2007 European Private Equity Activity Survey

1. PEREP_Analytics™ 2007 European Private Equity Activity Survey

2. Methodology • Data collected via survey questionnaires and reliable public sources (coverage rate by number of players: 60%) • Europe: for deals, it is defined either by the location of PE firm or of target as referenced in the source; for fundraising it covers funds managed from Europe or 100% targeted to Europe; • Fundraising: only formal closings included with committed amount; • Investments: only equity value captured, debt also IF provided by PE funds (bank leverage excluded); • Divestments: measured at amount at cost divested (not proceeds); • Sources: PEREP_Analytics for 2007 figures, Thomson Financial/PwC for previous years data.

3. Evolution Activity Flows Source: PEREP_Analytics for 2007 figuresEurope = location of PE firm

4. 2007 Fundraising – Profile Incremental amount raised for each 2007 closing Source: PEREP_Analytics for 2007 figures

5. 2007 Fundraising – Profile Full amount raised at final 2007 closings Source: PEREP_Analytics

6. 2007 Fundraising – Profile Full amount raised at final 2007 closings Source: PEREP_Analytics

7. Typology of LPs behind the 2007 fundraising Source: PEREP_Analytics for 2007 figures

8. Location of LPs behind 2007 Fundraising 4.3%  North America 26.4%  21.3% 5.5% 5.8% 12.2%  Rest of World 14.3%  0.9%  AustralAsia 9.3% 

9. European investments at €68.3 Billion (Equity only from private equity funds) Source: PEREP_Analytics for 2007 figures

10. Investments by stage of financing INVESTMENTS BY STAGE By amount inv By number inv Growth Rate Amt 2007% 2006 % 2007 % 2006 % 07/06 Mega buyouts 17.7% 26.1% 0.5% 0.4% -31% Large buyouts 20.4% 10.2% 1.0% 0.4% +103% Mid - market buyouts 32.5% 25.9% 7.9% 3.7% +27% Small 6.7% 6.8% 18.6% 18.4% +1% All buyouts 77.3% 68.9% 28.0% 22.8% +11% Replacement capital 5.7% 5.2% 1.8% 3.6% +11% Expansion 12.9% 15.4% 35.6% 41.1% -16% Early stage 4.1% 10.5% 34.6% 32.5% -61% Total in % 100.0% 100.0% 100.0% 100.0% Total in numbers (€ mil) 68,500 67,800 6,160 10,318 Source: PEREP_Analytics for 2007 figures

11. Stage Distribution of InvestmentsAmount Invested Source: PEREP_Analytics for 2007 figures

12. Stage Distribution of InvestmentsNumber of Investments Source: PEREP_Analytics for 2007 figures

13. Industrial SectorsAmount Invested – All Private Equity Source: PEREP_Analytics for 2007 figures

14. Industrial Sectors% of Amount Invested in 2007 – by Segment Source: PEREP_Analytics

15. €23.3 Billion European Divestment at CostAll Private Equity Source: PEREP_Analytics for 2007 figures

16. 2007 European Divestments by Segment Venture Buyouts # of div # of div € 1.4 bn € 6.2 bn 364 226 € 4.0 bn € 0.6 bn 496 278 € 0.5 bn € 3.7 bn 65 265 2007 Top Exit routes: Trade Sale Repayment of principal loans Sale to another PE house Source: PEREP_Analytics

17. Industrial Sectors% of Amount Divested in 2007 – by Segment Source: PEREP_Analytics

18. Divestments by Exit Type Source: PEREP_Analytics for 2007 figures

19. Conclusions • Despite record fundraising in 2006 and difficult market conditions in second half of 2007, appetite of investors towards the asset class remains undeterred as reflected by the 2007 fundraising figures; • What drives private equity deal making is mid-market buyouts by amount invested and expansion deals by number of investments; • Venture backed companies are exited mainly by trade sale, while buyout backed companies are sold mainly to other private equity firms. Main sectors divested are life sciences for venture-backed companies and business and industrial products for buyout backed companies in 2007. www.perepanalytics.eu