2q 2013 private equity breakdown presentation slide deck

2Q 2013Private Equity Breakdown

Presentation Slide Deck

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Coming off the heels of a record-breaking quarter, deal-making dropped significantly in 1Q 2013.

Source:PitchBook

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

2008 2009 2010 2011 2012 2013

$0

$20

$40

$60

$80

$100

$120

$140

0

100

200

300

400

500

600

700

800

$120 $73 $114 $46 $49 $25 $28 $52 $72 $84 $70 $127 $88 $82 $92 $102 $70 $77 $72 $126 $52

761

545

613

417373

347332419

492458451

633

526546

538555500471451

564

355

Capital Invested ($B)

Following a Record-Breaking 4Q 2012, Deal-Making Stalled in 1Q 2013

U.S. P.E. Deal Flow by Quarter

Source:PitchBook

Jul Aug Sep Oct Nov Dec Jan Feb Mar2012 2013

$0

$10

$20

$30

$40

$50

$60

0

50

100

150

200

250

300

$32 $20 $20 $28 $48 $50 $24 $19 $9

161 153137

153

129

282

206

83

66

Capital Invested ($B) # of Deals Closed

Heightened Activity in December and January Resulted

in a Slowdown in February and MarchU.S. P.E. Deal Flow by Month

Source:PitchBook

2004 2005 2006 2007 2008 2009 2010 2011 2012 20130%

10%20%30%40%50%60%70%80%90%

100%

Buyout/LBO Add-on Recap PE Growth/Expansion PIPE * As of 3/31/2013

*

Over the Last Decade, Buyouts Have Decreased as a Proportion of PE Deals

Investments (count) by Deal Type

Source:PitchBook

2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

500

1,000

1,500

2,000

2,500

3,000

0%

10%

20%

30%

40%

50%

60%

499 686 8641110

786491 690 809 736

126

8871030

1260

1415

997

543

828857 810

119

36%40% 41%

44% 44%47% 45%

49% 48%51%

Add-on Non Add-on Add-On % of Buyout * As of 3/31/2013

*

Add-ons Have Increased from 36% to 51% of Buyout Activity Since 2004

Add-ons as a Percentage of Buyout Activity

Source:PitchBook

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

2007 2008 2009 2010 2011 2012 2013

$0

$50

$100

$150

$200

$250

$67

$40$15

$28

$69$50

$30

$83

$63

$168

$106

$70 $73

$180

$76

$149

$54

$200

$144

All PE Deals Buyouts (excluding add-ons)

The Median Deal Size Dipped in 1Q 2013 Following a Surge of Large Transactions in 4Q

2012Median Deal Size ($M)

Source:PitchBook

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

2010 2011 2012 2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$2.5B+

$1B-$2.5B

$500M-$1B

$100M-$500M

$25M-$100M

Under $25M

There Were Only 3 Billion-Dollar Deals in 1Q 2013,

the Lowest Total Since 1Q 2010Investments (count) by Deal Size

Source:PitchBook

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q2010 2011 2012 2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$2.5B+

$1B-$2.5B

$500M-$1B

$100M-$500M

$25M-$250M

Under $25M

PE Firms Refocused Their Attention on the Middle Market in 1Q 2013Investments (amount) by Deal Size

Source:PitchBook

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

2010 2011 2012 2013

-

100

200

300

400

500

600

700

B2B

B2C

Energy

Financial Services

Healthcare

IT

Materials & Resources

With the Weak Performance in 1Q 2013, Deal Flow Fell in Every Industry

Deal (count) by Industry

Source:PitchBook

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

2010 2011 2012 2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

B2B

B2C

Energy

Financial Services

Healthcare

IT

Materials & Resources

The B2C Industry Jumped from 21% of Capital Invested

in 4Q 2012 to 36% in 1Q 2013Deals (amount) by Industry

Source:PitchBook

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

2010 2011 2012 2013

0%10%20%30%40%50%60%70%80%90%

100%

West Coast

Southeast

South

Great Lakes

New Eng-land

Mountain

Midwest

Mid-Atlantic

The Mid-Atlantic was the Most Active Region for Investment in 1Q 2013

Deals (count) by Region

Source:PitchBook

Deal-Making Expanded in Only 9 States in 1Q 2013

Deals (count) by State

Source:PitchBook

Exit activity plummeted in 1Q 2013, hitting its lowest level since 3Q 2009.

Source:PitchBook

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

2008 2009 2010 2011 2012 2013

$0

$10

$20

$30

$40

$50

$60

0

50

100

150

200

250

$20$17$36 $5 $13 $4 $7 $17$17$25$25$42$22$35$27$34$27$30$25$57$11

119

87

117

58 48 54 45

7697 105109

181

99

137138155157

144

134

206

69

Capital Exited ($B)

Exit Activity was Even Worse Than Deal-Making, Hitting Its Lowest Level Since 2009

U.S. Exit Activity by Quarter

Source:PitchBook

Jul

Aug Se

p

Oct

Nov

Dec Jan

Feb

Mar

2012 2013

$0

$5

$10

$15

$20

$25

0

20

40

60

80

100

120

$8.6 $8.9 $7.1 $19.3 $17.9 $20.1 $2.4 $1.6 $7.3

5446

34

5746

103

36

14 19

Capital Exited ($B) # of Exits

Exits Also Saw a Spike 4Q 2012 Before a Slowdown in 1Q 2013U.S. Exit Activity by Month

Source:PitchBook

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q2010 2011 2012 2013

0%10%20%30%40%50%60%70%80%90%

100%

Corporate Acquisition IPO Secondary Buyout

Secondary Buyouts Continue to Play an Increasingly Important Role as an Exit Strategy

Exits (count) by Type

Source:PitchBook

Fundraising held steady in 1Q 2013 but is still well below pre-crisis levels.

Source:PitchBook

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

2008 2009 2010 2011 2012 2013

$0

$10

$20

$30

$40

$50

$60

$70

$80

0

20

40

60

80

100

120

$63$70$59$30$69$35$10$26$17$13 $6 $10$43$18$15$14$20$42$19$27$23

107

4540

33

49

28

10

2638

2620

3140

27 25 29 3138

23

25 25

Capital Raised ($B)

Fundraising Held Steady in 1Q 2013U.S. Fundraising by Quarter

Source:PitchBook

2009

2010

2011

2012

2013

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Under $100M $100M-$250M $250M-$500M $500M-$1B $1B-$5B * As of 3/31/2013

*

Larger Funds Showed Promise in 1Q 2013, and Many More Should Close Later in the Year

Fundraising (count) by Fund Size

Source:PitchBook

1Q 2013 PE Deal League Tables

Source:PitchBook

Most Active PE Investors in 1Q 2013By Count of Closed U.S. PE Deals

Source:PitchBook

Most Active Law Firms in 1Q 2013By the Number of Closed U.S. PE Deals a Firm Provided Service On

Source:PitchBook

Most Active Lenders in 1Q 2013By the Number of Closed U.S. PE Deals a Firm Provided Service On

Source:PitchBook

Most Active Advisors in 1Q 2013By the Number of Closed U.S. PE Deals a Firm Provided Service On

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