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November 2009 Private Equity Market Review and Institutional Investor Survey © 2009 Probitas Partners

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N o v e m b e r 2 0 0 9

Private Equity Market Review and Institutional Investor

Survey

© 2009 Probitas Partners

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.2

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 1

C o n t e n t s

Introduction ....................................................................... 3

The Private Equity Fundraising Landscape .................. 4

Private Equity Institutional Investor Survey:

Executive Summary ........................................................ 7

Profile of Respondents ................................................. 9

Fundraising and Return Expectations ...................... 12

2010 Sectors and Geographies of Interest ............... 22

Niche Private Equity Sectors ..................................... 34

Structural Issues and Key Terms .............................. 40

Investor Fears and Concerns ...................................... 44

Conclusion .......................................................................... 46

Appendix I:

Private Equity Funds in Market or Thought to be Coming to Market Over the Next 12 Months ......... 49

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.2

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 3

I n t r o d u c t i o n

Probitas Partners is a leading independent knowledge, innovation and solutions provider to private markets clients. It has three integrated global practices that include placement of alternative investment products, portfolio management and liquidity management. These services are offered by a team of employee owners dedicated to leveraging the firm’s vast knowledge and technical resources to provide the best results for its clients.

On an ongoing basis, Probitas Partners offers research and investment tools on the alternative investment market as aids to its institutional investor and general partner clients. Probitas Partners compiles data from various trade and other sources and then vets and enhances that data via its team’s broad knowledge of the market. Also on an ongoing basis, Probitas Partners surveys institutional investors in order to determine more directly their perceptions of various aspects of the market, and the survey of private equity investors included here is part of that process.

Included within this white paper is our listing of private equity funds in or thought to be coming to market over the next 12 months. A few important user notes on the funds listing:

• The list does not track funds smaller than $100 million or €70 million, as these are not often targeted by institutional investors;

• Information is collected from various data sources, but dynamically and accurately tracking when funds are launched and when they are finally closed is a difficult business. We constantly interact with investors and other industry sources in an effort to keep the data updated, and Probitas Partners appreciates receiving any corrections or updates which will help keep this listing as up-to-date as possible;

• Probitas Partners relies upon its knowledge of the investment pace of previous funds, informal discussions with institutional investors and general partners, and its knowledge of emerging managers. Specifically, we do not seek confirmation of these estimates with general partners in order to avoid SEC public offering prohibitions.

For the same reason, Probitas Partners excludes from this listing information on funds it is currently offering; qualified investors seeking information on Probitas Partners’ placed funds should contact Probitas Partners directly in order to have the most complete picture of all institutional funds currently in the market.

n. [from Latin probitas: good, proper, honest.] adherence to the highest principles, ideals and character.

probity ¯ ¯˘

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.4

The Private Equity Fundraising Landscape

Private equity fundraising has plunged since September 2008 across all geographies and all sectors but one. The fundraising totals for the U.S., Europe and Asia are detailed in Charts I through III. All of these markets are in line to decline some 60% to 70% for the full year. Fundraising in the Asian market, where many economies continue to grow even in the midst of a global recession, is

down due to the liquidity problems faced by North American and European LPs, the largest backers of the sector.

The decline in fundraising this year has been much sharper than in 2000 at the last market peak, driven by a more sudden and dramatic fall in the public markets. Given the investor sentiment in our latest survey, the fall in fundraising appears to have bottomed out and that 2010 will be better, though a steep rebound is unlikely.

Chart I Commitments to U.S. Private Equity Partnerships by Sector

$ in

bill

ions

$350

$300

$250

$200

$150

$100

$50

$0

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Q1–Q3’09

Source: Private Equity AnalystNote: Does not include fund-of-funds

13.3

69.6

19.529.8 31.5

50.1

90.7 100.0

160.5

107.0

58.848.0

91.4

152.2

236.4

297.0

236.5

Buyouts/Corporate Finances Secondaries/Other MezzanineVenture Capital

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 5

Chart II Commitments to European Private Equity Partnerships

€ in

bill

ions

€70

€60

€50

€40

€30

€20

€10

€0

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Q1–Q3’09

Source: Thomson Venture Expert, EVCA, Probitas PartnersNote: Does not include fund-of-funds

1.3

12.3

2.1 4.3 5.08.3

18.4 21.1

31.1

61.0

52.6

19.124.1

17.7

58.361.1

64.1

52.4

Chart III Commitments to Asian Private Equity Partnerships

$ in

bill

ions

$60

$50

$40

$30

$20

$10

$0

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1H’09

Source: Asian Venture Capital JournalNote: Does not include fund-of-funds

2.0

6.9

2.35.3 6.7 5.6 5.9 7.4

16.2 17.9

13.2

6.5 7.3

13.4

26.6

42.741.2

50.9

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.6

Secondary specialist funds are the one sector of the private equity market that has reached a new record in 2009. As shown in Chart IV, through the first nine months of this year, $18.7 billion has been raised for the sector as LPs anticipate increasing activity in the secondary market at attractive

pricing. Though activity in the secondary market declined in the first half of 2009 as increasing discounts caused sellers to back away from transactions, the bid/ask spread in the market is narrowing and transaction volume is increasing.

Chart IV Capital Raised by Secondary Fund Specialists

$ in

bill

ions

$20

$18

$16

$14

$12

$10

$8

$6

$4

$2

$0

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Q1–Q3’09

Source: Private Equity Intelligence, Private Equity Analyst, Probitas Partners

0.8 0.4

2.6 2.2 2.1

4.53.5

6.45.6 6.1

15.1

7.4

18.7

4.1

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 7

Executive Summary

Probitas Partners administers this survey annually to gauge emerging trends and to compare investors’ changing views over a longer period of time. A total of 291 institutional investors responded to this year’s survey, with results collected in the middle of October.

The key trends for 2010:

• Many investors remain over-allocated to private equity. Even after the rebound in the public markets starting in March, many respondents reported that they are roughly at or over their allocations. While most investors are looking to maintain their exposure to private equity, a significant minority is under-allocated and aggressively investing.

• New capital is focused on U.S. and European middle-market buyout funds as well as Asian growth capital funds. These sectors have increased in interest over the last year, while on a relative basis distressed debt funds and secondary funds have fallen. In discussions with investors, we have found that many anticipate that 2010 will be a strong vintage year for middle-market buyouts in the U.S. and Europe as those markets rebound from recession; continued economic growth in Asia is attracting interest there as well.

• China extended its lead as the most attractive Asian market. The inherent stronger growth of the Chinese economy continued to attract investors, lengthening its attractiveness over India. Interest in Japan continues to fall significantly due to fundamental problems in that market.

• Venture capital interest continues to decline. Interest in U.S. venture capital remains low, especially for life science funds, and interest in the sector has declined significantly from our 2007 survey, falling from third place to eighth over that period. Interest in European venture capital, always very weak in our surveys even amongst European investors, has fallen to a new low this year, with only 0.5% of respondents targeting the area in 2010.

• Mega buyout interest continues to be weak. Only 8% of respondents say they will actively target mega buyouts in 2010, and return expectations on 2010 vintage mega buyouts is quite low compared to the middle-market sectors.

• Investors are clearly focused on alignment of interest and fees. Both in our questions regarding terms and conditions, and in our questions on investors’ greatest fears, it was clear that alignment of interest was a key concern and the role of fees in diluting alignment was a strong LP focus.

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.8

U.S.

Western Europe

Canada

Japan

Asia ex-Japan

Australia

Middle East

Chart VI Respondents Categorized by Firm Headquarters“My firm’s headquarters are located in...”

46.2%

35.8%

4.2%5.6%

3.9%

2.5%1.8%

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

Fund-of-Funds Manager

Public Pension/Superannuation Plan

Endowment/Foundation

Family Office

Insurance Company

Consultant/Advisor

Corporate Pension/Superannuation Plan

Bank

Sovereign Wealth Fund

Government Entity

Other

Chart V Respondent’s Profile“I represent a...”

29.5%

12.8% 12.2%

10.4%

10.4%

9.0%

4.5%4.2%

1.7%

3.2% 2.1%

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 9

Profile of Respondents

The profile for this year’s survey respondents provides a context for the subsequent results.

Respondents to this year’s survey included a wide range of institutional investors. As detailed in Chart V, fund-of-funds managers led all respondents at 29.5%, followed by public pensions at 12.8% and endowments/foundations at 12.2%. Family offices and insurance companies comprised just more than 10% of respondents each.

Geographically, institutional investors from more established markets made up the majority of respondents. As outlined in Chart VI, investors from the U.S. and Western Europe accounted for 46.2% and 35.8% of respondents respectively, demonstrating their continued role as the leading providers of capital to alternative investments globally. Although not detailed in Chart VI, the number of respondents from Asia continues to increase year-over-year, nearly doubling

from 2009 to 2010, reflecting the continued growth and development of the Asian private equity market.

To get a sense for how institutional investors are managing their allocations in the current economic environment, respondents were asked about the state of their current private equity allocations and how they planned to manage those allocations in 2010. Last year’s survey was administered in November in the midst of the market dislocation. Tumbling public markets had a significant impact on investor’s anticipated allocations. Though the public markets have rebounded significantly in 2009, responses to allocation questions in this year’s survey were very similar.

As outlined in Chart VII, an overwhelming percentage of respondents indicated they are at their target allocation and looking to maintain that level of exposure over the coming year; just over a quarter of respondents reported they are under their

Chart VII Current and Target Private Equity Allocations: 2009 vs. 2010“As far as our current private equity allocation, we are...”

Roughly at our target and considering increasing it

Roughly at our target and looking to maintain it

Over our target and looking to reduce exposure

Over our target but seeking to increase it

Under our target but actively committing to achieve it

Looking to reduce our target and exit the asset class

Other

Percentage of Respondents

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

0% 10% 20% 30% 40% 50%

9.510.5

41.138.0

7.16.5

2.61.2

23.427.5

1.92.9

14.413.4

2009 2010

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.10

target but actively committing in order to achieve it. Just over 10% of respondents indicated they are at their target allocation but considering increasing their level of exposure to private equity while another 6.5% of respondents indicated that they are over their target and seeking to reduce exposure. For both 2009 and 2010, the percentage of respondents that chose “Other” seems rather large; however, the majority of these respondents were funds-of-funds or consultants without a specific allocation to the asset class.

In comparing the allocations of public pensions and endowments, as shown in Chart VIII, the plurality of public pensions, at 40.5%, are under their target allocation and are actively committing capital, while 60% of endowments indicated they are roughly at or over their target. Not a single respondent from either of these types of institutions reported being over their target allocation and seeking to increase their exposure. There

were several respondents in the “Other” category for endowments, signaling that they were over their target but still considering committing on an opportunistic basis over the next 12 months.

From 2008 to 2009 there was a significant drop-off in targeted private equity allocations, a result of the Lehman Brothers collapse and the ensuing global economic crisis. Although the responses were widely spread over targeted allocation sizes, the results from 2009 versus 2010, outlined in Chart IX, remained roughly the same. Given the current economic environment and the pressure to limit exposure to illiquid alternative investments, the trend of targeting smaller annual allocations, as compared to those targeted during the market peak of 2007, will continue into 2010.

Survey respondents were next asked to indicate what percentage of their commitments in 2010 will be designated for

Chart VIII Current and Target Private Equity Allocations: Public Pensions vs. Endowments“As far as our current private equity allocation, we are...”

Roughly at our target and considering increasing it

Roughly at our target and looking to maintain it

Over our target and looking to reduce exposure

Over our target but seeking to increase it

Under our target but are actively committing to achieve it

Looking to reduce our target and exit the asset class

Other

Percentage of Respondents

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

0% 10% 20% 30% 40% 50% 60%

8.22.9

37.550.0

8.28.8

40.523.5

0.00.0

2.80.0

2.814.8

Public Pensions Endowments

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re-ups with existing managers. As detailed in Chart X, the majority of respondents are reserving 50% or more of their commitments for re-ups and 10% of that group is reserving 90% or more for re-ups. These results are

very similar to 2008 survey results and indicate continued interest in establishing new manager relationships amongst most investors.

Chart X Expected Re-Up Allocations with Existing Managers“We expect the following percentage of our commitments to be targeted for re-ups with existing managers...”

Perc

enta

ge o

f Res

pond

ents

30%

25%

20%

15%

10%

5%

0%

<25% 25%–50% 50%–75% 75%–90% 90%–100% 2010 Allocation Achieved

Targeted Re-Ups with Current Managers

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

4.8

26.1

21.3

26.5

16.2

5.1

Chart IX Targeted 2010 Private Equity Allocations: 2009 vs. 2010“For 2010, we are looking to commit across all areas of private equity (in USD)...”

Perc

enta

ge o

f Res

pond

ents

40%

30%

20%

10%

0%

<$50 MM $50 MM– $150 MM

$150 MM– $250 MM

$250 MM– $500 MM

$500 MM–$1 B >$1 B

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

7.410.5

12.210.5

15.1 15.9

26.626.2

33.9

29.0

4.87.9

2009 2010

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Fundraising and Return Expectations

The next section of the survey examines investor attitudes regarding the fundraising market as well as investor interest in and return expectations for buyout, venture capital, and niche funds.

Respondents were first asked what they expect global private equity commitments to be in 2010. As shown in Chart XI, the majority of respondents who stated an opinion believe global commitments will not exceed $250 billion over the coming year. Last year’s expectations were roughly the same, though at the current fundraising pace those expectations were optimistic. These results are an indication that investors are still struggling with liquidity issues and a steep rebound in fundraising is unlikely.

Investor interest in specific buyout sectors is examined in Chart XII. The majority of respondents actively invest in U.S. middle-market buyouts with European middle-market buyouts ranking second, and Asian middle-market buyouts/growth capital ranking third. Opportunistic interest in the sectors was

evenly spread over the categories. The least favored buyout sector was mega buyouts with 55% of respondents reporting they do not invest in the sector.

The results for North American, European, and Asian investors, although not detailed in Chart XII, all showed similar behavior for buyout investing. Across the board, investors overwhelmingly preferred to invest in their domestic market.

Respondents were optimistic regarding return expectations for top quartile 2010 buyouts. As detailed in Chart XIII, a plurality of respondents believe U.S. middle-market buyout funds will have net IRRs of 20–25% with over 20% of respondents expecting returns of 25% and above. European middle-market buyouts garnered similar results; over 40% of respondents expect net IRRs of 20–25% and nearly 18% expect net IRRs of 25% and above. Return expectations for Asian middle-market buyouts/growth capital were significantly higher; over 45% of respondents anticipate net IRRs above 25%. The lowest return expectations were for mega buyout funds with 37% of respondents anticipating net IRRs of 15–20%, and 34%

Chart XI Forecast Global Private Equity Allocations“We expect global commitments to private equity to be...”

Perc

enta

ge o

f Res

pond

ents

40%

30%

20%

10%

0%

<$200 B $200 B–$250 B $250 B–$300 B $300 B–$350 B >$350 B No Opinion

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

35.3

27.0

23.3

9.3

2.3 2.8

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Chart XII Interest in Buyout Funds“As far as our interest in this sector, we...”

Perc

enta

ge o

f Res

pond

ents

100%

80%

60%

40%

20%

0%

U.S. Middle-MarketBuyout Funds

European Middle-Market Buyout Funds

Asian Middle-Market/Growth Capital Funds

Mega Buyout Funds

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

51.8

33.8

14.4

44.7

35.3

20.0

31.2

34.4

34.4

8.0

36.9

55.1

Do Not InvestInvest OpportunisticallyActively Invest

Chart XIII Expected Buyout Performance, Top Quartile IRR“For top quartile buyout funds, I expect IRRs over their lives to be...”

Perc

enta

ge o

f Res

pond

ents

100%

80%

60%

40%

20%

0%

U.S. Middle-MarketBuyout Funds

European Middle-Market Buyout Funds

Asian Middle-Market/Growth Capital Funds

Mega Buyout Funds

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

30.6

41.2

21.2

5.81.2

3.615.7

33.6

46.4

0.7

1.5

37.1

15.9

34.1

11.41.2

28.5

41.8

17.6

10.9

20%–25%<10% 15%–20% >25%10%–15%

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of respondents anticipating returns of only 10%–15%. Respondents clearly anticipate that middle-market buyouts, regardless of geographical focus, will outperform mega buyouts in 2010.

Investor return expectations for net multiples of top quartile 2010 vintage funds followed their IRR expectations. As detailed in Chart XIV, nearly 20% of respondents expect top quartile mega buyouts to have net multiples below 1.5x and the majority expect multiples will not exceed 2.0x. On the other hand, over 18% of respondents expect top quartile Asian middle-market/growth capital funds to generate multiples higher than 3.0x.

The majority of respondents believe that vintage 2010 funds will perform roughly the same as 2009 funds, as shown in Chart XV, but an increasing number of respondents expect that vintage 2010 funds will outperform 2009 funds.

Chart XVI outlines respondent’s interest in specific types of venture capital funds. Interest in the sector was low across all venture capital strategies with roughly 40% or more of respondents in every case indicating they do not invest in the sector. Life science funds held the least interest for respondents; 56% indicated that they do not invest in late-stage life science funds while 54% did not invest in early-stage life science funds.

Investors were most interested in early-stage and late-stage technology funds with 20.7% and 15.4% targeting those sectors, respectively. Respondents who invest opportunistically in the sector preferred most strategies equally, with late-stage technology funds having the edge with 46.7%. Overall, investors prefer technology funds over those focused on life science, with diversified funds covering multiple sectors falling in between.

Chart XIV Expected Buyout Performance, Top Quartile Multiple“For top quartile buyout funds, I expect multiples over their lives to be...”

Perc

enta

ge o

f Res

pond

ents

100%

80%

60%

40%

20%

0%

U.S. Middle-MarketBuyout Funds

European Middle-Market Buyout Funds

Asian Middle-Market/Growth Capital Funds

Mega Buyout Funds

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

50.9

22.2

0.6

0.7

22.5

54.3

19.4

3.1

48.1

21.6

24.1

2.3

24.0

3.1

34.6

33.8

18.4

0.712.5

3.1

2.5x–3.0x >3.0x1.5x–2.0x<1.5x 2.0x–2.5x

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Chart XV Expectation for Overall Buyout Returns“In 2010, I expect returns for this sector to be...”

Perc

enta

ge o

f Res

pond

ents

100%

80%

60%

40%

20%

0%

U.S. Middle-MarketBuyout Funds

European Middle-Market Buyout Funds

Asian Middle-Market/Growth Capital Funds

Mega Buyout Funds

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

36.9

55.4

7.7

34.0

57.4

31.6

61.8

30.5

55.5

14.08.6 6.6

Same as 2009Higher than 2009 Lower than 2009

Chart XVI Interest in Venture Capital Funds“As far as our interest in this sector, we...”

Perc

enta

ge o

f Res

pond

ents

100%

80%

60%

40%

20%

0%

Early-StageTechnology Funds

Early-Stage LifeScience Funds

Early-StageDiversified Funds

Late-Stage/Growth Technology

Funds

Late-Stage/Growth Life Science

Funds

Late-Stage/Growth Diversified

Funds

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

Invest OpportunisticallyActively Invest Do Not Invest

20.7

36.1

14.6

43.3

42.1

12.6

33.5

53.9

13.4

36.0

50.6

14.5

46.7

38.8

9.1

34.9

56.043.2

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Endowments were more interested in venture capital than the overall group of respondents, as detailed in Chart XVII. Over 70% of endowment respondents either actively or opportunistically invest in early-stage technology funds and early-stage diversified funds. There was also more active interest in late-stage/growth diversified funds, though fewer respondents opportunistically targeted the sector. Consistent with the overall respondent group, endowments were less interested in life science funds.

As detailed in Chart XVIIII, investor return expectations for top quartile venture capital funds were dispersed, with the plurality of respondents across almost all strategies expecting net IRRs of 20–25%. Early-stage technology funds are the only area in which over 20% of respondents have IRR expectations above 25%, while early-stage life science funds amassed the largest

percentage of respondents (14%) who expect returns below 10%, further reflecting the preference for technology funds as the more attractive area of venture capital investing.

Investor return expectations for net multiples for top quartile 2010 venture capital funds were fairly uniform, as detailed in Chart XIX. The plurality of respondents across all strategies expect a net multiple of 2.0–2.5x. Overall return expectations are higher for early-stage funds and lower for late-stage/growth funds.

Regardless of specific sector focus, an overwhelming majority of investors believe vintage 2010 venture capital returns will remain consistent with those of 2009 vintages, as shown in Chart XX. Although not detailed in the chart, these expectations are consistent across geographies as well as investor types.

Chart XVII Interest in Venture Capital Funds: Endowments“As far as our interest in this sector, we...”

Perc

enta

ge o

f Res

pond

ents

100%

80%

60%

40%

20%

0%

Early-StageTechnology Funds

Early-Stage LifeScience Funds

Early-StageDiversified Funds

Late-Stage/Growth Technology

Funds

Late-Stage/Growth Life Science

Funds

Late-Stage/Growth Diversified

Funds

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

Invest OpportunisticallyActively Invest Do Not Invest

27.3

45.5

23.8

28.6

47.6

18.2

40.9

40.9

18.2

54.5

27.3

18.2

45.5

36.3

13.6

45.5

40.927.2

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Chart XVIII Expected Venture Capital Performance, Top Quartile IRR“For 2010 top quartile VC funds, I expect IRRs over their lives to be...”

Perc

enta

ge o

f Res

pond

ents

100%

80%

60%

40%

20%

0%

Early-StageTechnology Funds

Early-Stage LifeScience Funds

Early-StageDiversified Funds

Late-Stage/Growth Technology

Funds

Late-Stage/Growth Life

Science Funds

Late-Stage/Growth

Diversified Funds

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

31.1

36.9

10.7

13.6

7.7

18.4

32.0

28.2

10.7

10.7

18.6

25.6

19.7

22.1

14.0

22.0

30.8

17.5

17.6

12.1

29.7

32.8

15.8

15.8

29.1

27.9

11.6

22.1

9.3

20%–25% >25%10%–15%<10% 15%–20%

5.9

Chart XIX Expected Venture Capital Performance, Top Quartile Multiple“For 2010 top quartile VC funds, I expect multiples over their lives to be...”

Perc

enta

ge o

f Res

pond

ents

100%

80%

60%

40%

20%

0%

Early-StageTechnology Funds

Early-Stage LifeScience Funds

Early-StageDiversified Funds

Late-Stage/Growth Technology

Funds

Late-Stage/Growth Life Science

Funds

Late-Stage/Growth Diversified

Funds

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

39.6

23.8

25.7

7.9

31.0

27.0

19.0

12.0

11.0

36.9

19.0

15.5

15.5

13.1

34.8

20.2

12.4

20.2

12.4

30.2

28.3

29.3

35.7

17.9

32.1

6.1 8.3

6.06.1 3.0

2.5x–3.0x >3.0x1.5x–2.0x<1.5x 2.0x–2.5x

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.18

Chart XXI outlines investor interest in the niche sectors of distressed debt funds, mezzanine/credit-focused funds, and secondary funds. Distressed debt funds were the leading niche sector of interest with 34.4% of respondents reporting they actively invest in the sector and 43.9% reporting they invest on a purely opportunistic basis. Secondary funds garnered the second most interest with 24.7% of respondents actively investing in the sector and 36.8% that invest opportunistically.

Although it is apparent in Chart XXII that respondents from Asia have a

clear interest in both distressed debt and secondary funds, they are much more opportunistic in their investment approach to these niche sectors compared to the survey’s overall respondents. Over 40% of respondents from Asia indicated that they invest opportunistically in both distressed debt and secondary funds; active investors in distressed debt from this region made up only 16% of the total and active investors in secondary funds made up only 13% of the total. Asian respondents have little interest in mezzanine funds; over 60% indicated that they do not invest in such funds.

Chart XX Expectation for Overall Venture Capital Returns“In 2010, I expect returns for this sector to be...”

Perc

enta

ge o

f Res

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ents

100%

80%

60%

40%

20%

0%

Early-StageTechnology Funds

Early-Stage LifeScience Funds

Early-StageDiversified Funds

Late-Stage/Growth Technology

Funds

Late-Stage/Growth Life Science

Funds

Late-Stage/Growth Diversified

Funds

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

Same as 2009Higher than 2009 Lower than 2009

26.3

69.7

27.0

68.0

19.3

75.9

20.2

71.9

30.6

64.3

28.9

68.77.94.0 4.8 5.1 2.4 5.0

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 19

Chart XXI Interest in Niche Capital Funds“As far as our interest in this sector, we...”

Perc

enta

ge o

f Res

pond

ents

100%

80%

60%

40%

20%

0%

Distressed Debt Funds Mezzanine/Credit-Focused Funds Secondary Funds

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

Invest OpportunisticallyActively Invest Do Not Invest

18.2

41.5

40.3

34.4

43.9

21.7

24.7

36.8

38.5

Chart XXII Interest in Niche Capital Funds: Asian Investors“As far as our interest in this sector, we...”

Perc

enta

ge o

f Res

pond

ents

100%

80%

60%

40%

20%

0%

Distressed Debt Funds Mezzanine/Credit-Focused Funds Secondary Funds

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

Invest OpportunisticallyActively Invest Do Not Invest

8.7

30.4

60.9

16.0

48.0

36.0

13.0

43.5

43.5

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.20

Investor return expectations for distressed debt, mezzanine, and secondary funds are outlined in Charts XXIII and XXIV. Expectations for IRRs were similar for distressed debt and secondary funds, with over half of respondents expecting IRRs of 20% or higher. Only 15% of investors expect mezzanine IRRs at that level.

In examining expected net multiples, over 40% of investors expect multiples for distressed debt funds to be 2.0–2.5x. Mezzanine and secondary fund return expectations are

slightly lower a majority of investors in both cases expect multiples of 1.5–2.0x.

As indicated in Chart XXV, most investors anticipate overall returns for niche funds in 2010 to remain consistent with 2009 returns: 43.5% of respondents anticipate the same returns for distressed debt funds, nearly 60% for mezzanine/credit focused funds, and over 55% for secondary funds. More respondents expect distressed debt returns to decline compared to mezzanine and secondary funds.

Chart XXIII Expected Niche Fund Performance: Top Quartile IRR“For 2010 top quartile niche funds, I expect IRRs over their lives to be...”

Perc

enta

ge o

f Res

pond

ents

100%

80%

60%

40%

20%

0%

Distressed Debt Funds Mezzanine/Credit-Focused Funds Secondary Funds

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

20%–25% >25%10%–15%<10% 15%–20%

29.2

36.5

8.1

46.3

13.4

32.8

34.4

33.6

12.0

25.5 18.4

0.7 5.0 1.6

2.5

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 21

Chart XXV Expectation for Overall Niche Fund Returns“In 2010, I expect returns for this sector to be...”

Perc

enta

ge o

f Res

pond

ents

100%

80%

60%

40%

20%

0%

Distressed Debt Funds Mezzanine/Credit-Focused Funds Secondary Funds

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

Same as 2009Higher than 2009 Lower than 2009

27.0

59.1

13.9

30.5

43.5

26.0

26.3

55.9

17.8

Chart XXIV Expected Niche Fund Performance: Top Quartile Multiple“For 2010 top quartile Niche funds, I expect multiples over their lives to be...”

Perc

enta

ge o

f Res

pond

ents

100%

80%

60%

40%

20%

0%

Distressed Debt Funds Mezzanine/Credit-Focused Funds Secondary Funds

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

40.6

12.8

36.8

19.8

64.7

29.8

53.7

3.8

2.52.67.4

6.612.9

6.0

2.5x–3.0x >3.0x1.5x–2.0x<1.5x 2.0x–2.5x

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.22

2010 Sectors and Geographies of Interest

In the next section of the survey, investor preferences for sectors, geography and strategy are examined.

In order to provide further context for 2010 expectations, respondents were asked to identify those sectors in which they had actually made investments in 2009. Over

the past year, as detailed in Chart XXVI, the leading sectors respondents committed to were U.S. middle-market buyouts (49.5%), distressed debt (42.8%), and European middle-market buyouts (36.1%). Secondary funds were also a leading sector of focus in 2009, ranking fifth with nearly 30% of responses. Garnering a mere 4.6% of responses, mega buyouts slid from the fourth leading sector of focus in 2008 to the thirteenth in 2009.

Chart XXVI 2009 Key Areas of Interest“During 2009, my major focus was on the following sectors... (choose no more than four)”

U.S. Middle-Market Buyouts

Distressed Debt Funds

European Middle-Market Buyouts

Growth Capital Funds

Secondary Funds

Asian Funds

Restructuring Funds

U.S. Venture Capital

Energy Funds

Mezzanine/Credit-Focused Funds

Cleantech/Green-Focused Funds

Infrastructure Funds

Mega Buyout Funds

Funds-of-Funds

Emerging Markets

Timber Funds

European/Israeli Venture Capital

Other

Percentage of Respondents

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

0% 10% 20% 30% 40% 50% 60%

49.5

10.8

42.8

36.1

32.5

29.9

22.2

6.7

4.6

4.6

4.1

1.5

1.5

1.0

19.1

17.0

16.0

14.4

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 23

Investors continue to target roughly the same sectors they committed to in 2009. As detailed in Chart XXVII, the top six sectors of investor focus are U.S. middle-market buyouts (62.6%), European middle-market buyouts (44.1%), growth capital funds (39%), Asian funds (35.9%), distressed debt funds (31.3%), and secondary funds (22.1%). Of

those top sectors, Asian funds have seen the largest increase in investor interest, gaining nearly 14% — not surprising given the optimistic investor return expectations for the region and the positive economic growth it continues to experience in spite of the global recession.

Chart XXVII 2010 Key Areas of Interest“During 2010, I plan to focus most of my attention on investing in the following sectors... (choose no more than four)”

U.S. Middle-Market Buyouts

European Middle-Market Buyouts

Growth Capital Funds

Asian Funds

Distressed Debt Funds

Secondary Funds

Restructuring Funds

U.S. Venture Capital

Energy Funds

Mezzanine/Credit-Focused Funds

Infrastructure Funds

Cleantech/Green-Focused Funds

Emerging Markets (ex-Asia)

Mega Buyout Funds

Fund-of-Funds

Timber Funds

European/Israeli Venture Capital

Other

Percentage of Respondents

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

0% 10% 20% 30% 40% 50% 60% 70%

62.6

44.1

39.0

35.9

31.3

7.7

22.1

10.8

6.7

6.7

5.6

3.6

1.5

0.5

21.5

16.4

13.3

12.3

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.24

As shown in Table I, venture capital has seen a marked decline in interest over our last four surveys. In 2007, U.S. venture capital was the third ranked sector of investor interest, targeted by 34% on survey respondents. In the latest survey, it had slipped to the eighth ranked sector, targeted by only 16% of respondents. There is more interest in U.S. venture capital amongst U.S. headquartered institutions, where in the latest survey the sector ranks fifth with 25% of U.S. respondents focusing on the sector. Interest among non-U.S. investors is very weak. European venture capital, on the other hand, has never ranked well in our surveys, even among European investors. In this latest edition, it was selected as an area of interest by less than 1% of respondents, a new low.

There is an overwhelming preference for home markets amongst respondents from North America, Europe, and Asia investing in middle-market buyouts, with 75% of North American investors focusing on U.S.

middle-market buyouts, 76.5% of European investors focusing on European middle-market buyouts, and nearly 71% of Asian investors focusing on Asian funds. Investors from Europe and Asia are also extremely active in U.S. middle-market buyouts with the sector ranking second amongst both groups.

Endowments are often perceived as thought leaders in the industry. Chart XXVIII outlines the key areas of interest for endowments. Consistent with the overall respondent group, U.S. middle-market buyouts are the leading sector of interest amongst endowments with over 62% targeting the sector (though it should be noted that 85% of the endowment respondents are based in the U.S.). The 41.7% of endowments targeting energy funds in 2010 is in stark contrast to the 13.3% of overall respondents who have shown an interest in the sector, and interest by endowments in U.S. venture capital is nearly twice that expressed in the base survey.

Table I Survey Respondents Targeting Venture Capital and Comparative Ranking vs. Other Sectors

2007 2008 2009 2010

U.S. Venture Capital% of Respondents 34.1% 28.8% 12.6% 16.0%

Category Rank 3rd 4th 8th 8th

European Venture Capital% of Respondents 4.7% 5.3% 1.9% 0.5%

Category Rank Last Last Last Last

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 25

Chart XXVIII 2010 Key Areas of Interest: Base Overall Respondents vs. Endowments“During 2010, I plan to focus most of my attention on investing in the following sectors... (choose no more than four)”

U.S. Middle-Market Buyouts

European Middle-Market Buyouts

Growth Capital Funds

Asian Funds

Distressed Debt Funds

Secondary Funds

Restructuring Funds

U.S. Venture Capital

Energy Funds

Mezzanine/Credit-Focused Funds

Infrastructure Funds

Emerging Markets (ex-Asia)

Cleantech/Green-Focused Funds

Mega Buyout Funds

Funds-of-Funds

Timber Funds

European/Israeli Venture Capital

Other

Percentage of Respondents

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

0% 10% 20% 30% 40% 50% 60% 70%

62.662.5

44.125.0

39.025.0

35.929.2

31.337.5

22.112.5

21.529.2

16.429.2

13.341.7

12.312.5

10.80.0

6.70.0

6.70.0

5.68.3

3.64.2

1.50.0

0.50.0

7.716.7

EndowmentsBase Overall Respondents

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.26

Survey respondents were next asked what factors tend to drive their sector investment focus. The top two drivers, as shown in Chart XXIX, account for almost 75% of the responses. Nearly 50% of respondents will pursue what they believe to be the best funds and managers available in the market and 25% will focus on the private equity sector they believe will outperform all others in 2010.

Survey respondents were next asked what their geographical focuses were in 2009. Over the past 12 months, geographical allocations were predominantly focused on

North America and Europe, as shown in Chart XXX, making up 53.9% and 33.2% of investors’ por tfolios, respectively. Asia made up the third largest allocation with 17.1% followed by global commitments with 16.1%. Commitments to Latin America, Central and Eastern Europe, and other emerging markets decreased over the past year, reflecting the unwillingness of investors in more established markets to invest outside their home markets given the current market turmoil, especially in developing markets where perceived additional political and financial risks exist.

Chart XXIX Drivers of Sector Investment“My sector investment focus in 2010 is being driven by...”

My institution’s pursuit of the best funds and managers available in the market

A focus on those private equity sectors I believe will outperform others in this vintage year

Maintaining established relationships with fund managers returning to market this year

My institution's need to diversify its private equity portfolio

Targeting funds that will provide access to co-investments

My need to deploy significant amounts of capital allocated to private equity

Other

Percentage of Respondents

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

49.5

25.0

8.9

5.7

3.6

1.0

6.3

0% 10% 20% 30% 40% 50%

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 27

Chart XXX 2009 Private Equity Geographical Focus“During 2009, the geographical allocation of my portfolio by commitment amount in percentage terms was...”

Pece

ntag

e of

Por

tfolio

25%

20%

15%

10%

5%

0%

Global North America

Western Europe

Asia Latin America

Central & Eastern Europe

Other Emerging Markets

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

11.1

13.1

20.2

17.715.2

11.1 11.6

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.28

Chart XXXI 2010 Private Equity Geographical Focus:Overall Respondents vs. European Investors vs. Asian Investors “During 2010, I anticipate the geographical allocation of my portfolio by commitment amount in percentage terms to be...”

Pece

ntag

e of

Por

tfolio

25%

20%

15%

10%

5%

0%

Global North America

Western Europe

Asia Latin America

Central & Eastern Europe

Other Emerging Markets

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

Investors’ targeted geographical allocations for 2010 are outlined in Chart XXXI. The bulk of 2010 allocations are focused on North America and Western Europe with a slight increase in those focused on Asia and a slight decrease in those focused on global commitments. The results differ amongst European and Asian investors with the majority of European investors targeting Europe and a plurality of Asian investors targeting Asia, reemphasizing the notion that investors remain focused on their domestic markets.

Next, we asked survey respondents to tell us which European markets they find most attractive for 2010. As outlined in Chart XXXII, the three markets that topped the list in 2009 are again the leading European markets of interest, with the Nordic region at 40%, the United Kingdom with 37.8%, and Germany with 30%. Investors are finding France much more attractive in 2010, gaining nearly 10% of responses since last year. Investor interest in Central

and Eastern Europe, on the other hand, has fallen considerably since last year as those countries have been more impacted by the recession. Interest in the Benelux region, Italy, and Spain has remained consistently low over the past several years.

Responses across specific investor types and geographies are fairly consistent with those of the overall group; however, amongst Asian investors there is an overwhelming preference to invest in Europe through pan-European funds.

European market preferences from European respondents are outlined in Chart XXXIII. The four most attractive European markets are the same for both types of respondents, though with greater percentages of support from Europeans in each category. European investors also have a much higher interest in the country-focused funds targeting Italy and Spain while displaying a much lower interest in pan-European funds and European fund-of-funds.

11.09.7

11.8

13.9

11.1

15.5

19.1 19.0

16.417.7

22.8

15.516.3 15.9

19.1

11.0 10.0 10.9 11.0 11.4 10.9

European InvestorsBase Overall Respondents Asian Investors

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 29

Chart XXXII Most Attractive European Country or Regionally-Focused Markets: 2009 vs. 2010“I find the most attractive European markets to be... (choose no more than three)”

Perc

enta

ge o

f Res

pond

ents

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

Nor

dic

Regi

on

Uni

ted

King

dom

Ger

man

y

Fran

ce

Pan-

Euro

pean

Fu

nds

Bene

lux

Cen

tral

Eur

ope

Italy

East

ern

Euro

pe

Spai

n

Euro

pe v

ia

Fund

-of-F

unds

Do

Not

Inve

st

in E

urop

e

Oth

er

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

2010 2009

40.0

30.0

7.95.0

37.8

19.6

12.9

22.8

18.916.1

4.7

12.2

17.7

8.3

3.5

6.7

14.8

5.0

1.63.9

14.4

5.6

11.79.1

30.6

22.4

Chart XXXIII Most Attractive European Country or Regionally-Focused Markets: Overall Respondents vs. European Investors“I find the most attractive European markets to be... (choose no more than three)”

Perc

enta

ge o

f Res

pond

ents

70%

60%

50%

40%

30%

20%

10%

0%

Nor

dic

Regi

on

Uni

ted

King

dom

Ger

man

y

Fran

ce

Pan-

Euro

pean

Fu

nds

Bene

lux

Cen

tral

Eur

ope

Italy

East

ern

Euro

pe

Spai

n

Euro

pe v

ia

Fund

-of-F

unds

Do

Not

Inve

st

in E

urop

e

Oth

er

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

European InvestorsBase Overall Respondents

40.0

30.0

9.95.0

37.843.7

36.6

22.8

2.8

16.119.7

12.29.98.3

14.1

6.7 5.65.08.5

3.9

14.4

5.62.81.4

63.4

47.9

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.30

Investor interest in Asia has increased significantly in the past year. But which markets are driving that interest in 2010? Last year’s survey reported divergent views on the most attractive geographies, but the clear leaders were China and India with pan-Asian funds coming in a close third. This year although China and India still claim the top two spots, as shown in Chart XXXIV, China has significantly extended its lead at the expense of pan-Asian and Japanese funds, which have fallen from 20.8% to 12.5% and 9.1% to 7.1%, respectively.

Amongst Asian investors, as noted in Chart XXXV, China and India are by far the most preferred markets with 70.8% and 58.3% of responses, respectively. The only other markets garnering significant interest from Asian investors are the more developed markets of Australia and Japan; none of the respondents expressed interest in the smaller country markets of Vietnam and Taiwan or interest in Southeast Asia. It

should be noted that two thirds of the Asian survey respondents are with institutions headquartered in Japan or Australia, and even these investors are more focused on China and India than their home markets.

Chart XXXVI details the emerging markets investors are most interested in 2010. Investor interest in Eastern Europe has experienced a significant drop-off, falling nearly 25% to the fourth spot after coming in as the most attractive emerging market in last year’s survey. Brazil has claimed the top position with just over 34%, followed by Southeast Asia with 18.8%, and pan-Latin American funds with 12.5%, the area that saw the greatest increase in investor interest over the past year.

Overall, investor interest in emerging markets is down in 2010. Brazil is the only market to garner more than 20% of responses. Seven of the ten listed emerging markets drew interest from less than 10% of respondents.

Chart XXXIV Most Attractive Asian Country or Regionally-Focused Markets: 2009 vs. 2010“I find the most attractive Asian markets to be... (choose no more than two)”

Perc

enta

ge o

f Res

pond

ents

60%

50%

40%

30%

20%

10%

0%

Chi

na

Indi

a

Pan-

Asi

an

Fund

s

Japa

n

Sout

heas

t Asi

a

Aus

tral

ia

Kore

a

Vie

tnam

Taiw

an

Asi

a vi

a G

loba

l Fun

ds

Asi

a vi

a Fu

nd-o

f-Fun

ds

Do

Not

Inve

st

in A

sia

Oth

er

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

50.5

12.5

5.00.6

26.620.8

9.17.1 5.07.14.4

7.14.46.5

0.92.2 0.00.54.73.8

13.49.2

22.1

10.7

36.3

23.0

2010 2009

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 31

Chart XXXVI Most Attractive Emerging Markets“I find the most attractive emerging markets to be... (choose no more than two)”

Perc

enta

ge o

f Res

pond

ents

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

Braz

il

Sout

heas

t Asi

a

Pan-

Latin

A

mer

ica

East

ern

Euro

pe

Afr

ica

Turk

ey

Mex

ico

Mid

dle

East

Russ

ia

Glo

bal E

mer

ging

M

arke

t Fun

ds

Do

Not

Inve

st

in E

mer

ging

M

arke

ts

Oth

er

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

34.1

18.8

12.5

8.0 6.84.0 2.8 2.3 1.7

3.4

38.1

2.3

Chart XXXV Most Attractive Asian Country or Regionally-Focused Markets: Overall Respondents vs. Asian Investors“I find the most attractive Asian markets to be... (choose no more than two)”

Perc

enta

ge o

f Res

pond

ents

80%

70%

60%

50%

40%

30%

20%

10%

0%

Chi

na

Indi

a

Pan-

Asi

an

Fund

s

Japa

n

Sout

heas

t Asi

a

Aus

tral

ia

Kore

a

Vie

tnam

Taiw

an

Asi

a vi

a G

loba

l Fun

ds

Asi

a vi

a Fu

nd-o

f-Fun

ds

Do

Not

Inve

st

in A

sia

Oth

er

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

50.5

12.5

0.00.6

26.620.8

12.57.1

0.0

7.1

16.7

7.14.26.5

0.02.2 0.00.5 0.03.8

13.49.2

4.20.0

70.8

58.3

Asian InvestorsBase Overall Respondents

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.32

Next, survey respondents were asked about their strategic preferences when investing in the U.S. middle-market. As detailed in Chart XXXVII, over 50% of respondents indicated a strong preference for funds with an operational focus that are staffed with professionals who possess operating backgrounds. There was also a notable preference for funds with buy-and-build strategies and restructuring/turnaround funds, with 40% of respondents focusing on each of these sectors.

Chart XXXVIII focuses on those venture capital stages and sectors investors find to be most attractive in the coming year. Early- and late-stage funds are the leading stages of interest with seed-, mid- and multi-stage strategies further behind. As far as industry sector focus, technology focused funds and diversified, multi-sector funds lead with 29.8% each, while cleantech focused funds attracted the least investor interest at 11.8%.

Chart XXXVII Most Attractive U.S. Middle-Market Sectors“I find the most attractive U.S. middle-market sectors or strategies to be... (check all that apply)”

Funds focused on operational improvements heavily staffed with professionals

with operating backgrounds

Restructuring/turnaround funds

Funds focused on buy-and-build strategies

Growth capital funds

Funds focused on single industries

Strategy is irrelevant; a demonstrable superior track record is my only concern

Regionally-focused funds

Funds focused on strongly growing companies, often investing without majority control

I do not invest in the U.S. middle-market

I only invest in the U.S. middle-market through fund-of-funds

Other

Percentage of Respondents

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

50.8

0.5

40.0

40.0

34.1

18.9

17.3

12.4

12.4

12.4

2.2

0% 10% 20% 30% 40% 50% 60%

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 33

There were noticeable differences in venture capital sector preferences amongst various institutional investors. Endowments, who demonstrate considerably more interest in venture capital, were the biggest proponents of early-stage venture and had absolutely no

interest in cleantech funds. Public pensions also showed a considerable amount of interest in early-stage venture capital but nearly a third reported they do not invest in the sector at all.

Chart XXXVIII Most Attractive Venture Capital Sectors“I find the most attractive venture capital sectors or strategies to be... (check all that apply)”

Perc

enta

ge o

f Res

pond

ents

50%

40%

30%

20%

10%

0%

Seed

-Sta

ge

Early

-Sta

ge

Mid

-Sta

ge

Late

-Sta

ge

Mul

ti-St

age

Cle

ante

ch F

unds

Life

Sci

ence

Fun

ds

Tech

nolo

gy F

unds

Fund

s Fo

cuse

d on

M

ultip

le S

ecto

rs

Focu

s So

lely

on

His

toric

Ret

urns

Do

Not

Inve

st in

Ve

ntur

e C

apita

l

Oth

er

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

18.0

41.6

25.3

39.9

28.1

11.8

21.3

29.8 29.8

3.9

27.0

1.1

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.34

Niche Private Equity Sectors

There are several strategies within the distressed/restructuring sector that investors can pursue, detailed in Chart XXXIX. Respondents were most interested in distressed debt for control funds and restructuring/turnaround funds, with significantly less interest in distressed debt trading funds and distressed debt hedge funds. Those strategies are both driven by trading rather than a value-added focus and tend to generate lower multiples of return. Though the distressed investment sector has increased in investor interest significantly over the last three years, over 17% of respondents still do not invest in these strategies.

There were notable differences in how endowments and public pensions approach distressed investing, as shown in Chart XL. Over three quarters of all public pensions who responded to this year’s survey focused on distressed debt for control funds, and all public pension respondents reported that they invest in the sector in some fashion. Responses amongst endowments were more widespread over distressed strategies; however, the clear preference is for restructuring/turnaround funds, with only a quarter of endowments indicating they prefer distressed debt for control funds.

Chart XXXIX Distressed Investments“Within the distressed debt/restructuring sector, I am most interested in...”

Perc

enta

ge o

f Res

pond

ents

50%

40%

30%

20%

10%

0%

Distressed Debt for Control

Funds

Restructuring/ Turnaround

Funds

Distressed Debt Trading Funds

Distressed Debt Hedge Funds

Do Not Invest in This Sector

Other

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

39.3

0.5

35.1

4.2 3.6

17.3

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 35

Chart XL Distressed Investments: Public Pensions vs. Endowments“Within the distressed debt/restructuring sector, I am most interested in...”

Perc

enta

ge o

f Res

pond

ents

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Distressed Debt for Control

Funds

Restructuring/ Turnaround

Funds

Distressed Debt Trading Funds

Distressed Debt Hedge Funds

Do Not Invest in This Sector

Other

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

25.0

77.3

0.04.5

45.8

9.1 8.3

0.0

8.39.112.6

0.0

EndowmentsPublic Pensions

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.36

We next asked respondents how they prefer to participate in the secondary market. Because fund-of-funds managers are more l ike ly to have dedicated secondary investment programs and consultants act on an advisory basis as opposed to investing in the secondary market themselves, Chart XLI details overall responses as well as responses excluding those from funds-of-funds and consultants.

Non-fund-of-funds managers are more likely to invest through specialist secondary funds and less likely to purchase direct positions

in funds. The number of non-fund-of-funds managers who do purchase direct positions in funds has increased significantly in the last year, from 20% to nearly 36%.

Fewer respondents reported not being active in secondaries this year. Secondaries were the only area of alternative investing that experienced fundraising growth in 2009 and, with bid-ask spreads beginning to shrink and transaction volume increasing, the secondary market has become an attractive area for many investors.

Chart XLI Secondary Market Investments: Base Overall Respondents vs. All Respondents Except Fund-of-Funds and Consultants“In the secondary market, my firm... (choose all that apply)”

Actively invests in secondary funds

Actively purchases direct positions in funds in the secondary market

Actively purchases direct positions in companies in the secondary market

Has sold or is considering selling funds in our portfolio for portfolio management purposes

Is not active in secondaries in any manner

Percentage of Respondents

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

0% 10% 20% 30% 40% 50% 60%

35.541.8

19.923.5

50.035.7

15.117.3

10.88.2

All Respondents, Except Funds-of-Funds and ConsultantsBase Overall Respondents

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 37

Chart XLII focuses on preferences in co-investments. A plurality of 37.4% of respondents do not invest in co-investments nor directly in companies, and the next largest group, at 33.2%, only invest in them on an opportunistic basis, demonstrating that co-investments are not widely pursued by all types of institutional investors. This is not the case amongst family offices; these investors are much more likely to have an active internal

co-investment program, to opportunistically pursue co-investments and to invest directly in companies. This is not surprising, as the wealth in family offices was most often accumulated by individuals who owned and built individual companies. They are most often staffed with professionals more used to taking the type of risk generated by investing directly instead of through a diversified blind pool.

Chart XLII Directs and Co-Investments: Base Overall Respondents vs. Family Offices“Regarding directs and co-investments, my firm... (choose all that apply)”

Only opportunistically pursues co-investments

Has an active internal co-investment program

Has an outsourced co-investment program

Invests directly in companies

Does not invest in co-investments nor directly invests in companies

Other

Percentage of Respondents

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

33.247.4

37.40.0

26.847.4

13.731.6

1.60.0

Family OfficesBase Overall Respondents

0.55.3

0% 10% 20% 30% 40% 50%

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.38

Over the last five years, at least until last September’s market correction, there had been an increasing trend of fund managers launching publicly traded vehicles. A number of these vehicles used an over-commitment model to maximize capital efficiency which hurt them during the market downturn. As Chart XLIII shows, the bulk of respondents had not invested in these vehicles and were not looking to invest in them in the near future.

As in last year’s survey, respondents were split into two distinct groups concerning interest in hedge funds: those respondents who had been active in the sector for several years and those who had no plans to invest in the sector. As outlined in Chart XLIV, a little more than 6% of respondents have just begun a program while another 2.1% are considering creating an allocation.

Chart XLIII Publicly Traded Private Equity Vehicles“As far as publicly traded private equity vehicles, my firm... (choose all that apply)”

Has invested in publicly traded private equity funds-of-funds and plans to maintain

or build this exposure in the future

Has invested in publicly traded private equity vehicles that invest directly in companies and plans

to maintain or build this exposure in the future

Previously invested in the sector but is decreasing or eliminating our exposure

Has not made an investment in the sector in the past but is considering doing so

Has not made an investment in the sector in the past and has no plans to do so

Other

Percentage of Respondents

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

3.3

2.2

4.4

2.8

86.2

2.2

0% 20% 40% 60% 80% 100%

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 39

Chart XLIV Hedge Funds“Does your institution invest in hedge funds?”

Yes, actively for several years

Yes, have just begun a program

No, but an allocation is being considered

No, we have no plans to invest in hedge funds

Other

Percentage of Respondents

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

38.9

6.3

2.1

51.1

1.6

0% 20% 40% 60%

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.40

Structural Issues and Key Terms

The next series of survey questions serve to provide investors with a chance to address those key issues that surround fund structure, fees, and carried interest.

Chart XLV covers issues of focus on fund structure. The largest area of concern for overall respondents was the level of general partner financial commitment to the fund at 52.1%, a key component in aligning LP and GP interests. Concern amongst investors regarding overall level of management fees follows closely with 47.9% of responses with

the inclusion of a key man clause coming in third with 39.9%. The concerns of insurance company respondents were somewhat different. They were more focused on the distribution of carried interest between the senior investment professionals, a concern that shows their focus on team stability, as well as on transaction fee splits.

The results outlined in Chart XLV are generally consistent over geographies. Although not detailed in this chart, Asian investors are most concerned with the inclusion and structure of key man provisions, and are more focused on caps on fund size.

Chart XLV Issues Regarding Fund Structure: Overall Respondents vs. Insurance Companies“The issues I focus on most as far as terms or structure of a fund are... (choose no more than three)”

Level of general partner financial commitment to the fund

Overall level of management fees

Structure or inclusion of a key man clause

Distribution of carried interest between the senior investment professionals

Transaction fee splits

Carry distribution waterfalls

Cap on fund size

Level of carried interest

Structure or inclusion of a no-fault divorce clause

Sharing of carry and/or investment decision making with a third party sponsor

Other

Percentage of Respondents

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

0% 10% 20% 30% 40% 50% 60% 70%

52.116.7

47.950.0

39.927.8

38.361.1

31.455.6

28.716.7

27.750.0

21.333.3

16.011.1

5.67.4

2.70.0

Insurance CompaniesBase Overall Respondents

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 41

Survey respondents were next asked about their preference for transaction fee splits. As shown in Chart XLVI, 59% believe 100% of transaction fees should be allocated to investors, with 20.7% agreeing an 80%/20% split between the investors and the fund manager is adequate. The percentages for

both of those responses have increased since last year’s survey while the percentages of the other two have decreased, not surprising in the current market environment where bargaining power has begun to shift more towards investors and away from fund managers.

Chart XLVI Transaction Fees“As far as transaction fee splits are concerned...”

I believe 100% of transaction fees should be allocated to investors

I believe an 80%/20% split between the inves-tors and the fund manager is adequate

The optimal split of transaction fees depends on other terms in the agreement

I believe a 50%/50% split between the investors and the fund manager is adequate

Other

Percentage of Respondents

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

59.0

20.7

11.7

5.9

2.7

0% 10% 20% 30% 40% 50% 60% 70%

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.42

Few buyout funds have carried interest levels greater than 20%. As detailed in Chart XLVII, though a majority of respondents are willing to pay more in carry under certain circumstances, 30.3% would not, believing 20% carried interest is an adequate incentive while another 14.1% believe that carry levels are currently too high.

Third-party investments have slowed over the past year as turmoil in the market continued. The main concern amongst investors in last

year’s survey was that such investments raise the issue of potential conflicts of interest between LPs and investors in the management company. The concern has grown over the past 12 months, taking the top spot by an overwhelming margin, as detailed in Chart XLVIII, while those who perceive it to be an interesting investment opportunity remained stable at roughly 17%. Only a 4.5% of respondents found third-party investing irrelevant to the investment process, and it clearly continues to be a key topic of interest amongst investors.

Chart XLVII Carried Interest for Buyout Firms“Carried interest, especially in the buyout sector, is normally set at 20% of profits. My firm would be willing to consider an increase in the standard carry... (choose all that apply)”

Only over specific return hurdles

Under no circumstances, 20% is an adequate incentive

In exchange for limits on management fees

For only those partners with a long track record of success

Under no circumstances, carry levels are too high as they are

In exchange for limits on fund size

Other

Percentage of Respondents

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

0% 10% 20% 30% 40% 50%

2.2

42.2

30.3

25.4

22.7

14.1

9.2

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 43

Chart XLVIII Third-Party Investments in Private Equity“I believe third-party investing in private equity management companies... (choose all that apply)”

Raises the possibility of conflicts of interest between limited partners and investors

Is better handled through private as opposed to public structures

Presents an interesting investment opportunity

Is a natural response to succession issues in private equity funds

Is likely to expand significantly beyond the large funds that have such relationships

Is irrelevant to the fund investment process

Other

Percentage of Respondents

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

70.6

22.6

17.5

15.8

15.3

1.7

0% 20% 40% 60% 80%

4.5

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.44

Investor Fears and Concerns

The last question in the survey asked investors to identify their four greatest fears regarding the private equity market; those results are detailed in Chart XLIX.

The responses to this question were very similar to last year’s, with a focus on problems specific to the buyout markets: a feeling that in many sectors too much money has been raised and that fees are too high and are destroying the alignment of interest between investors and fund managers. The ranking of these concerns was similar across geographies and types of investors with one notable exception — endowments, who in general had higher exposure and interest in venture capital, had a higher level of concern about factors specific to that market.

In addition, respondents were allowed to submit their own answers instead of choosing

from the pre-set list. A selection of those responses is listed below, but it is notable that several focused on the potential for GP turnover caused by the impact of the poor environment on carried interest distributions needed to retain top professionals.

• “Poor performance of 2004–2007vintages may result in significant teamdepartures at some firms due to theabsenceofcarriedinterest”

• “Lack of adequate good professionalsto manage the oversupply of capital inprivateequity”

• “Current economic slowdown mayhurt private equity for a long time iffund managers do not adapt to thenewenvironment”

• “Increased regulation globally willnegativelyimpactbothGPsandLPs”

Chart XLIX Greatest Fears Regarding the Private Equity Market“My greatest fears regarding the private equity market at the moment are... (choose all that apply)”(continued on next page)

High purchase price multiples paid for buyout portfolio companies in 2005 through 2007 will dramatically impact returns

Management fee levels and transaction fees on large funds are destroying alignment of interest between fund managers and investors

Increasing economic difficulties will have widespread impact on all alternative investment returns

Decreased leverage availability in the market will hurt companies needing working capital or re-financing

Large firms in the market are becoming generalized asset managers and are moving away from their key investment strengths

Private equity is most effective as a niche market and too much money is being raised in all private equity sectors

Percentage of Respondents

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

0% 10% 20% 30% 40% 50% 60%

51.4

29.0

47.5

35.0

34.4

31.7

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 45

Chart XLIX Greatest Fears Regarding the Private Equity Market (continued from previous page)

There is still too much money available in the large buyout market and that will dramatically impact future returns

Continued tepid IPO markets will negatively impact venture capital returns

Too much money is being directed into secondaries and it will negatively impact returns

Large buyout funds should follow the example of venture capital funds in the last cycle and return commitments to investors — but will not

The venture capital investing model is broken and strong performance is unlikely to return

Too much money is pursuing too few experienced private equity professionals in the Asian market

Investment by third parties into fund management companies is decreasing alignment of interest between limited partners and general partners

Too much money has been raised for distressed debt funds

The denominator effect will continue to impact my ability to invest in attractive opportunities in 2010

The strategy of mega buyout funds in my portfolio is drifting away from their historic strength in control buyouts in order to keep deploying capital

My private equity allocation is too small to have a significant impact on my overall portfolio returns

We do not have adequate staff in place to deal with issues in my current portfolio

Access to top quartile venture capital managers is impossible without previous relationship and new managers are unattractive

The number of funds I have in portfolio is too large for my firm to effectively monitor

Decreasing opportunities are limiting my access to co-investments

Emerging market economies will be hurt by the recession but there are few managers in the sector with the skills to deal with down markets

I am not sure that my firm will be able to make capital calls in a timely manner

Other

Percentage of Respondents

Source: Probitas Partners 2010 Private Equity Institutional Investor Survey

0% 10% 20% 30% 40% 50% 60%

22.4

4.9

16.9

16.4

15.8

15.8

13.7

9.8

9.8

8.7

7.7

4.9

4.9

3.8

3.8

3.3

3.3

1.1

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.46

C o n c l u s i o nThe past year has been one of turmoil in private equity. Legacy fund portfolios remain under stress with bankruptcies rising and fundraising falling dramatically as investors deal with issues of liquidity and portfolio allocation. Our survey results reflect a sentiment that 2010 will present interesting investment opportunities as North America and Europe rebound from recession and Asia continues to grow.

On the basis of our survey and of ongoing discussions with investors, we have reached several conclusions:

• Investors remain concerned that the performance of their legacy portfolios will continue to be hit hard by the economic crisis, especially in buyouts. The combination of high purchase price multiples and high leverage on transactions executed at the market peak from 2005 through 2007, together with the economic effects of the recession, will continue to impact their portfolios. Bankruptcies of private equity portfolio companies have skyrocketed in 2009 and are likely to continue at high levels into 2010.

• Many investors remain over-allocated. Even after the rebound in the public markets since March, many respondents report that they are roughly at or over their allocations. Endowments have been particularly hard hit in this regard. Most investors are looking to maintain their exposure to private equity, and a significant number of investors who are new to the sector are under-allocated and are actively looking for new GP relationships.

• U.S. and European middle-market buyout funds as well as Asian growth capital funds are a major area of focus for 2010. In discussions with investors, we have found that many of them anticipate that 2010 will be a strong vintage year for middle-market buyouts in the U.S. and Europe as those markets rebound from recession. In the U.S., investors are most interested in middle-market funds that have a strong operational focus that are focused on increasing earnings at portfolio companies, while Europe respondents favored funds targeting the Nordic Region, the United Kingdom, and Germany

• Mega buyout interest continues to be weak. While interest in middle-market buyouts have strengthened, only 8% of respondents say they are actively targeting mega buyouts, and more investors state that they are interested in the emerging markets than they are in mega buyouts.

• For many investors, interest in Asia really means interest in China. Interest in private equity in China has continued to surge. Only three years ago, China, India, and Japan were basically tied in respondent interest, but while China has increased to the point where 50% of respondents are targeting it, interest in Japan has fallen to only 7%.

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 47

• Interest in venture capital continues to decline. Interest in U.S. venture capital remains low and has fallen significantly over the last four years. In discussions with a number of investors, there is a feeling that the current venture capital model is broken, and many investors feel that they have not been able to generate significant returns in the sector over the last ten years. Interest in European venture capital, always very weak in our surveys even amongst European investors, has fallen to a new low this year.

• Interest in distressed debt and secondary funds has moderated. Though still of interest to investors, interest in these sectors has moderated somewhat, with distressed debt in particular falling from second place in 2009 to fifth place in 2010. In this niche sector, a number of investors have already placed their bets on managers that they want to support and are not looking to widely expand the number of GP relationships they have. As far as secondaries are concerned, a number of investors made significant commitments to specialist funds this year and likely have less appetite for 2010.

• Investors are clearly focused on alignment of interest and fees. Both in our questions regarding terms and conditions, and in our questions on investors’ greatest fears, it was clear that alignment of interest was a key concern. The ILPA has recently released a set of principles that it hopes will move market terms into a better alignment.

In summary, though investors still have lingering concerns on their legacy portfolios, they are looking forward to new opportunities that will emerge as we come out of recession. The past two years have seen dramatic capital markets volatility as the debt markets supporting large buyouts closed, then the IPO window closed, and finally the public markets collapsed along with Lehman Brothers. The impact on private equity caused by this volatility has brought about significant changes in investors’ interest in sectors and geographies and has intensified a refocus on alignment of interest that will fundamentally change the industry for some time to come.

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.48

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 49

Private Equity Funds in Market or Thought to be Coming to Market Over the Next 12 MonthsAs of November 2009

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Large Buyout Funds (>$3 billion)

3i Europe 6 EUR5,000 EUR5,000 www.3i.com 1945 London

Avista Capital Partners II 3,000 2,000 www.avistacap.com 2005 New York; Houston, TX

Blackstone Capital Partners VI 15,000 21,700 www.blackstone.com 1985

New York; Menlo Park, CA; Los Angeles; Atlanta; Boston;

Shanghai; Hong Kong; Mumbai; Tokyo; Paris; London

Carlyle Asia Partners III 3,000 1,800 www.carlyle.com 1987

Washington, D.C.; New York; San Francisco; Shanghai;

Hong Kong; Mumbai; Dubai; London; Paris;

Munich; Madrid; Istanbul

Cinven V EUR8,000 EUR6,500 www.cinven.com 1977 London; Paris; Frankfurt; Milan

Clayton Dubilier & Rice VIII 5,000 4,000 www.cdr-inc.com 1978New York; London;

George Town, Cayman Islands

EQT VI EUR6,000 EUR4,250 www.eqt.se 1994Stockholm; Frankfurt;

London; New York

Madison Dearborn Capital Partners VI

7,500 6,500 www.mdcp.com 1992 Chicago

Probitas Partners does not include information on funds it is currently offering in this listing; qualified investors seeking information on Probitas Partners’ placed funds should contact Probitas Partners directly in order to have the most complete picture of all institutional funds currently in the market.

Note: Funds fitting into more than one category may have multiple listings.

APPENDIX I:

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.50

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Metalmark Capital Partners II 3,000 1,500 www.metalmarkcapital.com 2004 New York

Morgan Stanley Capital Partners V

6,000 N/A www.morganstanley.com 1985New York; London; Hong Kong;

Seoul; Tokyo

Onex Partners III 4,000 3,450 www.onex.com 1984 Toronto; New York

North American Middle-Market Buyouts and Growth Capital Funds

21st Century Group Fund II 200 N/A www.21stcenturygroupfund.com 1988 Dallas, TX

280 Capital Partners 350 N/A www.280capitalpartners.com 2008 Sunnyvale, CA

AEA Small Business Fund II 300 285 www.aeainvestors.com 1968New York; Stamford, CT;

Shanghai; Hong Kong; London

Alpine Investors IV 175 120 www.alpine-investors.com 2001 San Francisco

Aquiline Financial Services Fund II 2,000 1,100 No Website Available 2005 New York

Arlington Capital Partners III 750 575 www.arlingtoncap.com 1991 Chevy Chase, MD

Baird Capital Partners V 400 300 www.bairdcapitalpartners.com 1989Chicago; Madison, NJ; Milwaukee, WI; London;

Hong Kong; Shanghai; Beijing

BankCap Partners II 250 109 www.bankcap.com 2007 Dallas, TX

Beecken Petty O'Keefe III 500 325 www.bpoc.com 1996 Chicago

Behrman Capital Partners IV 1,000 1,200 www.behrmancap.com 1991 New York; San Francisco

Birch Hill Equity Partners IV CAD850 CAD850 www.birchhillequity.ca 1994 Toronto

Blackpoint Equity 200 N/A www.blackpointequity.com 2007 New York

Blue Horizon Equity I 100 N/A www.bluehorizonequity.com N/A San Francisco

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 51

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Brynwood Partners VI 400 250 www.brynwoodpartners.com 1984 Greenwich, CT

CAI Partners & Company IV 600 CAD375 www.caifunds.com 1989 Toronto; New York

CapStreet III 250 368 www.capstreet.com 1990 Houston, TX

Cardinal Americas Fund 100 N/A www.cardinalamericas.com N/A Los Angeles

Castle Creek Capital Partners IV 500 175 www.castlecreek.com 1992 Rancho Santa Fe, CA

Castle Harlan V 1,500 1,163 www.castleharlan.com 1987 New York

Chalice Direct Private Equity 200 N/A www.grailpartners.com 2005Boston; New York;

San Francisco

CI Capital Investors II 750 N/A www.cicapllc.com 1993 New York

CIVC Partners Fund IV 575 650 www.civc.com 1970 Chicago

Code Hennessy & Simmons VI 1,300 1,300 www.chsonline.com 1988 Chicago

Collins Willmott Partners 300 N/A www.collinswillmott.com 2008 New York

Cressey & Co. Fund 4 500 N/A www.cresseyco.com 2007 Chicago; Nashville, TN

DC Capital Partners I 150 N/A www.dccapitalpartners.com 2005Washington, D.C.;

Alexandria, VA

Dogwood Equity II 125 74 www.dogwoodequity.com 2002 Raleigh, NC

Driscoll Partners 150 N/A www.dihedge.com 2008 Stonybrook, NY

Edgewater Growth Capital Partners III

750 472 www.edgewaterfunds.com 1991 Chicago

Ennovance Capital 300 N/A www.ennovance.com N/A North Wales, PA

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.52

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Forest Hill Partners 300 N/A www.foresthillcap.com N/A Little Rock, AR

FS Equity Partners VI 1,000 1,000 www.freemanspogli.com 1983 Los Angeles; New York

Fulham Investors III 250 165 www.fulhamco.com 1984 Wellesley, MA

Generation Partners III 300 180 www.genpartners.com 1996 Greenwich, CT; San Francisco

Gores Capital Partners III 1,500 1,300 www.gores.com 1987Los Angeles; London;

Boulder, CO

Grey Mountain Partners II 250 N/A www.greymountain.com N/A New York; Boulder, CO

Grotech Partners VII 250 410 www.grotech.com 1984 Vienna, VA; Hunt Valley, MD

Hamilton Robinson Capital Partners III

125 75 www.hrco.com 1984 Stamford, CT

Hart Capital Education Partners 100 N/A www.hartcapital.com 1998 Rowayton, CT

Healthpoint Capital Partners III 700 420 www.healthpointcapital.com N/A New York

Jefferies Capital Partners V 800 600 www.jefcap.com 1994 New York

JLL Partners Fund VI 1,500 1,500 www.jllpartners.com 1988 New York

Kinderhook Capital Fund III 350 270 www.kinderhookindustries.com 2003 New York

Lake Pacific II 200 101 www.lakepacific.com 2000 Chicago

Linden Capital Partners II 300 200 www.lindenllc.com 2002 Chicago

Lovell Minnick Equity Partners III 350 224 www.lovellminnick.com 2004 El Segundo, CA; Radnor, PA

Marwit Capital 3 225 183 www.marwit.com 1962 Newport Beach, CA

Mason Wells Buyout Fund 3 250 300 www.masonwells.com 1998 Milwaukee, WI

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 53

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Meidlinger Partners I 100 N/A www.meidlingerpartners.net 2008 Philadelphia

MVP Growth Equity Fund II 100 43 www.murphreeventures.com 1987Houston, TX; Birmingham, AL; Baton Rouge, LA; Lafayette, LA

North Castle Partners IV 300 175 www.northcastlepartners.com 1997 Greenwich, CT

Oakcrest Capital Partners Fund 150 N/A www.oakcrestcapital.com 2006 Washington, D.C.

Prairie Capital V 275 250 www.prairie-capital.com 1997 Chicago

ReichmannHauer Capital Partners II

250 N/A www.rhcp.ca 2006 Toronto

Riverside Partners IV 250 225 www.riversidepartners.com 1989 Boston

Riverwood Capital I 750 N/A www.riverwoodcapital.com 2007 Menlo Park, CA; New York

Saratoga Partners V 250 250 www.saratogapartners.com 1984 New York

Satori Capital Partners 200 N/A www.satori-capital.com N/A Dallas, TX

Seguin Partners 150 N/A www.seguinpartners.com 2006 Woburn, MA

Seidler Equity Partners IV 400 260 www.sepfunds.com 1991 Marina del Rey, CA

SG Growth Partners I 250 N/A www.stripesgroup.com 2003 New York

Snow Phipps Fund 2 700 550 No Website Available 2005 New York

Solamere Capital 200 N/A www.solameregroup.com N/A Lexington, MA

Southgate Capital Partners 500 N/A www.southgateai.com N/A New York

Southlake Equity Group - Fund 1 250 N/A www.southlakeequity.com 2007 Southlake, TX; Chicago

Spectrum Equity Investors VI 1,000 1,018 www.spectrumequity.com 1994 Boston; Menlo Park, CA

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.54

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Staley Capital 1 100 N/A www.staleycapital.com 2008 Waltham, MA

SunTx Fulcrum Fund II 350 125 www.suntx.com 2000 Dallas, TX

Tandem Expansion Fund 500 N/A No Website Available N/A Toronto

The Azalea Fund III 100 N/A www.azaleacapital.com 1995 Greenville, SC

Tower Three Partners Fund I 500 N/A www.tower3partners.com N/A Greenwich, CT

TPH Partners 250 N/A www.tphpartners.com 2007 Houston, TX

Transportation Resource Partners III

400 265 www.trpfund.com 1997Bloomfield Hills, MI;

Secaucus, NJ

Trident Fund V 2,250 2,250 www.stonepoint.com 1987 Greenwich, CT

Vedanta Opportunities Fund 150 N/A www.vedacap.com N/A New York

Veritas Capital Fund IV 950 594 www.veritascapital.com 1992 New York

Walnut V 150 N/A www.thewalnutgroup.com 1997 Cincinnati, OH; New York

Wellbridge Capital 1 200 N/A www.wellbridgecapital.com N/A Marlton, NJ; Radnor, PA

Wellspring Capital Partners V 1,500 1,000 www.wellspringcapital.com 1995 New York

White Oak Guggenheim Aerospace and Defense Fund

200 N/A www.thewhiteoakgroup.com N/A Atlanta

Wynnchurch Capital Partners III 500 350 www.wynnchurch.com 1999 Rosemont, IL

Yucaipa American Alliance Fund II 2,000 210 www.yucaipaco.com 1986 Los Angeles

Yucaipa Corporate Initiatives Fund II

800 750 www.yucaipaco.com 1986 Los Angeles

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 55

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

European Middle-Market Buyouts and Growth Capital Funds

21 Centrale Partners IV EUR500 EUR330 www.21centralepartners.com 1998 Paris; Treviso, Italy; Milan

AAC Capital NEBO Fund II EUR1,250 EUR700 www.aaccapitalpartners.com 1994Amsterdam; London;

Stockholm

Abenex 2008 EUR400 EUR152 www.abnamrocapital.fr 1990 Paris

Advantage Capital Partners 3 GBP75 GBP38 www.advantagecapital.co.uk 2001 London

Alpha Private Equity 6 EUR600 EUR900 www.groupealpha.com 1985Paris; Frankfurt; Milan;

Monaco; Jersey, UK

Apax France VIII EUR700 EUR900 www.apax.com 1972London; Paris; Munich; Hong

Kong; Mumbai; Tel Aviv; Milan; Madrid; Stockholm; New York

Astorg V EUR1,000 EUR801 www.astorg-partners.com 1983 Paris

Atria Private Equity IV EUR400 EUR300 www.atria-partenaires.com 1999 Paris

Baigo Capital EUR300 N/A www.baigo-capital.com 2007 Frankfurt

Banexi Capital Partners Middle Market Fund IV

EUR250 EUR262 www.azuliscapital.fr 1999 Paris

CACI 3 EUR250 EUR139 www.ca-privateequity.com 2000 Paris; Lyon; Philadelphia

CBPE Fund VIII GBP360 N/A www.cbpel.com 2009 London

Change Capital Partners II EUR400 EUR300 www.changecapitalpartners.com 2003 London

Charme Fund II EUR400 EUR150 www.ferrari.com N/A Maranello, Italy

Corpfin Capital IV EUR300 EUR223 www.corfincapital.com 1990 Madrid

Demeter FCPR 2 EUR200 EUR104 www.demeter-partners.com 2005 Paris; Berlin; Madrid

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.56

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

DFJ Esprit Fund III 215 100 www.dfjesprit.com 2007 London; Cambridge

Duke Street Capital VII EUR1,000 EUR963 www.dukestreetcapital.com 1988 London

Elysian Capital I GBP200 N/A www.elysiancapital.com 2008 London

Eurazeo III EUR1,000 N/A www.eurazeo.com 2001 Paris

Euroknights VI EUR 500 EUR 275 www.argos-soditic.com 1989 Geneva; Paris; Milan

Explorer III EUR400 EUR200 www.explorerinvestments.com 2003 Lisbon

FCPR fund MI V EUR100 EUR90 www.uigestion.com 2004 Paris

Finatem III EUR150 EUR122 www.finatem.de 2000 Frankfurt

Fondations Capital I EUR550 N/A www.fondationscapital.com 2007 Luxembourg; Paris

Fondo Nazca III EUR150 150 www.nazca.es 2001 Madrid

Gilde Buyout Fund IV EUR800 EUR600 www.gilde.com 1996Utrecht, Netherlands;

Paris; Zurich

Gimv-XL Fund EUR600 N/A www.gimv.com 1980 Frankfurt

Gresham V GBP400 GBP340 www.greshampe.com 1925 London

Growth Capital Partners Fund III GBP150 GBP100 www.growthcapital.co.uk 1999 London

Hexagone III EUR180 EUR152 www.lbofrance.com 1984 Paris

HgCapital 6 GBP1,800 GBP950 www.hgcapital.net 2000 London; Munich

Ibersuizas Capital Fund III EUR400 EUR330 www.ibersuizas.es 1989 Madrid

IKB Equity Capital Fund I EUR104 N/A www.ikb-pe.de 1999 Dusseldorf

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 57

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Inflexion III GBP250 GBP38 www.inflexion.com 1998 London

Inveralia II EUR200 EUR139 www.inveralia.com 1997 Madrid

L Capital 3 EUR400 150 www.lvmh.com 1986 Paris

Langholm Capital Partners II EUR350 EUR242 www.langholm.com 2002 London

LGV 6 Private Equity Fund GBP150 GBP200 www.lgvcapital.com 1988 London

Lion Capital III EUR2,000 EUR2,000 www.lioncapital.com 2004 London; New York

Litorina Kapital IV EUR300 EUR150 www.litorina.se 1998 Stockholm

MBO Capital III EUR250 EUR150 www.mboparenaires.com 2002 Paris

NBGI France Fund EUR 100 N/A www.nbgiprivateequity.co.uk 2000 London; Paris; Manchester, UK

Perfectis III EUR100 EUR122 www.perfectis.eu 2000 Paris

Pinova Capital Fund I EUR150 N/A www.pinovacapital.com 2007 Munich

Polaris III EUR350 EUR270 www.polarisequity.dk 1999 Copenhagen

PONTIS Growth Capital Fund II EUR600 N/A www.pontiscapital.at 2005 Vienna

Preludio EUR100 N/A www.unipolmerchant.it 2008 Bologna, Italy

Priveq Investment Fund IV EUR300 SEK1,200 www.priveq.se 1983 Stockholm

Riverside Europe Fund IV EUR550 EUR320 www.riversidecompany.com 1988

New York; Brussels; Prague; Munich; Budapest; Amsterdam;

Warsaw; Seoul; Madrid; San Francisco; Hong Kong

Santangel Fund I EUR300 N/A No Website Available N/A Valencia, Spain

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.58

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Sovereign Capital III GBP350 GBP275 www.sovereigncapital.co.uk 1988 London

Spirit Capital Partners II GBP125 EUR72 www.spiritcapital.co.uk 2008 London

Stirling Square Capital Partners II EUR600 280 www.stirlingsquare.com 2003 London

Synergia 5 EUR350 300 www.synergosgr.it 2004 Milan

Trident Private Equity Fund III GBP150 GBP64 www.johcm.co.uk 1993 London

Vendis Capital I EUR100 N/A www.vendiscapital.com N/A Groot-Bijgaarden, Belgium

Vertis Capital EUR75 N/A www.vertissgr.it 2007 Naples, Italy

Vespa Capital EUR100 N/A www.vespacapital.com N/A Paris; London; Luxembourg

Whitesmith Private Equity Investors

EUR700 N/A www.goldsmithcapitalpartners.com 2007 Grand Cayman

Winch Capital II EUR250 EUR165 www.lcf-rothschild.fr 1985 Paris; London

Media/Telecommunication Funds

Alta Communications X 500 500 www.altacomm.com 1996 Boston

Columbia Capital Equity Partners V

650 561 www.colcap.com 1989 Alexandria, VA; Waltham, MA

Cyrte Fund IV - Africa TMT Fund EUR150 N/A www.cyrte.com 2000 Naarden, Netherlands

Greycroft Partners II 125 75 www.greycroftpartners.com 2006 New York; Santa Monica, CA

VSS Comm V 1,000 1,300 www.vss.com 1987 New York; London

Energy Funds

Aravis Energy I EUR125 N/A www.aravis.ch 2002 Zurich

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 59

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Asia Clean Energy Fund 200 N/A www.ktic.co.kr 1986 Seoul

AVC Abundance Energy Fund 250 N/A www.abundancevc.com N/A Selangor

Canaan Natural Gas Fund X 225 200 www.canaanresources.com 1987 Oklahoma City, OK

Cardiff Capital Fund II CAD200 N/A www.cardiffcapital.ca N/A Calgary; Edmonton

China Clean Energy Capital 100 N/A www.chinacleanenergyinc.com 1995 Fuqing, China

Chrysalix Energy III 150 CAD70 www.chrysalix.com 2001 Vancouver

Curzon Park Capital Cleantech Fund

GBP150 N/A www.curzonparkcapital.com 2007 London

Cycle Capital Fund I 100 N/A www.cyclecapital.net N/A Montreal

Demeter FCPR 2 EUR200 EUR104 www.demeter-partners.com 2005 Paris; Madrid

EarthRise Capital I 100 N/A www.earthrisecapital.com N/A New York

Emerald Cleantech Fund III EUR200 EUR150 www.emerald-ventures.com 2000 Zurich; Montreal

EMP Energy Fund 1,000 N/A www.empglobal.com N/A Manama, Bahrain

European Kyoto Fund EUR500 N/A www.cib.natixis.com 1984 Paris

European Renewable Energy Fund EUR250 N/A www.platinapartners.com 2002 London; Paris

FA Technology Ventures III 200 200 www.fatechventures.com N/A New York; Boston

Fundo Brasil Sustentabilidade BRL250 N/A www.latourcapital.com 2008 Sao Paulo

GEF North American Growth Fund II

350 N/A www.globalenvironmentfund.com 1990 Washington, D.C.

GEF South Asia Clean Energy Fund

150 N/A www.globalenvironmentfund.com 1990 Washington, D.C.

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.60

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Green Capital Oil & Gas Fund BRL500 N/A www.greencapital.com.br/english N/A Sao Paulo

Guggenheim Energy Opportunities Fund

500 N/A www.guggenheimpartners.com 1999Chicago; New York; Hong Kong; Geneva

Icos Cleantech Growth Fund II EUR100 N/A www.icoscapital.com N/A Amsterdam

IDG Ventures India II TBD 150 www.idgvcindia.com 2006 Bangalore

JOG IV 150 150 www.jogcapital.com 2002 Calgary

KERN Energy Partners Fund III CAD750 CAD450 www.kernpartners.com 2000 Calgary

Leveraged Green Energy Fund 250 N/A www.lgefund.com N/A Arlington, VA

MAP Clean Energy Fund 400 N/A www.meacp.com N/A Singapore

Meidlinger Partners I 100 N/A www.meidlingerpartners.net 2008 Philadelphia

Millbrae Energy I 400 N/A www.millbrae-energy.com 2001 Greenwich, CT; Tulsa, OK

Nature Elements Capital Fund 350 N/A www.elementscap.com 2009 Beijing

Prithvi Sustainability Innovation and Technology Fund

150 N/A www.icestartups.com N/A Mumbai

Quintana Capital II 650 650 www.qeplp.com N/A Houston, TX; Beijing

Riverstone/Carlyle Renewable and Alternative Energy Fund II

1,200 685 www.riverstonellc.com 2000New York; London;

Houston, TX

Rockland Power Partners 500 N/A www.rocklandcapital.com 2003 Houston, TX

Sail Venture Partners II 250 150 www.sailvc.com 2002Costa Mesa, CA;

Arlington, VA; New York

South-Asia Clean Energy Fund 200 N/A www.yesbank.in 2003 Mumbai; New Delhi

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 61

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Tamarix Ventures 120 N/A www.tamarixvc.com 2008 Herzilya, Israel

TPH Partners 250 N/A www.tphpartners.com N/A Houston, TX; Denver, CO

WHEB Ventures Private Equity Fund II

GBP150 GBP24 www.whebventures.co.uk 2002 London; Munich

White Deer Energy I 750 N/A No Web Site Available 2008 New York

Windfall Fund EUR200 N/A www.eolfi.com 2004 Paris

Mezzanine and Credit-Focused Funds

Accel-KKR Mezzanine I 150 N/A www.accel-kkr.com 2000 Menlo Park, CA; Atlanta

Accession Mezzanine Capital III EUR350 262 www.mmlcapital.com 1988London; Vienna; Paris;

Frankfurt; Budapest; Warsaw; Kiev; Stamford, CT

Ares Capital Mezzanine Partners 500 N/A www.aresmgmt.com 1997 Los Angeles; London; New York

Argos Expansion EUR150 N/A www.argos-soditic.com 1989 Geneva; Paris; Milan

Asia Strategic Capital Fund 300 N/A www.asiamezzanine.com 2004 Hong Kong

Audax Mezzanine Fund III 750 700 www.audaxgroup.com 1999 Boston; New York

Avante Mezzanine Partners 1 200 N/A www.avantemezzanine.com 2009 Los Angeles

Barclays Structured Principal Investing Fund

1,500 N/A www.barcap.com 1997

London; Sydney; Beijing; Shanghai; Paris; Frankfurt;

Madrid; Zurich; Taipei Mumbai; Hong Kong;

Kuala Lumpur; New York; San Francisco

Beechbrook Capital EUR200 N/A www.beechbrookcapital.com 2008 London

BHC Interim Funding III 250 200 www.brookshoughton.com 1999 New York; Stamford, CT

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.62

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Boathouse Capital 120 N/A www.boathousecapital.com 2008 Wayne, PA

Chatham Cascade Fund III 150 N/A www.chathamcapital.com 1997 Atlanta

Claritas Capital Specialty Debt Fund

100 N/A www.claritascapital.com 2002 Nashville, TN

Endeavour Structured Equity and Mezzanine Fund I

125 N/A www.endeavourcapital.com 1991Portland, OR;

Los Angeles; Seattle

Falcon Mezzanine Partners III 800 360 www.falconinvestments.com 2000 Boston; New York; Dallas, TX

Franchise Capital Partners III 150 N/A www.capitalspring.com 2005 New York

GC 2009 Mezzanine Partners 350 N/A www.golubcapital.com 1994 New York; Chicago; Atlanta

GCG Investors II 250 190 www.greyrockcapitalgroup.com 2002San Francisco; Chicago;

Westport, CT

Golub Capital Partners VI 1,000 1,000 www.golubcapital.com 1994 New York; Chicago; Atlanta

Hunting Dog Fund II 100 25 www.hdcap.com 2004 San Francisco

Huntington Capital II 100 N/A www.huntingtoncapital.com 2000 San Diego, CA

Insight Mezzanine Fund 250 N/A www.insightequity.com 2002 Southlake, TX

Kayne Anderson Mezzanine Partners

500 N/A www.kaynecapital.com 1981 Los Angeles; Houston, TX

KKR Mezzanine Fund 1,000 N/A www.kkr.com 1976

New York; Sydney; Beijing; Paris;

Hong Kong; Mumbai; Tokyo; Dubai;

London; San Francisco; Washington, D.C.

LBC Credit Partners II 750 400 www.lbccredit.com N/A Philadelphia; Chicago

M Cap Finance Deutsche Mezzanine Fund II

EUR250 EUR168 www.mcap-finance.de 2004 Frankfurt

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 63

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Maranon Mezzanine Fund I 250 N/A www.maranoncapital.com 2007 Chicago; Birmingham, MI

Merit Mezzanine Fund V 600 455 www.meritcapital.com 1993 Chicago

Morgan Stanley Mezzanine 1,000 N/A www.morganstanley.com/privateequity 1985New York; Beijing; Hong Kong; Mumbai; Tokyo; Seoul; London

New Canaan Funding Mezzanine V

300 N/A www.newcanaanfunding.com 1995 New Caanan, CT; Wheaton, IL

Newstone Capital II 1,000 865 www.newstonecapital.com N/A Los Angeles; Dallas, TX

Park Square Capital II EUR2,000 EUR1,050 www.parksquarecapital.com 2004London; Luxembourg;

St. Peter Port, Guernsey

Partners Group European Mezzanine 2008

EUR500 EUR447 www.partnersgroup.net 1996

Baar-Zug, Switzerland; St. Peter Port, Guernsey;

Beijing; Singapore; Sydney; Tokyo; London; New York

Peachtree II 100 110 www.peachtreeequity.com 1997 Atlanta

Peninsula Capital Fund V 350 335 www.peninsulafunds.com 1995 Detroit, MI

Praesidian Capital Investors III 300 246 www.praesidian.com 2002 New York

Prudential Capital Partners III 900 775 www3.prudential.com/pcg 1984Chicago; London; Los Angeles;

San Francisco; Atlanta; New York; Dallas, TX

Sankaty Middle Market Opportunities Fund

750 N/A www.sankatyadvisors.com 1997 Boston; London; Chicago

Syntaxis Mezzanine Fund II EUR250 EUR100 www.syntaxis-capital.com 2006 Vienna; Warsaw

TA Subordinated Debt III 750 778 www.ta.com 1968Boston; Mumbai; London;

Menlo Park, CA

Volga River Credit Opportunity Fund

EUR300 N/A www.nrgc.com 2006 Moscow

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.64

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

VSS Structured Capital II 300 123 www.vss.com 1987 New York; London

Yukon Partners 300 N/A www.yukonpartners.com 2008 Minneapolis

Specialized Secondaries Funds

ARIANE Private Debt Fund EUR250 N/A www.arianepartners.com 1999 Villanova, PA

Auda Secondary Fund II 500 410 www.auda.com 1989New York; Bad Homburg,

Germany; Hong Kong; Stockholm; London

AXA Early Secondary Fund IV EUR600 EUR240 www.axaprivateequity.com 1996Paris; Frankfurt; Milan;

Singapore; Zurich; London; New York

Capital Dynamics Global Secondaries III

250 N/A www.capdyn.com 1988

Zug, Switzerland; Munich; Hong Kong; London;

Menlo Park, CA; San Francisco; New York

Coller International Partners VI 6,000 4,800 www.collercapital.com 1990 London

Crown Global Secondaries II 750 255 www.lgt-capital-partners.com 1993Pfaeffikon, Switzerland;

Hong Kong; Dublin; Tokyo; London; New York

Fondinvest 8 EUR400 EUR292 www.fondinvest.com 1994 Paris

Fort Washington Private Equity Opportunities Fund II

100 N/A www.fortwashington.com 1984 Cincinnati, OH

Goldman Sachs Early Secondaries Fund

300 N/A www.gs.com/peq 1869New York; Paris; London;

Dubai; San Francisco

Greenpark International Investors IV

EUR900 EUR700 www.greenparkcapital.com 2000 London

Landmark Equity Partners XIV 2,000 1,200 www.landmarkpartners.com 1989 Simsbury, CT

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 65

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Landmark Hybrid Secondary Fund 400 N/A www.landmarkpartners.com 2000 Simsbury, CT

Lexington Capital Partners VII 5,000 3,800 www.lexingtonpartners.com 1994New York; Boston;

Menlo Park, CA; London

Morgan Stanley Global Secondary Opportunities Fund I

500 N/A www.morganstanley.com/aip 1985New York; Hong Kong; Tokyo;

Seoul; London; Menlo Park, CA;

Newbury Partners 800 702 www.newbury-partners.com 2006 Stamford, CT

Pantheon Global Secondaries Fund IV

3,750 2,000 www.pantheonventures.com 1982London; San Francisco;

Hong Kong; Brussels; New York

Parish Capital Secondaries Fund 200 N/A www.parishcapital.com 2003Chapel Hill, NC; London;

New York

Permal Private Equity Opportunities 4

350 350 www.permal.com 1973New York; Boston; London;

Paris; Dubai; Japan; Hong Kong; Singapore

Private Equity Investment Fund V 250 171 www.peifunds.com 1992 New York

RCP Secondary Opportunity Fund 200 N/A www.rcpadvisors.com 2001 Chicago

RFI Venture Secondaries 200 N/A www.rho.com 1981 New York

Symmetry Secondary Fund 2007 100 45 www.symmetryinvestmentadvisors.com 2003 Edgewater, CO

TIFF Secondary Partners II 150 N/A www.tiff.org 1994 West Conshohocken, PA

Unigestion Secondary Opportunity Fund II

EUR150 NA www.unigestion.com 1971 Geneva

Direct Secondaries Funds

Ant Bridge Asia IV EUR250 N/A www.agp.sg 2007 Singapore

Camelot Direct Secondaries EUR200 N/A www.thecamelotgroup.com 2008New York; San Francisco;

London; Dubai

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.66

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Cipio Partners VI EUR200 N/A www.cipiopartners.com 2003 Munich

Nova Capital I EUR300 N/A www.nova-cap.com 2002 London

Saints Capital VII 600 300 www.santsvc.com 2000 San Francisco; London

Verdane Capital VII SEK1,000 EUR120 www.verdanecapital.com 1985 Oslo; Stockholm

Turnaround/Restructuring Funds

Atlas Holdings 1 250 N/A www.atlastholdingsllc.com 2002 Greenwich, CT

Blackstreet Capital Partners II 125 N/A www.blackstreetcapital.com 2005 Bethesda, MD

Butler France Private Equity IV EUR500 N/A www.butlercapitalpartners.com 1990 Paris

Corsair Capital IV 2,000 1,073 www.corsairinvestments.com 1993 New York

EQT Opportunity Fund II EUR400 EUR372 www.eqt.se 1994Stockholm; Frankfurt;

London; New York

H2 Equity Partners Fund IV EUR350 EUR188 www.h2equitypartners.com 1991 Amersterdam; London

Kelso Place IV GBP75 GBP100 www.kelsoplace.com 2000 London

KH Global Consumer Brand Opportunities I

100 N/A www.khcapitalpartners.com 2009 New York

Littlejohn Fund IV 1,250 N/A www.littlejohnllc.com 1996 Greenwich, CT

Merchant Asset Partners GBP500 N/A www.merchantassetpartners.com 2009 London

Prophet Equity I 250 N/A www.prophetequity.com 2007 Southlake, TX

Sator Private Equity Fund I EUR750 N/A www.satorgroup.com 2007 Rome; Milan; London

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 67

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Special Situation Venture Partners III

EUR300 EUR225 www.orlandofund.com 2001 Munich

Tenex Capital 400 N/A www.tenexcm.com 1999 Devon, PA

Watermill Private Equity Fund 200 N/A www.watermillventures.com 1978 Lexington, MA

Distressed Debt and Hybrid Funds

AG Capital Recovery Partners VII 3,000 2,000 www.angelogordon.com 1988New York; Hong Kong; Seoul;

London; Beverly Hills, CA; Oak Brook, IL

Anchorage Capital Partners I AUD200 N/A www.anchoragecap.com.au 2007 Sydney

Arcil NPA Fund 600 N/A www.arcil.co.in 2002 Mumbai

Arctic Asia Opportunities Fund II 300 100 No Website Available N/A Hong Kong

Ares Corporate Opportunities Fund III

4,000 2,065 www.aresmgmt.com 1997 Los Angeles; London; New York

Ashmore Global Special Situations Fund V

2,600 1,300 www.ashmoregroup.com 1999 London; New York

Avenue Europe Special Situations Fund

EUR1,500 N/A www.avenuecapital.com 1995 New York

Bayside Distressed Debt 1,000 N/A www.bayside.com 2004Miami, FL; Atlanta;

Boston; San Francisco

BDCM Opportunity Fund III 750 983 No Website Available 1995Greenwich, CT; London;

Lake Forest, IL

Carlyle Distressed Financial Services Fund

3,000 N/A www.carlyle.com 1987

Washington, D.C.; New York; San Francisco; Shanghai;

Hong Kong; Mumbai; Dubai; London; Paris; Munich;

Madrid; Istanbul

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.68

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Carlyle Global Financial Services Partners

1,000 N/A www.carlyle.com 1987

Washington, D.C.; New York; San Francisco; Shanghai;

Hong Kong; Mumbai; Dubai; London; Paris;

Munich; Madrid; Istanbul

Catalyst Fund III 1,000 640 No Website Available 2002 Toronto

Clearlake Capital Partners II 500 N/A www.clearlakecapital.com 2007 New York

CRG Central European Special Situations Fund I

EUR150 N/A www.crgpartners.com 1999 New York; Vienna

CVI Credit Value Fund 2,000 N/A www.carvalinvestors.com 1987 Minnetonka, MN

DGPA & Tato Capital EUR100 N/A www.dgpa.it 1991 Milan

East Capital Special Opportunities Fund

EUR100 N/A www.eastcapital.com 1997Stockholm; Vienna; Paris;

Hong Kong; Milan; Oslo; Moscow

GSO Capital Solutions Fund 2,000 N/A www.blackstone.com 1985

New York; Menlo Park, CA; Los Angeles; Atlanta; Boston;

Shanghai; Hong Kong; Mumbai; Tokyo; Paris; London

Halcyon Special Situations India Fund

200 N/A www.halcyon.in 2004 Mumbai

Highland Restoration Capital Partners

1,000 N/A www.hcmlp.com 1990Dallas, TX; Singapore;

London; New York

ICG Recovery Fund 2008 EUR1,000 N/A www.icgplc.co.uk 1989

London; Sydney; Paris; Frankfurt; Hong Kong; Amsterdam; Madrid; Stockholm; New York

Indigo Asset Management Fund 200 N/A www.indigoam.com N/ANew York; Chicago; Seattle; Los Angeles

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 69

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Longroad Capital Partners III 400 183 www.longroadllc.com 2002 Stamford, CT; Austin, TX

NZC Guggenheim Opportunity Fund II

1,000 N/A www.guggenheimpartners.com 1999Chicago; New York; Hong Kong; Geneva

OCM Opportunities Fund VIII 5,000 3,500 www.oaktreecapital.com 1995

Los Angeles; Shanghai; Beijing; Hong Kong; Tokyo;

Singapore; Seoul; Luxembourg; Amsterdam; London; New York

OCM Principal Opportunities Fund V

5,000 3,328 www.oaktreecapital.com 1995

Los Angeles; Shanghai; Beijing; Hong Kong; Tokyo;

Singapore; Seoul; Luxembourg; Amsterdam; London; New York

Providence TMT Special Situations Fund II

1,000 1,139 www.provequity.com 1989Providence, RI; Hong Kong;

New Delhi; London; New York; Los Angeles

Quadro Capital Partners EUR350 N/A www.quadrocapital.com 2009 Moscow

Strategic Value Global Opportunities II

750 532 www.svpglobal.com 2001Greenwich, CT; London;

Frankfurt; Tokyo

Strategic Value Special Situations Fund

1,000 N/A www.svpglobal.com 2001Greenwich, CT; London;

Frankfurt; Tokyo

Tennenbaum Opportunities Fund VI

1,000 1,105 www.tennenbaumcapital.com 1996 Santa Monica, CA

Treadstone Capital Management II

150 60 www.treadstone.com 1993 Dallas, TX

WB Debt Partners EUR250 N/A www.butlercapitalpartners.com 1990 Paris

Z Capital Special Situations Fund 500 N/A www.zcap.net 2006 Lake Forest, IL

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Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Technology and Diversified Funds

4C Ventures II 150 N/A www.4cventures.com 1980 New York; Palo Alto, CA

ABS Ventures X TBD 113 www.absventures.com 1982 Waltham, MA

ABVEN II EUR150 EUR100 www.abven.com 2005 London; Dublin

Acacia Technology 250 N/A www.acaciaresearch.com 1992 Newport Beach, CA

Acton Capital Fund EUR150 N/A www.actoncapital.de 1999 Munich

Akansa Capital 300 N/A No Website Available 2009 Mumbai

Alloy Ventures 2008 375 368 www.alloyventures.com 1977 Palo Alto, CA

Angel Venture Partners 100 N/A www.angelventurepartners.com 2006 Orange County, CA

Ariva Partners 150 N/A www.arivapartners.com 2007 Portola Valley, CA

Arsenal Ventures Fund II 125 N/A www.arsenalvp.com N/A Palo Alto, CA

Ascent Venture Partners V 200 140 www.ascentvp.com 1985 Boston

Bain Capital Venture Partners 2008

500 500 www.baincapital.com 1984Boston; New York; London;

Tokyo; Shanghai; Hong Kong; Munich; Mumbai

Blumberg Capital II 100 100 www.blumbergcapital.com 1991 San Francisco

Boston Millennia Partners III 250 414 www.millenniapartners.com 1997 Boston

Cava I 150 N/A www.cavacapital.com N/A Wilton, CT

Council Ventures II 225 52 www.councilventures.com 2000 Nashville, TN

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 71

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Crossbow Ventures 3 125 N/A ww.crossbowventures.com 1999 West Palm Beach, FL; Zurich

Crosslink Venture VI 250 250 www.crosslinkcapital.com 1989 San Francisco

DAG Ventures IV 700 500 www.dagllc.com 1991 San Francisco

DBL Equity Fund-BAEF II 150 75 www.dblinvestors.com 2008 San Francisco

DCM VI 500 500 www.dcmvc.com 1996 Menlo Park, CA; Beijing; Tokyo

Deeva Capital I 100 N/A No Website Available 2006 India

Draper Fisher Jurvetson Dragon Fund II

200 53 www.dragonventure.com 1999Menlo Park, CA; Beijing; Shanghai

Draper Fisher Jurvetson X 400 650 www.dfj.com 1985Menlo Park, CA;

Shanghai; Bangalore

Easton Capital Partners III 175 47 www.eastoncapital.com 1993Coral Gables, FL;

New York; Buffalo, NY

Endeavor Opportunity Partners II 150 17 www.endeavorcap.com 1988 Westport, CT

Espírito Santo Ventures III EUR120 EUR88 www.es-ventures.com 2000 Lisbon

Favonius FVE Fund II EUR150 EUR86 www.favoniusventures.net 1999Bloemendaal, Netherlands;

London

FinTech Gimv 100 N/A www.fgi.co.jp/english 1994 Tokyo

First Analysis Private Equity Fund V

200 100 www.firstanalysis.com 1981 Chicago

Fortissimo Capital II 200 80 www.fortissimo-capital.com 2003 Rosh Haayin, Israel

Foursan Capital Partners I 200 N/A www.4san.com 2000 Amman; London

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.72

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Genesis Partners IV 150 155 www.genesispartners.com 1996 Herzliya Pituach, Israel

Giza Venture Fund V 250 213 www.giza.co.il 1992 Tel Aviv

Global Microfinance Equity Fund 150 N/A www.grassrootscap.com N/ANew York; London; Hyderabad, India

GrandBanks Capital II 150 125 www.grandbankscapital.com 2000 Wellesley, MA

Greater Pacific Capital II 750 300 www.greaterpacificcapital.com 2005Cayman Islands; London; Mumbai

Gulf Venture Capital Fund I 150 N/A www.ip-venturepartners.com 2009 Abu Dhabi; Washington, D.C.

Holland Private Equity Technology Fund I

EUR150 N/A www.hollandprivateequity.com 2008 Amsterdam

Hummer Winblad Venture Partners VII

TBD 201 www.humwin.com 1989 San Francisco

ICT & Services Sector Fund 100 N/A www.dtacapital.com 1996 Kuala Lumpur

India Rizing Fund 300 N/A www.indiarizingfund.com 2008 Mumbai

Inter-Atlantic Fund III 150 N/A www.interatlanticfund.com 1997 New York

Invention Investment Fund II 2,500 1,000 www.intellectualventures.com 2000 Bellevue

IP Finance 300 N/A www.ipfinance.com 2009 Larchmont, NY

IT Ventures II 100 N/A www.it-investment.com/sector7_1.htm 1999 Giza

Jarvinian Venture Fund I 150 N/A www.jarvinian.com 2009 Boston

Jerusalem Venture Partners V 150 404 www.jvpvc.com 1993 Jerusalem; New York; Shanghai

Jina Ventures India II 200 50 www.jinaventures.com 2002New York; Singapore;

Mumbai; Bangkok

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 73

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Kingdom Venture Partners 100 N/A www.kingdomventures.com N/A Leander, TX; Gilbert, AZ

Lionhart Talon Private Equity Fund

300 N/A www.lionhart.net 1993 Toronto

Live Oak Partners II 100 N/A www.liveoakequity.com 1998 Alpharetta, GA

Longworth Venture Partners III 160 115 www.longworth.com 1999 Waltham, MA

Menlo Ventures XI 1,000 1,200 www.menloventures.com 1976 Menlo Park, CA

Meritage Private Equity Fund III 300 136 www.meritagefunds.com 1998 Denver, CO

Merus Capital Fund I 125 N/A www.meruscap.com 2007 Palo Alto, CA

Mission Ventures IV 250 210 www.missionventures.com 1997San Diego, CA;

Santa Monica, CA

MK Capital II 150 152 www.mkcapital.com N/A Northbrook, IL

Morpheus Media Fund 300 N/A www.o3capital.com 2007 Bangalore; Mumbai; New York

Multinational Industrial Fund II 150 66 www.fondomif.com N/ABosques de Chapultepec,

Mexico; Ottobrunn, Germany; Stuttgart, Germany

Nauta Tech Invest III EUR150 EUR50 www.nautacapital.com 2004 Barcelona; Boston

New Enterprise Associates XIII 2,500 2,500 www.nea.com 1978Menlo Park, CA; Beijing;

Shangai; Bangalore; Chevy Chase, MD; Baltimore, MD

Newbury Ventures Cayman IV 250 250 www.newburyven.com 1992Redwood Shores, CA; Kanata, Canada; Paris

Notion Capital GBP100 N/A www.notioncapital.com N/A Cheltenham, UK; Bristol, UK

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.74

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Oak Investment Partners XIII TBD 2,560 www.oakinv.com 1978Westport, CT; Palo Alto, CA;

Minneapolis, MN

Open Prairie Ventures II 125 40 www.openprairie.com 1999 Effingham, IL

Opus Capital II 250 280 www.opuscapitalventures.com 2005 Menlo Park, CA

Pacific Synergies IV 100 N/A www.iccpventurepartners.com 1998 Manila

Pinnacle Equity Fund II 200 127 www.pinnacleventures.com 2001 Palo Alto, CA

Pittsford Ventures V 500 65 www.pittsfordventures.com 1979 Pittsford, NY; New York

Polaris VI TBD 330 www.polarisventures.com 1996 Waltham, MA; Seattle, WA

PolyTechnos European Growth Fund I

EUR100 N/A www.polytechnos.com 1998 Munich

Quest Hospitality Ventures 100 N/A www.qvhospitality.com N/A San Francisco

R Capital III EUR200 EUR100www.rothschild.com/rcapitalmanagement/

2001 Paris

Redpoint Ventures IV TBD 400 www.redpoint.com 1999Menlo Park, CA;

Shanghai; Los Angeles

Sandalwood Capital Partners II EUR350 EUR100 www.sandalwoodpartners.com 2006Bangalore; Hong Kong;

Santa Clara, CA

SBI Neo Technology Investment JPY40,000 N/A www.sbigroup.co.jp 1999 Tokyo

Sevin Rosen Fund X 300 305 www.srfunds.com 1981Dallas, TX; Palo Alto, CA;

Austin, TX

Sierra Ventures X TBD 400 www.sierraventures.com 1982 Menlo Park, CA

Signal Lake Venture Fund III 200 14 www.signallake.com 1998 Westport, CT; Boston

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 75

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

SSM Partners IV 125 113 www.ssmpartners.com 1973 Memphis, TN

Storm Ventures Fund IV 200 200 www.stormventures.com 2000 Menlo Park, CA

Sunrock Ventures I 100 N/A www.sunrockventures.com N/A Tampa, FL

Tamarix Ventures 120 N/A www.tamarixvc.com 2008 Herzliya Pituach, Israel

TechFund Europe II EUR100 EUR25 www.techfundcapitaleurope.com 1997 Paris; Saratoga, CA

Three Arch Partners V TBD 450 www.threearchpartners.com 1993 Portola Valley, CA

Turenne Venture Capital Fund 127 N/A www.turennecapital.com 1999 Paris

VenturEast Life Fund III 150 15 www.ventureast.net 1990Hyderabad, India;

Chennai, India

Village Ventures III 125 104 www.villageventures.com 2000Williamstown, MA;

New York; Denver, CO

VinaCapital II 250 N/A www.vinacapital.com 2003 Ho Chi Minh City

Vista Partners III 125 75 www.vistavc.com 2000 Boulder, CO; Fort Collins, CO

Life Science Funds

5AM Ventures Fund III 150 150 www.5amventures.com 2002 Menlo Park, CA; Waltham, MA

BioMedinvest II CHF120 CHF89 www.biomedinvest.ch 2002 Basel, Switzerland

Burrill China Fund 100 N/A www.burrillandco.com 1994 San Francisco

Burrill India Fund 100 N/A www.burrillandco.com 1994 San Francisco

Caduceus Private Investments IV 500 500 www.orbimed.com 1989 New York; Shanghai; Mumbai

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.76

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Capricorn Health-tech Fund EUR100 N/A www.capricorn.be 1993 Leuven, Belgium

CCB International Healthcare Fund

CNY5,000 N/A www.ccbintl.com 1984 Hong Kong

Celtic Pharma Holdings II 750 250 www.celticpharma.com 1999 Hamilton, Bermuda; London

Channel Medical Partners II 150 40 www.chanmed.com N/A Skokie, IL

Cutlass Capital Venture Fund 100 N/A www.cutlasscapital.com 2001 Boston; San Francisco

DDC Ventures EUR100 N/A www.lsp.nl 1998Amsterdam; Munich;

Cambridge, MA

DFJ InCube Ventures 125 N/A www.incubevc.com 2008 San Jose, CA

Drug Royalty II 500 N/A www.dricapital.com 1992 Toronto

Epic Venture Partners IV 150 150 www.wasatchvc.com 1993Salt Lake City, UT;

Santa Fe, NM; Mesa, AZ

Forbion Venture Fund II EUR200 EUR200 www.forbion.com 2000 Naarden, Netherlands

Foundation Medical Partners III 150 150 www.foundmed.com 2001 Rowayton, CT

Fountain Healthcare Partners Fund I

EUR100 N/A www.fh-partners.com 2005 Dublin; New York

GE Healthymagination Fund 250 N/A www.ge.com 1933Stamford, CT; Calgary; Hong

Kong; Tokyo; Singapore; London; Dubai

Helix Ventures 150 N/A www.helixventure.com 2008 Palo Alto, CA

HIG BioVentures 250 N/A www.higventures.com 1993 Miami, FL

HLM Venture Partners III 200 216 www.hlmvp.com 1983 Boston; San Francisco

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 77

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

iNetworks BioOpportunity Fund 100 N/A www.inetworksllc.com N/APittsburg, PA;

Morgantown, WV

Kearny Venture Partners II TBD 100 www.kearnyvp.com N/A San Francisco, CA

Life Sciences Partners IV EUR100 EUR150 www.lsp.nl 1998Amsterdam; Munich;

Cambridge, MA

Lumira Capital II 250 CAD211 www.lumiracapital.com 1988Toronto; Montreal; Cambridge,

MA; Mountain View, CA

MB Venture Partners 3 100 54 www.mbventures.com 2001 Memphis, TN

MTI VI GBP75 GBP103 www.mtifirms.com 1983London; Manchester, UK;

Waltham, MA

NeoMed V EUR150 EUR104 www.neomed.net 1996 Oslo; Geneva

NewSpring Health Ventures II 150 165 www.newspringventures.com 1999Radnor, PA; Short Hills, NJ;

Washington, D.C.

NGN BioMed Opportunity Fund II 350 250 www.ngncapital.com 2003New York; Heidelberg,

Germany; Greenwich, CT

ONSET VI 250 196 www.onset.com 1984 Menlo Park, CA

Orion Healthcare Equity Partners EUR100 N/A www.orhep.com N/A Boston

Pharma Capital Ventures 100 N/A www.pharmacapitalventures.com 2008 Upper Saddle River, NJ

Promere Fund 150 N/A www.hqcm.com 1986 Boston

Psilos Capital IV 450 304 www.psilos.com 1998New York; Corte Madera, CA;

Santa Fe, NM

Rosetta Partners 100 N/A www.rosettapartners.com 1999 New York; Santa Monica, CA

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.78

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Seroba Kernel Life Sciences Fund II

EUR75 EUR20 www.seroba.ie 2001 Dublin

Signet Healthcare Partners Fund III

200 N/A www.signethealthcarepartners.com 1998 New York; Houston, TX

SV Life Sciences Fund V 400 572 www.svlsa.com 1993Boston; London; Foster City, CA

Symphony Capital Partners II 400 315 www.symphonycapital.com 2002 New York

TPG Biotechnology Partners III 550 402 www.tpgventures.com 2001San Francisco; Hong Kong; Mumbai; Fort Worth, TX;

Menlo Park, CA

Triathlon Medical Ventures II 150 104 www.tmvp.com 2004Cincinnati, OH; Indianapolis, IN;

St. Louis, MO; Louisville, KY

Tullis-Dickerson Capital Focus IV 250 122 www.thi-funds.com 1986 Stamford, CT; Birmingham, AL

Asia-Focused Funds

2i Capital PCC: Indian Enterprise Fund

200 170 www.2icapital.com 2000 Bangalore; New Delhi

Aavishkaar Goodwell Microfinance Development II

100 18 www.aavishkaar.org 2002 Mumbai; Singapore

Aditya Birla Private Equity Fund 250 N/A www.adityabirla-pe.com 1999 Mumbai

Akansa Capital 300 N/A No Website Available 2009 Bangalore

Ambit Pragma Ventures 100 N/A www.ambitpragma.com 1997 Mumbai

Anchorage Capital Partners I AUD200 N/A www.anchoragecap.com.au 2007 Sydney

Ancora Capital Management I 300 N/A No Website Available N/A Jakarta; Hong Kong; Sydney

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 79

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Aquarius India Fund 100 N/A www.aquarius.com.sg 1995 Singapore; Bangalore; Mumbai

ARC Capital II 1,000 700 www.arch-fund.com 2006 Hong Kong

Arcil NPA Fund 600 N/A www.arcil.co.in 2002 Mumbai

Arctic Asia Opportunities Fund II 300 100 No Website Available N/A Hong Kong

Ascent India Fund III 400 180 www.utiventures.com 2000 Bangalore

Asia Strategic Capital Fund 300 N/A www.asiamezzanine.com 2004 Hong Kong

Aureos East Asia Fund 250 N/A www.aureos.com 2001London; Hong Kong; Brisbane;

Mumbai; Jakarta; Bangkok; Manila; Ho Chi Minh City

Avigo SME Fund III 250 125 www.avigocorp.com 2003 New Delhi

Baird Capital Partners Asia I 100 N/A www.rwbaird.com 1980Shanghai; Beijing; Hong Kong;

Chicago; London

BankInvest Private Equity New Markets III

150 145 www.biventure.com 1998Copenhagen; Luxembourg;

Singapore; Ho Chi Minh City

BioVeda China Fund II 100 30 www.biovedachinafund.com 2006 Shanghai

Cambodia Laos Investment & Development Fund

200 N/A www.fidp-funds.com N/A Singapore; Phnom Penh

CDH China Fund IV 1,400 1,600 www.cdhfund.com 2002 Hong Kong

CHAMP Buyout III AUD1,500 AUD950 www.champmbo.com 2000 Sydney; Melbourne; Brisbane

China Century Fund 300 N/A www.crcicapital.com 2005 Hong Kong

China Environment Fund III 250 30 www.tsingcapital.com 2001 Beijing

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.80

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

CITIC Capital China Partners II 750 425 www.citiccapital.com 2002Hong Kong; Shanghai; Beijing;

Tokyo; New York

Crescent Capital Partners III 300 AUD100 www.crescentcap.com.au 2000 Sydney

CX Partners 600 N/A No Website Available 2008 Mumbai

Digital Convergence Buyout Fund II

200 100 www.tstone.co.kr 2001 Seoul

Direct Capital IV & Pohutukawa II NZD250 NZD120 www.directcapital.co.nz 1994 Auckland; Sydney

Dragon Capital Vietnam Third Wave Private Equity Fund

350 N/A www.dragoncapital.com 1994Ho Chi Minh City; Hanoi; Bath, UK

DRC II JPY20,000 JPY4,300 www.drccapital.co.jp 2005 Tokyo

EM Capital India Discovery Partners I

300 N/A www.emcapital.com N/A Moraga, CA

Endeavour Growth Capital I 300 N/A www.ecap.co.nz 1999Wellington, New Zealand;

Auckland; Germantown, MD

Fortman Border Investment Fund CNY4,500 N/A www.fortmanfund.com 2009 Beijing

Founder Group Private Equity Fund

CNY2,000 N/A www.founder.com 2009 Beijing

GP Capital CNY20,000 N/A No Website Available 2009 Shanghai

Gresham Private Equity Fund 3 AUD600 AUD325 www.gresham.com.au 1999 Sydney

Harbert Australian Private Equity Fund

100 N/A www.harbert.net 1993 Birmingham, AL; Sydney

ic2 Capital 250 N/A www.ic2capital.com N/A London; New Delhi

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 81

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

ICICI Venture Capital Fund III 1,200 810 www.iciciventure.com 1988 Mumbai

India Advantage Fund Series III 500 810 www.iciciventure.com 1988 Mumbai

India Agri Business Fund 100 N/A www.raboprivateequity.nl 2002Amsterdam; New Delhi;

London

India Growth Opportunity Fund 300 30 www.indiaco.com 1983 Pune, India

India Industrial Growth Fund 150 N/A www.frontlinestrategy.com N/A Mumbai

India Knowledge-Manufacturing Fund I

250 N/A www.forumsynergies.com N/A Bangalore; St. Louis, MO

Japan Industrial Partners I JPY70,000 N/A www.jipinc.com 2002 Tokyo

Kaizen Education Fund I 120 N/A www.kaizen-global.com 2009 Mumbai

KDB Corporate Restructuring Fund

KRW1,000,000 N/A www.kdb.co.kr 1954 Seoul

Kendall Court Mezzanine (Asia) Bristol Fund

150 90 www.kendallcourt.com 2004Singapore; Jakarta;

Kuala Lumpur

KFH Malaysia Private Equity Fund 100 N/A www.kfh.com/english 1977 Kuwait

Korea Global Investment Fund 100 N/A www.hanwa.co.jp N/A Tokyo; Osaka

Kotak India Private Equity Fund 200 N/A www.privateequityfund.kotak.com 1997 Mumbai

Lunar Capital China Equity Partners III

200 60 www.lunarcap.com 1999 Hong Kong; Shanghai

Mainridge Capital I AUD150 N/A www.mainridgecapital.com.au 2008 Melbourne

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.82

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Mekong Enterprise Fund IV 150 100 www.mekongcapital.com 2002 Ho Chi Minh City

Milestone Private Equity India Build-out Fund I

INR6,000 N/A www.milestonecapital.in 2006 Mumbai

Mongolia Investment & Development Fund

100 N/A www.fidp-funds.com N/A Singapore; Phnom Penh

Multiples I 450 N/A No Website Available 2009 Mumbai

Nature Elements Capital Fund 350 N/A www.elementscap.com 2009 Beijing

Navis Asia Fund VI 1,250 1,050 www.naviscapital.com 1998Kuala Lumpur; Sydney; Hong Kong; Mumbai; Singapore; Bangkok

Neoplux 1 KRW200,000 N/A www.neoplux.co.kr 2000 Seoul

New Horizon Capital Fund III 750 500 www.nhfund.com 2007 Beijing

Nine Rivers I 125 N/A www.nrcmauritius.com 2008 Port Louis, Mauritius

NPE China Fund II 200 N/A www.natixis-pe.com 1999 Hong Kong

ORYX-STIC Fund II 500 150 www.sticinvestments.com 1999 Seoul

Pinnacle Private Equity AUD300 N/A www.pinnacleinvestment.com.au 2006 Sydney

Prax Capital III 300 153 www.praxcapital.com 2003Honk Kong; Shanghai;

Miami, FL

Reliance Equity Advisors I INR5,000 N/A www.reliancecapital.co.in 1986 Mumbai

Riverside Asia I 100 N/A www.riversidecompany.com 1988Cleveland, OH; New York;

Hong Kong; Tokyo; Belgium; Munich; Madrid

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 83

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Rockley China Fund 100 N/A www.rockleygroup.com N/A Oxford, OH

Shanghai Financial Development Investment Fund

CNY8,000 N/A No Website Available 2009 Shanghai

Sichuan Mianyang High Technology Fund

870 N/A www.citics.com 1995 Beijing

SME Growth Fund II INR10,000 INR5,000 www.sidbiventure.co.in 1999 Mumbai; Chennai, India

South-Asia Clean Energy Fund 200 N/A www.yesbank.in 2003 Mumbai; New Delhi

Spring Capital Asia Fund I 200 N/A www.springcapasia.com 2007 Hong Kong; Shanghai

Tano India Private Equity II 150 40 www.tanocapital.com 2006San Mateo, CA; Shanghai;

Hong Kong; Mumbai; Taipei

Tasman Capital Partners AUD350 N/A www.tasmancapital.com.au 2008 Sydney

Tembusu Growth Fund II SGD300 SGD100 www.tembusupartners.com 2006Singapore; Beijing; Shanghai; London

Tourism Finance Corp India Fund I

100 N/A www.tfciltd.com 1989 New Delhi

Tripod Capital II 300 N/A www.tripodcapital.com 2006 Pudong, China

UTEC 2 Limited Partnership for Investment

120 JPY8,304 www.ut-ec.co.jp 2004 Tokyo

Vietnam Pioneer Fund 100 N/A www.vnpioneers.com 2009 Ho Chi Minh City; Hanoi

WI Harper Fund VIII 150 N/A www.wiharper.com 1993 San Francisco; Beijing; Taipei

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.84

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Other Emerging Markets

Accession Mezzanine Capital III EUR350 262 www.mmlcapital.com 1988London; Vienna; Paris;

Frankfurt; Budapest; Warsaw; Kiev; Stamford, CT

AccessTurkey Fund I EUR250 N/A www.accessturkey.com 1999 Istanbul

ADC African Development EUR100 N/A www.altira-group.de 1996 Denver, CO; Albuquerque, NM

ADM Capital CEECAT Recovery Fund

EUR300 N/A www.admcap.com 1996Hong Kong; Beijing; Mumbai; Singapore; Istanbul; London

Advent Latin American Fund V 2,000 1,300 www.adventinternational.com 1984Boston; Buenos Aires; Sao

Paulo; Prague; Paris; Warsaw; London; Madrid; Tokyo

Agri-Vie Fund 100 N/A www.strategypartners.co.za N/ABelvill, South Africa;

Tyger Valley, South Africa

Almaz Capital Russia Fund I 100 N/A www.almazcapital.com N/A Moscow

ARGUS Capital Partners III EUR350 EUR263 www.arguscapitalgroup.com 1998London; Prague;

Budapest; Warsaw

ARX CEE III EUR125 EUR67 www.arxequity.com 1998Warsaw; Prague;

Budapest; Bucharest

Askembla III EUR170 N/A www.askembla.se 1994 Stockholm

Atlantic Coast Regional Fund 150 N/A www.afigfunds.com 2005Dakar, Senegal;

Washington, D.C.

BaltCap Private Equity Fund EUR100 N/A www.baltcap.com 1995Rigas raj, Latvia; Tallinn, Estonia

Bancroft III EUR250 EUR105 www.bancroftgroup.com 1989 London; Prague; Budapest

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 85

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Beltone Mid-Cap Egypt Fund 100 N/A www.beltonefinancial.com 2002 Cairo; Dubai

Capital Alliance Private Equity III 500 75 www.aca-web.com 1997 Lagos, Nigeria; New York

CRG Central European Special Situations Fund I

EUR150 N/A www.crgpartners.com 1999 New York; Vienna

CRP VII — Brazilian Middle-Market Growth Fund

150 N/A www.crp.com.br 1981 Porto Alegre, Brazil

Da Vinci Private Equity Fund II 300 110 www.dvcap.com N/A Guernsey

Dhow Gulf Opportunities Fund 1,000 N/A No Website Available 2008 Doha, Qatar

East Capital Special Opportunities Fund

EUR100 N/A www.eastcapital.com 1997Stockholm; Vienna; Paris; Hong

Kong; Milan; Oslo; Moscow

Emerging Europe Accession Fund EUR200 EUR110 www.bafund.net 1995 Bucharest; New York

Enfoca Descubridor 1 (Off-shore) 100 50 www.enfocasafi.com.pe/english 2007 Lima

Falah Growth Fund 600 N/A www.falahpartners.com N/A Almaty, Kazakhstan

Fons Mediterrània Capital EUR100 N/A www.rivaygarcia.es/eng 1999 Barcelona

Fundo Brasil Sustentabilidade BRL250 N/A www.latourcapital.com N/A Sao Paulo

Fundo de Investimento Privado de Angola (FIPA)

100 N/A www.angolacapitalpartners.com N/A Luanda, Angola

GP Capital Partners V 2,000 1,300 www.gp.com.br 1993 Sao Paulo

Green Capital Oil & Gas Fund BRL500 N/A www.greencapital.com.br/english N/A Sao Paulo

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.86

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Greylock Africa Opportunity Fund I

200 N/A www.greylockcapital.com 2008 New York

Greylock Latin America Opportunity Fund

450 N/A www.greylockcapital.com 2008 New York

Helios Investors 2 300 304 www.heliosinvestment.com 2004 London

Invest AD MENA Partners 2 400 120 www.adic.ae 1977 Abu Dhabi

Investec Africa Frontier Private Equity Fund

200 N/A www.investecassetmanagement.com 1991 Cape Town; London

Kazakhstan Growth Fund 125 N/A www.kcm-kazyna.kz N/A Kazakhstan

Leapfrog Microfinance Fund 100 N/A www.leapfroginvest.com 2009Johannesburg; Edinburgh; Sydney; Washington, D.C.;

Port Louis, Mauritius

MarCap II 300 N/A www.marcap.ru 2005 Moscow

MENA Joint Investment Fund 500 N/A www.citadelcapital.com 2004 Cairo; London

Mint Capital III 300 130 www.mintcap.ru 2001 Moscow

Multinational Industrial Fund II 150 66 www.fondomif.com 1999Mexico City;

Ottobrunn, Germany

Noor Kuwait LBO Fund 350 N/A www.noorlbofund.com 1997 Kuwait

P&S East Growth II EUR100 EUR25 www.p-s.com N/A Ljubljana, Slovenia

Pittsford Ventures V 500 65 www.pittsfordventures.com 1979 Pittsford, NY; New York

Probanco II 125 26 www.darbyoverseas.com 1994 Washington, D.C.; Sao Paulo

Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 87

Fund Size (MM) in US$ Unless Marked

Fund/Parent Current Last Web Site Year Founded Offices

Rasmala MENA Private Equity Fund 2

350 125 www.rasmala.com 2003 Dubai; London

Royalton Capital Investors II EUR250 94 www.royalton-partners.com 1996Zurich; Prague;

Warsaw; Bucharest

Sphinx Turnaround Fund 100 N/A www.citadelcapital.com 2004 Cairo; London

Stratus Capital Partners I 300 N/A www.stratusbr.com 1999 Sao Paulo

TMG Private Equity Fund II 400 100 www.tmg.com.br 1997 Sao Paulo

Travant Capital Partners I 300 N/A www.travantcapital.com N/A Lagos, Nigeria

Trifecta Fund I 350 N/A www.trifecta.ru N/A Moscow

UFG Private Equity Fund II 300 280 www.ufgam.com 1994 Moscow

Venture Partners Botswana II EUR100 N/A www.venture-p.com 2002 Gaborone, Botswana

S a n F r a n c i s c o N e w Yo r k L o n d o n H o n g K o n g425 California Street 1251 Avenue of the Americas Dudley House 1st Floor Jardine House

Suite 2300 Suite 2390 36-38 Southampton Street Suite 3220

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