preqin private equity spotlight august 2010

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Dear Spotlight reader,

Heres some good news!

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

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

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

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

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

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

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

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

Best regards,

David Lawrence

Preqinwww.preqin.com

2010 Preqin Ltd. / www.preqin.com

8/8/2019 Preqin Private Equity Spotlight August 2010

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Private EquitySpotlight

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

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

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

August 2010 / Volume 6 - Issue 8

DEALS PERFORMANCE INVESTORS FUNDRAISING FUND MANAGERS

www.preqin.com

Buyouts: A Changed Industry?

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

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

Feature Articlepage 5

Mega, Large, Mid-Market and Small Buyout Funds

Using Preqins new perormance benchmark, Perormance

Spotlight examines the perormance o dierent sized buyout

unds.

Performance Spotlightpage 9

Investor Newspage 22

Buyout Special

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

in the secondary market.

Secondaries Spotlight page 16

Investor Views on Buyout Funds

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

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

Investor Spotlight page 17

OUT NOW

The 2010 Preqin Buyout Review

More inormation available at:

www.preqin.com/buyoutreview

2010 Preqin Ltd. / www.preqin.com

What would you like to see in Private Equity Spotlight?Email us at: spotlight@preqin.com

Fundraising Spotlight page 12

London:

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

New York:

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

www.preqin.com

Join our group on: search for Preqin

Follow us on: www.twitter.com/preqin

You can now download all the data in

this months Spotlight in Excel.

The 2010 Preqin Private EquityBuyout Review

Fund Manager Spotlight page 14

Deals Spotlight page 10

Industrials Sector

This month we examine some o the characteristics o buyout

deals in the industrials sector.

Buyout Funds in Market

This months undraising spotlight examines the buyout

undraising market and looks at the average time taken or such

unds to close.

Buyout Firms

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

by size, location and investment preerences.

All the latest news on private equity investors.

8/8/2019 Preqin Private Equity Spotlight August 2010

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AWARDS 2009

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August 2010

You can now download all the data in

this months Spotlight in Excel.

2010 Preqin Ltd. / www.preqin.com

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

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

examining the industrial sector in our Deals Spotlight.

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

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

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

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

have been in exceeding their targets.

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

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

changed since the onset of the financial crisis.

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

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

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

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

have for future issues.

Best Regards,

Tim Friedman,

Editor

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

bottom of every page to get the file.

Editors Foreword:

Editors Foreword

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2010 Preqin Ltd. / www.preqin.com

August 2010

You can now download all the data in

this months Spotlight in Excel.

Feature Article:

Buyouts: A Changed Industry?

Feature Article

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

number of important changes, evolving into an industry of

increased significance on the global economic stage. After

suffering a dip in fundraising during the economic downturn

following the turn of the millennium, the market grew

significantly from 2003 onwards in terms of both the overall

capital being raised and the size of funds achieving a final

close. Fuelled by strong returns, institutional investor appetite

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

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

Dramatic Change

The abundance of leverage available in the markets amplified

the increase experienced in fundraising, and in 2006 the total

deal value for private equity-backed buyout deals reached a

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

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

when the global downturn struck, the effect was felt especially

hard by the global buyout industry. Fund managers lacked the

available financing or market stability required to undertake new

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

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

performance deep into the red. Investors that had previously

been pumping money into the asset class held back from

making new commitments.

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

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

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

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

having