1. April 3, 20081 The Private Equity Value Proposition How Real Is It ? Moderator Peter Wolken Vice Chairman, Executive Advisory Board Thunderbird Private Equity Center (TPEC)

2. April 3, 20082 Frog on the Golf Course

3. April 3, 20083 Panelists Jonathan E. Cole, Partner  Edwards Angell Palmer & Dodge LLP Frederic Sicre, Executive Director  Abraaj Capital, LLC John Vester, Partner  Transaction Advisory Services, Ernst & Young

4. April 3, 20084 Jonathan E. Cole, Partner  Edwards Angell Palmer & Dodge LLP  36 years experience  Leveraged buyouts  Emerging technology  Brown University  Harvard Law School

5. April 3, 20085 Frederic Sicre, Executive Director Abraaj Capital, LLC, Dubai, UAE 16 years experience Established World Economic Forum in Africa & Middle East Managing Director of WEF MBA, IMD, Switzerland BS Villanova University Stanford University Fellow

6. April 3, 20086 John Vester, Partner Transaction Advisory Services, Ernst & Young 20 years of experience Now at E & Y on US East Coast Former Head of Corporate Development at Xerox Management Consultant at McKinsey MBA Cornell University MS Electrical Engineering from Yale BS Industrial Engineering, Northwestern

7. April 3, 20087 Topics of Discussion Do VC and PE “Buyout” firms add value to their portfolio companies? To Society? Impact on labor, taxes, corporate governance and innovation Does PE strengthen business?

8. April 3, 20088 Venture Capital Firms VC Firms clearly add value Most of the job creation has been the result of VC funded entrepreneurial start- ups, especially in information technology Over 10 million industrial jobs created in the past 30 years by VC funded start-ups One new job in industry creates another ten in the service sectors, so the vast majority of new jobs are created by VCs.

9. April 3, 20089 Do PE Buyouts add value? The jury is still out on recent mega- buyout deals However, the panelists will support the premise that significant value is being added Over 85% of investment has gone into the buyout sector Returns on buyouts can be much quicker than early-stage VC deals And the risk is much lower when investing in established companies

10. April 3, 200810 Market Cap of Recent US Venture Backed IPO’s VM Ware VMW $ 16.4 Billion ! NetSuite N $ 1.32 Billion Data Domain DDVP $ 1.32 Billion Cavium Networks CAVM $ 675 Million eHealth EHTH $ 551 Million CommVault CVLT $ 469 Million Acme Packet APKT $ 463 Million Mellanox MLNX $ 424 Million DivX DIVX $ 248 Million March 31, 2008

11. April 3, 200811 VM Ware VMW Palo Alto, California firm Started in 1998 CEO is Diane Greene Has 5,000 employees Virtualization Software Market Cap is $ 16 Billion Was $ 40 Billion that at the peak, 3 months after the IPO

12. April 3, 200812 Global IPO Activity at Record High in 2007 Over $ 255 Billion Raised in 1739 IPOs

13. April 3, 200813 European Venture Backed IPOs in 2007 38 firms raised € 894 million Down 49% from 2006 Median amount raised was € 15.8 million Median pre-valuation was € 59 million Median time from initial financing to IPO was 6.9 years

14. April 3, 200814 M & A Activity Robust in 2007 Cisco acquiring again Signal Works $ 14 M Linksys $ 500 M Arroyo Video $ 92 M Actona $ 82 M Reactivity $ 135 M P-Cube $ 200 M Navini Net $ 330 M Securent $ 100 M NetSolve $ 128 M Fine Ground $ 70 M DynamicsSoft $ 55 M IronPort Sys $ 830 M Perfigo $ 74 MMeetinghouse $ 44 M Orative $ 32 M Protego Net $ 65 M Sheer Net $ 97 M Airespace $ 450 M Scientific Atlanta $ 6.9 BTopspin $ 250 M WebEx $ 3.2 B Total, 21 firms $ 13.6 Billion Source: PricewaterhouseCoopers/NVCA Money Tree Report, February 2008

15. April 3, 200815 What This Means So, VC and Buyouts both represent good opportunities if purchased right We have seen the data and both asset classes have outperformed I’ll kick off the discussion with a few questions for the panelists Then we welcome your questions

16. April 3, 200816 Next Steps Please direct your questions to one of the panelists or to the group e mail me if you wish to send questions after the session peterwolken@global.t-bird.edu