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Private Equity Presentation - FEI Canada

Private Equity Presentation Prepared for the 2012 Private Equity Symposium April 10, 2012 [2] Confidential Presentation prepared by Caledon Capital Management for the 2010 Private Equity Symposium Where does Private Equity fit in an institution s asset allocation mix? Sources of capital to fund Real Asset investments include: Pension funds, endowments and foundations Governments and financial institutions High net-worth individuals and family offices Introduction Private Equity Private Equity Asset Allocation Mix Fixed Income Public Equities Alternative Assets Real Estate Traditional asset classes Absolute Return Strategies Infrastructure Buy out Venture Capital Distressed Growth [3] Confidential Presentation prepared by Caledon Capital Management for the 2010 Private Equity Symposium Why Private Equity ?

Confidential presentation prepared by Caledon Capital Management for the 2010 Private Equity Symposium [2] Where does Private Equity fit in an institution’s asset allocation mix? Sources of capital to fund Real Asset investments include: – Pension funds, endowments and foundations – Governments and financial institutions

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Transcription of Private Equity Presentation - FEI Canada

1 Private Equity Presentation Prepared for the 2012 Private Equity Symposium April 10, 2012 [2] Confidential Presentation prepared by Caledon Capital Management for the 2010 Private Equity Symposium Where does Private Equity fit in an institution s asset allocation mix? Sources of capital to fund Real Asset investments include: Pension funds, endowments and foundations Governments and financial institutions High net-worth individuals and family offices Introduction Private Equity Private Equity Asset Allocation Mix Fixed Income Public Equities Alternative Assets Real Estate Traditional asset classes Absolute Return Strategies Infrastructure Buy out Venture Capital Distressed Growth [3] Confidential Presentation prepared by Caledon Capital Management for the 2010 Private Equity Symposium Why Private Equity ?

2 [4] Confidential Presentation prepared by Caledon Capital Management for the 2010 Private Equity Symposium Significant opportunity exists in Private Equity Key rationale Enhanced returns relative to more traditional asset classes Diversification benefits and complementary to existing investment portfolio Longer term investments, relatively sheltered from public market volatility and short-term behaviour Historically more moderate correlation with traditional asset classes (other than 2008) Large, global opportunity set exists in PE, with significant opportunities created by the current market environment (distressed, turnaround, ) [5] Confidential Presentation prepared by Caledon Capital Management for the 2010 Private Equity Symposium Review of Implementation Models [6] Confidential Presentation prepared by Caledon Capital Management for the 2010 Private Equity Symposium Alternative implementation models for institutional investors to access PE Three models for institutional investors to access PE Note: Diagram for illustrative purposes and not intended to be exhaustive.

3 Institutional investor FoF Asset Managers PE Funds Companies & Assets 1. Fund of Funds (FoFs) Institutional investor PE Funds Companies & Assets ** Co-investment with Fund partners or other plans ** 2. Funds (& Co-investments) Institutional investor Companies & Assets 3. Directs Lead/co-lead


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