private equity market review and institutional investor survey
TRANSCRIPT
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. 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. 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
Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 11
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
Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.12
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
Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 13
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%
Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.14
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
Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 15
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
Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.16
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
Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish. 17
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
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
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. 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
Confidential & Trade Secret. © 2009 Probitas Partners. Do not circulate or publish.70
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
San Francisco, CA 94104 New York, NY 10020 Covent Garden 1 Connaught Place
USA USA London WC2E 7HF Central, Hong Kong
Great Britain China
Tel 1 415 402 0700 Tel 1 212 403 3662 Tel 44 20 7845 5400 Tel 852 2533 3678
Fax 1 415 402 0052 Fax 1 212 403 3537 Fax 44 20 7240 3339 Fax 852 2530 1108