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Economics and Business Exchange Supported by Deloitte.

Economics and Business Exchange Supported by Deloitte. Future Trends in Private Equity Jim Sloane, Deloitte. We believe that private equity’s greatest growth is yet to come Apax Partners, April 2006. Stimuli. Risks. Low interest rates Stable regulatory environment

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Economics and Business Exchange Supported by Deloitte.

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  1. Economics and Business ExchangeSupported by Deloitte.

  2. Future Trends in Private Equity Jim Sloane, Deloitte

  3. Webelieve that private equity’s greatestgrowth is yet to come Apax Partners, April 2006

  4. Stimuli Risks Low interest rates Stable regulatory environment Liberal policies towards Private enterprise Entrepreneurship New markets Delisting Strong debt market • Debt Market • Interest rates • Corporate collapse • Economies slow down • Exit values plunge • Overpriced assets Webelieve that private equity’s greatest growth is yet to come Apax Partners, April 2006

  5. Fund Sizes • 8/9 funds in excess of $8 billion • Blackstone - $15 billion • Permira - $12 billion • 3 or 4 year duration • No issues raising funds

  6. Webelieve that private equity’s greatest growth is yet to come Apax Partners, April 2006 Barbarian at the gates Financial Engineering& Arbitrage Disposals Active Ownership(Jack WelchLou Gerstner Lord Hollick Vivek Paul Millard Drexler)

  7. Disposals Active Ownership Barbarian at the gates Financial Engineering& Arbitrage • Public companies delisting • Ownership • Power to restructure • New management • Reward • Leverage full debt capacity • Talent flow • Increasing financial scale • FTSE 100 companies as targets

  8. Club deals ACTIVE OWNERSHIP Management Teams Maturity ofthe business Scale Opportunity Strategic Buyers Returns from going private Owners as supervisors and managers

  9. Opportunistic Strategy, Vision, Mission V. • Growth • Capital already invested • Exploit new opportunities • Agents for change • Buy, Build, Improve, Grow • Low hanging fruit taken

  10. Implications • Increasingly important part of the economy • Stimulus for growth? • Private ownership delivers more? • Risk of tackling operational issues • Succession planning • Continual flow of M&A activity (all sizes)

  11. Economics and Business ExchangeSupported by Deloitte.

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