preqin private equity spotlight august 2010

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  • 8/8/2019 Preqin Private Equity Spotlight August 2010


    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 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 --

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

    Best regards,

    David Lawrence

    2010 Preqin Ltd. /

  • 8/8/2019 Preqin Private Equity Spotlight August 2010


    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


    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


    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


    The 2010 Preqin Buyout Review

    More inormation available at:

    2010 Preqin Ltd. /

    What would you like to see in Private Equity Spotlight?Email us at:

    Fundraising Spotlight page 12


    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

    Join our group on: search for Preqin

    Follow us on:

    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


    AWARDS 2009
  • 8/8/2019 Preqin Private Equity Spotlight August 2010



    August 2010

    You can now download all the data in

    this months Spotlight in Excel.

    2010 Preqin Ltd. /

    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 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

    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,


    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
  • 8/8/2019 Preqin Private Equity Spotlight August 2010



    2010 Preqin Ltd. /

    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


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