PRIVATE EQUITY & VENTURE CAPITALSPOTLIGHT

1 FIRST-TIME FUND MANAGERSF irst-time PRIVATE EQUITY fund managers secured $26bn in capital commitments across 226 funds in 2017. We examine fundraising and performance trends for fi rst-time funds as well as investor appetite for these out more on page 8 VOLUME 14, ISSUE 2 FEBRUARY Credit Intelligence European and US Fund Services Awards: Best Data and Information Provider | Africa Global Funds Awards 2016: Best Research and Data Provider | The Queen s Award for Enterprise: International Trade | HedgeWeek Global Awards: Best Global Hedge Fund Research Provider | CAIA Corporate Recognition AwardIN THIS ISSUEPRIVATE EQUITY FUNDRAISING IN 2017.

2 A GLOBAL STORYIn 2017, 921 PRIVATE EQUITY funds reached a fi nal close, securing just over $453bn, the largest amount of capital raised in any year. In this feature we examine the PRIVATE EQUITY industry s year of out more on page 3 SIGN UPSign up to Spotlight, our free monthly newsletter, providing insights into performance, investors, deals and fundraising, powered by Preqin data:All data in this newsletter can be downloaded to Excel for freePRIVATE EQUITY & VENTURE CAPITALSPOTLIGHTFEATURE PRIVATE EQUITY Fundraising in 2017: A Global Story3 FEATUREF irst-Time Fund Managers8 INDUSTRY NEWS11 THE FACTS Consistent Performing Fund Managers Largest FundManagers Largest Investors PerformanceBenchmarks13151618 CONFERENCES19 JUST RELEASED.

3 2018 PREQIN GLOBAL PRIVATE EQUITY & VENTURE capital REPORT2018 PREQIN GLOBALPRIVATE EQUITY & VENTURE CAPITALREPORTISBN: 978-1-912116-05-8$175 / 125 / Your CopyDownload Sample PagesREALISE THE POTENTIAL OF PRIVATE EQUITY IN CHINA7 - 9 May 2018 The Four Seasons Hotel, Spotlight reader,We are very pleased to off er a 10% discount to Spotlight readers for registrations to SuperReturn China in Beijing on 7 9 May China brings together the leading lights of the Chinese PRIVATE EQUITY world including: 300+ global PRIVATE EQUITY professionals 150+ local and international LPs 100+ world leading GPsElevate your fundraising processFollowing a highly successful edition in 2017, we re bringing back the Fundraising & LP/GP Relations Summit for 2018 and making it bigger and better than ever before: More LP-led sessions.

4 More opportunity to be involved in the debate. A more valuable hope to see you there!Kindest regardsMark O HareManaging Director, PreqinFor all bookings & enquiries, please contact the SuperReturn China Team Quote VIP: FKR2452 PRQS for your 10% discountTel: +44 (0)20 3377 3279 Email: g Preqin Ltd. 2018 / EQUITY & VENTURE capital Spotlight | February 2018 PRIVATE EQUITY FUNDRAISING IN 2017: A GLOBAL STORYS ource: Preqin PRIVATE EQUITY Online8%16%15%11%14%12%8%6%6%3%35%46%38% 29%29%28%24%22%21%17%20%21%19%26%26%23%2 6%26%27%29%23%11%15%21%21%23%23%23%28%29 %13%5%13%13%11%14%20%22%18%21%0%10%20%30 %40%50%60%70%80%90%100%2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Less than 50%50-99%100%101-124%125% or MoreFig.

5 2: PRIVATE EQUITY Funds Closed by Proportion of Target Size Achieved, 2008 - 2017 Proportion of Funds ClosedIn 2017, 921 PRIVATE EQUITY funds reached a fi nal close, securing just over $453bn, the largest amount of capital raised in any year (Fig. 1). This marks the second consecutive year in which annual fundraising has surpassed $400bn, a landmark that has only been achieved once previously in 2007/2008. Although 26% fewer funds closed in comparison to 2016, $39bn more capital was raised by PRIVATE EQUITY funds closed in 2017 and this fi gure will increase as more data becomes available. The positive net distributions that LPs have received since 2011 have driven the stellar fundraising activity seen in recent years.

6 The latest data shows that, while positive net distributions continue, momentum does appear to be slowing: LPs received $66bn in net distributions in H1 2017, compared to $149bn over the whole of 2016. Nonetheless, the results of Preqin s interviews with investors in December 2017 show that 63% of LPs have a positive perception of PRIVATE EQUITY , and 53% plan to increase their allocation to PRIVATE EQUITY in the longer term. As a result, LP capital is likely to continue to fl ow back into the asset class as LPs strive to maintain their allocations. capital CONCENTRATIONOf the $453bn raised in 2017, 28% ($125bn) was secured by the 10 largest funds closed, and the 20 largest funds accounted for 42% of all PRIVATE EQUITY capital raised, nine percentage points higher compared to 2016.

7 There were a number of high-profi le mega fund (funds >$ ) closures in 2017, including Apollo Investment Fund IX on $ , the largest fund ever to reach a fi nal close. With greater capital concentration seen in recent years, the average size of PRIVATE EQUITY funds has grown from $384mn in 2016 to $535mn in SUCCESS AND TIME ON THE ROADEven though fewer funds closed in 2017 than in 2016, a larger proportion of funds met or exceeded their original fundraising target, illustrative of the current LP liquidity caused by recent positive net distributions. Half of funds closed in 2017 exceeded their target, with 21% achieving 125% or more of their fundraising goal (Fig.)

8 2). As market conditions have improved, the proportion of funds that fell short of their target has fallen steadily from 53% in 2010 down to just 20% in 2017. On average, funds closed in 2017 PRIVATE EQUITY FUNDRAISING IN 2017: A GLOBAL STORYWe examine the record-breaking PRIVATE EQUITY fundraising market in 2017, including analysis of fundraising success, time spent on the road and regional fundraising of Final Close18%9%10%22%15%14%25%26%25%30%21%16% 16%27%19%13%19%17%21%20%30%33%17%14%22%1 7%14%16%15%17%18%22%25%14%19%26%20%18%15 %18%8%14%20%11%13%16%14%13%15%8%3%6%9%9% 9%10%7%7%7%6%1%3%1%3%3%2%4%3%0%10%20%30% 40%50%60%70%80%90%100%200820092010201120 1220132014201520162017 More than 36 Months31-36 Months25-30 Months19-24 Months13-18 Months7-12 Months6 Months or LessSource: Preqin PRIVATE EQUITY OnlineFig.

9 3: Time Spent on the Road by PRIVATE EQUITY Funds Closed, 2008 - 2017 Proportion of Funds ClosedFig. 1: Annual Global PRIVATE EQUITY Fundraising, 2008 - 20171,0577658771,0231,0061,0751,2011,188 1,24392140721317822623431635934441445302 004006008001,0001,2001,40020082009201020 11201220132014201520162017No. of Funds ClosedAggregate capital Raised ($bn)Source: Preqin PRIVATE EQUITY OnlineYear of Final CloseYear of Final Close120%82%88%95%90%94%101%104%104%107% Average Proportion of Target Size Achieved Preqin Ltd. 2018 / EQUITY & VENTURE capital Spotlight | February 2018 PRIVATE EQUITY FUNDRAISING IN 2017: A GLOBAL STORY43226928929837544154950359947126518 9160178166195218200219188255240346455369 3383473783251911056782929610187107100710 2004006008001,0001,2001,4002008200920102 011201220132014201520162017 Rest of WorldAsiaEuropeNorth AmericaSource: Preqin PRIVATE EQUITY OnlineFig.

10 5: Number of PRIVATE EQUITY Funds Closed by Primary Geographic Focus, 2008 - 2017No. of Funds Closedreached a final close in months, a further illustration of current LP liquidity. Additionally, the proportion of funds that took one year or less to achieve a final close reached an all-time high of 50% in 2017 (Fig. 3). NORTH AMERICAN FUNDRAISINGN orth America-focused PRIVATE EQUITY funds secured a new 10-year fundraising high in 2017 with $272bn in aggregate capital raised (Fig. 4). This represented a 23% increase in total capital raised from 2016, and the region accounted for a 60% share of all PRIVATE EQUITY capital secured in 2017, a 13-year high.