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Where LPs Are Placing Their Bets In Europe, Around the World

Moderator:

David M. Toll, managing editor,

Private Equity Analyst, LBO Wire Experts:

Wanching Ang, managing director,

Allianz Private Equity

Stefan Hepp, founding partner, CEO,

SCM Strategic Management AG

Philippe Poggioli, partner,

Access Capital Partners

Charles Soulignac, chairman, CEO,

Fondinvest

Stuart Waugh, managing director,

TD Capital

Rise, Fall and Rise Again of U.S. Fund-raising ($M)

$177,600 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $84,700 $20,000 $0 1993 1995 1997 1999 2001 2003 2005

Source: Private Equity Analyst

(E) Other Venture Buyout

2005 Sees Continued Rebound in U.S. Fund-raising

Buyouts/Corporate Finance Venture Capital $17.9B

$4.9B

+193% +50% Mezzanine Fund of Funds Other Private Equity $.150B

-74% ------------------------------------------------------------------------------------

Total

$.921B

$2.5B

$26.4B

+11% -21%

+90% Private Equity Analyst 2005 Projections: $70B LBO, $15B Venture

Audience Poll

Biggest Concern LPs have with GP Behavior?

1) Not sticking to investment strategy 2) Raising too much money 3) Lack of communication after fund raising is over 4) Lack of transparency, consistency in presenting return data Copyright © 2005 Dow Jones & Company, Inc. All Rights Reserved | www.dowjones.com

Where The Money Comes From

Banks/Financial Svs. 13.4% Wealthy Investors/GPS 10.6% Public pension funds 32.1%

Public Pensions 32.1% F unds of F unds/Advisor s 12.1% Endowment s/F oundat ions 9.5% Cor por at e Pensions 9.5% Wealt hy Invest or s/GPs 10.6% Bank s/F inancial Svcs. 13.4% Insur ance Cos. 5.7% F amily Offices 1.2% Union Pensions 1.3% Cor por at ion 0.7%

Corporate Pensions 9.5% Funds of Funds/Advisors 12.1% Endows/Founds 9.5%

Audience Poll

Most Important Factor For LPs When Making a Commitment?

LPs’ return target On 8/10 year holding: 10 points above bond returns French institutional investors’ demand: 4% to 5% above public equity as risk premium* * Source: BIPE/AFIC Study, October 2004

Attractive European mid-market segment

European Buyout Funds by Size (in Euro) Formed 1980-2003 Net IRRs to Investors Investment Horizon Return as of 31 Dec 2003 Fund Size (Euros) 5 YR 10 YR 20 YR

0-250 million 7.9% 11.0% 11.5% 250-500 million 500-1,000 million 1 Billion + All Buyouts 22.0% 25.5% 4.0% 9.6% 22.8% 25.0% 3.8% 12.7% 17.1% 21.8% NA 12.2%

European Venture Funds by Size (in Euro) Formed 1980-2003 Net IRRs to Investors Investment Horizon Return as of 31 Dec 2003 Fund Size (Euros) 5 YR 10 YR 20 YR

0-50 million 10.9% 11.8% 8% 50-100 million 100-250 million 250 million + All Venture 2.1% 3.3% -2% 2.3% 7.5% 12.8% 2.7% 8.3% 7.4% 9.3% 3.3% 7.2%

Source: Investment Benchmark 2004 EVCA /Thomson

Manager Selection Is Critical

Venture / Early Stage Expansion Net Investor IRR as of 12/31/2004 Funds Formed 1980-2004 Pooled IRR 0.3 % 8.2 % Upper Quartile 4.0 % 7.4 % Buy-out All Private Equity 11.4 % 9.1 % 15.8 % 10.3 % Source: Thomson Venture Economics March 2005 Key to achieve superior return:



Access to the best performing funds



Deep analysis and rigorous selection process

Top Quarter IRR 14.6 % 18.5 % 28.9 % 23.1 %

Expected Allocation of Funds Raised in 2004 Other 2 % Venture 6 % Expansion 19 % Buy-out 73 % Source : 2004 Survey of Pan-European Private Equity & Venture Capital Activity (Preliminary Data) / Thomson Venture Economics

Where LPs Are Placing Their Bets In Europe, Around the World

Moderator:

David M. Toll, managing editor,

Private Equity Analyst, LBO Wire Experts:

Wanching Ang, managing director,

Allianz Private Equity

Stefan Hepp, founding partner, CEO,

SCM Strategic Management AG

Philippe Poggioli, partner,

Access Capital Partners

Charles Soulignac, chairman, CEO,

Fondinvest

Stuart Waugh, managing director,

TD Capital

Document

Transcript Document

Where LPs Are Placing Their Bets In Europe, Around the World

Rise, Fall and Rise Again of U.S. Fund-raising ($M)

2005 Sees Continued Rebound in U.S. Fund-raising

Biggest Concern LPs have with GP Behavior?

Where The Money Comes From

Most Important Factor For LPs When Making a Commitment?

Where LPs Are Placing Their Bets In Europe, Around the World

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