Pbbr09

2009 EVCA Buyout Report
An EVCA Research Paper - December 2009

EVCA
The European Private Equity & Venture Capital Association

EVCA is the voice of European private equity and venture capital. We promote and protect the interests of close to
1,300 members, thereby ensuring they can conduct their business effectively.

EVCA engages policymakers and promotes the industry among key stakeholders, including institutional investors,
entrepreneurs and employee representatives. EVCA develops professional standards and research reports, as well as
holding professional training and networking events.

EVCA covers the whole range of private equity, from early-stage venture capital to the largest buyouts.
For more information, please visit www.evca.eu.

Table of Contents 1

Editorial 4

Executive Summary 5

1. Introduction 7

2. Impact of the Economic Environment on Deal Making 8

2.1. Overview 8
2.2. Debt market 9
2.2.1. Leveraged loan market activity 9
2.2.2. Leveraged loan pricing 10
2.2.3. Maturity schedule of outstanding leveraged loans 11
2.3. Debt-to-EBIT ratios 11
2.4. Deal structures 12
2.5. Deal pricing 14

3. Evolution of Buyout Activity 2007 - Q3 2009 15

3.1. Fundraising market 15
3.1.1. Overview 15
3.1.2. Fundraising by type of investor 16
3.1.3. Geographic sources of fundraising 17
3.1.4. Final closings 18
3.2. Investments 21
3.2.1. Overview 21
3.2.2. Stages of financing 24
3.2.3. Buyouts by deal size 27
3.2.4. Sector overview 28
3.2.5. Initial versus follow-on investments 30
3.2.6. Investment syndication 32
3.2.7. Investments by number of employees 34
3.3. Divestments 35
3.3.1. Overview 35
3.3.2. Divestments by exit method 37
3.3.3. Divestments by sector 38
3.3.4. Write-offs by sector 39

2 Table of Contents

4. Buyout Performance Reported in 2009 40

4.1. Overview 40
4.2 Top-quarter and upper-half IRR 41
4.3. Performance by vintage year groups 42
4.4. Short-, medium-, and long-term returns reflected by net horizon IRRs 43
4.5. Performance by sector 45

5. Appendix 46

5.1. Fundraising 46
5.2. Investments 48
5.3. Divestments 50

6. Methodology and Definitions 51

6.1. Economic environment section 51
6.1.1. Standard & Poor’s LCD data 51
6.1.2. CMBOR data 51
6.2. Activity section 51
6.2.1. Coverage 51
6.2.2. Fundraising 52
6.2.3. Investments 52
6.2.4. Divestments 53
6.2.5. Number of companies 53
6.2.6. Data updates 53
6.2.7. Definitions 54
6.3. Performance section 56

Figures and Tables

Figure 1: EU GDP growth and index of buyout investment activity by amount 8
Figure 2: Senior loan volume - LBO transactions 9
Figure 3: Rolling three-month weighted average spreads of all European new-issue LBOs 10
Figure 4: Maturity schedule by par outstanding 11
Figure 5: Debt-to-EBIT ratios for private-equity-backed buyouts 12
Figure 6: Average deal structures for European private-equity-backed buyouts 13
Figure 7: Regional fundraising - % of European total 16
Figure 8: Funds raised by type of investor 17
Figure 9: Fund closings by region - % number of funds 19
Figure 10: Final closings by fund size range 20
Figure 11: Investments by European private equity houses - evolution 21
Figure 12: Investments into European portfolio companies - evolution 22
Figure 13: Average investment size per company by region 23
Figure 14: Investments by region and stage in Q1-Q3 2009 25

2009 EVCA Buyout Report - An EVCA Research Paper - December 2009

3

Figure 15: Average investment size by stage of financing - 2007-Q3 2009 26
Figure 16: Equity versus transaction value by buyout deal size - Q1-Q3 2009 27
Figure 17: Average investment size per company by sector 29
Figure 18: Initial versus follow-on investments - % of number of companies 31
Figure 19: Initial versus follow-on investments by region - Q1-Q3 2009 32
Figure 20: Syndication by stage 33
Figure 21: Syndicated versus non-syndicated deals by region - Q1-Q3 2009 34
Figure 22: Investments by number of employees 35
Figure 23: Divestments at cost - evolution 36
Figure 24: Divestments by location of the private equity firm - Q1-Q3 2009 36
Figure 25: Divestments by exit method - % of number of companies 37
Figure 26: Divestments by sector - % of amount 38
Figure 27: Write-offs by sector - % of amount 39
Figure 28: Net IRR since inception per quarter 42
Figure 29: Five-and 10-year rolling IRRs 44

Table 1: Average P/E* ratios for European private-equity-backed buyouts 14
Table 2: Buyout funds by fund stage focus 2007-Q3 2009 15
Table 3: Ranking of top limited partners by location 18
Table 4: Funds closed by stage focus 18
Table 5: Funds closed by sector focus 20
Table 6: Investments by geographic origin 23
Table 7: Investments by region 24
Table 8: Investments by stage of financing 25
Table 9: Buyouts by deal size range 28
Table 10: Annualised net pooled IRR since inception to 31 December 2008 40
Table 11: Top-quarter and upper-half net pooled IRR 41
Table 12: Annualised net pooled IRR by vintage years as of 31 December 2008 43
Table 13: Horizon IRRs to 31 December 2008 43
Table 14: Performance by sector focus 45


4 Editorial

“The buyout boom is over”. So it was reported last year in the 2008 EVCA Yearbook.

Certainly the writing was on the wall. The economic slowdown, impending credit crisis and declining stock markets
did not augur well for private equity. However, the full extent of the crisis only became apparent in 2009, as European
and North American economies moved into severe recession, bringing with it the near collapse of the banking system
and the closing down of the credit markets. As confidence dried up, investors sought refuge in cash and other liquid
investments, retreating from longer term illiquid asset classes, such as private equity, which drew a growing and
significant risk premium.

Most of us involved in private equity, whether as general partner practioners, limited partner investors, bankers,
service providers or employees of private-equity-backed companies, will agree that 2008 and 2009 have been very
challenging years for the European buyout industry. It will be important to understand the full impact of the crisis on
European buyouts, to appreciate the effects across the various facets of the asset class and to draw measured
conclusions on the standing of the industry and its way forward.

The publication of the 2009 EVCA Buyout Report is, therefore, particularly relevant. It can help us identify, quantify and
draw conclusions on investment activity, divestments, and fundraising. The report also addresses the issue of buyout
performance, comparing investment returns as of end 2008 with those of prior years. Unfortunately, it is still too early
to have performance data for 2009 but it is certain that net IRRs will be significantly lower than those recorded in 2008.
These themselves were markedly lower than those of 2007 and earlier years. Performance in 2009 will clearly be
influenced by the significant slowdown in private equity divestments, by the rise in the number and aggregate value
of write-offs and by the effects of depressed economic activity.

Is there now light at the end of the tunnel, are there grounds for future optimism, is the demise of European buyouts
now over? The 2009 EVCA Buyout Report may help us learn lessons from the past and anticipate future developments.

Maybe 2010 will herald the news that “the return of the buyout is near”.

David Chamberlain

About Capstone Partners

Founded in 2001, Capstone Partners (www.csplp.com) is a leading independent placement agent focused on raising
capital for private equity and real estate firms. Its experienced team of over 25 professionals, working from offices in
North America, Europe and Asia, is well placed to assist investment firms in the international development of their
investor base and complete successful fund raisings in a timely and efficient basis across different cycles.

For additional information about Capstone Partners, please contact:

North America Europe and Middle East Asia
Tripp Brower David Chamberlain Sheng Lu
Partner Partner Partner
+ 1 972-980-5800 + 41 22 365 45 00 + 86 21 5213 6959
tbrower@csplp.com dchamberlain@csplp.com slu@csplp.com

For more information, please visit www.csplp.com.


Executive Summary 5

Impact of the economic environment on deal making
• EU GDP shrank starting Q2 2008
• Liquidity dried up
• Prices of leveraged loans increased
• Purchase and leverage multiples fell

Fundraising activity 2007-Q3 2009
• European buyout, mezzanine and growth funds jointly raised €140bn, of which 90% was dedicated to
buyout funds
• The first three quarters of 2009 witnessed a strong decrease in fundraising and fund closings
• The funds with final closings in 2009 were considerably smaller in size than in previous years. Only two funds
of above €1bn have had final closings so far in 2009
• In 2007-Q3 2009, pension funds were the main source of capital (29%), followed by funds-of-funds (17%) and
banks (11%)
• Investors in the UK and the US were among the top five limited partners each year

Investment activity 2007-Q3 2009
• The worsened economic and financial environment took its toll in terms of reduced investment values in the
buyout segment. However, as more firms moved towards the lower end of the market, investment activity in
terms of number of businesses financed held up better
• In 2008, the total amount invested in European companies dropped by 27% from the peak level of 2007,
although the number of companies financed grew by 13%. In the first nine months of 2009, the total amount
invested came to only about a quarter of the value for the whole of 2008, although the number of businesses
financed in 2009 was around half that of 2008
• Throughout 2007-Q3 2009, most of the amount invested came from domestic players (72%), while only a
small share (4%) came from private equity houses outside Europe
• Replacement capital was the only stage that saw growth in investment amount during the first three quarters
of 2009, driven by refinancing deals
• Mid-market deals were most common in terms of amount invested, with an average equity-to-transaction-value
ratio of over 50% in 2009
• Nearly 80% of the businesses invested in were growth deals or small buyouts
• Business & industrial products was the most targeted sector throughout the period, followed by consumer
goods & retail, then communications
• In line with the difficult economic environment, considerably more companies received follow-on investments
in Q1-Q3 2009
• In Europe overall, most deals were not syndicated. France was the exception, where over half of the amount
was syndicated
• The majority of the companies receiving private equity backing were SMEs

Divestment activity 2007-Q3 2009
• Trade sales were the most popular type of exit
• The business & industrial products sector recorded the most divestments
• Most companies divested from so far in 2009 were domiciled in the DACH region
• Companies written off in 2009 represented 1.3% of the aggregate number of companies invested in over the
previous five years


6 Executive Summary

Performance reported in 2009 (as of 31 December 2008)
• As of the end of 2008, the long-term performance of the buyout industry remained steady with an overall net
pooled IRR since inception at 12.6%
• Large buyout funds achieved the highest net return, at 19.2% while mega funds registered the lowest return
of 8.7%
• Top quarter returns remained very strong with an overall net pooled return since inception of 31.9%
• Downward pressure on valuations impacted the interim short-term performance, with all fund sizes recording
one-year returns in the negative territory
• Mega buyout funds were most impacted by the crisis with -34.9% net IRR over the one-year horizon, while
small buyout funds were the least affected with a net return of -11.0%. However, private equity is a long-term
investment strategy and the interim short-term figures are not indicative of the final fund performance
• Funds with vintages in early 1990s and 2000s achieved the highest returns suggesting that buyout
investments during downturns generated superior performance results


1. Introduction 7

The slowdown in the European economies and the increased reach of the financial crisis in the second part of 2008
had a clear, adverse impact on European buyout activity in 2008 and 2009 (1). In the last quarter of 2008, buyout
investment halved compared with Q3 2008, and remained oriented downwards throughout the first half of 2009.

Fundraising, which remained very strong until the end of 2008, fell sharply in the first quarter of 2009 (down by 88%
compared with the last quarter of 2008). Since then, the fundraising environment has remained challenging, with total
funds raised so far in 2009 representing only 8% of the total funds raised in 2008. In addition, the size of individual
funds raised was smaller than in the past, with the average size of buyout funds reaching final closings in 2009
(€472m) just half the size of the average 2008 fund (€881m).

On the investment side, the crisis led to a sharp decrease in the amount invested (-77%), although the number of
businesses financed was more resilient to the crisis (-49%). More firms moved towards the lower end of the market,
with an increasingly larger share of small buyouts and growth in the total number of companies financed.
Accordingly, the average investment size per company decreased from €36m in 2007 to €23m in 2008 and €11m
so far in 2009. Unsurprisingly, replacement capital grew in 2009, driven by a sharp increase in refinancing deals,
which reached €2bn.

With the decrease in valuations, the exit market continued to fall in 2009. So far, divestments (excluding write-offs)
represented only 26% of the 2008 exit market by amount divested at cost, and 40% by number of companies.
As anticipated, the IPO window remained closed in 2009. The number of companies written off in 2009 so far was
2.5 times the number in 2007 or 1.3% of the aggregate number of companies invested in during the previous
five years.

Despite the currently depressed activity levels, the outlook for the industry remains positive. First signs of a recovery
appeared in the third quarter of this year. Similar to the European Union GDP, which went up by 0.2% from its Q2
2009 level, buyout activity seemed to rebound as investment value increased by 10.0% from the previous quarter.
In addition, GDP in the European Union is expected to grow by 0.7% in 2010, and increase further in 2011 by 1.6%,
after an estimated -4.1% in 2009 (2). Moreover, performance data indicates that the highest returns were produced by
vintages in periods of depressed economic activity. This is a positive sign for buyout investments made in 2009.

(1) The buyout segment includes: buyout, growth, rescue/turnaround and replacement capital.
(2) European Commission Economic Forecast, Autumn 2009: http://ec.europa.eu/economy_finance/publications/publication16055_en.pdf.


8 2. Impact of the Economic Environment on Deal Making

2.1. Overview

The economic turbulence during 2008 and 2009 had a major impact across the investment, financial and corporate
worlds. From an institutional investment perspective, investment boards were faced with a wholesale re-pricing of
assets and a global recession, causing liquidity restraints, and a general move towards defensive positions.

In the European Union, GDP began to shrink in the second quarter of 2008, decreasing by 0.3% on a quarterly basis.
This marked the beginning of the recession in Europe, which reached a trough in Q1 2009, with GDP falling by 2.5%.
Throughout this period, the main driver of the recession was the decrease in industrial production, which contributed
up to 1.4 percentage points to the decrease in GDP in Q1 2009, caused by the decline in global demand.

The combined effect of the slowdown in the real economy, declining profitability, reduction in debt availability and asset
re-pricing had a clear, adverse impact on European buyout activity in 2008 and 2009 (3). Similar to other investors,
buyout firms were very cautious with their investment decisions. Accordingly, in the last quarter of 2008, buyout
investment decreased by about 50% on Q3 2008, and continued to fall throughout the first half of 2009.

Figure 1: EU GDP growth and index of buyout investment activity by amount

1.0 105

95
0.5
85
0.0
75
-0.5 65
%

-1.0 55

45
-1.5
35
-2.0 25

-2.5 15
Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

n GDP growth EU 27 (% q/q) n Buyout investments by amount (Index Q1 2007=100)
Source: EVCA calculation based on Eurostat and PEREP_Analytics

However, first signs of a recovery appeared in the third quarter of this year. According to preliminary figures from
Eurostat, the European Union GDP grew by 0.2%, with a rebound in industrial production expected to be the main
driver of this growth. Like the European Union GDP, buyout activity seemed to rebound, with investment value
increasing by 10.0% on the previous quarter. Further brightening in the European economic outlook is likely to drive
a more pronounced recovery in the buyout segment.

(3) The buyout segment includes: buyout, growth, rescue/turnaround and replacement capital.


9

2.2. Debt market

In line with the overall asset re-pricing, the European leveraged loan market experienced a substantial re-pricing
of risk in 2008 and 2009, evidenced by a contraction of market liquidity and significant spread-widening.

2.2.1. Leveraged loan market activity

After a relatively slow start in the early 2000s, leveraged loan activity in both the US and Europe picked up during the
years 2004-2007, fuelled by a combination of a favourable economic environment, low real interest rates due to
monetary policies, increased investment activity and strong competition among financial intermediaries. In this period,
the compound annual growth rate of the senior loan volumes for leveraged buyout transactions was 41% in the US
market and 48% in the European market. On the back of this robust four-year growth, senior leveraged loan volumes
reached €215bn in the US and €140bn in Europe in 2007. However, as the financial environment started changing
with the onset of the credit crunch in the second half of 2007, leveraged lending plummeted across the globe.
Worsening market conditions and liquidity dry-up significantly depressed leveraged loan levels in 2008 with US senior
loan volumes in 2008 dropping to €38bn, less than one-fifth of their 2007 level, and European loan volumes falling by
65% to €49bn. The first three quarters of 2009 saw another 80% decrease in the US loan volumes compared with
their level in the whole of 2008, and a 95% drop in European loan volumes. At just €10bn combined in the US and
Europe, new LBO loan activity during the first three quarters of 2009 was significantly lower than the previous trough
in 2001.

Figure 2: Senior loan volume - LBO transactions

400

350

300
140

250 116
€ billion

200
104
150

15 44 215
100 187
19 30
117 49
50 26 28 92
79 65 2
55 8
37 35 38
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*

n US market n European market
* first nine months of 2009 only
Source: Standard & Poor’s LCD

This chart reflects the estimated primary volume to the US and European loan markets. Includes all private equity related transactions,
including refinancings and recapitalisations.



2.2.2. Leveraged loan pricing

The impact of the financial crisis is also reflected in a widening of the average pricing spreads on new leveraged
buyout loans. Due to a general liquidity dry-up, tightening lending standards and decreased risk appetite, in August
2007 the prices of leveraged loans set off on an upward trend.

As figure 3 shows, when the financial crisis began to spread more widely, the average pricing spread over Euribor for
European RC/TLa loans widened to 233 basis points, and the spread over Euribor for European TLb/TLc loans
increased to 304 basis points in December 2007 from an average of 216 basis points and 277 basis points
respectively over the period January 2005 to 31 July 2007. It widened still further to 278 basis points for RC/TLa and
365 basis points for TLb/TLc in October 2008. After a slight dip in the last two months of 2008, the spread over
Euribor turned upward again, reaching 421 basis points for RC/TLa and topping 500 basis points for TLb/TLc in the
summer of 2009. The levels reached in July 2009 are thus higher than the average spread values in the period January
2005 – 31 July 2007, with a factor of 1.9 for RC/TLa and 1.8 for TLb/TLc.

Figure 3: Rolling three-month weighted average spreads of all European new-issue LBOs

E+600

E+500

E+400

E+300

E+200

E+100

0
Dec-98
Mar-99
Jun-99
Sep-99
Dec-99
Mar-00
Jun-00
Sep-00
Dec-00
Mar-01
Jun-01
Sep-01
Dec-01
Mar-02
Jun-02
Sep-02
Dec-02
Mar-03
Jun-03
Sep-03
Dec-03
Mar-04
Jun-04
Sep-04
Dec-04
Mar-05
Jun-05
Sep-05
Dec-05
Mar-06
Jun-06
Sep-06
Dec-06
Mar-07
Jun-07
Sep-07
Dec-07
Mar-08
Jun-08
Sep-08
Dec-08
Mar-09
Jun-09

n RC/TLa n TLb/TLc

Wtd. Avg. ProRata spread (WAPR) is the average RC/TLa spread weighted by the sizes of the RC and TLa tranches.
Wtd. Avg. Institutional Spread (WAIS) is the average TLb/TLc spread weighted by the size of the TLb and TLc tranches(4). E refers to Euribor.

(4) An amortising term loan (TLa or A-term loan) is a term loan with a progressive repayment schedule. These loans are normally syndicated to banks along
with revolving credits as part of a larger syndication. An institutional term loan (B-term, C-term or D-term loans) is a term-loan facility with a portion carved out
for nonbank, institutional investors. These loans are priced higher than amortising term loans because they have longer maturities and bullet repayment schedules.


11

2.2.3. Maturity schedule of outstanding leveraged loans

The below maturity schedule shows that 80% of outstanding European leveraged loans are expected to mature in the
period 2013-2015, with 15% maturing in 2013, 28% in 2014, and 36% in 2015. Only a small amount of the
outstanding credit matures in the next three years, which should give some breathing space for portfolio companies
to weather the economic storm.

Figure 4: Maturity schedule by par outstanding

2017 2010
1% 0%

2011
1%
2016
13% 2012
5%

2013
15%

2015 2014
36% 28%

Based on all facilities in the European Leveraged Loan Index (ELLI) universe, priced and unpriced.

2.3. Debt-to-EBIT ratios

In the years preceding the onset of the credit crunch, ample liquidity, low interest rates and a healthy business
environment drove up debt-to-EBIT ratios, especially for large transactions. The amount of debt as a multiple of EBIT
for deals across all size ranges peaked in 2007, at 11.9 for buyouts above €100m, 6.8 for deals in the €10m-€100m
range and 4.6 for transactions below €10m. As expected, the debt-to-EBIT multiple recorded a drop in 2008.
The steepest decline was registered by €100m-plus deals, down to 7.6. However, the debt-to-EBIT multiple for this
range of the market picked up slightly in the first three quarters of 2009, reaching 8.0 while the debt-to-EBIT multiple
for deals under the €100m threshold continued to decrease. This trend implies that while it was commonly perceived
that larger deals were overheated, it seems that these same deals are also expected to be in a better position to
weather the storm.



Figure 5: Debt-to-EBIT ratios for private-equity-backed buyouts

14

12

10

8
€ million

6

4

2

0
2004 2005 2006 2007 2008 2009*

n €0m-€10m n €10m-€100m n Over €100m
Source: CMBOR/Barclays Private Equity

2.4. Deal structures

The credit crisis also brought a change in the structuring of buyout transactions. In the years 2004-2007, the average
debt level in European private-equity-backed buyouts was 57% for transactions above €100m and 47% for deals
below €100m. However, with less debt available, in 2008 average debt levels decreased to 45% for deals above
€100m, and to 36% for transactions in the sub-€100m range. The first three quarters of 2009 saw the share of debt
in the average deal structure going down further, to 36% for the larger end of the market and 31% for the lower end.

As figure 6 shows, the reduction of debt in the structuring of buyout deals was substituted by an increase in equity.
For transactions above €100m, the share of equity jumped from an average of 32% in 2004-2007 to 43% in 2008,
and almost 60% in the first nine months of 2009. The equity share in sub-€100m deals also increased, although less
sharply, from an average of 44% in 2004-2007 to 51% in 2008 and 65% in 2009.

Therefore, the difference in equity shares between deal sizes (below and above €100m) halved. Between 2004 and
2007, the equity contribution in deals smaller than €100m was on average 12 percentage points higher than in
transactions above €100m. This came down to six percentage points in the first three quarters of 2009.

In deals above €100m, mezzanine was more commonly used throughout 2004-2008 (9% on average), but declined
substantially in 2009, to a mere 4%.


13

Figure 6: Average deal structures for European private-equity-backed buyouts

Deals below €100m

100%
n Equity
80% 41% n Mezzanine
45% 45% 44%
51%
n Debt
65%
60% n Loan note
4%
3% 3%
5% n Other finance
3%
40%
2%
48% 47%
47% 45% 36%
20% 31%

3% 5%
3% 2% 4% 2% 3% 4% 2% 4% 2%
0%
2004 2005 2006 2007 2008 2009*

Deals above €100m

100%
n Equity
30% 31% 32% 34%
80% n Mezzanine
43%
59% n Debt
10% 10% 9%
60% 7% n Loan note
9% n Other finance
40% 4%
57% 56% 56% 58%
45%
20% 36%

1% 2% 1% 2% 1% 1% 1% 2% 1% 1%
0%
2004 2005 2006 2007 2008 2009*




2.5. Deal pricing

As the market and economic environment worsened, acquisition multiples generally declined sharply. This was most
evident in the case of transactions over €100m, which saw record deal prices in 2007, namely an average EBIT
multiple of 18.5 for €250m-plus deals and 16.6 for buyout transactions in the €100m-€250m range. In 2008, the
price-to-earnings (P/E) ratio for the largest deals decreased by 9%, and by a further 37% in 2009, reaching 16.9 and
10.7 respectively. Similarly, average EBIT multiples for deals in the €100m-€250m size bracket dropped by 7% in 2008
and another 24% in the first three months of 2009.

Surprisingly, deals in the €50m-€100m range experienced an increase in P/E ratio throughout the crisis, reaching 14.2
in 2008 (an increase of 19% on 2007) and a 14.8 in 2009 (up 4%).

Table 1: Average P/E* ratios for European private-equity-backed buyouts

Deal size range 2004 2005 2006 2007 2008 2009**
€10m-€25m 9.2 10.5 9.5 9.8 9.8 7.0
€25m-€50m 11.4 10.3 11.2 11.8 12.4 10.0
€50m-€100m 12.8 15.0 9.7 11.9 14.2 14.8
€100m-€250m 14.0 13.9 14.9 16.6 15.4 11.7
Over €250m 13.6 18.2 18.6 18.5 16.9 10.7
* P/E ratios here are defined as deal price divided by EBIT
** first nine months of 2009 only


3. Evolution of Buyout Activity 2007 - Q3 2009 15

3.1. Fundraising market (5)

In 2008, fundraising reached €69bn, up 5% from the 2007 level but then experienced a steep decline in 2009
(-92%) with only €6bn raised during the first three quarters of the year. Throughout 2007-Q3 2009, European
buyout, mezzanine and growth funds jointly raised over €140bn. Over 90% of this amount was raised by buyout
funds, while mezzanine and growth funds each accounted for an equal share of about 4%. Pension funds were
the main source of capital, contributing 29% to the funds raised. Funds-of-funds and banks altogether allocated
another 28% to the total funds raised. At a regional level, the UK and Ireland combined accounted for the lion’s
share (62%) of the European buyout fundraising market. The share of the French fundraising market increased
during this period, to reach 13% of the total funds raised in the first nine months of 2009.

3.1.1. Overview

The financial crisis swung hard at the buyout industry in 2009. Preliminary figures showed an extremely challenging
fundraising environment in the first three quarters of 2009, with only €6bn raised in Europe, a dramatic decrease
compared with the whole of 2008 (€69bn) and 2007 (€66bn). No new funds above €1bn have been raised so far in
2009; in 2008, €1bn-plus funds represented 65% of total incremental funds raised.

In 2008, the total amount of funds raised was up 5% on the 2007 level, at €69bn, driven by a doubling in growth
funds and a 8% increase in buyout funds.

In Q1-Q3 2009, 88% of the funds raised were accounted for by buyout funds, slightly less than in 2008 (93%) and
2007 (90%). Growth funds continued to increase as a proportion of total fundraising, accounting for 10% of the total,
while mezzanine funds represented 2% of the total, only a quarter of their share of the 2007 total. The low share of
mezzanine funds may be a consequence of the continuing risk aversion of investors, as in times of debt scarcity, one
would expect mezzanine funds to become a valuable debt provider.

Table 2: Buyout funds by fund stage focus 2007-Q3 2009

Amounts in €m 2007 2008 Q1-Q3 2009
Funds raised by fund stage focus Amount % Amount % Amount %
Growth capital 1,694 2.6 3,708 5.3 541 9.5
Buyout 59,212 89.8 64,711 93.3 5,045 88.2
Mezzanine 5,037 7.6 979 1.4 130 2.3
Total buyout funds raised 65,943 100.0 69,397 100.0 5,716 100.0
Source: EVCA/PEREP_Analytics

As in previous years, the UK accounted for the largest share of the total funds raised in Europe (56%) in Q1-Q3 2009,
with 90% of the capital committed going to buyout funds.

(5) Throughout this report, “total fundraising” refers to funds raised by buyout, growth and mezzanine funds.


16 3. Evolution of Buyout Activity 2007 - Q3 2009

France came second in Q1-Q3 2009, with 13% of the European total, followed closely by the Nordic region with 9%.
Over 60% of the funds raised from France went to buyout funds, while growth funds represented nearly one-quarter
of the total. In the Nordic region, fundraising activity was almost entirely prompted by buyout funds (96%).

After a drop of 9 percentage points in 2008 on 2007, Southern Europe increased its share in the European fundraising
to 8% in Q1-Q3 2009. Belgium & The Netherlands and the CEE region doubled their shares in the first nine months
of 2009 to 6% and 2% respectively. Despite the increase, CEE remained the smallest fundraising market in Europe,
with all funds raised in the region focused on buyout investments.

The fundraising share of the DACH region in the European total remained relatively stable in Q1-Q3 2009, at just over
5%. However, contrary to previous years, no growth and mezzanine funds have been raised in 2009 so far in the
DACH region.

Figure 7: Regional fundraising - % of European total

100%
4% 1% 3% 1% 6%
7% 6% 2% n Belgium and The Netherlands
5%
6% 13%
80% 7% 13% n CEE region

12%
12%
9% n DACH region
% of European total

3%
60% 8% n France
n Nordic region
40% n Southern Europe
62% 63%
56%
n UK and Ireland
20%

0%
2007 2008 2009*


3.1.2. Fundraising by type of investor (6)

According to preliminary figures, banks became the main source of capital in the first three quarters of 2009,
accounting for 21% of the funds raised, compared with 7% in the whole of 2008. Pension funds had previously been
the main source of capital for European funds, accounting for 29% of the funds in the period 2007-2008. In 2009, the
share of pension funds declined to 19%. As in 2008 and 2007, funds-of-funds kept their second position as a source
of capital, accounting for slightly over 19% of the total.

Although it is too early to draw a definitive conclusion, the decline in allocations by the traditional investors into private
equity could perhaps be explained by the impact of the denominator effect on those portfolios that had a larger
exposure to public equity and the subsequent need to rebalance the asset allocation.

(6) Percentages are calculated on the funds raised for which the source was known.


17

Figure 8: Funds raised by type of investor

100%
7% 1%
14% 2% 1% n Academic institutions
6% 21%

80% 11% 5% n Banks
3% 1%
2%
1%
2% 18% 9% n Capital markets
60% 15% n Corporate investors
% of amount

6% 19%
7% 8% n Endowments and foundations
7%
40% 11% 10% n Family offices
7%
11% n Fund-of-funds
33% 6% n Government agencies
20% 24%
19% n Insurance companies
5% 6% 2% n Other asset managers
0%
2007 2008 2009* n Pension funds
n Private individuals

At a regional level, preliminary figures for 2009 showed that banks were the main contributor to funds managed from
the DACH region. Nordic funds received most commitments from funds-of-funds (27%), followed by family offices and
other asset managers (7), with 19% and 14% of the total respectively. For French funds, nearly 60% of the
commitments came from insurance companies and banks.

Family offices were the main source of capital for funds managed from Southern Europe, accounting for 29% of
the total, outranking funds-of-funds. While funds-of-funds accounted for one-third in 2008, they represented only 18%
of the total in Q1-Q3 2009.

As regards funds managed from the UK, pension funds continued to dominate the investor base with a 27%
contribution. Government agencies took a more prominent role, accounting for 20% of the total so far in 2009
(compared with only 7% in 2008), followed closely by funds-of-funds, which accounted for 19% in Q1-Q3 2009.

3.1.3. Geographic sources of fundraising

In the first nine months of 2009, most investors in European funds were located in the UK, followed by France. These two
countries combined accounted for over half of investor commitments. Preliminary figures for 2009 showed that the
contribution of international investors to European fundraising was substantially lower than in the previous two years.

In 2008, just over one-third of the committed funds originated from the US. Commitments from European investors
represented only half of the total funds raised, with the UK and France contributing 15% and 7% respectively to the
total. Outside Europe, Australasian and Canadian investors were significant sources of capital, with a 9% and 7%
share in European buyout funds respectively.

(7) Financial institutions (other than banks, endowments, family offices, foundations, insurance companies or pension funds) managing pools of capital by
investing them across asset classes with the purpose of generating financial returns. These may include private equity direct funds that occasionally do
indirect investments, but excludes funds-of-funds that are a stand-alone option.



In 2007, 35% of the capital originated from outside Europe, led by US investors, with 20% of the total. UK investors
once more outpaced their European peers with a 20% share in overall commitments to European buyout funds.

Table 3: Ranking of top limited partners by location

Ranking 2007 2008 2009*
1 USA USA United Kingdom
2 United Kingdom United Kingdom France
3 Greece Australasia Germany
4 Australasia Canada The Netherlands
5 Germany France USA

3.1.4. Final closings

In total, 159 funds reached final closings from 2007 to the end of Q3 2009, raising €129bn. Buyout funds represented
almost 80% of the total number of funds that reached final closings, with 125 funds and an average fund size of about
€1bn. The 23 growth funds and 11 mezzanine funds that reached final closings during this period raised a total of
about €10bn.

Because of the financial crisis and global economic downturn, a much smaller number of funds managed to reach
final closings in the first nine months of 2009. In total, 19 funds had final closings, among which 13 pure buyout funds
accounted for 95% of the total amount raised. Also reflecting the current fundraising environment, these funds had a
considerably lower average fund size compared with previous years. Growth funds experienced the steepest decline
in average fund size from 2008, falling 78% to €67m in the first nine months of 2009. The average size of mezzanine
and buyout funds dropped to €87m (-38%) and €656m (-37%) respectively. However, the average size of mezzanine
funds had already plummeted by 80% year-on-year in 2008.

Table 4: Funds closed by stage focus

Amounts in €m 2007 2008 Q1-Q3 2009
Funds closed by Number Average Number Average Number Average
fund stage focus Amount of funds fund size Amount of funds fund size Amount of funds fund size
Growth 1,675 8 209 3,298 11 300 269 4 67
Buyout 56,361 60 939 54,423 52 1,047 8,530 13 656
Mezzanine 4,212 6 702 419 3 140 174 2 87
Independent buyout
funds raised 62,248 74 841 58,140 66 881 8,973 19 472


19

About half the funds that reached final closings in Q1-Q3 2009 were managed from the UK (up from one-third in 2007
and 2008), accounting for 68% of the total amount raised in Europe. Southern Europe came next, accounting for 16%
of the total number of European funds with final closings. France and the Nordic region each accounted for 11% of
the European total, while all other regions only represented 5% each. This was a significant decline for the DACH
region, which had accounted for about 20% of the total number of funds at final closing in 2007 and 2008.

Figure 9: Fund closings by region - % number of funds

100% 5% 5%
3% 1% 3% 5% n Belgium and The Netherlands
19% 5%
80% 21% 11% n CEE region
% of number of funds closed

14% 11%
n DACH region
60% 18% n France
18% 16%
n Nordic region
12%
40% 11% n Southern Europe
8%
n UK and Ireland
47%
20%
35% 33%

0%
2007 2008 2009*


Most funds reaching final closing so far in 2009 fall into the €50m-€149m range, with an average size of €93m.
Relative to 2008 and 2007, the distribution of final closings in 2009 was more concentrated in the lower end of the
fund size range. Almost half the funds with final closings in the first three quarters of 2009 were sub-€149m, compared
with slightly over one-third in 2008 and less than one-fifth in 2007.

As expected, fewer funds were closed in almost all the size ranges in 2009 than in the previous two years. Two sub-
€50m funds, raising a total of €85m, reached final closings in Q1-Q3 2009, compared with seven funds in 2008.
Similarly, only two large (€500m-€1bn) and two mega funds (€1bn-plus) were closed in the higher end of the market
– significantly down on the eight large and 14 mega funds raised in 2008. Note that the two mega funds with final
closings in 2009 raised only 10%-20% of their total size in the course of this year; most of their capital was raised in
2008. These two funds were established in the UK and France. In other regions, most funds with final closings fell into
the €50m-€149m and €250m-€499m size brackets.



Figure 10: Final closings by fund size range

100%
11%
18% 21% n >=€1bn
11%
80% n €500m-€999m
18% 12% n €250m-€499m
% of number of funds

26%
60% n €150m-€249m
17%
27% 5% n €50m-€149m
14% n <€50m
40%
18% 37%
26%
20%
9%

11% 11% 11%
0%
2007 2008 2009*


Of the 159 funds that reached final closings throughout 2007-Q3 2009, most funds (139) had no sector focus.
Most of the funds with a sector focus were pure buyout funds (70%).

In 2007, most funds closed with a focus on consumer products, services & retail, while in 2008, ICT and business &
industrial products & services were the main sectors. In the first nine months of 2009, only one fund had a specific
sector focus: financial services. In many ways, this can be perceived as a high risk investment strategy. Therefore, the
fact that only one fund closed with a specific sector focus shows that sophisticated investors perceive investment
opportunities through buyouts even in the most challenging environment.

Table 5: Funds closed by sector focus

Amounts in €m 2007 2008 Q1-Q3 2009
Funds closed by Number Average Number Average Number Average
sector focus Amount of funds fund size Amount of funds fund size Amount of funds fund size
Agriculture, chemicals
and materials 24 1 24 0 0 0 0 0 0
Business and industrial
products and services 83 2 42 127 3 42 0 0 0
Consumer products,
services and retail 2,613 4 653 50 1 50 0 0 0
Energy and environment 200 1 200 0 0 0 0 0 0
Financial services 0 0 0 116 1 116 575 1 575
ICT 523 1 523 980 4 245 0 0 0
Life sciences 0 0 0 1,000 1 1,000 0 0 0
Generalist 58,806 65 905 55,867 56 998 8,398 18 467
Independent buyout
funds raised 62,248 74 841 58,140 66 881 8,973 19 472


21

3.2. Investments

3.2.1. Overview

Industry statistics – by location of private equity firm

Investments by European private equity houses were highest in 2007 (€65bn) and started declining
thereafter to reach only €11bn in 2009, a 76% decrease on 2008. Overall, European private equity houses
invested €123bn over the period 2007-Q3 2009, in 4,660 companies (8), regardless of their location.
The average investment per company was €26m.

Historically, 2007 clearly stands out as a record year for investments by European private equity houses
(€65bn). Second was 2006, with €54bn invested, followed by 2008 with €47bn. Before the onset of the credit
crunch, the buyout market experienced significant growth, with a year-on-year growth rate of nearly 30%
between 2002 and 2007.

The financial crisis and worsening economic environment clearly took its toll in terms of reduced investment
levels in the buyout market in 2008 and 2009. However, although the total amount invested in buyout
transactions by European private equity houses in 2008 was about 30% lower than in 2007, it still represented
the third-highest year on record. The slowdown of investment in the first nine months of 2009 was more
pronounced, as the total invested came to €11bn – about a quarter of the full-year 2008 investment value.

Figure 11: Investments by European private equity houses - evolution

70

60

50

40
€ billion

65
30
54
47
20
34
27
10 18 21
14 15 12 11
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*


(8) Throughout this paper “total amount invested” refers to investments in buyout, growth, rescue/turnaround and replacement capital.



Although the average investment amount per company decreased from €37m in 2007 to €25m in 2008 and
€11m in 2009, investment activity in terms of number of companies financed resisted the economic conditions
better. The number of companies financed in 2008 was actually slightly higher than the number of businesses
that received financing in 2007. In the first nine months of 2009, the number of companies invested in was just
over half the 2008 total.

Market statistics – by location of portfolio company

In line with the trend noticed in the industry statistics, 2007 was also a peak year by location of the target,
with €62bn invested. In 2008, investment declined by 27%, to €45bn, and then decreased even further to
only €11bn in the first nine months of 2009 (-77%). Throughout 2007-Q3 2009, €118bn was invested in
more than 4,650 European companies. This resulted in an average amount invested per company of
€25m. Most of the amount (71%) came from private equity houses located in the same country as the
portfolio company. Another 26% was provided by non-domestic European private equity firms, while the
remainder came from outside Europe.

In the first nine months of 2009, €11bn was invested in 993 European companies, with an average amount
invested per company of €11m. Total investment in Q1-Q3 2009 represented about a quarter of the €45bn
invested into Europe in the whole of 2008, but about half of the 1,942 companies invested in – meaning that
more smaller deals were done. Although total buyout investment value in 2008 was lower than the record level
reached in 2007 (€62bn), the number of companies invested in was 13% higher – 1,942 companies received
financing in 2008 versus 1,725 in 2007.

Figure 12: Investments into European portfolio companies - evolution

100% 2,200
1,942 2,000 n Amont
80% 1,800 n Number of companies
1,725 1,600
number of companies

1,400
60%
€ billion

1,200
993
1,000
40%
800
62
600
20% 45
400
200
11
0% 0
2007 2008 2009*



23

In the first three quarters of 2009, €7.5bn originated from domestic private equity houses (71%). Non-domestic
European private equity firms provided €2.8bn (27%), while firms located outside Europe provided 3.4%, up
0.4 percentage points from 2008 in terms of share percentage, but still down on the 2007 level (4.2%).

Across the years, 2008 was marked with the highest share in amount coming from domestic players, while
2007 saw the highest share originating from non-domestic European houses.

Table 6: Investments by geographic origin

Amounts in €m 2007 2008 Q1-Q3 2009
Geographic origin Number of Number of Number of
of investments Amount % companies % Amount % companies % Amount % companies %
Domestic 41,331 66.7 1,470 85.2 33,549 73.8 1,637 84.3 7,482 70.5 858 86.4
Intra-European 18,034 29.1 233 13.5 10,554 23.2 282 14.5 2,771 26.1 125 12.6
Outside Europe 2,628 4.2 22 1.3 1,341 3.0 23 1.2 357 3.4 10 1.0
Total investment 61,993 100.0 1,725 100.0 45,445 100.0 1,942 100.0 10,610 100.0 993 100.0

By region, the main field of investment activity in Q1-Q3 2009 was UK & Ireland (28% of the total), followed by
Belgium & The Netherlands (15%). However, in terms of number of companies financed, the DACH region took
the lead (23%). The average investment per company was highest for Belgium & The Netherlands, with €17m
per company, followed by UK & Ireland with €16m per company.

Figure 13: Average investment size per company by region

50
n 2007
40 n 2008
n 2009*
30
€ million

20

10

0
Belgium CEE DACH France Nordic Southern UK
and The region region region Europe and Ireland
Netherlands




In both 2007 and 2008, the DACH region came second in terms of amount invested, right after UK & Ireland.
However, by number of companies financed in 2008, France came first, with 24% of the European total,
followed by the DACH region, with 21% of the total. In 2007, France and the DACH region came in second
(21%) and third (17%) – UK & Ireland topped the list, recording 24% of companies financed.

Table 7: Investments by region

% of amount % of number of companies
2007 2008 2009* 2007 2008 2009*
Belgium and The Netherlands 11% 6% 15% 11% 8% 10%
CEE region 2% 4% 3% 4% 4% 4%
Dach region 19% 21% 12% 17% 21% 23%
France 17% 18% 14% 21% 24% 19%
Nordic region 10% 9% 14% 12% 12% 16%
Southern Europe 12% 16% 14% 13% 11% 10%
UK and Ireland 29% 26% 28% 24% 20% 19%
Europe 100% 100% 100% 100% 100% 100%

3.2.2. Stages of financing

During the period 2007-Q3 2009, €96bn was invested in pure buyouts – 82% of the total invested capital – in nearly
2,700 companies. Growth capital came second with €15bn – 13% of the total – invested in 1,460 companies.

In the first nine months of 2009, investment amounts were spread more evenly across stages than in the previous two
years, as only 53% went to pure buyouts, compared with more than 80% in 2007 and 2008. Growth capital and
replacement capital were more resistant to the crisis and experienced a slower decline in value than pure buyouts.
The reason for this was the increase in equity-financed deals due to the slump in debt availability, and the restructuring
of balance sheets. The proportion of growth capital in the total amount invested increased for two years in a row,
accounting for 27% of the total invested so far in 2009, compared with 16% in 2008 and only 8% in 2007.

The value of growth capital investments was down 40% on the level seen for the whole of 2007 to the first nine
months of 2009. However, the number of companies receiving growth financing went up by 46%. In 2009, the number
of businesses receiving growth capital actually surpassed the number of companies involved in buyout transactions.

Replacement capital not only took a larger share of the total investment pie in Q1-Q3 2009 (18%) but also registered
a 15% increase in the amount invested from its full-year 2008 level, reaching €1.9bn. This upward trend was driven
by refinancing deals, which increased more than threefold from their 2008 level, to €1.3bn. However, by number of
companies, replacement capital remained 36% below the 2008 level.

The remainder of investments went to rescue/turnaround deals, representing 2% of the total amount and 9% of all
companies financed. In terms of number of companies, 2008 saw 15% more companies receiving rescue/
turnaround financing than in 2007. The increase accelerated during the first three quarters of 2009, when nearly 40%
more companies received rescue/turnaround financing than in the whole of 2008.


25

Table 8: Investments by stage of financing

Amounts in €m 2007 2008 Q1-Q3 2009
Stage distribution Number of Number of Number of
of investments Amount % companies % Amount % companies % Amount % companies %
Growth 5,055 8.2 315 17.8 7,039 15.5 686 34.4 2,849 26.9 460 45.3
Rescue/turnaround 468 0.8 55 3.1 283 0.6 63 3.2 245 2.3 87 8.6
Replacement capital 2,301 3.7 145 8.2 1,472 3.2 169 8.5 1,917 18.1 109 10.7
Buyout 54,169 87.4 1,252 70.9 36,652 80.7 1,078 54.0 5,599 52.8 360 35.4
Total investment 61,993 100.0 1,725 100.0 45,445 100.0 1,942 100.0 10,610 100.0 993 100.0

In most regions, the lion’s share of investment in Q1-Q3 2009 went into buyouts. The CEE region and Belgium &
The Netherlands were the only two regions in which buyouts did not represent the majority of the amount invested.
In the CEE countries, only 13% of the total amount was invested in buyouts, while buyout investment represented
35% of the total in Belgium & The Netherlands. Most of the amount invested (41%) in Belgium & The Netherlands
went to replacement capital, while in the CEE region the majority of the investments went into growth capital (84%).
The latter reflected CEE fund managers’ shift towards growth capital transactions in a changing macroeconomic and
deal-making environment. In 2009, the average growth investment per company in CEE overtook the average buyout
investment, driven by two large growth deals that accounted for nearly three-quarters of the total amount.

By number of companies financed, the growth stage was the most active across most regions, with the exception of
France, where buyouts continued to dominate the activity (53%). Only 33% of the French companies received growth
capital, and another 13% benefited from replacement capital.

Figure 14: Investments by region and stage in Q1-Q3 2009

100%
15% n Buyout
26%
33% 32%
80% 35% 37% n Replacement capital
% of number of companies

19% 53%
5% n Rescue/turnaround
3%
7% n Growth
60% 13% 14% 9% 8%
14% 3%
6%
14%
40% 13%
66% 2%
53% 53% 49%
46%
20% 40%
32%

0%
Belgium CEE DACH France Nordic Southern UK
and The region region region Europe and Ireland
Netherlands




Deals that took place in 2008 and 2009 were, on average, significantly smaller than the average investment in 2007.
As can be seen from figure 15, this applied across most stages, with replacement capital being the exception.

The average rescue/turnaround investment per company experienced the steepest decline between 2007 and 2008,
falling 47% to €4.5m. In 2009, the average investment size dropped further, to €2.8m. This significant decrease may
be an indicator that investors are generally more cautious with such transactions and also structure them so as to
prevent losses in case of unsuccessful deals.

The average buyout investment in 2008 was 20% lower than in 2007, at €34m. However, in 2009, average deal size
was less than half of the 2008 value, at €16m. Besides a drop in valuations, this decline is also due to the almost
complete disappearance of large and mega buyout deals from the investment scene in 2009 and the subsequent
concentration of activity in the small and medium-sized deal range.

Replacement capital was the only stage that registered an increase in terms of average investment per company in
2009, as compared to 2007 and 2008 values, reflecting the fact that more refinancing deals were completed, and at
a higher value.

Figure 15: Average investment size by stage of financing - 2007-Q3 2009

50
43
n 2007
40 n 2008
36
34 n 2009*
30
€ million

23

20 18
16 16 16

10 11
10 9 9
6
4 3

0
Growth Rescue/ Replacement Buyout Total
turnaround capital investment



27

3.2.3. Buyouts by deal size (9)

In the period 2007-Q3 2009, the total transaction value (10) for European buyouts was €348bn, while the total
amount of equity was €97bn, resulting in an average ratio of equity-to-transaction-value of 28%. Mega deals
accounted for half of the total transaction value (€173bn), followed by mid-market deals (€102bn or 29% of the
total). In terms of equity value, mid-market represented the largest share (€39bn or 40% of the total). However, by
number of companies financed, small buyouts were most common (1,865 companies or 68% of the total), while
mega and large buyouts accounted for less than 3% each.

In the first nine months of 2009, mid-market deals attracted the largest part of the capital invested in buyouts (44%).
However, the vast majority of companies (89%) were small buyouts (those with a transaction value of less than €50m),
attracting 37% of the total buyout investment value, considerably higher than the share of small buyout companies
in 2008 (69% of buyouts accounting for 10% of the value) and 2007 (62%, accounting for 14% of the value).

Figure 16: Equity versus transaction value by buyout deal size - Q1-Q3 2009

14 400
n Equity value
12 11.6 350
n Transaction value
300
10 Number of companies n Number of
250 companies
8
€ billion

200
6 5.6
4.6
150
4 3.3 100
2.5 2.5
2.0
2 1.2
50
0.5 0.6
0 0
Small Mid-market Large Mega Total buyout


So far in 2009 only one mega buyout (€1bn-plus) has taken place, in sharp contrast with 2007, when 51 companies
were €1bn-plus companies. With only 17 mega buyouts in 2008, the first signs of a slowdown at the highest end of
the market started to show, as the financial crisis reduced the availability of debt. This effect became even clearer in
the ratio of equity-to-transaction-value, as it doubled to 32% in 2008, from 15% in 2007.

(9) The deal sizes section only concerns pure buyout deals, so growth, rescue/turnaround and replacement capital are excluded from this breakdown.
(10) Transaction value includes the contributions of all co-investors in a deal and the leverage. Therefore, the difference between private equity funds’ contribution
(“equity value”) and transaction value consists of two parts: the contributions of syndication partners other than private equity firms (such as LP co-investors,
corporate co-investors, financial institutions) and leverage.


Pbbr09

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (13)

Similar a Pbbr09

Similar a Pbbr09 (20)

Más de Hugo Mendes Domingos

Más de Hugo Mendes Domingos (20)

Pbbr09