Ryan Van Wagenen, Director at Global Private Equity. Internal Training Material - Ryan Van Wagenen shares recent trends within private equity. Overview of the deal flow in 2017 and 2018 YTD.

1. Global Trends in Private Equity
Ryan Van Wagenen - Director at Global Private Equity

2. Ryan Van Wagenen - Global Private Equity
• Closed-end funds that invest in property. Includes core, core-plus, distressed, opportunis8c, and value-added real estate as
well as real-estate debt funds.
• Note that real estate as an overall asset class grew when accoun8ng for growth in open-ended funds as well as separately
managed accounts.

3. Ryan Van Wagenen - Global Private Equity
• Buyout funds based in the US that closed above $5 billion.
• Includes venture, growth, other private equity (balanced, hybrid, private investment in public equity).
• Includes closed-end real estate, private debt, natural resources, infrastructure.

4. Ryan Van Wagenen - Global Private Equity
• Solid growth was also seen in the middle market. Buyout funds of between $500 million and $1 billion raised
$31.8 billion globally in 2017
• Middle-market fundraising was strong but was overshadowed by global megafund buyouts, which jumped 93
percent over the same period from $90.1 billion to $173.7 billion.

5. Ryan Van Wagenen - Global Private Equity
• Includes fundraising in private equity only, and includes 2 firms that are now defunct.

6. Ryan Van Wagenen - Global Private Equity
• Europe and North America combined raised more than $50 billion, mostly targe8ng vast projects to renew and
expand exis8ng assets
• The outstanding ques8on is not demand, but supply; while many new projects are seeking investors

7. Ryan Van Wagenen - Global Private Equity

8. Ryan Van Wagenen - Global Private Equity
• It is safe to assume that the largest firms are also capturing a dispropor8onate share of these funds.
• If the top 20 firms account for more blind pool capital than at any point in the past 15 years

9. Ryan Van Wagenen - Global Private Equity

10. Ryan Van Wagenen - Global Private Equity
• The falling deal count reflects a few factors. First, deal size has increased, driven mostly by mul8ples, making each
deal a more significant commitment for GPs
• Second, targets are harder to find and some (though not all) GPs are more cau8ous, pursuing only those deals
where they think they can realis8cally achieve a[rac8ve IRRs

11. Ryan Van Wagenen - Global Private Equity
• Indeed, dry powder has grown by 10 percent on average every year since 2012.
• If we compare dry powder to other measures, such as funds raised and AUM, “stocks” of capital available for investment
have changed li[le over the past few years vis-à-vis the size of the industry.

12. Ryan Van Wagenen - Global Private Equity

13. Ryan Van Wagenen - Global Private Equity
• However, making this shia can be challenging, and success depends on LPs’ governance model, capabili8es, size,
and risk tolerance.
• The value of co-investment deals has more than doubled since 2012 (totaling $104 billion in 2017)

14. Ryan Van Wagenen - Global Private Equity
• One a[rac8ve feature for GPs is the poten8al to reduce fundraising costs by elimina8ng the fric8on of returning
and realloca8ng capital every few years.
• Predictable income tend to trade at higher mul8ples

15. Ryan Van Wagenen - Global Private Equity
Ryan Van Wagenen Professional Overview
• Global Private from 2009 to Present
• Promoted to Director within Global Private Equity in 2011
• Oversees origina8on process team in deal assessment,
modeling, due diligence and transac8on nego8a8on
• Leads execu8on by managing the transac8on process and
structuring the detailed terms of the investment opportunity
• Prior opera8ons manager at Ci8 Trends from 2006-2009
- Lead team in data entry, accounts payable, payroll, grant
report entry, and helping and crea8ng organiza8onal and
program budgets in collabora8on with the execu8ve director
• Westminster College alumnus where he received a Bachelor of
Science in Finance
• S8ll ac8ve in the outdoor community and is an avid
backcountry skier, mountaineering racer, hiker, rock climber,
and mountain biker
• Loves to provide service in the local community

16. Global Private Equity Conference – New York City – March 2018