Private Equity Update An overview of the latest trends using Preqin’s most up-to-date data Christopher Elvin, Head of Private Equity Products, Preqin

Areas of Focus How has the private equity industry evolved?  Assets under management  Fundraising  Deals & exits  The limited partner universe Why has private equity grown? Outlook

How has the private equity industry evolved?

Private Capital AUM has grown to $4.2tn

…Spread across Range of Different Strategies

Over 7,400 firms actively managing private capital funds

Annual Private Capital Fundraising 2000– 2015

More capital, fewer funds

PE Buyout Deals

Buyout Deal Activity by Industry

Buyout Exits by Type

6,200+ active LPs Globally

Shifts within the Limited Partner Universe

Rise in Allocations

Why has the private equity industry grown?

Top Down: Pension Fund Returns PE outperforms over 5 and 10 years

Bottom-up: ‘Performance Analyst’ Fund Returns

PrEQIn Index – PE Returns in an Index Form

Public Market Equivalent (PME) Comparison

Record LP Distributions Distributions exceeding capital calls

Outlook

LP Satisfaction

LPs increasing allocations

Challenges

GPs looking to deploy more capital

2016 Private Capital Funds in Market – 2,650 funds targeting $940bn

Key Takeaways The model is working and as a result the industry has grown significantly to $4.2 trillion in AUM globally Been driven by good long-term returns, leading LPs to allocate increasing amounts of capital Distributions driving fundraising – record numbers of funds in market but LPs are investing more money with fewer managers Entry prices for assets remains the primary concern amongst GPs - current market conditions easier to be a seller than a buyer.

THANK YOU! The charts and data used in this presentation are taken from Preqin’s range of online databases and research reports – if you would like to learn more please