private equity advent international 2008 global highlights

Operationalfocus

Global highlights 2008

Contents02 Advent International at a glance04 Overview of 200806 Focus on Industrial08 How we create value10 Focus on Business and Financial Services12 Our investors13 Business review14 Focus on Retail, Consumer and Leisure16 Portfolio highlights18 Focus on Technology, Media and Telecoms20 Corporate responsibility21 The partnership22 Focus on Healthcare24 Contacts

Invested in 2008

$2.4bnFunds raised in 2008

$12.6bnGross proceeds realized in 2008

$2.4bn

01

Advent International is one of theworld’slargest andmost experienced private equityfirms. To datewe have invested in businessesinmore than 40 countries worldwide.We believein building companies for the future and haveboth the capacity and the capability to undertakesignificant and complex investments.

We have a clear strategy for creating valuein the companies inwhichwe invest, based onoperational improvement andmarket positioning.We have substantial funds available to invest onan international scale. Partnershipwith Adventis aboutmuchmore than access to capital.We also offermanagement teams the benefitsof our sector expertise, operational focusand global platform to help themgrow theirbusiness to its full potential.

This document is not an offer to sell securities.Advent-managed funds are privately placedandopen to qualified investors only. All datasupplied is as of 31December 2008, unlessstated otherwise.Whereweuse$wemeanUS$.

Advent International Global highlights 2008

02

Advent International at a glance

Advent International* is one of theworld’sleading global private equity groups.We investinmid- to uppermid-market businesses inindustry sectors wherewe have deep expertise.We seek to create long-term value by activelydriving revenue and earnings growth in ourportfolio companies. It is a highly productiveapproach that hasworkedwell for 25 years.

HistoryAdvent International was foundedin 1984. Our strategy and ambitionshave always been global. Today,we are one of themost experiencedprivate equity investors worldwide.Over the past 25 years we haveraised $24bn in private equitycapital, completedmore than 250transactions through our buyoutfunds alone, and achievedmorethan 20 industry firsts.

International reachWehave one of the broadestglobal footprints in the industry,with activities spanning theworld’s establishedanddevelopingeconomies.We invest inWesternEurope, Central Europe, NorthAmerica, LatinAmerica, andAsia Pacific.

Our international network and localmarket knowledge are core to ourability to identify opportunitiesandmake investments. Adventcolleagueswork together acrossregions and sectors tomaximize

*Advent International Corporation (AIC) is registered as aninvestment advisor with the US Securities and ExchangeCommission. All other Advent companies are advisers to AIC.In the UK, Advent International plc is authorized by theFinancial Services Authority.

03

Global coverage North America• Boston

Latin America• BuenosAires• MexicoCity• SãoPaulo

Western Europe• Amsterdam• Frankfurt• London• Madrid• Milan• Paris

Central Europe• Bucharest• Kiev• Prague• Warsaw

Asia Pacific• Tokyo

our local investment capabilities,execute cross-border investmentsand help our portfolio companies tooperate and expand internationally.

Our peopleWeemploymore than 280 talentedpeople around theworld. Our teamincludesmore than 140 investmentprofessionals worldwide and over50 highly experienced operatingpartners, who act as advisors toportfolio companymanagementand Advent. It is the largest teamdedicated tomid-market buyoutsin the industry and allows us todeploy significant resources toour portfolio companies.

Our investment professionals comefrom industry and consulting aswellas financial backgrounds. The skillsand perspectives they bring fromthis experience give us considerableadvantages in identifying newinvestments and adding strategicand operational value to ourportfolio companies.

Investment philosophyWe invest in private equitytransactions, focusing exclusivelyon buyouts and selective growthcapital investments.We targetthemid- to uppermid-market andhave three investment profiles –international expansion, strategicrepositioning and high growth.

We are active, hands-on ownersand partners in our investments,using operational know-how ratherthan financial engineering to drivegrowth.Weworkwithmanagementteams to build on the existingstrengths of their businessesand realize the opportunitiesavailable to them in domesticand internationalmarkets.

As evidence of our operationalfocus, over 80 percent of ourrealized investment gains fromGPEIV, ourmost recent global fund thatis close to being fully realized, havecome from increasing the operatingearningsof our portfolio companies.

Transactions completed

$45bnTotal entry enterprise valueof transactions completedby Advent funds since 1989.


04

Overview of 2008

In a very active year, we realized 12 investments,invested in 12 newportfolio companies,madeone reinvestment and raised three newbuyoutfunds.We also continued to expand and developour team tomaintain our position as one of theworld’s leading private equity firms, illustratedbymore than a dozen industry awards.

Funds raisedWe closed three new funds during2008, bringing our total capitalraised since the summer of 2007to $13.9bn and doubling thecumulative capital raised since1984 to $24bn.

Global Private Equity (GPE)VIOur latest global fund is thelargest in our GPEprogram to date.GPEVI focuses onbusinesseswithenterprise values of€200m to€3bnand the occasional larger transactionprimarily inWestern Europe andNorth America. The fund is expectedtomake 30 to 40 investments. Since1989ourGPEprogramhas achieved157 full and partial exits out of 186total investments.

Advent Central & Eastern Europe(ACEE) IVOur fourth fund for investmentacross Central and Eastern Europeinvests in companies requiring

€30m to€100mof equity.We havebeen pioneers in bringing privateequity investment to the Centraland Eastern European region.Since 1994we have financed 36companies in Poland, the Czechand Slovak Republics, Hungary,Romania, Bulgaria andTurkey.

Latin American Private Equity Fund(LAPEF) IVOur fourth Latin American PrivateEquity Fund raised $1.3bn in July2007,making it the largest privateequity funddedicated to the region.Advent has now raisedmore than$2bn for investment in Latin Americaandbacked 39 companies since1996. Like its predecessor funds,LAPEF IV invests primarily inMexico,Brazil andArgentina in companieswith enterprise values between$50mand$750mand selectivelarger transactions.

Global

€6.6bn($10.4bn)Our award-winning GlobalPrivate Equity (GPE)VI fundis our largest buyout fundto date.

Central and Eastern Europe

€1bn($1.6bn)Our newAdvent Central &Eastern Europe (ACEE) IV fundis the second-largest funddedicated to the region.

05

Japan Private Equity Fund (JPEF)Advent has a 20-year history ofoperating and building relationshipsin Japan. JPEF is our first funddedicated to direct investmentin thismarket. The fund targetsinvestments in companieswithenterprise values ranging from¥5bn to ¥50bn ($45m to $450m)and can draw on other Adventfunds to pursue larger transactions.

Greater capabilitiesWehave continued to expand ourglobal investment team.We added72 people in 2008. This included 28new investment professionals and44managerial and administrativeprofessionals.We also added 20newoperating partners.

AwardsIndustry recognition is a powerfulmeasure of our success as aprivateequity business. A selection of the15 awards Advent received for its2008 activity:

•Mid-market Private Equity Firmof the Year, AcquisitionsMonthly

•Buyout Firm of the Year, Buyoutsmagazine

• Latin American Private EquityFirm of the Year, Private EquityInternational

•Buyout House of the Year,EuropeanVenture Capital Journal

•Private Equity Firm of the Year,EVCA Real Deals

•DACHPrivate Equity Firm ofthe Year, Private Equity News

Japan

¥60bn($550m)Our Japan Private Equity Fund(JPEF) is the first industrially-focused,mid-marketJapan fund to be raisedby an international privateequity house.

Deal activity

25Despite the challengingeconomic climate, wecompleted 25 investmentsand exits in 2008.

2008 investment activity InvestmentsNorth AmericaAmscan/Party CityBradco SupplyHudsonNewsGroup

Latin AmericaAerodomAirport Shoppes(now IMC Caribbean)Frango AssadoMonte deMexicoQuero-Quero

Western EuropeCasa Reha (reinvestment)Craegmoor HealthcareGérard DarelMonext

Central and Eastern EuropeLaborMed

ExitsNorth AmericaAmerican Radiology ServicesLongTermCare Grouplululemon athletica (partial)

Latin AmericaHildebrando

Western EuropeCasa RehaGruppo ArgentaMoellerSAGVenere.com

Central and Eastern EuropeAxtoneBolixIntercity


For a complete list of Advent’sinvestments, please visit ourwebsite atwww.adventinternational.com

06

Focus on Industrial

The Industrial sector is complex and fragmented,creating opportunities to apply both technicaland skill-based leadership and local know-howin domestic and international businesses. Therearemany strong product leaders that could benefitfromnew investment, strategic repositioning andstronger governance to achieve their potential.

07

Market trendsLong-term growth prospectsfor the sector remain strong,particularly for businesses thatare active in developingmarkets.However, short-term financialand operational issues such asproduction over-capacity, pricingpressure and capital investmentlimitations aremaking it difficultfor businesses to take advantageof opportunities that exist today.

To date Advent has backedmorethan 70 industrial companiesworldwide, investing across a broadrange of specialized sub-sectorsincluding building products,chemicals, electronics, energy,engineered products,materials,mining and industrial services.

Boart LongyearBoart Longyear is theworld’slargest provider of drillingproducts and services to themining industry.Whenwe investedin July 2005, the companywasa sprawling, non-core subsidiaryof a South African conglomerate.We transformed it into a lean,market-focused operationwitha US headquarters and singleglobal infrastructure thatsignificantly increased the valueand productivity of its operationsaround theworld.We sold ourinvestment in October 2007 toMacquarie Bank and retained aminority stake. The subsequentIPO capitalized the company atA$2.7bn in the second-largestpublic offering ever in Australia.

Recent investments

Bradco Supply (2008)

Ceramica (2007)

KAI Group (2007)

Recent exits

Axtone (2008)

Bolix (2008)Moeller (2008)SAG (2008)

Boart Longyear (2007)HTTroplast (2007)


08

Howwe create value

Weare long-termbusiness partners, typicallyinvesting for between three and seven years.Our investment strategy is sector-focused, locallyexecuted and globally coordinated.Wedrive growthand add value through international expansion,strategic repositioningandacceleratinghigh-growthbusinesses.Webring international best practice tolocalmarkets and introduce independent operatingpartners towork closelywithmanagement teamsto improve performance andbuildmoresuccessful businesses.

Sector specialization

n Telecoms, Media and Technologyn Industrialn Business and Financial Servicesn Retail, Consumer and Leisuren Healthcaren Other

2525

2219

19

96

Analysis based on the number ofinvestments made by GPE, LAPEF andACEE funds between 1990 and 2007.Source: company information 2009.

%

Sector specializationUnderstanding the operationalchallenges and opportunities thatbusinesses face requires deepindustry knowledge and sectorexperience. This is whywe are asector-focused investor.We investin the Business and FinancialServices; Healthcare; Industrial;Retail, Consumer and Leisure;andTechnology,Media andTelecoms sectors.

Advent is widely recognized asa private equity leader in eachof these sectors. Our sectorunderstanding and insight giveus a first-hand appreciation of theindustry drivers, issues and trendsaffecting our portfolio companies.

The local and internationalknowledgewe have gained overthe course of 25 years and ourextensive networkswithin eachsector are also valuable resourcesformanagement teams, helpingthem to drive the developmentand growth of their businesses.

Investment profilesOur three investment profilescapitalize on our organization’sglobal strengths.

International expansionOur international reach and globalcapabilitiesmeanwe are uniquelyqualified to assist domestic andinternational companies that wantto pursue international expansion.We help our portfolio companiesto growby entering newmarkets,developing overseasmanufacturingand sourcing capabilities, andmaking international acquisitions.

Strategic repositioningThis typically involves repositioningdiversified companies to focus oncore activities, increasingoperationalefficiencies, and executingturnarounds, profit improvementand growth plans. Drawing on ourstrong sector knowledge andoperational capabilities, weworkclosely and constructively with localmanagement and theworkforce toimplement successful strategies.

09

High growthBusinesses in high-growthsectors need capital tomaintainand extend their competitivestrengths. Partneringwith Adventenables them to invest in increasedcapability and capacity, pursueorganic growth initiatives, enhanceresearchanddevelopment activities,implement newproduct and servicemodelsandmakeadd-onacquisitions.Working alongsidemanagementteams allows us to contributevaluable experience and expertisein shaping successful businesseswith growth potential.

Operating partnersOperating partners are afundamental element of our highlyoperational approach to investing.Worldwide, the Advent OperatingPartner program includes over 50experienced industry executives,many of whomhave been involvedinmultiple Advent investments.Acting as independent advisors,the operating partners, who aretypically former CEOs or COOs,

work alongside our sector teamstomake a significant contributionto our acquisition and developmentof portfolio companies through theirindustry knowledge, operationalknow-how,management experience,and extensive networks.

As supervisory boardmembers,advisors tomanagement teams oreven interimmanagers, they help todrive the growth and improvementsthat generate higher sales andearnings, increasing the value ofthe companies inwhichwe invest.

Examples of Advent’s three investment profiles

International expansion

Global travel retailerSector:RetailLocation:GlobalInvested: February 2004

Expansion achieved throughstrong organic growth andacquisitions. Now in 41 countries(2004: 25).Merger with portfoliocompany HudsonNewsGroup isexpected to generate significantoperating synergies.

Strategic repositioning

Energy-related servicesSector: IndustrialLocation:Western EuropeInvested:August 2006

Weunbundled the portfolio of fiveenergy-related services businessesthatwe acquired fromRWE. SAGwassold inMarch 2008having beenstreamlined and focused on coreactivities. Nukem is being positionedto benefit fromglobal demand for itsnuclear fuel cycleanddecommissioningservices. Twoof the remaining threedivisionswere also sold.

High growth

Electronic fixed income tradingplatformSector: Financial ServicesLocation:North AmericaInvested:August 2006

Market trends are driving retaildemand forbondsandbroker-dealersare increasingly relying on third-party tradingplatforms.Thecompanyis investing in trading technology,productsandmanagement to supportfurther growth in clients and tradingvolumes.

Operating partners

302005

2008 58

72001

In the past three years wehave significantly expandedthe global pool of OperatingPartners, who advise us inidentifying and reviewinginvestment and valuecreation opportunities*.

*Source: company information.

Source of value creation

Analysis for GPE IV Fund as of30 September 2008. Adjustedfor FX, dilution and realizedproceeds. Includes realizedand unrealized values*.

EBITDAgrowth

DeleverageMultipleexpansion

Total

83%of gainfrom EBITDAimprovement

EBITDA Index

3752005

2008 850

1002003

EBITDA Index

992005

2007 281

1002003

EBITDA Index

2042005

2008 598

1002003

2008 includes three months of resultsfor Hudson News Group.


10

Focus on Business and Financial Services

The business and financial services sectoroffers a range of attractive businessmodelsand nichemarkets for private equity investment.The global economic downturn is causing profoundchangewithinmanymarkets, whichwill continueto produce opportunities across all Adventinvestment profiles.

Market trendsWe see several key themes in thecurrent environment. In BusinessServices there are attractive pocketsof growth caused by an increasedpropensity for corporates andgovernments to outsource selectbusiness processes to reducecosts. In Financial Servicesmanylarge firms, facedwith capital andregulatory pressures, are divestingnon-core businesses that areinherently under-managed and/orhave significant unrealized growthpotential. In several cases thesedivestitures have the benefitof vendor financing currentlyunavailable in the capital markets.

Advent has a strong track record inthe sector, havingmademore than80 investments in the last 25 years.We have experience across awiderange of sub-sectors, geographiesand transaction types, includingdeep carve-out expertise. Thispositions uswell to work proactivelyand flexibly with corporate sellersin the coming year.

EquinitiEquiniti is the leading provider ofshare registration and employeeshare plan administration servicesin the UK. Originally part of LloydsTSB group, it had a stable cash-generative core platform but limitedpotential for growth and innovation.Having completed a carve-out fromLloyds TSB in 2007, we areworkingwithmanagement and operatingpartners to transition the companyinto amore efficient, broad-basedfinancial services business processoutsourcing provider. Furtherrevenue growth is expectedfrom the continued roll-out ofcomplementary services, add-onacquisitions and internationalexpansion.

Recent investments

Aerodom (2008)

Monext (2008)MontedeMexico(2008)CAMS (2007)Domestic&General (2007)Equiniti (2007)Pronto! (2007)

Recent exits

Gruppo Argenta(2008)

Intercity (2008)LongTermCareGroup (2008)AlexanderMann(2007)

11Advent International Global highlights 2008

12

Our investors

Wedevelop long-termpartnershipswith ourinvestors andwork diligentlywith our portfoliocompanies to drive growth, add value anddeliverattractive returns to our investors. Inmany casesour investors represent pensioners, charitablefoundations anduniversity endowments,which rely on our investment returns fortheir continuedwell-being.

Current investor base

200Over the past 25 years,approximately 300 financialinstitutions, pension fundsand international companieshave invested in our funds.

Capital raised

$24bnSince 1984, we have raised$24bn in capital forinvestment in companiesaround theworld.

A long-term partnershipAdventmanages private equityinvestments on behalf ofmore than200 institutional investors aroundthe globe. These include leadingpublic and corporate pension funds,financial institutions, universitiesand foundations. All are long-terminvestors. A number have investedwith us since our inception.

Current investors by type(By committed capital*)

n Public pension fundsn Funds of fundsn Insurance companiesn Other financial institutionsn Corporate pensionsn Universities, foundations

and family officesn Banks

3535

1714

12

11

9

%

2

Some of our investors supportour portfolio companieswhereappropriate by sharing industryexpertise and contacts, whileothers occasionally provideco-investment to help thebusinesses develop and grow.

Current investors by geography(By committed capital*)

n North American Europen Asia Pacificn Middle East

484838

95

*Source: company information 2009.

%

and best-known private equity firmin the region. We completed fiveinvestments and one exit in 2008.Looking ahead, we are drawing onthe wider knowledge and skillswithin our global network to takeadvantage of the best opportunities.

Asia PacificAdvent has more than 20 yearsof experience in Asia. Japan is theregion’s largest and most developedbuyout market. Having servedJapanese investors for a numberof years, we have raised our firstdedicated fund for direct investmentin Japanese companies. We havealso made our first investment inIndia and expect more to followas the local private equity marketevolves towards later-stageinvestment opportunities.

While these are regional investmentprograms, all of our investmentprofessionals work as a fullyintegrated team around the worldto support our investment programsand assist our portfolio companies.

13

Business review

In these uncertain times our consistent strategy,globally diverse business, significant investmentcapital and proven track record are reasons formeasured confidence. We continue to support ourmanagement teams in the value creation process.We are also well-placed to take advantage of newinvestment opportunities in our markets.

Our strategyWe look for traditional, value-based investment opportunitiesin sectors where we have deepknowledge and experience. Wefind companies with the potentialfor earnings improvements, workwith management teams andoperating partners to makethose improvements in a highlyaccelerated fashion, realize ourinvestments and return moneyto our investors.

We are an active partner who helpscompanies to grow for a futurebeyond our ownership. We aim toleave each portfolio company in astronger strategic and operationalposition as a result of ourinvolvement with them. As muchas possible, we try to time our exitto suit all stakeholders.

Economic cycleIn uncertain times our strategicfocus, geographic diversificationand active operational approachto value creation is a competitive

strength, both for our business andour portfolio companies.

Western Europe and North AmericaWe raised our sixth and largestGPE fund during the year. OurGPE program saw nine investmentsand eight exits overall during 2008.In a more challenging environment,we believe we are entering aperiod of opportunity for ourbusiness, particularly given ourstrong funding position, focuson earnings growth and expertisein strategic repositioning.

Central and Eastern EuropeIn 2008 we sold three companies,made one new investment, onefollow-on and raised our fourthACEE fund. Any new investments willbe driven by long-term fundamentals.We are currently pursuing organicgrowth opportunities.

Latin AmericaWe have continued to expand ourteam of investment professionals tostrengthen our position as the largest


14

Focus on Retail, Consumer and Leisure

The retail, consumer products and leisure sectorsremain core to Advent’s investment strategy,despite the considerable pressure currently beingfelt by the global consumer. Growth opportunitiesthrough operational improvement and repositioninghave become prevalent following years of consumerspending growth, creating significant opportunityfor Advent’s hands-onmodel.

Advent International Global highlights 2008 15

Market trendsAll consumer-related businesseshave seen quantumshifts incustomer behavior over the last12months,with clear evidence of aflight to seek value formoney. Thishas beenmost acute in the shiftto the discount sector, butmorewidespread trading downhas alsobeenoccurring. Lack of credit and anuncertain jobmarket have causedconsumers to return to amindsetof thrift. They are cutting backondiscretionary spending, savingmoney and spending less on credit.During this period, however, we haveseen continueddevelopment ofstrong, differentiated concepts,category killers taking advantageofweak competition aswell asthe development of online as asignificant channel.

Advent’s extensive experience inthese sectors allowsus to recognizebusinesses that havea strongbrandormarket position, buthave lost theirwayand requirerepositioning.Therewill alsobe

opportunities to continue tobackleading, differentiated concepts thatwill comeout of the current downturnin a strongermarket position, andhave significant growthpotential.

Parques ReunidosParquesReunidos is oneof Europe’sleading leisureparkoperators.Whenwe invested in2003, inSpain’s firstprivate-equity backedpublic-to-privatedeal,weacquiredanunder-valued, opportunity-constrainedbusiness in anout-of-favor sector inneedof consolidation.Over thenextthree years our acquisition strategybroadenedanddiversified theparkportfolio across geographies andleisure categories. Aparallel programof operational improvementsoptimizedparkperformance. By2006 revenueshaddoubledandParquesReunidoshadbeentransformed into abest-in-classEuropeanentertainment platform.The companywasacquiredbyCandover in 2007 in a transactionsubsequently namedEuropeanDealof theYear byBuyoutsmagazine.

Recent investments

Airport Shoppes(2008)

Amscan/Party City(2008)

Frango Assado (2008)

Gérard Darel (2008)HudsonNewsGroup (2008)

Quero-Quero (2008)

Gayosso (2007)

Stokomani (2007)Takko (2007)

Viena (2007)

Recent exits

lululemon athletica(partial 2008)

Arabela (2007)

Fat Face (2007)

Parques Reunidos(2007)


16

Portfolio highlights

Regional and sector examplesof howAdvent creates value.

Europe

OpportunityDomestic &General is one of theUK’s leading specialist providersof extendedwarranty plans fordomestic electrical goods. In theUK, the company hasmultipleopportunities to increase sales byattracting newbuyers of insurableproducts and bymaintaining astrong renewal base. Europe,Australia and Asia offer scopefor international expansion as themarket for extendedwarrantiesis significantly under-developed.

Operational focusHaving strengthened themanagement teamand board,we implemented a 100-day plan toincrease revenue and profitabilityin the existing business. Improved

data gathering has expanded thepotential customer base.We havealso focused on improving customerconversion and retention ratios. Thecontinued drive to increase directdebit penetration is resulting instrong growth in renewal contracts.Improved pricing strategies havecontributed to revenue andoperatingmargin expansion.

OutcomeExclusive relationshipswith 19 outof 20 of the largestmanufacturersof white and brown goods giveDomestic &General a direct channelto newmarkets as a provider ofmanufacturer-brandedwarrantyplans. The company has begunthe first phase of the internationalrollout of its business.

Location:UKSector: Financial ServicesInvestment profile:International expansionInvestment date:December 2007

North America

OpportunityLongTermCareGroup is amarketleader in outsourced services for thelong-term-care insurance industry,amarketwith significant growthpotential due to an aging population,rising healthcare costs and lowpenetration relative to otherinsurance products.

Operational focusWe introduced a newmanagementteam to drive performanceimprovements and build the valueof the business. This was achievedthrough: investment in customerservice; the acquisition andintegration of Nation’s CareLink;

implementation of best-in-classprocesses and expansion intogeriatric caremanagement.

OutcomeDuring Advent’s investment,LongTermCare Group doubled thepercentage of in-force policies itadministered, increased claimsundermanagement nearly eightfoldandmore than tripled its workforce.The companywas sold to GenstarCapital in December 2008 despitedifficult market conditions andremains a robust and profitablegrowth platform in a rapidlyexpandingmarket that will benefitfrom long-term demographictrends and developments inthe insurance industry.

Location:USSector:Business and Financial ServicesInvestment profile:High growthInvestment date:April 2004Exit date:December 2008

EBITDA Index

1002004

2008 171

EBITDA Index

1002003

2008 261

17

Central and Eastern Europe

OpportunityKamax of Poland and KeystoneBahntechnik in Germanywereunder-performing local championsin themanufacture of shockabsorbers for the rail industry– a sector with strong underlyinggrowth potential and high barriersto entry.

Operational focusWe performed a simultaneousbuyout andmerger of the twocompanies to create Axtone.Wecreated value by developing a newmanagement structure that achievedcost savings in production andadministration;merger synergiesin research and development, sales,

manufacturing and purchasing; anewpricing strategy; newproductsto drive growth inWestern Europe;expansion into China, Russia andthe Ukraine; andmarket entry inIndia andTurkey.

OutcomeOur strategy increased EBITDAsubstantially in two years. Axtone isnowamarket leader in Europe andAsia. It is in an excellent position tocontinue its international growth, asenvironmental concerns drive freightfrom road to rail and new regulationsdrive investment in rolling stock.Advent realized its investment byselling the company to IK InvestmentPartners inOctober 2008.

Location:PolandSector: IndustrialInvestment profile:International expansionand strategic repositioningInvestment date: January 2006Exit date:October 2008

Latin America

OpportunityAirports is a core sector for Adventin Latin America. The sector isunderdeveloped and continuedlong-term growth is expected indomestic and international airtravel.We have created LAAH toconsolidate a number of our airportinvestments in the region. Theseinclude Aerodom,which operatessix airports in the DominicanRepublic, and Fumisa, whichoperates certain areas of Terminal 1atMexico City International Airport.

Operational focusWe are creating value by:diversifying contract and countryrisks; introducing commonmanagement systems and

processes; rationalizing the costbase; transferring proven strategiesand sharing best practices acrossthe company; building strongerrelationshipswith larger, moreprofitable tenants; and pursuingfurther acquisitions of airport assetsin Latin America.

OutcomeLAAHprovides a platform for theacquisition of additional airportassets in the region and leadershipin the sector. The company is well-positioned to take advantage of thestrong interest in airports and otherLatin American infrastructure assetsfrom trade buyers and regionaland international infrastructureinvestors.

Location:DominicanRepublicandMexicoSector:Business ServicesInvestment profile:International expansionInvestment date: September 2008

For a complete list of Advent’s investments, please visit our website at www.adventinternational.com

EBITDA Index

1002006

2008 211

EBITDA Index

2008 100

2008 is the first year of this investment.


18

Focus onTechnology,Media andTelecoms

In the Technology,Media andTelecoms (TMT)sector, new technology development is continuallyopening up opportunities for companies toexpand their product offering, find new channelstomarket and challenge established servicemodels.Many sub-sectors are fragmentedandwill benefit from consolidation.

Recent investments

Sophis (2007)

Recent exits

Hildebrando (2008)

Venere.com (2008)

Market trendsChange is constant in the sectordue to the pace and influence oftechnology innovation. Technologycompanies are exploiting thisdynamismby developing newproducts and service offerings.Traditionalmediamodels inparticular are being disrupted bythe Internet and new channels tothe consumer. Telecoms businesseshave responded by focusing onhigh-growth emergingmarketsanddivestingnon-coreassets.

The highmargins and strong cashflows of TMT companiesmean thatthe sector has long been of interestto Advent. In today’s challengingeconomic climate, we see attractiveinvestment opportunities insoftware leaders addressingfavorable endmarkets.We arealso targeting high-growthmediacompanies and sustainablemodelsin the pay TV, information anddata analytics fields.

SportfiveSportfive is a leading player insports rightsmanagement. Afteracquiring the company in 2004, wefocused on strengthening its sectorleadership, broadening the sportsandmarketing rights portfolio andextending its geographic footprint.Securing the broadcasting rights tothe UEFA 2008 football tournamentin 2005 elevated Sportfive to thetop tier of the international sportsrights field. The acquisition of a UKsports rights company provided vitalexposure to English Premier Leaguefootball. Lagardère’s acquisition ofSportfive in 2006 brought togethertwo strategically complementarybusinesses to create a new forcein international sportsmedia.

19Advent International Global highlights 2008

20

Corporate responsibility

As a business owner and partner, we aim tomake a constructive contribution to our portfoliocompanies and leave them strongly positionedfor the future. As an employer, we seek to offerour people satisfying and rewarding careers.

Our valuesCommonvalues shape thedistinctivecultureof our organization.Trust andrespect are its cornerstones.

Webelieve that it is our responsibilityas apartnership tobeaccountablefor thebusiness as awhole andwework together and shareresponsibility as one team. Allmajor decisions are based onanalytical study, open discussionsand consensus conclusions.We uphold the highest ethicalstandards in our business dealings.

We try to keep success and failurein perspective and recognize thatthere is alwaysmore to do andmoreto learn.We have built a reputationfor fairness,honestyandpartnershipwith a strong sense of our historyand tradition, yet we are alsoprogressive and innovative.

By adhering to these valuesindividually and collectively, wehavewon the respect and long-term

partnership ofmany of themostprestigiousorganizations in theworld.

Our responsibilitiesWe take our fiduciary dutiesseriously and aim to act responsiblyin everything that we do.We striveto complywith all of the laws,regulations and guidelines thatapply to our activities at all times.We emphasize good governanceand expect our portfolio companiesto adopt appropriate practices.

Transparency and disclosureAdvent is following the guidelineson transparency and disclosure forprivate equity firms produced bytheWalkerWorking Group in theUK and the BVK Large Buy-OutGroup in Germany.

For additional disclosures oninvestment activities in the UKandGermany that fall withinthese guidelines, please go towww.adventinternational.co.ukandwww.adventinternational.derespectively.

We also provide information totrade associations to assist themin analyzing the economic roleand contribution of the privateequity industry.

Our investors haveaccess todetailedand timely confidential informationaboutour fundsandtheir investmentsthroughapassword-protectedwebsite.Wealsohold anannualinvestors’conferenceduringwhichwediscussour portfolio companiesin depth.

Conflicts of interestAspart of our overall riskmanagement and complianceframework, Advent has establishedprocedures tomonitor and resolveconflicts of interest thatmayarise.

21

The partnership

Advent ismanaged and runday-to-day by its partners.

Our partners* Eric AdjoubelAlfredo AlfaroLuiz Antonio AlvesRonald AylesErnest BachrachBruce BarclayHumphrey BattcockJames BrocklebankPeter BrookeLuis CamilleriJaime Carvajal UrquijoSteven CollinsGuillaumeDarbonFrancesco deGiglioFilippo deVecchiJuan Díaz-Laviada

Martín EscobariPatrice EtlinTim FranksJanet HennessyStephenHoffmeisterRalf HuepJoanna JamesJan JanshenRichard KaneTom LauerDavidMcKennaHiroshiMatsumotoMonikaMorali-EfinowiczChrisMruckDavidMussaferChris Pike

EmmaPopa-RaduRory PopeWill SchmidtRanjan SenDiego SerebriskyRon SheldonJohn SingerLuis SolórzanoPascal StefaniGeorg StratenwerthSteve TadlerBobTaylorJuan Carlos TorresFredWakemanJuan Pablo Zucchini

The partnershipAdvent ismanaged globally byits partners within an integrated,collaborative culture. The partnersmeet regularly, both regionally andglobally, to review and implementour strategy. Their frequentinteraction – and collectiveaccountability – supports globalteamwork and the consistentapplication of policies, processesand best practice across the firm.

How we are organizedAdvent International Corporation(AIC) is a US company, regulatedby the US Securities and ExchangeCommission.

AIC is a fundmanager; all otherAdvent offices around theworldact as advisors to AIC and haveseveral different ownershipstructures. They provide adviceand recommendations to AICregarding the acquisition anddisposal of portfolio companies.

AIC raises capital commitmentsprivately fromqualified investorsglobally and places them in closed-end funds. Each closed-end fundis a limited partnership, in whichinvestors are limited partners.

Most funds have a life cycle of10 years. Typically, investmentsaremade in the first five yearsand proceeds fromdivestments arereturned to investors throughoutthe life of the fund. AIC receives anannual fee formanaging the fundand a share of any profit.

*For further informationon our partners, please visitwww.adventinternational.com


22

Focus onHealthcare

Demographic and social trendsmake thehealthcare sector an attractive growthmarket.This is especially true in theWesternworld, wherean ever-increasing proportion of income is likelyto be spent on private healthcare in the future.

23

Market trendsPressure on government healthcareexpenditure is driving demand forcontinuing efficiencies in healthcareprovision. This is positive for privatesector companies that can offer aclear value proposition, such asmanufacturers and distributorsof generic drugs, providers ofminimally invasive surgery,providers of diagnostic servicesand long-term care services.

Advent has been investing in thehealthcare sector for 21 years andhas completed 30 investmentsworldwide to date.We focus ouractivity on businesses involvedin pharmaceuticals, life sciences,medical equipment and healthcareservices.

Casa RehaCasa Reha is a German provider ofhigh-quality, affordable residentialprivate nursing care. After acquiringthe company in 2005, weimplemented an acceleratedexpansion program that saw thecompany become the fastest-growing private nursing homegroup in Germany.Within two yearsthrough acquisitions, the numberof nursing homes had doubled andannual revenue had tripled. CasaReha is well-positioned to benefitfrom continued strong demandfor nursing care in Germanyand to create value from furtherconsolidation opportunities.Wesold themajority of our investmentin January 2008 but still retaina significantminority holding.

Recent investments

Casa Reha(reinvestment 2008)

CraegmoorHealthcare (2008)

LaborMed (2008)

Recent exits

AmericanRadiologyServices (2008)Casa Reha (2008)

LongTermCareGroup (2008)

Advent International Global highlights 2008Advent International Global highlights 2008

24

Contacts

NORTHAMERICA

BostonAdvent International Corporation75 State StreetBoston,MA 02109Tel: +1 617 951 9400

LATIN AMERICA

Buenos AiresAdvent Argentina srlAv. del Libertador 498 Floor 13 NC1001ABRBuenos AiresArgentinaTel: +54 11 5077 8900

Mexico CityAdvent International CorporationEdificio OmegaCampos Eliseos 345 – 7° pisoCol. Polanco11560México, D.F.Tel: +52 55 5281 0303

São PauloAdvent do Brasil Consultoria eParticipações Ltda.Av. Brig. Faria Lima 331104538-132 São Paulo, SPBrazilTel: +55 11 3014 6800

WESTERNEUROPE

AmsterdamAdvent International BVStrawinskylaan 31451077 ZX AmsterdamNetherlandsTel: +31 (0)20 301 2530

FrankfurtAdvent International GmbHWesthafenplatz 160327 Frankfurt amMainGermanyTel: +49 (0) 69 955 2700

LondonAdvent International plc111 BuckinghamPalace RoadLondon SW1W0SREnglandTel: +44 (0) 20 7333 0800

MadridAdvent International Advisory S.L.Serrano, nº 57 - 2º28006MadridSpainTel: +34 91 745 48 60

Milan*Advent International S.r.l.ViaMarina, 620121MilanItalyTel: +39 02 771 2981

ParisAdvent International S.A.R.L.8-10 rue Lamennais75008 ParisFranceTel: +33 (0) 1 55 37 29 00

CENTRALEUROPE

Bucharest*Advent International Romania SRL7Maresal Pilsudski StreetSector 1BucharestRomaniaTel: +40 21 211 16 02

KievAdvent International Ukraine LLCLeonardo-2 Business Center19-21 B.Khmelnytskoho StreetKiev 01030UkraineTel: +38 044 220 40 10

PragueAdvent International s.r.o.PalladiumNa Porici 3a110 00 Prague 1Czech RepublicTel: +420 234 749 750

WarsawAdvent International Sp. z o.o.Warsaw Financial Centerul. Emilii Plater 5300-113WarsawPolandTel: +48 22 627 5141

ASIA PACIFIC

TokyoAdvent International Co. Ltd.MidtownTower 23F9-7-1, Akasaka,Minato-kuTokyo 107-6223JapanTel: +81 3 6406 4800

All non-US offices act as advisors toAdvent International Corporation.

*Moving location in 2009.

www.adventinternational.com

private equity advent international 2008 global highlights

Documents