Private Equity Trends 3Q 2012 Presentation Slide Deck Try the PitchBook Platform: Phone: Consult the Research Team: Phone:

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Source:PitchBook PE Investment Off to a Slow Start in 2012 Number of Deals Closed (orange line) and Total Capital Invested by Year (blue bars)

Source:PitchBook The first half of 2012 got off to a slow start for the PE industry, but 2012 still has time to rebound…

Source:PitchBook A Slowdown in Private Equity Investment was Not Completely Unexpected Number of Deals Closed and Total Capital Invested by Quarter

Source:PitchBook Healthcare and IT Increase Share of Activity Percentage of Deal Volume (count) by Industry * Through 6/30/2012 *

Source:PitchBook B2B Led PE Investment in 1H 2012, Followed by IT and B2C Percentage of Deal Volume (capital) by Industry * Through 6/30/2012 *

Source:PitchBook Middle Market Deals Dominate Market Share Percentage of Deal Volume (capital) by Deal Size Range *Through 6/30/2012 *

Source:PitchBook Let’s take a closer look at the trends in those deals that have closed…

Source:PitchBook Add-ons Continue to Represent About Half of Total Buyout Activity Add-on Deals as Percentage of Buyout Deals *Through 6/30/2012

Source:PitchBook Median Buyout Deal Sizes Decreased in 1H 2012 Median Exit Size ($M) *Through 6/30/2012 *

Source:PitchBook Slide 3 – PE deal flow by year Click to customize chart in PitchBook Slide 5 – PE deal flow by quarter Click to customize chart in PitchBook Slide 6 – PE deal flow (count) by industry by year Click to customize chart in PitchBook Slide 7 – PE deal flow (capital) by industry by year Click to customize chart in PitchBook Slide 8 – PE deal flow (capital) by size bucket Click to customize chart in PitchBook Links for PitchBook Deal Flow Charts PitchBook users can click the links below to load the corresponding chart directly into the PitchBook Platform for further customization How to view in PitchBook: 1) Right click on the link 2) click ‘open hyperlink’ 3) Log-in to PitchBook

Source:PitchBook Exit activity was down slightly in 2Q but is expected to accelerate through the end of the year.

Source:PitchBook 114 Exits in 2Q 2012 on Par with 2011 Average Quarterly PE Exits by Corporate Acquisition, IPO and Secondary Sale

Source:PitchBook Median Exit Size has Dropped 11% since 2010 Median Exit Size ($M) *Through 6/30/2012 *

Source:PitchBook Slide 14 – PE Exits (count) Click to customize chart in PitchBook Slide 15 – PE Median Exit Size Click to customize chart in PitchBook Links for PitchBook ExitCharts PitchBook users can click the links below to load the corresponding chart directly into the PitchBook Platform for further customization How to view in PitchBook: 1) Right click on the link 2) click ‘open hyperlink’ 3) Log-in to PitchBook

Source:PitchBook Despite relatively strong activity, PE exit flow still needs to increase in order to drive down the aging company inventory.

Source:PitchBook PE Exits Should Increase in 2H 2012 with More Than 4,000 Portfolio Companies 3 Years or Older to Exit Number of U.S. Private Equity Company Inventory by Deal Year *Through 6/30/2012

Source:PitchBook PE firms raised $35 billion in 2Q, the second best total in the last three years.

Source:PitchBook U.S. PE Fundraising Increases for First Time in a Year Number of Funds Closed and Total Capital Raised by Quarter

Source:PitchBook Funds $500 Million and Below Represent Over Half of all PE Funds Closed in 2012 Percentage of U.S. P.E. Funds (count) by Fund Size *Through 6/30/2012 *

Source:PitchBook Average Fund Size Continues Recent Upward Trend Average Fund Size ($M) *Through 6/30/2012

Source:PitchBook Time Spent Fundraising Falling in 2012 Average Time to Close U.S. PE Funds *Through 6/30/2012

Source:PitchBook Slide 20 – PE fundraising by quarter Click to customize chart in PitchBook Slide 21 – PE fundraising (count) by size bucket Click to customize chart in PitchBook Links for PitchBook Deal Flow Charts PitchBook users can click the links below to load the corresponding chart directly into the PitchBook Platform for further customization How to view in PitchBook: 1) Right click on the link 2) click ‘open hyperlink’ 3) Log-in to PitchBook

Source:PitchBook Additional Charts

Source:PitchBook The Midwest Leads Q2 PE Deal Flow with 65 Deals Percentage of Deal Volume (count) by Region

Source:PitchBook B2B and B2C Account for 57% of PE Deal Activity Percentage of Deal Volume (count) by Industry

Source:PitchBook Deals Under $250M Account for 83% of Deal Flow Percentage of Deal Volume (count) by Deal Size Range *Through 6/30/2012 *

Source:PitchBook Exit Strategies Stay Consistent with Long Term Averages Percentage of P.E. Exit Volume (count) by Exit Type * *Through 6/30/2012

Source:PitchBook Funds Over $1B Account for Increased Share of Fundraising Percentage of U.S. P.E. Funds (capital) by Fund Size *Through 6/30/2012 *

Source:PitchBook Links for PitchBook Deal Flow Charts PitchBook users can click the links below to load the corresponding chart directly into the PitchBook Platform for further customization Slide 28 – PE deal flow (count) by region Click to customize chart in PitchBook Slide 29 – PE deal flow (count) by industry Click to customize chart in PitchBook Slide 30 – PE deal flow (count) by size bucket Click to customize chart in PitchBook Slide 31 – PE Exits % (count) Click to customize chart in PitchBook Slide 32 – PE fundraising (capital) by size bucket Click to customize chart in PitchBook How to view in PitchBook: 1) Right click on the link 2) click ‘open hyperlink’ 3) Log-in to PitchBook

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