1. Private Equity Update An overview of the latest trends using Preqin’s most up-to-date data Christopher Elvin, Head of Private Equity Products, Preqin

2. Areas of Focus How has the private equity industry evolved?  Assets under management  Fundraising  Deals & exits  The limited partner universe Why has private equity grown? Outlook

3. How has the private equity industry evolved?

4. Private Capital AUM has grown to $4.2tn

5. …Spread across Range of Different Strategies

6. Over 7,400 firms actively managing private capital funds

7. Annual Private Capital Fundraising 2000– 2015

8. More capital, fewer funds

9. PE Buyout Deals

10. Buyout Deal Activity by Industry

11. Buyout Exits by Type

12. 6,200+ active LPs Globally

13. Shifts within the Limited Partner Universe

14. Rise in Allocations

15. Why has the private equity industry grown?

16. Top Down: Pension Fund Returns PE outperforms over 5 and 10 years

17. Bottom-up: ‘Performance Analyst’ Fund Returns

18. PrEQIn Index – PE Returns in an Index Form

19. Public Market Equivalent (PME) Comparison

20. Record LP Distributions Distributions exceeding capital calls

21. Outlook

22. LP Satisfaction

23. LPs increasing allocations

24. Challenges

25. GPs looking to deploy more capital

26. 2016 Private Capital Funds in Market – 2,650 funds targeting $940bn

27. Key Takeaways The model is working and as a result the industry has grown significantly to $4.2 trillion in AUM globally Been driven by good long-term returns, leading LPs to allocate increasing amounts of capital Distributions driving fundraising – record numbers of funds in market but LPs are investing more money with fewer managers Entry prices for assets remains the primary concern amongst GPs - current market conditions easier to be a seller than a buyer.

28. THANK YOU! The charts and data used in this presentation are taken from Preqin’s range of online databases and research reports – if you would like to learn more please email info@preqin.com info@preqin.com