Chile & Venture Equity: Financial Markets Evolve, 

Mid‐Size Companies EmergeApril 2010

Discussion

Venture Capital and Private Equity in the U.S. and Globally: History and Trends

The Fusion: Venture Equity 

The Opportunity: Venture Equity in Chile 

Q&A

2

‘50s, ‘60s

3

‘70s, ‘80s, ‘90s

4

5

Challenging the Incumbents

6

“Greed is Good”

7

Irrational Exuberance

8

“…the harder they fall.”

The Golden Age of Private Equity

9

Financially Engineering Wall Street & Main Street

10

11

Massive Collapse – Q3 2008

Financing for LBOs Evaporated

12

Global Private Equity Report 2010, Bain & Company

Global Buyout Deal Activity Sank, All Regions Suffered

13

Global Private Equity Report 2010, Bain & Company

Fundraising Fell off Sharply

14

Global Private Equity Report 2010, Bain & Company

15

Lesson Learned: Our Weakness is Our Strengths Taken to Excess

16

Lesson Learned: Oversight—not Over‐Regulation

Lesson Learned: Financial Fundamentals, Not Financial Engineering

17

Fundraising – on the risePrivate Equity exiting – IPOs are growingLooking beyond distressed assets toward good valueLess financial engineering – rational leverage 

Trends

18

Global Private Equity Report 2010, Bain & Company

Classic Definition: Venture Capital

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Classic Definition: Private Equity 

20

Venture Equity

21

22

Chilean Companies: Perfectly Positioned

Going Up!

23

24

Earlier Funds

Santander Chiletech

25

Looking Forward

Medium‐Size Companies, Big Opportunities!

26

Creation of Wealth through Concentration, 

Preservation of Wealth through Diversification

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Recommendations

28

Take a majority position – effective control

Use healthy leverage to balance the balance sheet

Create expansion within Chile and neighboring Peru and Colombia

Synergistic combinations for margin‐increase and market‐expansion

Take mid‐size companies to the next level with good internal systems and managing through metrics

29

Encourage Growth – Public Policy

30

Promote Public Policy By Sharing Private Risk

31

Capitalizing for the Future

32

Innovation Starts Here!

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Chile: Gateway to Latin America

34

Innovation Reaches Everywhere!

Free Trade Agreements AustraliaCanadaChinaColombiaCosta Rica, El Salvador, Guatemala, Honduras (Chile-Central America)EFTAJapanMERCOSUR MexicoPanamaPeruRepublic of KoreaUnited States of America

Partial Preferential AgreementsArgentinaBoliviaColombiaEcuadorIndiaPeruVenezuela

Thank You! Muchas Gracias!

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