By the numbers - PEI Media

may 2010 private equity international page 57
By the numbers
How the PEI 300 firms relate to each other, to last year’s list and to the
broader deal economy
Capital stack
The PEI 300 five-year fundraising bar chart
#1
#10
#20
#30
#40
#50
#60
#70
#80
#90
#100
#110
#120
#130
#140
#150
#160
#170
#180
#190
#200
#210
#220
#230
#240
#250
#260
#270
#280
#290
#300
$0
$10 $20 $30 $40 $50 $60
Capital raised over last five years ($bn)
Source: Private Equity International

page 58 private equity international may 2010
Top 50 vs. next 250
From 1 January 2005 to 22 April 2010, the largest 50 firms
In the world raised 42 percent more equity capital than the
next 250 firms. In the previous period, the proportion was
55 percent
Slowing at the top
Fundraising fell among the top 50 firms after blockbuster
years in the five-year windows ending April 2008 and
2009. The largest fund that closed in the past year was
First Reserve XII on $9 billion
Five-year fundraising total ($bn)
$1,000
$800
$600
$400
$200
$772
$813
$543
$524
2010
2009
Five-year fundraising total ($bn)
$1,000
$800
$600
$400
$200
$551
$810 $813
$772
$0
PEI 50
Next 250
0
PEI 50
2007
PEI 50
2008
PEI 50
2009
PEI 50
2010
Source: Private Equity International
Source: Private Equity $78.1 International
$62.5
$38.6
Capital centers
It comes as no surprise that the greatest amount of capital was raised by big firms in New York. Two of the 10 largest centers
of private equity capital now lie in Asia
Five-year fundraising total ($bn)
$500
$400
$300
$200
4100
$0
$448.8
Greater
New
York
$191.9
London
$134.8
Greater
Boston
$85.9
Greater
San
Francisco
$78.1
Texas
$62.5 $38.6 $28.9 $19.2
Greater Los Paris Hong
DC Angeles
Kong
$bn
# of firms
$13.8
Beijing
80
70
60
50
40
30
20
10
0
# of firms
Source: Private Equity International

may 2010 private equity international page 59
Improving performance, widening spreads
According to State Street Private Equity Index, a recovery in the global markets in the past year has led to better IRRs for
private equity firms, but largely only for the PEI 50. Interestingly, the spreads among the largest 50 firms and the rest of the
pack is widening, led most starkly by venture capital and non-US firms. The PEI 50 IRR is based on the pooled long-term
average performance of the top 50 firms in this year’s rankings, according to State Street Private Equity Index; the PEI 300 IRR
is based on the pooled long-term average performance of all firms in this year’s PEI 300 rankings, and the SSPEI IRR is based
on the pooled long-term average performance of the more-than 1600 private equity funds tracked by State Street.
(2009 performance in parenthesis)
PEI 50 IRR (vs 2009) PEI 300 IRR (vs 2009) SSPEI IRR (vs 2009)
Pooled IRR 13.91% (13.45%) 13.23% (13.38%) 10.03% (12.92%)
By investment focus
Buyout 13.34% (13.50%) 12.75% (13.29%) 10.27% (13.38%)
Venture capital 20.45% (14.13%) 17.58% (12.87%) 9.05% (12.01%)
Mezzanine and others 9.62% (12.69%) 10.89% (13.55%) 9.69% (10.60%)
By investment origin
US 13.43% (13.36%) 13.02% (13.31%) 9.95% (12.47%)
Non-US 16.29% (15.67%) 14.29% (15.48%) 10.40% (15.61%)
Notes: Based on data on private equity funds, including fully liquidated partnerships, formed between 1990 and Q3 2009. Data for 2009 is based on funds formed between
1990 and Q3 2008. Pooled IRR is net of fees and carried interest.
Source: State Street Private Edge
Two years of climbing
These top 50 firms have advanced in our rankings for
two consecutive years
General Atlantic
Clayton, Dubilier & Rice
Charterhouse Capital Partners
Thomas H. Lee Partners
Out of the top 50
These firms appeared in last year’s top 50 but not in
this year’s top 50
American Capital
Lehman Brothers Merchant Banking
Candover
Kelso & Company
MatlinPatterson Global Advisors
Big drops
These top 50 firms have fallen at least 10 spots in our
rankings from the previous year
3i
Silver Lake
PAI Partners
EQT Partners
Onex Partners
New entrants
These firms made it to the top 50 for the first time this year
TA Associates
HarbourVest Partners
Lone Star Funds
Oak Hill Capital Partners
Doughty Hanson

page 60 private equity international may 2010
Deal activity crawls
Deal activity among the PEI 300 has slowed considerably since onset of the financial crisis.
PEI 300 deal volume ($bn)
$800
$700
$600
$500
$400
$300
$200
$100
$0
10.5%
13.9%
75.6%
5.4%
10.3%
84.3%
5.9%
12.1%
81.9%
3.6%
13.8%
82.6%
2005 2006 2007 2008 2009 2010YTD
M&A
12.7%
32.8%
54.5%
Debt
IPO
13.6%
26.6%
59.8%
Notes: M&A excludes real estate and infrastructure deals. IPO excludes follow-on offerings.
Source: Dealogic
Fees equally apportioned
Thus far in 2010, equal amounts of fees were paid to investment banks by the top 300 for M&A, debt and
IPO advisory services
$6
24.4%
M&A Debt IPO
$5
28.4
PEI 300 deal volume ($bn)
$4
$3
$2
32.8%
18.1%
49.1%
24.2%
47.4%
16.1%
59.5%
8.7%
4.1%
87.2%
28.4%
$1
$0
25.9%
45.7%
2005 2006 2007 2008 2009 2010YTD
33.6%
31.2%
35.2%
Notes: M&A excludes real estate and infrastructure deals. IPO excludes follow-on offerings.
Source: Dealogic

may 2010 private equity international page 61
Pe Vs. the rest: M&A
According to Dealogic, the largest 50 and 300 firms spoke for 7.7 percent and 9.4 percent, respectively, of global M&A o
ver the past five year window
$bn
20
15
10
5
0
$bn
(# of deals)
(1,848)
$1.37
PEI 50
(4,994) (11,335)
$1.67
PEI 300
$1.94
All PE
(200,172)
$17.76
All M&A
250,000
200,000
150,000
100,000
50,000
0
# of deals
Notes: Excludes real estate and infrastructure deals.
Source: Dealogic
Pe Vs. the rest: Debt
At their peak, the 50 largest firms only issued 1.23 percent
of all debt, in 2007. The proportion has more than halved
to 0.54 percent so far this year
PeVs. the rest: IPOs
The top 50 firms have sponsored 10.9 percent of all IPO
activity in the five year window ending April 2010. Activity
was slowest in 2008, with 5.3 percent
$bn
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
$bn
(# of deals)
(411)
$244.9
PEI 50
(616)
$280.6
PEI 300
(754)
$313.8
All PE
(112,698)
$31,974.7
All debt
120
100
80
60
40
20
0
# of deals (thousands)
$bn
1,000
800
600
400
200
0
$bn
(# of deals)
(267)
$106.9
PEI 50
(465)
$142.8
PEI 300
(720)
$174.5
All PE
(6,695)
$982.4
All IPO
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
# of deals
Notes: Excludes real estate and infrastructure deals.
Source: Dealogic
Notes: Excludes real estate and infrastructure deals.
Source: Dealogic
1.19
Where they’re based
$1.39 Firms headquartered $1.37 $1.37 in North America continue to
dominate private equity. This year’s ranking shows more
Asian firms in the top 300, growing from 8 percent last
year to 11 percent this year
How they spent it
Telecom, healthcare and computers & electronics continue
to be the top industries for PEI 300 firms in the five year
window in $bn
Latin America 3%
MENA 6%
Africa 2%
Transportation
$72.4
Real Estate/Property
$81.9
Telecommunications
$187.3
Asia 11%
Dining & Lodging
$90.4
Europe
ex-UK 10%
UK
11%
North America
64%
Professional Services
$101.1
Utility & Energy
$121.9
Healthcare
$148.7
Computers & Electronics
$140.6
Retail
$122.5
Finance
$126.1
Source: Private Equity International