1. DIGEST 97SEE WHAT’S NEW AND NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 97
May 31, 2013
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Distressed-focused Funds Remain on the
Radar; Preqin
Top Buyouts of 2013
Frontier Economics’ Study is PE Positive for
Europe
Global PE Investment Up in April
Technology M&A Focus on Smaller Deals
Quote of the Week: Growth Investing
Without Borders
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TOP BUYOUTS OF 2013
DISTRESSED-FOCUSED FUNDS REMAIN
ON THE RADAR; PREQIN
Interest in distressed private equity vehicles remains steady, according to Preqin. The interest is drive by
slower global growth rates and stuttering economic recovery. This specific niche of the private equity
universe is likely to continue to remain strong as economic uncertainty in the global markets continues,
says Preqin's Investor Intelligence service, which tracks the sentiment of 5,035 active investors in private
equity, of which 1,448 (29%) have either previously invested in distressed private equity vehicles, or
expressed a preference for doing so.
Key findings
• North America-based LPs make up the greatest proportion of distressed private equity investors, with
69% based in the region.
• LPs in Europe account for the second highest proportion of investors (19%), with Asia and investors
based outside of these core regions accounting for the remaining 12%.
• The top four investor types with an appetite for distressed private equity each account for a similar
proportion of active investors in the fund strategy. Private sector pension funds and foundations each
account for 15% of LPs investing in distressed private equity vehicles. Endowments represent 14% of
active investors and public pension funds a further 13%.
Instead of a deal of the week, we decided to list the top buyouts of the year to date, thanks to some
information we found in an article on PEHub.
1 Warren Buffett's Berkshire Hathaway and 3G Capital agreed to pay USD 28 billion for
H.J. Heinz Co. in February.
2 (Pending.) Silver Lake Partners and Michael Dell offered USD 24 billion for Dell Inc. in
February
3 Valeant Pharmaceuticals announced in May to buy Bausch & Lomb for USD 8.7 billion.
The seller is a Warburg Pincus-led investor group
4 Actavis agreed to buy Warner Chilcott for USD 8.4 billion in May.
5 Bain Capital and Golden Gate Capital target BMC for USD 6.9 billion in May.

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FRONTIER ECONOMICS’ STUDY IS PE
POSITIVE FOR EUROPE
A study by Frontier Economics outlines the positive contribution to EU economies in work commissioned
by the European Private Equity and Venture Capital Association (EVCA). The report has a strong focus on
innovation financing and is based on secondary research, more of a review and compilation of existing
data and studies
Here are some of the findings:
• As shown in the figure above, 30% of funds raised by the private equity industry between 2007 and
2012 came from institutional investors (i.e. pension funds, insurance companies, academic institutions,
and endowments and foundations).
• Private equity contributes to the creation of up to 5,600 new businesses in Europe annually and attracts
significant investible funds into Europe, providing much needed risk capital for businesses.
• Between 2007 and 2012, private equity invested almost EUR 250 billion in the 12 largest private equity
markets in Europe, of which an estimated EUR 50bn was raised from outside Europe.
• PE was linked to a 6.9% increase in earnings before interest tax, depreciation and amortization per
employee in large PE-backed companies.
• Private equity-backed businesses between 2006 and 2011 are likely to be worth up to EUR 350 billion.
Image source: Frontier

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GLOBAL PE INVESTMENT UP IN APRIL
The latest global PE Investment report from Zephyr says that the value of global private equity
investment rose in April to reach one of its “best results of the last 12 months”. Volume also advanced
month-on-month. There were 278 transactions worth an aggregate USD 35 billion, a 12 per cent increase
by volume and 59 per cent better by value compared to the previous month. The value was 73 per cent
higher than the same time a year ago when USD 20 billion was recorded. It was the third highest of the
last 12 months under review.
TECHNOLOGY M&A FOCUS ON SMALLER
DEALS
An article about Apple’s M&A strategy in
Bloomberg’s All Things Digital highlights a
trend that sees technology industry
strategic buyers ready to do M&A but not
necessarily large deals. Apple’s acquisitions
in the past year or so number nine deals,
but they’ve been so small they don’t have
to disclose them, according to All Things
Digital. A study by E&Y on M&A this year
says that concerns over conducting large
transformative deals dominate the M&A
landscape.
Image source: Internet Zephyr
Image source: Ernst&Young

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Technology dealmaking grew by 58% year-on-year to USD 36.4b, according to Ernst & Young’s Global
technology M&A update: January – March 2013, in an article published in Lawyer Monthly. The
announced mega deal to take Dell private for USD 24.4 billion was what caused the big jump. As the
graphic above shows, deal volume fell 12% YOY and 5% compared with the previous quarter to 661 deals.
Aggregate disclosed value would have fallen by 48% if not for the Dell deal announced in February.
QUOTE OF THE WEEK: GROWTH
INVESTING WITHOUT BORDERS
“Walls are coming down every day for being able to start a company from
anywhere.”
Who said it: Jeff Horing co-founder of Insight Ventures in an article in
TechCrunch
In Context: The optimistic and open minded quote above comes from one of the
PE industry new generation of rising stars, Jeff Horing. His company Insight
Ventures, a growth capital investor, just announced raising a USD 2.75 billion
fund. Horing was interviewed by TechCrunch about strategy, trends, and regional
scope. To date, Insight has raised USD 7.6 billion. His first fund raised USD 16
million fifteen years ago. Horing said that Insight regularly sends its dealmakers
to Europe and South America from its New York base. About 40 percent of their
investments are overseas. Some interesting investments that Insight has made
include Twitter, Zumba Fitness Franchise, and Tumblr. In other regions of the
world it has backed Privalia, Photobox/Moonpig, GFI and Kabum
Where we found it: TechCrunch

6. DealMarket
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Editor: Valerie Thompson, Zurich