Copyright © 2005 Dow Jones & Company, Inc. All Rights Reserved | Moderator: David M. Toll,...

Copyright © 2005 Dow Jones & Company, Inc. All Rights Reserved | www.dowjones.com

Moderator: David M. Toll, managing editor, Private Equity Analyst, LBO Wire

Experts: Wanching Ang, managing director, Allianz Private Equity

Stefan Hepp, founding partner, CEO, SCM Strategic Management AG

Philippe Poggioli, partner, Access Capital Partners

Charles Soulignac, chairman, CEO, Fondinvest

Stuart Waugh, managing director, TD Capital

Where LPs Are Placing Their Bets In Europe, Around the World


$0$20,000$40,000$60,000$80,000

$100,000$120,000$140,000$160,000$180,000

1993 1995 1997 1999 2001 2003 2005(E)

Other

Venture

Buyout

Source: Private Equity Analyst

Rise, Fall and Rise Again of U.S. Fund-raising ($M)$177,600

$84,700


Buyouts/Corporate Finance $17.9B +193%

Venture Capital $4.9B +50%

Mezzanine $.921B +11%

Fund of Funds $2.5B -21%

Other Private Equity $.150B -74%

------------------------------------------------------------------------------------

Total $26.4B +90%

2005 Sees Continued Rebound in U.S. Fund-raising

Private Equity Analyst 2005 Projections: $70B LBO, $15B Venture


Biggest Concern LPs have with GP Behavior?

1) Not sticking to investment strategy2) Raising too much money3) Lack of communication after fund-

raising is over4) Lack of transparency, consistency in

presenting return data

Audience Poll


Public Pensions 32.1%

Funds of Funds/Advisors 12.1%

Endowments/Foundations 9.5%

Corporate Pensions 9.5%

Wealthy Investors/GPs 10.6%

Banks/Financial Svcs. 13.4%

Insurance Cos. 5.7%

Family Offices 1.2%

Union Pensions 1.3%

Corporation 0.7%

Where The Money Comes From

Public pension funds 32.1%

Funds of Funds/Advisors 12.1%Corporate Pensions 9.5%

Endows/Founds 9.5%

Banks/Financial Svs. 13.4%

Wealthy Investors/GPS 10.6%

Source: Private Equity Analyst, survey of U.S. GPs raising $28.3B ’03-’04


Most Important Factor For LPs When Making a Commitment?

1) Team2) Track record3) Investment strategy4) Opportunity to pursue strategy5) Partnership terms and conditions

Audience Poll


LPs’ return target

10 points above bond returns

French institutional investors’ demand: 4% to 5% above public equity as risk premium*

* Source: BIPE/AFIC Study, October 2004

On 8/10 year holding:


European Buyout Funds by Size (in Euro)Formed 1980-2003

Net IRRs to Investors Investment Horizon Return as of 31 Dec 2003

12.2%12.7%9.6%All Buyouts

NA3.8%4.0%1 Billion +

21.8%25.0%25.5%500-1,000 million

17.1%22.8%22.0%250-500 million

11.5%11.0%7.9%0-250 million

20 YR10 YR5 YRFund Size (Euros)

Source: Investment Benchmark 2004 EVCA /Thomson

Attractive European mid-market segment

European Venture Funds by Size (in Euro)Formed 1980-2003

Net IRRs to Investors Investment Horizon Return as of 31 Dec 2003

7.2%8.3%2.3%All Venture

3.3%2.7%-2%250 million +

9.3%12.8%3.3%100-250 million

7.4%7.5%2.1%50-100 million

8%11.8%10.9%0-50 million

20 YR10 YR5 YRFund Size (Euros)


Source: Thomson Venture Economics March 2005

Key to achieve superior return:

Access to the best performing funds

Deep analysis and rigorous selection process

10.3 %

15.8 %

7.4 %

4.0 %

Upper Quartile

23.1 %9.1 %All Private Equity

28.9 %11.4 %Buy-out

18.5 %8.2 %Expansion

0.3 %

Pooled IRR

14.6 %Venture / Early Stage

Top Quarter IRR

Net Investor IRR as of 12/31/2004Funds Formed 1980-2004

Manager Selection Is Critical


Expected Allocation of Funds Raised in 2004Venture

6 % Expansion 19 %

Buy-out 73 %

Other2 %

Source : 2004 Survey of Pan-European Private Equity & Venture Capital Activity (Preliminary Data) / Thomson Venture Economics


Moderator: David M. Toll, managing editor, Private Equity Analyst, LBO Wire

Experts: Wanching Ang, managing director, Allianz Private Equity

Stefan Hepp, founding partner, CEO, SCM Strategic Management AG

Philippe Poggioli, partner, Access Capital Partners

Charles Soulignac, chairman, CEO, Fondinvest

Stuart Waugh, managing director, TD Capital

Where LPs Are Placing Their Bets In Europe, Around the World

Copyright © 2005 Dow Jones & Company, Inc. All Rights Reserved | Moderator: David M. Toll,...

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