Private Equity Market Update - CAIA

1 Private Equity Market UpdateJoseph Borda, CAIA Senior VP, Research & Data Operations4/15/212 BangaloreSingaporeManilaHong Kong Guangzhou ChicagoSan FranciscoTokyoNew YorkSydneyLondonFrankfurtDubaiAbout PreqinData, solutions, and insights for alternative assets in s AgendaPrivate Equity in 2020 How did the industry fair in 2020?Opportunities & Investor Appetite in 2021 Where are Investors planning to allocate capital in H1 2021 & beyond?The Future of Alternatives 2025 Outlook and Projections4 Private Equity OverviewAUM, Dry Powder, Fundraising & Deal Volume5 Private Capital AUM Continues to Climb01,0002,0003,0004,0005,0006,0007,00 08,0009,000 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Sep-20 Assets under Management ($bn)

2 Private Capital Assets under Management by Asset Class, 2000 -Q3 2020 Private EquityReal EstatePrivate DebtInfrastructureNatural +93%6 Private Equity AUM Doubling Since 20157521,5911,6333,45901,0002,0003,0004, 0005,0006,000 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Sep-20 Assets under Management ($bn) Private Equity Assets under Management, 2000 -Q3 2020 Dry Powder ($bn)Unrealized Value ($bn)7 AUM Increase Driven by North America & Asia-Focused Vehicles01,0002,0003,0004,0005,0006,000 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Sep-20 Assets under Management ($bn)

3 Private Equity Assets under Management by Primary Geographic Focus, 2000 -Q3 2020 North AmericaEuropeAsiaRest of World8 Asia-Focused AUM Experiences Exponential Growth Since 20153884686398801,1631, Private Equity Assets Under Management, 2000 Q3 20209 Driven by Investor & Fund Manager Demand & Opportunities10%7%23%4%8%55%25%37%8%24%7 %23%17%11%38%35%50%6%0%10%20%30%40%50%60 %South AmericaCentral AmericaCentral & EasternEuropeAfricaMiddle EastChinaIndiaSoutheast AsiaOther EmergingMarketsProportion of RespondentsEmerging Markets that Will Present the Best Opportunities in 2021: Investors vs.

4 Fund ManagersInvestorsFund ManagersSource:Preqin Investor and Fund Manager Surveys, November 202010 Buyout & Venture Vehicles Account for +76% Market Share2,4851,36181938501,0002,0003,0004,0 005,0006,000 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Sep-20 Assets under Management ($bn) Private Equity Assets under Management by Strategy, 2000 -Q3 2020 BuyoutVenture CapitalGrowthPE Other11 Decrease in Funds Closed by ~20% Compared to ,0001,5002,0002,5003,0002001200220032004 2005200620072008200920102011201220132014 2015201620172018201920202021 YTDA ggregate Capital Raised ($bn)No.

5 Funds ClosedYear of Final CloseGlobal Private Equity Fundraising, 2001 -2021 YTDNo. of Funds ClosedAggregate Capital Raised ($bn)12 North America & Asia-Focused Funds Saw the largest Decreases05001,0001,5002,0002,5003,0003, 5002001200220032004200520062007200820092 0102011201220132014201520162017201820192 0202021 YTDNo. Funds ClosedYear of Final ClosePrivate Equity Funds Closed by Primary Geographic Focus, 2001 -2021 YTDN orth AmericaEuropeAsiaRest of World13 Capital Continues to Flow to Top Tier Managers & Funds7%7%6%5%6%6%5%4%4%3%3%29%24%21%22%2 4%21%21%19%17%16%13%21%20%15%17%15%17%15 %14%12%15%13%23%22%20%22%21%16%21%19%20% 25%31%20%27%38%33%34%40%37%43%48%42%41%0 %10%20%30%40%50%60%70%80%90%100%20112012 201320142015201620172018201920202021 YTDLess than $100mn$100-499mn$500-999mn$ $ +Source.

6 Preqin ProPercentage of Aggregate Capital Raised by Fund Size, 2011 2021 YTD14 Highest Average Proportion of Target Size Achieved at 105%30%29%29%24%23%22%21%24%20%16%25%25% 23%25%27%29%30%36%38%45%22%22%22%23%22%2 5%25%21%22%21%13%11%14%19%20%16%18%14%17 %15%0%10%20%30%40%50%60%70%80%90%100%201 1201220132014201520162017201820192020 Proportion of Funds ClosedYear of Final ClosePrivate Equity Funds Closed by Proportion of Target Size Achieved, 2011 -2020 Less than 50%50-99%100%101-124%125% or More102%100%103%105%80%85%90%95%100%105% 110%024681012141618202011201220132014201 520162017201820192020 Average Proportion of Target Size AchievedAverage Time Spent in Market (Months)Year of Final ClosePrivate Equity Fundraising Success, 2011 -2020 Average Time Spent in Market (Months)Average Proportion of Target Size Achieved15 Private Equity -Backed Deals010020030040050060001,0002,0003,000 4,0005,0006,0007,0008,000201120122013201 42015201620172018201920202021 YTDA ggregate Deal Value ($bn) No.

7 Of Deals Global Private Equity -Backed Deals, 2011 -2021 YTDNo. of DealsAggregate Deal Value ($bn)Source: Preqin Pro16 Private Equity -Backed Deals by Sector0100200300400500600201120122013201 4201520162017201820192020 Aggregate Deal Value ($bn)Aggregate Value of Private Equity -Backed Deals by Industry, 2011 -2020 Business ServicesConsumer DiscretionaryEnergy & UtilitiesFinancial & Insurance ServicesHealthcareIndustrialsInformation TechnologyRaw Materials & Natural ResourcesReal EstateTelecoms & MediaSource: Preqin Pro17 Opportunities & Investor Appetite18 Record Number of Funds in Market4,62789805001,0001,5002,0002,5003, 0003,5004,0004,5005,000 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-202021 YTDP rivate Equity Funds in Market , 2012 -2021No.

8 Of Funds RaisingAggregate Capital Targeted ($bn)Source: Preqin Pro19 North America + Asia Account for ~74% by Aggregate Target Size 0501001502002503003500500100015002000250 03000 BuyoutVentureCapitalGrowthPE Fund ofFundsPESecondariesTurnaroundPE OtherPrivate Equity Funds in Market by Primary Strategy, Q1 2021No. of FundsAggregate Target Size ($bn)05010015020025030035040045005001000 1500200025003000 North AmericaEuropeAsiaRest of WorldPrivate Equity Funds in Market by Primary Geographic Focus, Q1 2021No. of FundsAggregate Target Size ($bn)20 Secondaries Fundraising Skyrocketed in 2020010203040506070800102030405060200020 0120022003200420052006200720082009201020 11201220132014201520162017201820192020 Aggregate Capital Raised ($bn)No.

9 Of Funds ClosedYear of Final CloseGlobal Private Equity Secondaries Fundraising, 2000 -2020 No. of Funds ClosedAggregate Capital Raised ($bn)Source:Preqin Pro21 Secondaries Net IRRs vs. Standard Private Equity Strategies0%5%10%15%20%25%20002001200220 0320042005200620072008200920102011201220 132014201520162017 Median Net IRR since InceptionVintage YearMedian Net IRRs by Vintage Year: Private Equity Secondaries vs. All Private Equity Private Equity SecondariesAll Private Equity22 Investors Seek Exposure to Private Equity for Diversification & High Absolute Returns 0%10%20%30%40%50%60%70%80%Diversificatio nHigh Risk-AdjustedReturnsHigh Absolute ReturnsLow Correlation to OtherAsset ClassesInflation HedgeReliable Income StreamReduce Portfolio VolatilityPrivate EquityPrivate DebtHedge FundsReal EstateInfrastructureNatural Resources0%2%4%6%8%10%12%14%16%18%20%0%5 %10%15%20%Risk -Standard Deviation Net IRRR eturn -Median Net IRRP rivate Capital.

10 Risk/Return by Asset Class (Vintages 2008-2017)*InfrastructureNatural ResourcesPrivate DebtPrivate EquityReal Estate23 Median Net IRRs by Fund Type0%5%10%15%20%25%20082009201020112012 20132014201520162017 Median Net IRR since InceptionVintage YearPrivate Equity : Median Net IRRs by Fund Type and Vintage YearBuyoutVenture CapitalGrowthFund of FundsSecondariesSource: Preqin Pro. Most Up-to-Date Data24 Investors Remain Confident & Optimistic 37%34%48%51%46%52%48%51%53%42%34%34%39%3 5%0%10%20%30%40%50%60%70%80%90%100%Priva te EquityVenture CapitalPrivate DebtHedge FundsReal EstateInfrastructureNatural ResourcesProportion of RespondentsInvestor Expectation for Alternative Assets Performance in the Next 12 Months Compared to the Previous 12 MonthsWill Perform About the SameWill Perform BetterWill Perform WorseSource.