1. ACTU Brett Himbury, CEO, IFM June 2011

2. Page 2 What is Private Equity?  Private equity is a model of ownership for investors based on specific investment strategies and contractual agreements between fund managers and investors  Usually not quoted or quoted companies with the purpose of delisting  Stage of development varies from very young companies to more mature businesses. Private equity fund managers will create a portfolio by making a number of investments  Usually made with one of two objectives in mind:  Develop innovative portfolio companies with high growth potential; or  Increase the value of portfolio companies, through growth strategies actively monitoring the decisions taken by the management and establishing clear lines of responsibility and corresponding incentives  Investments are long term  “True Private Equity” IFM’s definition  SME’s of below $500 million Enterprise Value  Businesses with the potential to grow and build value  Businesses in need of transformation  Long term, building better companies, delivering returns well in excess of listed market returns

3. Page 3 Private Equity Performance US Buyout Net Performance relative to Public Market Benchmark As at December 2010 for vintage years 1984 – 2005 Average net performance is 1.20x the listed benchmark 2.4x 2.7x 1.3x 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Large BuyoutSmall BuyoutVenture Capital Australian Buyouts have delivered >2x Multiple of Capital return, and >25% IRR Australian Private Equity Performance by Realised Investment (IFM Aggregate Performance 1998 to 2010, Gross Multiple Return on Capital Invested) $100m EV or greater$100m EV or less

4. Page 4 Impact of Private Equity Growth in employment under private equity ownership vs comparable benchmarks Sources: Shapiro and Pham (2008), BVCA/IE Consulting (2007), AIFI/PwC (2008), ASCRI (2009), AVCAL analysis Australian Private Equity Companies are major employers – eg.  Rebel Sports  JB Hi-FI  Hoyts  Bras & Things  Kathmandu  etc