A THOROUGH UNDERSTANDING OF PRIVATE EQUITY

1.1 1.2 1.3 2.1 2.2 3.1 3.2 4.2 4.1 4.4 4.3

INDEX OF FIGURES

FIGURE

TITLE

PAGE

1 2 3

Private equity and companies’ lifecycles

10 10 15

Major events in the history of private equity (1950-2009)

Investors’ cash flows and returns generated by private equity investments

4

Performance calculation and waterfall

16

5 6 7 8 9

Illustration of direct investment

18 18 20 21 24 25 26 27 28 28 29 31 32 32 33 34 35 36 41 43 44 46

Illustration of the interposition of an SPV for tax purposes Global private equity secondary market (2003-H1 2009) Comparison of private equity funds versus traditional funds Evolution of distressed private equity fund raising (1992-2008)

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Private equity real estate funds on the road over time worldwide (2005-2009)

Main sectors targeted by private equity infrastructure

Number and value of funds in the market by strategy as at Q3 2009 Number and value of funds in the market by region as at Q3 2009

Capital commitments to US private equity funds and number of funds (1980-2008) Venture capital investments in 2008 by industry sector in the United States Private equity investments as a percentage of GDP per country in Europe, 2008

Breakdown of funds raised by type of investors in Europe, 2008 Private equity fund raising and investments in Europe

Emerging markets private equity global fund raising and investment (2001-H1 2009) Emerging markets fund raising and investment, breakdown by country (2007-H1 2009)

Main players of a typical private equity fund

Profile of investors depending on the business stage of development Main private equity fund structures across the European Union

Examples of securitisation structures

Comparison of the Luxembourg private equity structures Comparison of the French private equity structures

Evolution of the assets and the number of FCPR (including FCPI and FIP) in France (1990-2008) 47

Evolution of QIFs Net Asset Value and number of funds (2002-H1 2009)

48 49

Main characteristics of Irish private equity vehicles

30

Main features of the US Limited Partnership

50

31

Evolution of capital under management and number of US venture capital funds (1980-2008) 50

32

NAV of private equity funds in Guernsey in £ million (2002-2008)

53

33

Illustration of investment scheme structure

55

34

Illustration of an arrangement optimising the investment structure with the investors’ domiciliation 56

35

Illustration of an arrangement with a feeder fund

56

36

Illustration of an arrangement based on the limited partnership model

57

37

Typical lifecycle of a private equity fund

59

38

Investment process into private equity assets

61

39

Illustration of fund summary and current portfolio summary reporting

66

A thorough understanding of PE | page 7