PitchBook’s 2011 3QPE Presentation Deck

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: Summer 2011

About the PitchBook Platform PitchBook is an independent and impartial research firm dedicated to providing premium data, news and analysis to the private equity industry. As a specialty-focused information resource, PitchBook's core strength is its ability to meticulously collect, organize and analyze hard to find private equity and venture capital deal and fund data. 

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ExitsInvestment

Fundraising

Three Aspects of Private EquityFundraising, Investment & Exits Trends

1H 2011 Best Start to Year Since 2008Number of Deals Closed (red line) and Total Capital Invested by Year

(blue bars)

2005 2006 2007 2008 2009 2010 2011*$0

$100

$200

$300

$400

$500

$600

$700

0

500

1000

1500

2000

2500

3000

3500

$173

$305

$595

$204

$61

$149

$60

2,042

2,520

3,016

2,241

1,393

1,731

811

Capital Invested ($B) # of Deals ClosedSource: PitchBook *Through 2Q 2011

Capital Invested Continues Upward Trend

Number of Deals Closed and Total Capital Invested by Quarter

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q2006 2007 2008 2009 2010 2011

$-

$50

$100

$150

$200

$250

0

100

200

300

400

500

600

700

800

900

$42$58

$76

$129$124$119

$144

$207

$71

$38

$76

$19 $15$8 $11

$26$18

$40$26

$65

$32 $28

648609

650613

751798

742

725

719

526

593

403

352326 321

394429

393 388

521

438

373

Capital Invested ($B) # of Deals ClosedSource: PitchBook

Mid Atlantic’s Share of Deal Flow Grows in 2Q2011 Percentage of Deal Volume (count) by Region

10%

22%

6%

12%15%

17%

1%

16%

Mid Atlantic

Midwest

Mountain

NortheastSouth

Southeast

Southwest

West Coast15%

20%

4%

13%13%

17%

2%

17%

2Q 2011

2Q 2010

IT Industry Accounts for Third Largest Share of Deal Flow

Percentage of Deal Volume (count) by Industry

30%

25%9%

10%

10%

9%6%

Business Prod-ucts and Services

(B2B)

Consumer Prod-ucts and Services

(B2C)Energy

Financial Services

Healthcare

Information Technology

Materials & Resources

30%

25%5%

7%

12%

14%

6%2Q 2011

2Q 2010

B2C Increases to 24% of Deals from 2010 Low

Percentage of Deal Volume (count) by Industry

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011*0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Business Products and Services (B2B)

Consumer Products and Services (B2C)

Energy

Financial Services

Healthcare

Information Technology

Materials & Resources

Source: PitchBook

Information Technology Jumps to 24% of Capital Invested in 2011, Highest in Decade

Percentage of Deal Volume (capital) by Industry

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011*0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Business Products and Services (B2B)

Consumer Products and Services (B2C)

Energy

Financial Services

Healthcare

Information Technology

Materials & Resources

Source: PitchBook

Deals Under $500M Account for 87% of Deal Flow

Percentage of Deal Volume (count) by Deal Size Range

2004 2005 2006 2007 2008 2009 2010 2011*0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Under $50M $50M-$250M $250M-$500M $500M-$1B $1B-$2.5B $2.5B+Source: PitchBook

2004 2005 2006 2007 2008 2009 2010 2011*0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Under $50M $50M-$250M $250M-$500M $500M-$1B $1B-$2.5B $2.5B+Source: PitchBook

Deals Above $1B Increased to 49% of Capital Invested

Percentage of Deal Volume (capital) by Deal Size Range

Add-ons % Climbs for the 6th Straight Year

Add-on Deals as Percentage of Buyout Deals

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011*0

500

1,000

1,500

2,000

2,500

30%

35%

40%

45%

50%

55%

183 187 298 407571

733956

673408

562291

312411

610

861

990

1207

1379

933

510

668

290

37%

44%

46%

50%

Add-on Non Add-on Add-On % of BuyoutSource: PitchBookSource: PitchBook

The Portion of Deal Flow Represented by Companies Receiving their First Outside

Funding

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011*0

500

1,000

1,500

2,000

2,500

3,000

3,500

70%

72%

74%

76%

78%

80%

82%

84%

86%

88%

90%

7131032

13391642

20382480

1821

10371295

605

127

199

326

400

482

536

420

356

436

206

85%

84%

80%

82%

75%

First time PE Financing Previous PE Financing % of First Time FinancingSource: PitchBookSource: PitchBook

Median Buyout Size in 1H2011 3x higher than 2009

Median Capital Invested in U.S. Buyout Transactions

2005 2006 2007 2008 2009 2010 2011* $-

$20

$40

$60

$80

$100

$120

$140

$63

$75

$100

$67

$40

$111

$122

Median Capital Invested ($M) per U.S. Buyout TransactionSource: PitchBook

LBOs $250M-$1B Using the Most Debt

Percentage of Debt Used in Buyouts

2003 2004 2005 2006 2007 2008 2009 2010 2011*40%

45%

50%

55%

60%

65%

70%

75%

47%

54%

50%

44%

55%

43%

51%

56%

62%

71%

67% 67%

62%

56%

Under $250M $250M - $1B $1B+Source: PitchBook

Links for PitchBook Deal Flow ChartsPitchBook users can click the links below to load the corresponding chart directly into 

the PitchBook Platform for further customizationSlide 5 – PE deal flow by yearClick to customize chart in PitchBookSlide 6 – PE deal flow by quarterClick to customize chart in PitchBookSlide 7 – PE deal flow (count) by regionClick to customize chart in PitchBookSlide 8 – PE deal flow (count) by industryClick to customize chart in PitchBookSlide 9 – PE deal flow (count) by industry by yearClick to customize chart in PitchBookSlide 10 – PE deal flow (capital) by industry by yearClick to customize chart in PitchBookSlide 11 – PE deal flow (count) by size bucketClick to customize chart in PitchBookSlide 12 – PE deal flow (capital) by size bucketClick to customize chart in PitchBook

How to view in PitchBook:1) Right click on the link 2) click ‘open hyperlink’3) Log-in to PitchBook

Robust Exit Activity ContinuesQuarterly PE Exits by Corporate Acquisition, IPO and

Secondary Sale

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q2008 2009 2010 2011

0

20

40

60

80

100

120

140

160

180

109

87

119

62

36

57 52

83 81

113

95

163

108 105

Corporate Acquisition IPO Secondary TransactionSource: PitchBook

2005 2006 2007 2008 2009 2010 2011*0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Corporate Acquisition IPO Secondary Transaction *As of 6/30/2011

Exit Strategies Stay Consistent with Long Term Averages

Percentage of P.E. Exit Volume (count) by Exit Type

2005 2006 2007 2008 2009 2010 2011* $-

$50

$100

$150

$200

$250

$300

$350

$400

$126 $150

$138 $158

$75

$225

$167 $188 $189

$250

$200

$169

$351 $340

Corporate Acquisition Secondary Transaction *As of 6/30/2011Source: PitchBook

Median Secondary Transaction Value Stays Elevated

Median Exit Size ($M)

Portfolio Company Inventory Keeps Building with 4,500 PE Investments Now 3-Years or Older

Number of U.S. Private Equity Company Inventory by Deal Year

Percentage of capital invested by industry

2004 2005 2006 2007 2008 2009 2010 2011*0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2,308

3,010

3,848

4,758

5,3865,705

6,001 6,107

# of PE Ma-jority Owned Companies

2009-2011*

2005 - 2008

As of Year

Num

ber o

f PE

Back

ed C

ompa

nies

Year of In-vestment

*As of 6/30/2011

Links for PitchBook Exit Flow ChartsPitchBook users can use the links below to load the corresponding chart directly into 

the PitchBook Platform for further customization

Slide 18 – PE Exits (count) Click to customize chart in PitchBook

Slide 19 – PE Exits % (count)Click to customize chart in PitchBook

Slide 20 – PE Median Exit SizeClick to customize chart in PitchBook

How to view in PitchBook:1) Right click on the link 2) click ‘open hyperlink’3) Log-in to PitchBook

PE Fundraising on Track to Top 2010Number of Funds Closed and Total Capital Raised by

Year

2005 2006 2007 2008 2009 2010 2011* $-

$50

$100

$150

$200

$250

$300

$350

0

50

100

150

200

250

300

$133.54 $210.26 $305.06 $302.50 $136.48 $86.17 $50.03

227 232

277

240

117 118

68

Capital Raised ($B) # of Funds ClosedSource: PitchBook

Capital Raised in 2Q2011 Increased by 16% from 2Q2010

Number of Funds Closed and Total Capital Raised by Quarter

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q2008 2009 2010 2011

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

$96 $91 $74 $41 $59 $35 $14 $29 $27 $22 $28 $10 $25 $25

95

58

4740

50

29

13

25

43

2924 22

34 34

Capital Raised ($B) # of Funds ClosedSource: PitchBook

Middle-Market Raising Majority of FundsPercentage of U.S. P.E. Funds (count) by Fund Size

2005 2006 2007 2008 2009 2010 2011*0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Under $100M $100M-$250M $250M-$500M $500M-$1B $1B-$5B $5B+Source: PitchBook

Middle-M

arket

Funds Between $500M and $1B Account for 27% of Capital Raised

Percentage of U.S. P.E. Funds (capital) by Fund Size

2005 2006 2007 2008 2009 2010 2011*0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Under $100M $100M-$250M $250M-$500M $500M-$1B $1B-$5B $5B+Source: PitchBook

2005 2006 2007 2008 2009 2010 2011*0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Buyout Mezzanine and DebtFund of Funds and LP Secondary PE Growth-Expansion Source: PitchBook

Buyout Funds Dominating 2011 FundraisingPercentage of U.S. Funds Closed (capital) by Fund Type

PE Investors Sitting on $466B of Dry Powder Capital Overhang of US PE Investors by

Vintage Year

28

2005 2006 2007 2008 2009 2010$0

$20

$40

$60

$80

$100

$120

$140

$160

$0

$100

$200

$300

$400

$500

$20.63

$41.64

$96.23

$146.54

$93.61

$67.34

Cumulative Overhang Under $100M $100M-$250M $250M-$500M$500M-$1B $1B-$5B $5B+

$ in Billion$ in Billion

$466 Bil-lion

Buyout Fund of Funds Mezzanine PE Growth Restructuring Infrastructure VentureCapital

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

0

50

100

150

200

250

300$164

$29 $28

$8

$36$28 $27

243

93

44 40 358

175

Capital Raised ($B) # of Funds Closed

Funds Currently in the MarketNumber of U.S. Open Funds and Aggregate Total Target

638 Funds Currently in the 

Market

194 First Time Funds

Links for PitchBook Fundraising ChartsPitchBook users can click the links below to load the corresponding chart directly into 

the PitchBook Platform for further customization

Slide 23 – PE fundraising by yearClick to customize chart in PitchBook

Slide 24 – PE fundraising by quarterClick to customize chart in PitchBook

Slide 25 – PE fundraising (count) by size bucketClick to customize chart in PitchBook

Slide 26 – PE fundraising (capital) by size bucketClick to customize chart in PitchBook

How to view in PitchBook:1) Right click on the link 2) click ‘open hyperlink’3) Log-in to PitchBook

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