications Guidelines

bull 3

Listed

Private

Equity

Days

in

major

European

cities

bull Drive for membership

bull New research

on

global

private

wealth

management

market‐‐HNW Asset Allocator Survey

What s ahead for LPEQ

HNW Asset Allocator Survey



y

bull Research to understand the current allocation of leading wealth

managers and role of PELPE in portfolios

bull Conducted by Scorpio Partnership sponsored by LPEQ

bull Third survey in series previously Q4 2009

bull Sample to date 21 institutions with nearly $6 trillion in AUM

(global market of $165 trillion)

bull Full results will be available late June in conjunction with Exit Poll

data

LPEQ members are listed across Europe

Offering global access to most segments of PE market




Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140

GC=Growth Capital SS=Special Situations RE=Real Estate MEZZ=Mezzanine FoF=Fund‐of ‐Funds LPE=Listed Private Equity

Name Type

Regulated Market Investment

focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011

Aberdeen Private Equity Fund‐of ‐funds London Global All Entire range 101 mn

Altamir Amboise Direct Manager Paris Mainly France LBOGCVC Small to mid 291 mn

Conversus Capital LP Fund‐of ‐funds Amsterdam Global LBOVC Entire range 1057 mn

Deutsche Beteiligungs AG Direct Manager Frankfurt Germany LBOGC euro50‐250m 275 mn

Dinamia Capital

Privado Direct

Manager Madrid SpainPortugal LBOGC euro50

‐300m 133

mn

Dunedin Enterprise Direct Manager London UK LBOLPE pound10‐50mn 110 mn

Electra Private Equity Direct Manager London Europe All Up to euro500m 672 mn

FampC Private Equity Fund‐of ‐funds London Global LBOMEZZ euro50‐500m 123 mn

Gimv NV Direct Manager Brussels BEL NLGER LBOVC Up to euro125m 1000 mn

Graphite Enterprise Fund‐of ‐funds London Europe LBOFoF Entire range 304 mn

HarbourVest Global PE Fund‐of ‐funds Amsterdam London SFM Global LBOVC Entire range 408 mn

HBM BioVentures AG Direct Manager Switzerland Global BOVC euro10‐50m 385 mn

HgCapital Direct Manager London Europe LBO euro75‐500m 396 mn

JP Morgan Private Equity Fund‐of ‐funds London Global LBOREVC Entire range 364 mn

JZ Capital Partners Ltd Direct Manager London US LBOMEZZ Small 384 mn

LMS Capital Direct

Manager London UKUS GCVC Small 182

mn

NB Private Equity Partners Fund‐of ‐funds Amsterdam London SFM Global LBOVCGCSS Entire range 306 mn

Pantheon Intrsquol Participations Fund‐of ‐funds London Global LBOVC Entire range 466 mn

SVG Capital Fund‐of ‐funds London Europe LBO Large 894 mn

Standard Life European PE Fund‐of ‐funds London Europe LBO euro100‐1000m 288 mn



wwwLPEQcom

Table of Contents

Conference Programme Pages 3 ndash 6

How can PE firms deliver amidst a fragile recovery Pages 7 - 43

Bain amp Company ndash Graham Elton Partner

Debt Markets How ldquoOpen for Businessrdquo are they Pages 44 - 54

Deloitte Corporate Finance Debt Advisory

James Douglas Partner

Private Equity Outlook Pages 55 - 62

Barwon ndash Sam Armstrong Managing Partner

Focus amp Findings Pages 63 - 68

LPEQ -Andrea Lowe Executive Director











Dear Delegate








Yours sincerely

Andrea Lowe






Altamir Amboise







Gimv NV



HBM BioVentures AG

HgCapital Trust plc























Deloitte LLP

























Energy














































































































companies







govern the business


















The Livery Hall




The crypts






Purbeck marble



June 14 2011


Graham Elton



2LPEQ2011TOR













3LPEQ2011TOR


Source Dealogic




4LPEQ2011TOR



S iff i i k h l i l



5LPEQ2011TOR


US Europe





6LPEQ2011TOR

0

20

40

60

80

100High pressure

to investbelow avg

performance


performance














7LPEQ2011TOR











8LPEQ2011TOR













9LPEQ2011TOR









Leverage

Multipleexpansion

GDP growth







10LPEQ2011TOR

-10

0

10

20

30

40


868890929496980002040608101H

1st quartilefunds

All funds

-10

0

10

20

30

40


98 00 02 04 06 08 101H

All funds

1st quartilefunds






267






11LPEQ2011TOR


processes


organisation








12LPEQ2011TOR


Key questions







- new asset classes






13LPEQ2011TOR


Generalmanagement

Investor relations

Resources tosupport


Talentmanagement












14LPEQ2011TOR



committee processes



deals







B ild t bl l ti



15LPEQ2011TOR


Common pitfalls







Si tf li h



16LPEQ2011TOR




(how close todoing)



Owneroperator Exec

Chairman

Functionalexpert

lsquoHands-off

6

lsquoMonitorrsquo

10

lsquoStrategic

architectrsquo

2

3 5

4








17LPEQ2011TOR

gcritical elements

Culture

Organisation and

Resourcing



Secondary

Enabler

Critical

Foundation

Primary

Enabler

Starting

point









18LPEQ2011TOR




organisation



Develop an adaptive




to an opportunity













19LPEQ2011TOR


Source Dealogic


record high






20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn















Dear Delegate








Yours sincerely

Andrea Lowe






Altamir Amboise







Gimv NV



HBM BioVentures AG

HgCapital Trust plc























Deloitte LLP

























Energy














































































































companies







govern the business


















The Livery Hall




The crypts






Purbeck marble



June 14 2011


Graham Elton



2LPEQ2011TOR













3LPEQ2011TOR


Source Dealogic




4LPEQ2011TOR



S iff i i k h l i l



5LPEQ2011TOR


US Europe





6LPEQ2011TOR

0

20

40

60

80

100High pressure

to investbelow avg

performance


performance














7LPEQ2011TOR











8LPEQ2011TOR













9LPEQ2011TOR









Leverage

Multipleexpansion

GDP growth







10LPEQ2011TOR

-10

0

10

20

30

40


868890929496980002040608101H

1st quartilefunds

All funds

-10

0

10

20

30

40


98 00 02 04 06 08 101H

All funds

1st quartilefunds






267






11LPEQ2011TOR


processes


organisation








12LPEQ2011TOR


Key questions







- new asset classes






13LPEQ2011TOR


Generalmanagement

Investor relations

Resources tosupport


Talentmanagement












14LPEQ2011TOR



committee processes



deals







B ild t bl l ti



15LPEQ2011TOR


Common pitfalls







Si tf li h



16LPEQ2011TOR




(how close todoing)



Owneroperator Exec

Chairman

Functionalexpert

lsquoHands-off

6

lsquoMonitorrsquo

10

lsquoStrategic

architectrsquo

2

3 5

4








17LPEQ2011TOR

gcritical elements

Culture

Organisation and

Resourcing



Secondary

Enabler

Critical

Foundation

Primary

Enabler

Starting

point









18LPEQ2011TOR




organisation



Develop an adaptive




to an opportunity













19LPEQ2011TOR


Source Dealogic


record high






20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn

























Deloitte LLP

























Energy














































































































companies







govern the business


















The Livery Hall




The crypts






Purbeck marble



June 14 2011


Graham Elton



2LPEQ2011TOR













3LPEQ2011TOR


Source Dealogic




4LPEQ2011TOR



S iff i i k h l i l



5LPEQ2011TOR


US Europe





6LPEQ2011TOR

0

20

40

60

80

100High pressure

to investbelow avg

performance


performance














7LPEQ2011TOR











8LPEQ2011TOR













9LPEQ2011TOR









Leverage

Multipleexpansion

GDP growth







10LPEQ2011TOR

-10

0

10

20

30

40


868890929496980002040608101H

1st quartilefunds

All funds

-10

0

10

20

30

40


98 00 02 04 06 08 101H

All funds

1st quartilefunds






267






11LPEQ2011TOR


processes


organisation








12LPEQ2011TOR


Key questions







- new asset classes






13LPEQ2011TOR


Generalmanagement

Investor relations

Resources tosupport


Talentmanagement












14LPEQ2011TOR



committee processes



deals







B ild t bl l ti



15LPEQ2011TOR


Common pitfalls







Si tf li h



16LPEQ2011TOR




(how close todoing)



Owneroperator Exec

Chairman

Functionalexpert

lsquoHands-off

6

lsquoMonitorrsquo

10

lsquoStrategic

architectrsquo

2

3 5

4








17LPEQ2011TOR

gcritical elements

Culture

Organisation and

Resourcing



Secondary

Enabler

Critical

Foundation

Primary

Enabler

Starting

point









18LPEQ2011TOR




organisation



Develop an adaptive




to an opportunity













19LPEQ2011TOR


Source Dealogic


record high






20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn



























































































companies







govern the business


















The Livery Hall




The crypts






Purbeck marble



June 14 2011


Graham Elton



2LPEQ2011TOR













3LPEQ2011TOR


Source Dealogic




4LPEQ2011TOR



S iff i i k h l i l



5LPEQ2011TOR


US Europe





6LPEQ2011TOR

0

20

40

60

80

100High pressure

to investbelow avg

performance


performance














7LPEQ2011TOR











8LPEQ2011TOR













9LPEQ2011TOR









Leverage

Multipleexpansion

GDP growth







10LPEQ2011TOR

-10

0

10

20

30

40


868890929496980002040608101H

1st quartilefunds

All funds

-10

0

10

20

30

40


98 00 02 04 06 08 101H

All funds

1st quartilefunds






267






11LPEQ2011TOR


processes


organisation








12LPEQ2011TOR


Key questions







- new asset classes






13LPEQ2011TOR


Generalmanagement

Investor relations

Resources tosupport


Talentmanagement












14LPEQ2011TOR



committee processes



deals







B ild t bl l ti



15LPEQ2011TOR


Common pitfalls







Si tf li h



16LPEQ2011TOR




(how close todoing)



Owneroperator Exec

Chairman

Functionalexpert

lsquoHands-off

6

lsquoMonitorrsquo

10

lsquoStrategic

architectrsquo

2

3 5

4








17LPEQ2011TOR

gcritical elements

Culture

Organisation and

Resourcing



Secondary

Enabler

Critical

Foundation

Primary

Enabler

Starting

point









18LPEQ2011TOR




organisation



Develop an adaptive




to an opportunity













19LPEQ2011TOR


Source Dealogic


record high






20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







June 14 2011


Graham Elton



2LPEQ2011TOR













3LPEQ2011TOR


Source Dealogic




4LPEQ2011TOR



S iff i i k h l i l



5LPEQ2011TOR


US Europe





6LPEQ2011TOR

0

20

40

60

80

100High pressure

to investbelow avg

performance


performance














7LPEQ2011TOR











8LPEQ2011TOR













9LPEQ2011TOR









Leverage

Multipleexpansion

GDP growth







10LPEQ2011TOR

-10

0

10

20

30

40


868890929496980002040608101H

1st quartilefunds

All funds

-10

0

10

20

30

40


98 00 02 04 06 08 101H

All funds

1st quartilefunds






267






11LPEQ2011TOR


processes


organisation








12LPEQ2011TOR


Key questions







- new asset classes






13LPEQ2011TOR


Generalmanagement

Investor relations

Resources tosupport


Talentmanagement












14LPEQ2011TOR



committee processes



deals







B ild t bl l ti



15LPEQ2011TOR


Common pitfalls







Si tf li h



16LPEQ2011TOR




(how close todoing)



Owneroperator Exec

Chairman

Functionalexpert

lsquoHands-off

6

lsquoMonitorrsquo

10

lsquoStrategic

architectrsquo

2

3 5

4








17LPEQ2011TOR

gcritical elements

Culture

Organisation and

Resourcing



Secondary

Enabler

Critical

Foundation

Primary

Enabler

Starting

point









18LPEQ2011TOR




organisation



Develop an adaptive




to an opportunity













19LPEQ2011TOR


Source Dealogic


record high






20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







2LPEQ2011TOR













3LPEQ2011TOR


Source Dealogic




4LPEQ2011TOR



S iff i i k h l i l



5LPEQ2011TOR


US Europe





6LPEQ2011TOR

0

20

40

60

80

100High pressure

to investbelow avg

performance


performance














7LPEQ2011TOR











8LPEQ2011TOR













9LPEQ2011TOR









Leverage

Multipleexpansion

GDP growth







10LPEQ2011TOR

-10

0

10

20

30

40


868890929496980002040608101H

1st quartilefunds

All funds

-10

0

10

20

30

40


98 00 02 04 06 08 101H

All funds

1st quartilefunds






267






11LPEQ2011TOR


processes


organisation








12LPEQ2011TOR


Key questions







- new asset classes






13LPEQ2011TOR


Generalmanagement

Investor relations

Resources tosupport


Talentmanagement












14LPEQ2011TOR



committee processes



deals







B ild t bl l ti



15LPEQ2011TOR


Common pitfalls







Si tf li h



16LPEQ2011TOR




(how close todoing)



Owneroperator Exec

Chairman

Functionalexpert

lsquoHands-off

6

lsquoMonitorrsquo

10

lsquoStrategic

architectrsquo

2

3 5

4








17LPEQ2011TOR

gcritical elements

Culture

Organisation and

Resourcing



Secondary

Enabler

Critical

Foundation

Primary

Enabler

Starting

point









18LPEQ2011TOR




organisation



Develop an adaptive




to an opportunity













19LPEQ2011TOR


Source Dealogic


record high






20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







3LPEQ2011TOR


Source Dealogic




4LPEQ2011TOR



S iff i i k h l i l



5LPEQ2011TOR


US Europe





6LPEQ2011TOR

0

20

40

60

80

100High pressure

to investbelow avg

performance


performance














7LPEQ2011TOR











8LPEQ2011TOR













9LPEQ2011TOR









Leverage

Multipleexpansion

GDP growth







10LPEQ2011TOR

-10

0

10

20

30

40


868890929496980002040608101H

1st quartilefunds

All funds

-10

0

10

20

30

40


98 00 02 04 06 08 101H

All funds

1st quartilefunds






267






11LPEQ2011TOR


processes


organisation








12LPEQ2011TOR


Key questions







- new asset classes






13LPEQ2011TOR


Generalmanagement

Investor relations

Resources tosupport


Talentmanagement












14LPEQ2011TOR



committee processes



deals







B ild t bl l ti



15LPEQ2011TOR


Common pitfalls







Si tf li h



16LPEQ2011TOR




(how close todoing)



Owneroperator Exec

Chairman

Functionalexpert

lsquoHands-off

6

lsquoMonitorrsquo

10

lsquoStrategic

architectrsquo

2

3 5

4








17LPEQ2011TOR

gcritical elements

Culture

Organisation and

Resourcing



Secondary

Enabler

Critical

Foundation

Primary

Enabler

Starting

point









18LPEQ2011TOR




organisation



Develop an adaptive




to an opportunity













19LPEQ2011TOR


Source Dealogic


record high






20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







4LPEQ2011TOR



S iff i i k h l i l



5LPEQ2011TOR


US Europe





6LPEQ2011TOR

0

20

40

60

80

100High pressure

to investbelow avg

performance


performance














7LPEQ2011TOR











8LPEQ2011TOR













9LPEQ2011TOR









Leverage

Multipleexpansion

GDP growth







10LPEQ2011TOR

-10

0

10

20

30

40


868890929496980002040608101H

1st quartilefunds

All funds

-10

0

10

20

30

40


98 00 02 04 06 08 101H

All funds

1st quartilefunds






267






11LPEQ2011TOR


processes


organisation








12LPEQ2011TOR


Key questions







- new asset classes






13LPEQ2011TOR


Generalmanagement

Investor relations

Resources tosupport


Talentmanagement












14LPEQ2011TOR



committee processes



deals







B ild t bl l ti



15LPEQ2011TOR


Common pitfalls







Si tf li h



16LPEQ2011TOR




(how close todoing)



Owneroperator Exec

Chairman

Functionalexpert

lsquoHands-off

6

lsquoMonitorrsquo

10

lsquoStrategic

architectrsquo

2

3 5

4








17LPEQ2011TOR

gcritical elements

Culture

Organisation and

Resourcing



Secondary

Enabler

Critical

Foundation

Primary

Enabler

Starting

point









18LPEQ2011TOR




organisation



Develop an adaptive




to an opportunity













19LPEQ2011TOR


Source Dealogic


record high






20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







5LPEQ2011TOR


US Europe





6LPEQ2011TOR

0

20

40

60

80

100High pressure

to investbelow avg

performance


performance














7LPEQ2011TOR











8LPEQ2011TOR













9LPEQ2011TOR









Leverage

Multipleexpansion

GDP growth







10LPEQ2011TOR

-10

0

10

20

30

40


868890929496980002040608101H

1st quartilefunds

All funds

-10

0

10

20

30

40


98 00 02 04 06 08 101H

All funds

1st quartilefunds






267






11LPEQ2011TOR


processes


organisation








12LPEQ2011TOR


Key questions







- new asset classes






13LPEQ2011TOR


Generalmanagement

Investor relations

Resources tosupport


Talentmanagement












14LPEQ2011TOR



committee processes



deals







B ild t bl l ti



15LPEQ2011TOR


Common pitfalls







Si tf li h



16LPEQ2011TOR




(how close todoing)



Owneroperator Exec

Chairman

Functionalexpert

lsquoHands-off

6

lsquoMonitorrsquo

10

lsquoStrategic

architectrsquo

2

3 5

4








17LPEQ2011TOR

gcritical elements

Culture

Organisation and

Resourcing



Secondary

Enabler

Critical

Foundation

Primary

Enabler

Starting

point









18LPEQ2011TOR




organisation



Develop an adaptive




to an opportunity













19LPEQ2011TOR


Source Dealogic


record high






20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







6LPEQ2011TOR

0

20

40

60

80

100High pressure

to investbelow avg

performance


performance














7LPEQ2011TOR











8LPEQ2011TOR













9LPEQ2011TOR









Leverage

Multipleexpansion

GDP growth







10LPEQ2011TOR

-10

0

10

20

30

40


868890929496980002040608101H

1st quartilefunds

All funds

-10

0

10

20

30

40


98 00 02 04 06 08 101H

All funds

1st quartilefunds






267






11LPEQ2011TOR


processes


organisation








12LPEQ2011TOR


Key questions







- new asset classes






13LPEQ2011TOR


Generalmanagement

Investor relations

Resources tosupport


Talentmanagement












14LPEQ2011TOR



committee processes



deals







B ild t bl l ti



15LPEQ2011TOR


Common pitfalls







Si tf li h



16LPEQ2011TOR




(how close todoing)



Owneroperator Exec

Chairman

Functionalexpert

lsquoHands-off

6

lsquoMonitorrsquo

10

lsquoStrategic

architectrsquo

2

3 5

4








17LPEQ2011TOR

gcritical elements

Culture

Organisation and

Resourcing



Secondary

Enabler

Critical

Foundation

Primary

Enabler

Starting

point









18LPEQ2011TOR




organisation



Develop an adaptive




to an opportunity













19LPEQ2011TOR


Source Dealogic


record high






20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







7LPEQ2011TOR











8LPEQ2011TOR













9LPEQ2011TOR









Leverage

Multipleexpansion

GDP growth







10LPEQ2011TOR

-10

0

10

20

30

40


868890929496980002040608101H

1st quartilefunds

All funds

-10

0

10

20

30

40


98 00 02 04 06 08 101H

All funds

1st quartilefunds






267






11LPEQ2011TOR


processes


organisation








12LPEQ2011TOR


Key questions







- new asset classes






13LPEQ2011TOR


Generalmanagement

Investor relations

Resources tosupport


Talentmanagement












14LPEQ2011TOR



committee processes



deals







B ild t bl l ti



15LPEQ2011TOR


Common pitfalls







Si tf li h



16LPEQ2011TOR




(how close todoing)



Owneroperator Exec

Chairman

Functionalexpert

lsquoHands-off

6

lsquoMonitorrsquo

10

lsquoStrategic

architectrsquo

2

3 5

4








17LPEQ2011TOR

gcritical elements

Culture

Organisation and

Resourcing



Secondary

Enabler

Critical

Foundation

Primary

Enabler

Starting

point









18LPEQ2011TOR




organisation



Develop an adaptive




to an opportunity













19LPEQ2011TOR


Source Dealogic


record high






20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







8LPEQ2011TOR













9LPEQ2011TOR









Leverage

Multipleexpansion

GDP growth







10LPEQ2011TOR

-10

0

10

20

30

40


868890929496980002040608101H

1st quartilefunds

All funds

-10

0

10

20

30

40


98 00 02 04 06 08 101H

All funds

1st quartilefunds






267






11LPEQ2011TOR


processes


organisation








12LPEQ2011TOR


Key questions







- new asset classes






13LPEQ2011TOR


Generalmanagement

Investor relations

Resources tosupport


Talentmanagement












14LPEQ2011TOR



committee processes



deals







B ild t bl l ti



15LPEQ2011TOR


Common pitfalls







Si tf li h



16LPEQ2011TOR




(how close todoing)



Owneroperator Exec

Chairman

Functionalexpert

lsquoHands-off

6

lsquoMonitorrsquo

10

lsquoStrategic

architectrsquo

2

3 5

4








17LPEQ2011TOR

gcritical elements

Culture

Organisation and

Resourcing



Secondary

Enabler

Critical

Foundation

Primary

Enabler

Starting

point









18LPEQ2011TOR




organisation



Develop an adaptive




to an opportunity













19LPEQ2011TOR


Source Dealogic


record high






20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







9LPEQ2011TOR









Leverage

Multipleexpansion

GDP growth







10LPEQ2011TOR

-10

0

10

20

30

40


868890929496980002040608101H

1st quartilefunds

All funds

-10

0

10

20

30

40


98 00 02 04 06 08 101H

All funds

1st quartilefunds






267






11LPEQ2011TOR


processes


organisation








12LPEQ2011TOR


Key questions







- new asset classes






13LPEQ2011TOR


Generalmanagement

Investor relations

Resources tosupport


Talentmanagement












14LPEQ2011TOR



committee processes



deals







B ild t bl l ti



15LPEQ2011TOR


Common pitfalls







Si tf li h



16LPEQ2011TOR




(how close todoing)



Owneroperator Exec

Chairman

Functionalexpert

lsquoHands-off

6

lsquoMonitorrsquo

10

lsquoStrategic

architectrsquo

2

3 5

4








17LPEQ2011TOR

gcritical elements

Culture

Organisation and

Resourcing



Secondary

Enabler

Critical

Foundation

Primary

Enabler

Starting

point









18LPEQ2011TOR




organisation



Develop an adaptive




to an opportunity













19LPEQ2011TOR


Source Dealogic


record high






20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







10LPEQ2011TOR

-10

0

10

20

30

40


868890929496980002040608101H

1st quartilefunds

All funds

-10

0

10

20

30

40


98 00 02 04 06 08 101H

All funds

1st quartilefunds






267






11LPEQ2011TOR


processes


organisation








12LPEQ2011TOR


Key questions







- new asset classes






13LPEQ2011TOR


Generalmanagement

Investor relations

Resources tosupport


Talentmanagement












14LPEQ2011TOR



committee processes



deals







B ild t bl l ti



15LPEQ2011TOR


Common pitfalls







Si tf li h



16LPEQ2011TOR




(how close todoing)



Owneroperator Exec

Chairman

Functionalexpert

lsquoHands-off

6

lsquoMonitorrsquo

10

lsquoStrategic

architectrsquo

2

3 5

4








17LPEQ2011TOR

gcritical elements

Culture

Organisation and

Resourcing



Secondary

Enabler

Critical

Foundation

Primary

Enabler

Starting

point









18LPEQ2011TOR




organisation



Develop an adaptive




to an opportunity













19LPEQ2011TOR


Source Dealogic


record high






20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

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European

cities


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on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







11LPEQ2011TOR


processes


organisation








12LPEQ2011TOR


Key questions







- new asset classes






13LPEQ2011TOR


Generalmanagement

Investor relations

Resources tosupport


Talentmanagement












14LPEQ2011TOR



committee processes



deals







B ild t bl l ti



15LPEQ2011TOR


Common pitfalls







Si tf li h



16LPEQ2011TOR




(how close todoing)



Owneroperator Exec

Chairman

Functionalexpert

lsquoHands-off

6

lsquoMonitorrsquo

10

lsquoStrategic

architectrsquo

2

3 5

4








17LPEQ2011TOR

gcritical elements

Culture

Organisation and

Resourcing



Secondary

Enabler

Critical

Foundation

Primary

Enabler

Starting

point









18LPEQ2011TOR




organisation



Develop an adaptive




to an opportunity













19LPEQ2011TOR


Source Dealogic


record high






20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







12LPEQ2011TOR


Key questions







- new asset classes






13LPEQ2011TOR


Generalmanagement

Investor relations

Resources tosupport


Talentmanagement












14LPEQ2011TOR



committee processes



deals







B ild t bl l ti



15LPEQ2011TOR


Common pitfalls







Si tf li h



16LPEQ2011TOR




(how close todoing)



Owneroperator Exec

Chairman

Functionalexpert

lsquoHands-off

6

lsquoMonitorrsquo

10

lsquoStrategic

architectrsquo

2

3 5

4








17LPEQ2011TOR

gcritical elements

Culture

Organisation and

Resourcing



Secondary

Enabler

Critical

Foundation

Primary

Enabler

Starting

point









18LPEQ2011TOR




organisation



Develop an adaptive




to an opportunity













19LPEQ2011TOR


Source Dealogic


record high






20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







13LPEQ2011TOR


Generalmanagement

Investor relations

Resources tosupport


Talentmanagement












14LPEQ2011TOR



committee processes



deals







B ild t bl l ti



15LPEQ2011TOR


Common pitfalls







Si tf li h



16LPEQ2011TOR




(how close todoing)



Owneroperator Exec

Chairman

Functionalexpert

lsquoHands-off

6

lsquoMonitorrsquo

10

lsquoStrategic

architectrsquo

2

3 5

4








17LPEQ2011TOR

gcritical elements

Culture

Organisation and

Resourcing



Secondary

Enabler

Critical

Foundation

Primary

Enabler

Starting

point









18LPEQ2011TOR




organisation



Develop an adaptive




to an opportunity













19LPEQ2011TOR


Source Dealogic


record high






20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







14LPEQ2011TOR



committee processes



deals







B ild t bl l ti



15LPEQ2011TOR


Common pitfalls







Si tf li h



16LPEQ2011TOR




(how close todoing)



Owneroperator Exec

Chairman

Functionalexpert

lsquoHands-off

6

lsquoMonitorrsquo

10

lsquoStrategic

architectrsquo

2

3 5

4








17LPEQ2011TOR

gcritical elements

Culture

Organisation and

Resourcing



Secondary

Enabler

Critical

Foundation

Primary

Enabler

Starting

point









18LPEQ2011TOR




organisation



Develop an adaptive




to an opportunity













19LPEQ2011TOR


Source Dealogic


record high






20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







15LPEQ2011TOR


Common pitfalls







Si tf li h



16LPEQ2011TOR




(how close todoing)



Owneroperator Exec

Chairman

Functionalexpert

lsquoHands-off

6

lsquoMonitorrsquo

10

lsquoStrategic

architectrsquo

2

3 5

4








17LPEQ2011TOR

gcritical elements

Culture

Organisation and

Resourcing



Secondary

Enabler

Critical

Foundation

Primary

Enabler

Starting

point









18LPEQ2011TOR




organisation



Develop an adaptive




to an opportunity













19LPEQ2011TOR


Source Dealogic


record high






20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







16LPEQ2011TOR




(how close todoing)



Owneroperator Exec

Chairman

Functionalexpert

lsquoHands-off

6

lsquoMonitorrsquo

10

lsquoStrategic

architectrsquo

2

3 5

4








17LPEQ2011TOR

gcritical elements

Culture

Organisation and

Resourcing



Secondary

Enabler

Critical

Foundation

Primary

Enabler

Starting

point









18LPEQ2011TOR




organisation



Develop an adaptive




to an opportunity













19LPEQ2011TOR


Source Dealogic


record high






20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







17LPEQ2011TOR

gcritical elements

Culture

Organisation and

Resourcing



Secondary

Enabler

Critical

Foundation

Primary

Enabler

Starting

point









18LPEQ2011TOR




organisation



Develop an adaptive




to an opportunity













19LPEQ2011TOR


Source Dealogic


record high






20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







18LPEQ2011TOR




organisation



Develop an adaptive




to an opportunity













19LPEQ2011TOR


Source Dealogic


record high






20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







19LPEQ2011TOR


Source Dealogic


record high






20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







20LPEQ2011TOR



0

100

200

300

$400B

0

500

1000

1500

1 9 9 5

6

1 9 9 6

15

1 9 9 7

15

1 9 9 8

34

1 9 9 9

37

2 0 0 0

82

2 0 0 1

52

2 0 0 2

43

2 0 0 3

65

2 0 0 4

169

2 0 0 5

257

2 0 0 6

232

2 0 0 7

355

2 0 0 8

151

2 0 0 9

72

2 0 1 0

232



Sponsor-to-sponsor

IPO

Total count

Strategic




21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







21LPEQ2011TOR





raise remained high






22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







22LPEQ2011TOR


O t h e r s

N e x t

1 5

O a k

t r e e

M e z z a n i n e

O t h e r s

N e x t

1 5

G o l d

m a n S a c h s


Source Preqin





23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







23LPEQ2011TOR






24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







24LPEQ2011TOR


0

100

200

300

400

$500B

2004 dealvalue

Private

Secondary

Carve-out

P2P

P2Pdeals

Averagedeal size

Numberof deals

Other typesof deals

2007 dealvalue

Private

Secondary

Carve-out

P2P










25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







25LPEQ2011TOR

continue

0

20

40

60

80

100

Primarybuyout

Secondarybuyout

Multiple

Free cash flow

EBITDA

Leverage


(by type of effect)

319379














26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







26LPEQ2011TOR










27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







27LPEQ2011TOR










28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







28LPEQ2011TOR

commitments in 2011










29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







29LPEQ2011TOR

0 10 20 30 40 50


Mega Buyout Funds






Restructuring Funds








bull In particular








30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







30LPEQ2011TOR









0

1

2

3X

2006

06

2007

07

2008

11

2009

13

2010

23

2011

26




31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







31LPEQ2011TOR



62 average













32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







32LPEQ2011TOR

0

20

40

60

80

100

Shift

towardsLPs

No change

Shift towards GPs









and risks








33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







33LPEQ2011TOR


0

20

40

60

80

100

Net IRR (in )


-50 -25 0 25 50 75 100



Median=11 Mean=14


MedianIRR

Q1 215 295Q2 111 152

Q3 31 79

Q4 -30




34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







34LPEQ2011TOR

a c a es o s

Private equity



Hedge funds


managers

Privatefamily

financialholdings

Financialinvestors


Pension funds




35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







35LPEQ2011TOR














Clear market leader




36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







36LPEQ2011TOR

pp g p q y

Objectives

Duration

Bainactivities

Dealgeneration

Immediately

post-acquisition

Duediligence

Ongoing

valueaddition

Exit




-Hidden gems

-Right pricing







-Customerfranchise







-Org alignment

-Quick hits

- Programmanagement

bull Focused


workshops-Alignment

- Prioritization


-Costimprovement

-Capitalmanagement

-Add-onacquisitions

- organisation

development


bull Portfolio scan











37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







37LPEQ2011TOR

00

10

20

30

40X

Industry

Average

Top

quartile

23X

None

23X

Post-acq(no DD)

29X

DD (noPost-acq)

32X

DD amp Post-acq

36X



Select Bain

clients totalreturn







983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn








983108983141983138983156 983117983137983154983147983141983156983155 983112983151983159 991260983119983152983141983150 983142983151983154 983106983157983155983145983150983141983155983155991261 983137983154983141 983156983144983141983161983103

983114983137983149983141983155 983108983151983157983143983148983137983155

983120983137983154983156983150983141983154 983085 983108983141983148983151983145983156983156983141 983107983151983154983152983151983154983137983156983141 983110983145983150983137983150983139983141 983108983141983138983156 983105983140983158983145983155983151983154983161

2010 983108983141983138983156 983105983140983158983145983155983151983154983161 983110983145983154983149 983151983142 983156983144983141 983129983141983137983154

983113983150983155983156983145983156983157983156983145983151983150983137983148 983142983145983150983137983150983139983141 983144983137983155 983138983141983141983150 983138983151983156983144 983137 983140983154983145983158983141983154 983137983150983140 983137983138983155983151983154983138983141983154 983151983142 983148983145983153983157983145983140983145983156983161




0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn








0

20

40

60

80

100

120

140

160

180

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11



High Yield Bonds

Institutional

Banks

2

983108983141983142983145983150983145983150983143 983156983144983141 983148983141983158983141983154983137983143983141983140 983142983145983150983137983150983139983141 983149983137983154983147983141983156


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983107983116983119 983145983155983155983157983137983150983139983141 983144983137983155 983138983141983141983150 983137 983140983154983145983158983141983154 983151983142 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983105 983138983145 983107983116983119 983148




983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn








983105983154983138983145983156983154983137983143983141 983107983116983119 983158983151983148983157983149983141


0

10

20

30

40

50

60

70

80

90

100

110

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983145983150983155983156983145983156983157983156983145983151983150983137983148 983137983152983152983141983156983145983156983141 983145983155 983150983151983159 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141

983147 983156




0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn








0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156 983158 983155

983107 983116 983119 983139

983137 983152 983137 983139 983145 983156 983161

( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161

4

1) Excess liquidity


983149983137983154983147983141983156983107983116983119983155 983150983141983137983154983145983150983143 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155 983148983151983151983147983145983150983143 983156983151 983145983150983158983141983155983156

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983159983145983156983144 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161 983142983151983154983139983145983150983143 983155983141983139983151983150983140983137983154983161 983152983154983145983139983141983155 983138983137983139983147 983157983152983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143




983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn








983125983152983148983145983142983156 983145983150 983148983141983158983141983154983137983143983141983140 983155983141983139983151983150983140983137983154983161 983149983137983154983147983141983156 983152983154983145983139983145983150983143

Secondary pricing

40

50

60

70

80

90

100

110

J a n - 0 6

M a r - 0 6

M a y - 0 6

J u l - 0 6

S e p - 0 6

N o v - 0 6

J a n - 0 7

M a r - 0 7

M a y - 0 7

J u l - 0 7

S e p - 0 7

N o v - 0 7

J a n - 0 8

M a r - 0 8

M a y - 0 8

J u l - 0 8

S e p - 0 8

N o v - 0 8

J a n - 0 9

M a r - 0 9

M a y - 0 9

J u l - 0 9

S e p - 0 9

N o v - 0 9

J a n - 1 0

M a r - 1 0

M a y - 1 0

J u l - 1 0

S e p - 1 0

N o v - 1 0

J a n - 1 1

M a r - 1 1

983127 983141 983155 983156 983141 983154 983150 983109 983157 983154 983151 983152 983141 983123 983141 983139 983151 983150 983140 983137 983154 983161

983152 983154 983145 983139 983145 983150 983143 ( 983151 983142 983152 983137 983154 )

Avg Bid Avg Offer

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn








983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


61983160

4983160

44983160 46983160

32

5351

48

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2007 2009 2010 983129983124983108 2011

983109 983153 983157 983145 983156 983161 983139 983151 983150 983156 983154 983145 983138 983157 983156 983145 983151 983150

983137 983155 983137 983151 983142 983109 983126

983116 983141 983158 983141 983154 983137 983143 983141 983140 983149 983157 983148 983156 983145 983152 983148 983141 983155 ( 983160 983109 983106 983113 983124 983108 983105 )

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983117983145983158983145983155983137 983085 983137 983139983137983155983141 983155983156983157983140983161 983145983150 983141983160983139983141983155983155 983148983145983153983157983145983140983145983156983161983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160




Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn








Original structure

983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 450

983123983141983150983145983151983154 983106 440 500

983108983154983137983159983150 983155983141983150983145983151983154 565

983116983141983158983141983154983137983143983141 44983160

983109983157 983154983145 983138983151983154 983142983148 983151983151 983154 1 75 983138983152 983155

983109983153983157983145983156983161 983139983157983155 983144983145 983151983150 37


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 475

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151 983154 983142983148 983151983151983154 1 50 983138983152 983155

983109983153983157983145 983156983161 983139983157983155983144983145 983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 1983098

983109983160983152983137983150983140 983155983145 983162983141 983151983142 983123983141983150983145983151983154 983106

983107983157983156 983149983137983154983143983145983150 983138983161 25983138983152983155 983137983139983154983151983155983155 983137983148983148 983156983154983137983150983139983144983141983155

983107983157983156 983109983157983154983145983138983151983154 983142983148983151983151983154

983109983153983157983145983156983161 983139983157983155983144983145983151983150 983140983151983159983150 983156983151 33


983123983156983154983157983139983156983157983154983141 983121983157983137983150983156983157983149 983117983137983154983143983145983150

983123983141983150983145983151983154 983105 125 425

983123983141983150983145983151983154 983106 473 425

983108983154983137983159983150 983155983141983150983145983151983154 59830978

983116983141983158983141983154983137983143983141 47983160

983109983157 983154983145 983138983151983154 983142983148 983151983151983154 1 50983138 983152983155

983109983153983157983145983156983161 983139983157983155 983144983145983151983150 33

983122983141983158983141983154983155983141 983142983148983141983160 2983098

983110983157983154983156983144983141983154 983139983157983156 983145983150 983123983141983150983145983151983154 983106 983152983154983145983139983145 983150983143

983123983137983149983141 983149983137983154983143983145983150 983142983151983154 983137983149983151983154983156983145983155983145983150983143 983137983150983140 983138983157983148983148983141983156 983156983154983137983150983139983144983141983155

983124983144983141 983154983141983156983157983154983150 983151983142 983154983141983158983141983154983155983141 983142983148983141983160

983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn








983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155

983137983150983140 983140983154983145983158983145983150983143 983148983145983153983157983145983140983145983156983161 983138983137983139983147 983145983150983156983151 983156983144983141 983152983154983145983149983137983154983161 983149983137983154983147983141983156983116983141983158983141983154983137983143983141 983149983157983148983156983145983152983148983141983155 983137983150983140 983141983153983157983145983156983161 983139983151983150983156983154983145983138983157983156983145983151983150983155




0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn








0

1

2

3

4

5

6




Oct 10

euro1070mCVC

Telecoms

Equitycushion

ND

Nov 10


Safetyequipment

Equitycushion

50

Nov 10


Cinemas

Equitycushion

ND

Feb 11

euro670mBlackstone

Manufacturing

Equitycushion35

Jan 11

euro210mAXA

Chemicalsproduction

Equitycushion30

Feb 11



Equitycushion35

Feb 11

pound150mCarlyle

Dental

Equitycushion35

Mar 11


Frozen foodchain

Equitycushion38

Arp 11

euro420mBridgepoint

Motorsport

Equitycushion30

Apr 11

euro400mCVC

Cableoperator

Equitycushion35


983143 983152 983153 983161

983138983157983156 983139983151983157983148983140 20134 983138983141 983137 983156983157983154983150983145983150983143 983152983151983145983150983156983107983116983119983155 983159983145983156983144 983141983160983139983141983155983155 983139983137983155983144 983150983141983137983154983145983150983143 983141983150983140 983151983142 983154983141983145983150983158983141983155983156983149983141983150983156 983152983141983154983145983151983140983155




983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn








983143 983152


0

10

20

30

40

50

60

2011 2012 2013 2014 2015

983113 983150 983155 983156 983145 983156 983157 983156 983145 983151 983150 983137 983148 983148 983141 983158 983141 983154 983137 983143 983141 983140 983140 983141 983138 983156

983158 983155 983107 983116 983119 983139 983137 983152 983137 983139 983145 983156 983161 ( 991404 983138 983150 )

983113983150983155983156983145983156983157983156983145983151983150983137983148 983149983137983156983157983154983145983156983145983141983155

983113983150983155983156983145983156983157983156983145983151983150983137983148 983154983141983145983150983158983141983155983156983149983141983150983156 983139983137983152983137983139983145983156983161


983123983151983157983154983139983141 983116983107983108 983116983151983137983150 983107983151983150983150983141983139983156983151983154 983108983141983148983151983145983156983156983141 983137983150983137983148983161983155983145983155





its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn









its member firms











June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn








June 2011


Balance sheets are

54



being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







being repaired


deleveraging












surprised everybody



surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







surprised everybody













Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn










Annualized rate of

default 1970-2002 ()



March 2010


strongly

57








revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn












revenue


KKR I t t M lti l






valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn










valuations rebound










trajectory

KKR



HCA 08x 19x 25x 30x 274









Investment Multiple

SVG Capital








AA Saga 10x 14x 15x 13x 30



Investment Multiple



NAV growth

59



Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







Majority of leading

earnings indicators



in 2012






year


across Europe

particularly in the



2011e 2012e 2012e

vs peak 2011e 2012e

2012e

vs peak

Market 15 12 7 14 14 27

Energy 14 11 -7 15 21 -11

Materials 29 12 12 28 13 27


Staples 11 11 43 8 11 32


Financials 22 18 -30 22 19 -39

IT 26 11 2 10 11 73

Telecoms 3 5 8 16 15 -4

Utilities -2 7 -10 -1 -1 -3

Europe US








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn








$49026

$262$773

$1787

$3610

$13005

$15553

$9618

$4419

$0

$100

$200

$300

$400

$500

$0

$20

$40

$60

$80

$100

$120

$140

$160


As of 6302010

Mega Funds are

Trading Down into







Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn









Andrea Lowe

Executive Director

LPEQ

andrealoweLPEQcom

wwwLPEQcom











information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn














information on

LPE

at

wwwLPEQcom


regulators





Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







Investor Relations


Research



views

on

LPE

learn

about

peersrsquo

approaches

Website wwwLPEQcom









bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn








bull 3

Listed

Private

Equity

Days

in

major

European

cities


bull New research

on

global

private

wealth

management






y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn







y








data






Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn








Source JP

Morgan

Cazenove

LPEQ

Deal

focus

LBO=Leveraged

Buyout

BO=

Buyout

VC=

Venture

Capital

Combined Market

Cap

euro8140


Name Type


focus Deal

focus Deal

size

‐EV Market

Cap

euro

May 2011





Dinamia Capital

Privado Direct


‐300m 133

mn











LMS Capital Direct


mn





lpeq 14 june conference presentations

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