Private equity-market-analysis-and-sizing-2012

Private Equity Market Analysis & Sizing 2012

Private Equity Market Analysis & Sizing 2012 1
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High-level overview of the PE industry landscape
Targets
Sec. funds / FoFs
Non-trad. buyers
GPs / PE funds
Buyout
Venture Capital
Mezzanine
Balanced stage
Generalist
Fund of funds
...
PE trans-
actions
Fundraising Second-
aries
1
2
3 5
Fund services
Fund placement agents Fund administrators
7
Associations8Service providers
PE/VC associations
Business angels
associations and networksPR advisors ConsultantsAccountants
6
Source: BCG
Lawyers Financial advisors
LPs / Investors
Pension funds
Insurance firms
Banks
SWFs
Family offices
Endowments
...
Insurance firms
...
Pension funds
4 5
LP interests only
Direct only
LP interests / direct

&
Targets
GPs / PE funds
Buyout
Venture Capital
Mezzanine
Balanced stage
Generalist
Fund of funds
...
2
Service providers
PR advisors ConsultantsAccountants
6
Secondary funds
Non-trad. buyers
Fundraising Second-
aries
3 5
LPs / Investors
Pension funds
Insurance firms
Banks / AMs
SWFs
Family offices
Endowments
...
Insurance firms
...
Pension funds
4 5
LP interests only
Direct only
PE transactions
Fund services
7
Associations8
PE/VC associations
Business angels
associations and networks
Source: BCG
1
PE trans-
actions
1

&
PE transactions: All time high reached in 2007 –
PE activity currently rebounding from low in 2009
1,000
800
600
400
200
0
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
+143%
2011
243
2010
257
2009
100
2008
351
2007
835
2006
441
2005
208
2004
129
2003
60
2002
47
2001
57
1. Only transactions with disclosed deal value considered. In general, Thomson Reuters VentureXpert has no official size limit. The database derives the data from several sources: (1) verified
industry press and press releases, (2) surveys of the industry routinely conducted by Thomson Reuters, and (3) SEC filings as well as other filings that are regularly monitored by Thomson Reuters.
Source: Thomson Reuters VentureXpert, BCG
1
Deal value (in USDbn)1Nr. of deals

&
PE transactions: Next to direct investments, the number of
abandoned transactions is considerably large
2. Refers to all investments in private targets according to Zephyr minus all PE deals listed in Thomson Reuters VentureXpert.
Source: Thomson Reuters VentureXpert, Zephyr, BCG
1
45′000
40′000
35′000
30′000
25′000
20′000
15′000
10′000
5′000
0
20112010200920082007
50′000
No of
transactions
10′952
22′123
10′888
11′178
24′779
10′941
10′816
21′932
8′928
13′343
10′823
19′959
12′704
9′692
22′632
Deals by PE fundsAbandoned deals
(no financing received)
Direct investments
in private firms2
Assumptions on
abandoned deals
Number of completed and abandoned
investments in private targets 2007-2011
49'300
Deal range
% of deals w.
disclosed value
2007-2011
USD 0-0.5m 2%
USD 0.5-2m 4%
USD 2-15m 21%
USD 15-35m 16%
USD >35m 56%
Deal range
% of firms which do
not get financed /
acquired
USD 0-0.5m 90%
USD 0.5-2m 75%
USD 2-15m 60%
USD 15-35m 40%
USD >35m 30%
45'028 39'170 43'636 44'016
Assumptions on share of
disclosed deals

&
PE transactions: Majority of deals made in VC segment –
Buyouts are leading by deal volume
Number of PE transactions by type Deal volume of PE transactions by type
No of deals
14,000
12,000
10,000
0
20112010200920082007
6,000
8,000
Deal volume1 (USDbn)
900
600
300
0
20112010200920082007
Venture Capital
Buyout
Generalist Private Equity
Mezzanine
Other Private Equity
13'343 12'704 8'928 10'888 10'941 835 351 100 257 243
65%
1
60%

&
PE transactions: Deal activity and volume clearly dominated
by developed markets
1
Number of PE transactions
by geography1
Deal volume of PE transactions
by geography1
6,000
9,000
3,000
2011
12,000
0
15,000
201020092007 2008 20082007 20102009 2011
0
200
600
800
400
1,000
Asia AmericasEuropeRoW
13'343 12'704 8'928 10'888 10'941 835 351 100 257 243
No of deals Deal volume2 (USDbn)
1. Geography refers to the location of the target company. 2. Only transactions with disclosed deal value considered. In general, Thomson Reuters VentureXpert has no official size limit. The
database derives the data from several sources: (1) verified industry press and press releases, (2) surveys of the industry routinely conducted by Thomson Reuters, and (3) SEC filings as well as
other filings that are regularly monitored by Thomson Reuters.
85%
84%

&
PE transactions: Similar development across regions –
Europe most volatile
Americas:
Top 5 countries1
9,000
7,500
6,000
4,500
3,000
1,500
0
+20%
-30%
20112010200920082007
No of deals
1. Geography refers to the location of the target firm. 2. Argentina ranked Nr. 6 in 2008 and Nr. 7 in 2010. 3. Spain ranked ranked Nr. 6 in 2007. 4. Hong Kong ranked Nr. 6 in 2008 and 2010. In
general, Thomson Reuters VentureXpert has no official size limit. The database derives the data from several sources: (1) verified industry press and press releases, (2) surveys of the industry
routinely conducted by Thomson Reuters, and (3) SEC filings as well as other filings that are regularly monitored by Thomson Reuters.
United States
Canada
Brazil
Mexico
Argentina2
Other
Europe:
Top 5 countries1
3,500
3,000
2,500
2,000
1,500
1,000
500
0
+33%
-40%
20112010200920082007
No of deals
United Kingdom
France
Germany
Sweden
Spain3
Other
Asia:
Top 5 countries1
2,000
1,500
1,000
500
0
+19%
-35%
20112010200920082007
No of deals
South Korea
China
India
Japan
Hong Kong4
Other
1

&
PE transactions: 76% of all transactions are small- to mid-cap
PE transactions1 2007-2011 by size
7%
7%
60%
0%
20%
2%
80%
25%
51%
21%
100%
59%
16%
40%
USD 201-1000m USD <50m
> USD 1000m USD 50-200m
No of deals Deal volume
76%
9%
76% of all PE transactions conducted
from 2007 to 2011 were smaller than
USD 200m, representing 9% of total
deal volume
1

&
PE transactions (<USD 200m): VC in Americas represents the
biggest market
Overview of PE deals up to USD 200m, 2007-2011
(based on cumulative number of deals)
60%
80%
100%
40%
20%
0%
100%80%60%40%20%0%
Americas
Europe
Asia
RoW
Other
PE
Mezz-
anine
Generalist
PE
BuyoutVenture Capital
In general, Thomson Reuters VentureXpert has no official size limit. The database derives the data from several sources: (1) verified industry press and press releases, (2) surveys of the industry
routinely conducted by Thomson Reuters, and (3) SEC filings as well as other filings that are regularly monitored by Thomson Reuters.
1
64% 20% 11% 2% 3%
2%
13%
23%
62%

&
PE transactions (<USD 200m): Buyouts in Americas
dominate deal volume
Overview of PE deals up to USD 200m, 2007-2011
(based on cumulative deal volume1 in USDbn)
100%
80%
100%
20%
80%60%
40%
20%0%
Americas
Europe
Asia
RoW
40%
Mezz-
anine
Generalist
PE
BuyoutVenture Capital
0%
60%
Other
PE
1
24% 54% 15% 3% 4%
5%
15%
31%
49%

&
Sec. funds / FoFs
Non-trad. buyers
Fundraising Second-
aries
3 5
LPs / Investors
Pension funds
Insurance firms
Banks
SWFs
Family offices
Endowments
...
Insurance firms
...
Pension funds
4 5
LP interests only
Direct only
Targets PE trans-
actions
1
Service providers
6
GPs / PE funds
Fund services
7
Associations8
PE/VC associations
Business angels
Source: BCG
2
GPs / PE funds
Buyout
Venture Capital
Mezzanine
Balanced stage
Generalist
Fund of funds
...
2

&
Active GPs: Majority of GPs are small and mid-cap
GPs by type GPs by fund size1 GPs by geography
n = 2807
1. Total amount of capital committed to latest fund. 2. Venture Capital includes seed, early and later stage funds.
2
No of GPs with at least
1 new fund since 2007
100%
80%
60%
40%
20%
0%
USD 0-100m
USD 101-500m
USD 501m-1bn
>USD 1bn
52%
33%
8%
7%
n = 2807 n = 2807
100%
80%
60%
40%
20%
0%
Americas
Europe
Asia
RoW
54%
21%
19%
6%
100%
80%
60%
40%
20%
0%
Venture Capital2
Buyouts
Balanced Stage
Generalist
Fund of Funds
Mezzanine
Other PE
27%
23%
23%
6%
5%
4%
12%

&
Active GPs (<USD 0.5bn fund size): VC, Balanced stage, and
Buyout most prevalent
Overview of GPs with fund size < USD 0.5bn
(based on number of active GPs, 2007-2011)
60%
40%
20%
0%
100%
100%
60%40%20%0%
Americas
Europe
Asia
80%
Mezz-
anine
FoFsGeneralistBuyoutsBalanced StageVenture Capital1
80%
RoW
1. Venture Capital includes seed, early and later stage funds.
2
29% 25% 20% 6% 5%
4%
24%
21%
51%
4% 11%
Other
PE

&
Sec. funds / FoFs
Non-trad. buyers
Second-
aries
5
LPs / Investors
Pension funds
Insurance firms
Banks
SWFs
Family offices
Endowments
...
Insurance firms
...
Pension funds
4 5
LP interests only
Direct only
Targets
GPs / PE funds
Buyout
Venture Capital
Mezzanine
Balanced stage
Generalist
Fund of funds
...
PE trans-
actions
1
2
Service providers
6
PE fundraising
Fund services
7
Associations8
PE/VC associations
Business angels
Source: BCG
3
Fundraising
3

&
PE fundraising: Still significantly below all time high in 20073
600
500
400
300
200
100
0
No of funds raised
1,400
1,200
1,000
800
600
400
200
0
-52%
2011
255
2010
185
2009
177
2008
514
2007
529
2006
415
2005
Funds raised (in USDbn)
322
2004
148
2003
102
2002
99
2001
184
Funds raised (in USDbn)Nr. of funds raised

&
PE fundraising: Increased activity in small/mid-cap segment
No of funds raised
1,200
1,000
800
600
400
200
0
Balanced stage
Venture Capital2
Buyouts
Fund of Funds
Mezzanine
82
50
54
196
2010
234
223
187
70
55
47
136
231
242
2011
Other PE
Generalist
213
Funds raised by type Funds raised by fund size1 Funds raised by geography
No of funds raised
1,200
1,000
800
600
400
200
0
USD 0-100m
USD 101-500m
USD 501m -1bn
>USD1bn
2011
554
361
79
74
2010
496
301
79
76
No of funds raised
1,200
1,000
800
600
400
200
0
Americas
Europe
Asia
RoW
2011
646
118
283
21
2010
548
147
228
29
952 1068952 1068952 1068
1. Total amount of capital committed to a fund by its LPs and GPs. 2. Venture Capital includes seed, early and later stage funds.
3

&
PE fundraising: USD 255bn funds raised in 20113
300
250
200
150
100
50
Buyouts
Balanced stage
Venture Capital2
Fund of Funds
Mezzanine
Generalist
Other PE
2011
103
33
25
10
10
16
57
2010
56
26
15
13
10
7
58
Funds raised by type Funds raised by size1 Funds raised by geography
300
250
200
150
100
50
0
USD 0-100m
USD 101-500m
USD 501m -1bn
>USD1bn
2011
18
69
45
123
2010
15
47
37
86
300
250
200
150
100
50
0
Americas
Europe
Asia
RoW
2011
152
44
56
3
2010
121
24
36
4
185 255185 255185 255
1. Total amount of capital committed to a fund by its LPs and GPs. 2. Venture Capital includes seed, early and later stage funds.

&
33
FundraisingFundraising
Sec. funds / FoFs
Non-trad. buyers
Second-
aries
5
Insurance firms
...
Pension funds
5
LP interests only
Direct only
Targets
GPs / PE funds
Buyout
Venture Capital
Mezzanine
Balanced stage
Generalist
Fund of funds
...
PE trans-
actions
1
2
Service providers
6
LPs / PE Investors
Fund services
7
Associations8
PE/VC associations
Business angels
Source: BCG
4
LPs / Investors
Pension funds
Insurance firms
Banks
SWFs
Family offices
Endowments
...
4

&
LPs / Investors: Family offices and Endowments with
significant "outstanding dry powder"
1. Data based on a proprietary database of more than 3'000 commitments by LPs to PE built by BCG and IESE in 2009. The database draws from publicly available data on LPs and PE funds, as
well las from commercial databases – including Preqin, Thomson Reuters VentureXpert, Dow Jones Directory of Alternative Investment Programs and Dealogic. In addition, in-depth interviews with
more than 30 LPs and GPs in the US and Europe were conducted. 2. Dry powder is the capital committed by investors into PE funds minus both the capital invested by the firm managing the fund
and the capital investors will not be able to provide.
Note: Fund of funds are not included as LPs because they are intermediaries and not original sources of capital. However they play an important role as distributors of about 10-15% of all LP
commitments to PE funds
Source: BCG-IESE database
4
Main types of investors in PE by outstanding dry powder1
Public
pension
funds
~17%
Insurance
companies
Family offices
and
foundations
~6%
SWFs and
government
agencies
~10%
~16%
Private
pension
funds
~15%
Financial
institutions
100%
Outstanding
dry powder2
0%
100%
20%
60%
Endowments
40%
80%
~6%
~30%
~ USD 500bn
Share of outstanding
dry powder by
PE investors2

&
LPs / Investors: Trend towards direct investments
Direct investments of LPs in private firms1
1. Based on Coller Capital Global Private Equity Barometer 2006, 2007/2008 and 2010. 2. 2010 Survey of 62 families advised by McNally Capital with average AuM of USD 250m.
Source: Coller Capital Global Private Equity Barometer 2006, 2007/2008 and 2010, McNally Capital/New York Times, BCG
Direct investments of LPs in private firms
13%
26%
51%
Survey
2007/2008
10%
9%
23%
59%
Survey
2006
9%
10%
65%
16%
% of surveyed LPs
100%
80%
60%
40%
20%
0%
Yes -
proprietary investing only
Yes -
co-investm. and propr. investing
Yes -
co-investment only
No direct investments
Survey
2010
10%
LP plans for direct investments over next three years
% of surveyed LPs
100%
80%
60%
40%
20%
0%
Increase
direct investments
No change
Decrease
direct investments
Survey
2010
41%
54%
5%
Survey
2007/2008
31%
67%
3%
Survey
2006
25%
72%
3%
Survey of Family Offices2
4
are planning to increase or maintain their direct
investments in private firms over the next two years
of respondents said they were seeking outsized
returns from direct investing
source direct investments primarily from
friends and family
of family offices that responded said they were not
satisfied with the fee structure at private equity finds
prefer to invest in direct deals as opposed to
more traditional private equity funds
83%
67%
63%
> 60%
59%

&
LPs / Investors - Family Offices: SFOs tend to have higher
PE allocation
Source: Wharton Global Family Alliance, IMD/EVCA, BCG
Types of family offices Allocation to Private Equity
Single family office
(SFO)
• Exclusive FO for one family
• Highest form of confidentiality
Multi family office
(MFO)
• Broad service offering
• Cost efficiency through economies of
scale
Virtual family office
(VFO)
• Network of service providers without
physical infrastructure
• Less administration, therefore lower costs
Main areas of services
Investment-
related
services
Administration-
related
services
Family-
related
services
• Asset allocation
• Manager selection
& monitoring
• Education of family
members
• Estate planning
• Risk management/
insurance
• Philanthropy
• Security & concierge
services
• Reporting
• Tax services
• Financial admin
• Legal services
• Banking
• Relation mgmt
12%
13%
EU SFOsUS SFOs
% of assets allocated
to private equity
15%
10%
5%
0%
Worldwide
SFOs
9%
according to
Wharton Global Family
Alliance Survey (2008)
according to
IMD/EVCA
Survey
4

&
LPs / Investors - Family Offices: Broad range of estimates
about existing number of family offices
Family office estimates cited in the press
Source: Barron's, Family Wealth Alliance, Financial Times, Wall Street Journal, Family Office Association / Wharton Global Family Alliance, EVCA/IMD, BCG Global Wealth Market-Sizing Database
"Right now, there are about 3'000 family offices in America."
Barrons (Sep 28, 2009)
"Currently, there are approximately 1'000 single
family offices in the world."
Family Office Association / Wharton Global
Family Alliance (2008)
"There are somewhere between 3'000
and 5'000 family offices in the US."
FT (Jul 31, 2011)
"The universe of US-based Single
Family Offices is estimated at 2'500"
Family Wealth Alliance (2010)
"A more realistic estimate is likely to be
closer to 1,000 [SFOs] just in Europe."
Wall Street Journal (Jun 14, 2010)
"EVCA estimates that
there are around 500
smaller family offices
active in Europe, of
which between 80
and100 can be
considered as large"
European Venture
Capital Association,
IMD (2007)
4
• Term "family office" often used for
single or multi-family offices only or
including all types of family offices
• Research reports are generally
focused on specific geographic
regions
• Inconsistent use of term "family
office" and geographical focus leads
to a wide range of estimates about
number of existing family offices
worldwide
Need for estimation of worldwide number of firms
dedicated to family offices services

&
LPs / Investors - Family Offices: BCG estimates ~7'070 firms
dedicated to family offices service
Potential client universe1 Number of firms dedicated to FO services
~ AuM USD 100m needed to make
direct investments of USD 1m+
No of UHNW households
(> USD 100m AuM)
15’000
10’000
5’000
0
Total
~ 12’300
RoW
~ 1’700
Asia-Pacific
~ 2’000
Americas
~ 3’700
Europe
~ 4’900
• Europe: ~3000 existing firms dedicated to FO services resulting
in a ratio of ~0.6 firms/UHNW household2
• Americas: Family offices originated in the US, i.e. generally
larger penetration assumed (Assumption: 0.7 firms/UHNW
household)
• Asia / RoW3 : Currently underrepresented in terms of firms with
FO services, but strong growth prospects (Assumption: 0.4
firms/UHNW household)
No of firms dedicated
to family office services
2’000
4’000
6’000
8’000
0
Total
~ 7'070
RoW
~ 680'
Asia-Pacific
~ 800
Americas
~ 2'590
Europe
~ 3'000
1. Includes single family offices, multi family offices and other family office service providers (e.g. EAMs). 2. Based on a comprehensive BCG study about European family office services.
3. Citigroup expects the number of family offices in Asia to triple over the next decade.
Source: BCG Global Wealth Market-Sizing Database, Citigroup, BCG
4

&
Corporate M&A: key group within PE, often underestimated
1. Based on Deloitte survey. 2. Based on Orbis - Bureau van Dijk database.
Source: Deloitte – Corporate Development 2010, Orbis - Bureau van Dijk, BCG
4
BCG estimation of number of
corporates with M&A department
Assumptions:
• Number of firms with sales of more than USD 500m
• Firms who conducted at least one M&A deal since 2000
No of corporates2
10’000
8’000
6’000
4’000
2’000
0
TotalAsia-Pacific
~2'500
EMEA
~3'000
Americas
~3'500
Main tasks of corporate M&A dep.
73%
76%
79%
83%
84%
% of surveyed executives who see the primary responsibility
of corporate development teams in the following areas1 :
1. M&A strategy and target
identification
2. Valuation and analytics
3. Leading negotiations
4. Deal pipeline management
5. Financial due dilligence
~ 9'000

&
8
Fundraising
3
LPs / Investors
Pension funds
Insurance firms
Banks
SWFs
Family offices
Endowments
...
4
Targets
GPs / PE funds
Buyout
Venture Capital
Mezzanine
Balanced stage
Generalist
Fund of funds
...
PE trans-
actions
1
2
Service providers
6
Secondaries
Fund services
7
Associations
PE/VC associations
Business angels
Source: BCG
5
Sec. funds / FoFs
Non-trad. buyers
Second-
aries
5
Insurance firms
...
Pension funds
5
LP interests only
Direct only

&
Secondaries: Most secondary deals are LP interest sales
Basic transaction types Secondary deal volume by type
Buyer and seller motivation
• LP sells its interest in a PE
fund or a portfolio of interests
to another investor
• Seller get paid for previously
funded investments and is
released from future capital
calls
Sale of LP interests
• Secondary direct: Refers to
the sale of an entire portfolio of
firms or firm participations by a
GP
• Secondary buyout: GP sells
a single portfolio company to
another private equity fund
Secondary direct/buyout
• Need for liquidity (e.g. unable
to meet capital calls)
• Unsatisfactory performance
of PE funds
• Change in asset allocation
• Regulatory changes
• ...
Seller of LP interests
• Exploit market inefficiencies/
discounted investment opp.
• Invest in an identifiable
portfolio of assets
• Gain access to future funds of
top-performing GPs
• ...
Buyer of LP interests
Source: UBS Private Funds Group estimates, BCG
Est. deal
volume (in USDbn)
20
10
0
5
LP
interests
Directs
2010
15
18
(83%)
4
(17%)
2009
25
8
(85%)
1 (15%)
2008
13
(67%)
7
(33%)
2007
11
(73%)
4
(27%)
15 20 9 22
5
Secondary deal volume dominated by LP interest sales

&
Secondaries: Fundraising stable – USD 26bn dry powder
promises ongoing secondary deal flow
Number of secondary funds raised Dry powder at leading secondary funds
2011
18
0
5
10
20
15
2009
17
20102008
22
14
25
2007
11
2006
14
2005
16
Source: Preqin, BCG
25
7
2005 2006
7
14
2007
14
2011
20
15
10
5
0
10
2010
11
2009
23
2008
Secondary fundraising volume
No of funds raised
stable
stable
Firm Country
Est. dry powder
(in USDbn)
Lexington Partners US 5.1
Goldman Sachs Private Equity US 3.9
Pantheon Ventures UK 3.2
Landmark Partners US 2.5
CS Strategic Partners US 2.2
AlpInvest Partners NL 2.0
Partners Group CH 1.9
Axa Private Equity F 1.9
HarbourVest Partners US 1.9
Coller Capital UK 1.7
Total ~ USD 26bn
Ratio of dry powder at leading secondary funds
to secondary deal volume in 2010 currently ~1.2x
5

&
Secondaries: Pricing improved considerably
Based on the average high bids received for UBS-advised transactions.
Source: UBS Private Funds Group estimates, BCG
5
% discount to
net asset value
50
40
30
20
10
0
Q1 2011
13.1
26.5
3.0
Q4 2010
15.5
21.1
11.7
Q3 2010
17.2
33.9
13.4
Q2 2010
18.0
36.9
18.1
Q1 2010
12.5
30.9
12.1
Q4 2009
36.8
34.0
31.6
All PEVentureBuyout
Pricing of private equity assets1
• Pricing of private equity
assets improved
considerably from
Q4 2009 to Q1 2011
• In Q1 2011, the average
discount to NAV for
private equity assets is at
13.1%
• Discounts for buyout
assets are the lowest
(3% discount to NAV)

&
Relative importance
of the secondary market
Secondaries: Secondary segment still marginal compared to
rest of the PE market and not on top of LP agendas
1. According to Probitas Research LP survey.
Source: Probitas Research - Private Equity Deskbook 2011, BCG
100%
6%
4%
2%
0%
Deal volume
2010
(in USDbn)
~ USD 22bn
(8%)
USD 243bn
(92%)
Funds raised
2011
(in USDbn)
USD 10bn
(4%)
USD 255bn
(96%)
No of funds raised
2011
18
(2%)
1068
(98%)
Share of the secondary market
in % of total PE market
SecondaryRest of PE market
5
Outlook: LP areas of interest
13%
30%
33%
37%
39%
46%
% of LPs who plan to focus most of their attention on
investing in the following areas (up to 5 choices possible)1 :
1. US mid-cap buyouts
2. Growth capital funds
3. US small-cap buyouts
4. EU small-cap buyouts
5. Asia country-focused funds
...
14. Secondary funds

&
Sec. funds / FoFs
Non-trad. buyers
Fundraising Second-
aries
3 5
LPs / Investors
Pension funds
Insurance firms
Banks
SWFs
Family offices
Endowments
...
Insurance firms
...
Pension funds
4 5
LP interests only
Direct only
Targets
GPs / PE funds
Buyout
Venture Capital
Mezzanine
Balanced stage
Generalist
Fund of funds
...
PE trans-
actions
1
2
Service providers
Fund services
7
Associations8
PE/VC associations
Business angels
Source: BCG
6
Service providers
6

&
Summary: ~ 25’000 PE specialists identified across ~4'200
M&A service providers
1’000
2’000
3’000
4’000
5’000
No of firms
0
Total
4’212
Acc-
ountants
256
Cons-
ultants
315
PR
advisors
523
Financial
Advisors
1’289
Law
firms
1’829
Type of service provider
4212 service providers identified1
Service providers involved in
at least one M&A deal since 2009
1. The analysis is based on league table credit of advisors in all M&A transactions recorded in mergermarket since January 2009. mergermarket includes transactions worldwide with at least USD5m
deal value. If the deal value is not disclosed and cannot be confirmed to be greater than or equal to USD 5m, deals are included if the target’s revenue is greater than USD 10m. League table credit is
given to firms advising any of the principals (bidder, target or seller) or the parent companies of the principals on a transaction. Where there is more than one advisor, each is credited with the full deal
value of the transaction.
Source: mergermarket, BCG
11'043
8'803
2'422
1'514
898
Financial advisors
Law firms
Accountants
Consultants
PR advisors
24'680
Total of PE specialists across
service providers
6
PE specialists across service providers

&
Law firm
Deal value
(in EURm)
Nr. of
deals
Countries
w. office
Freshfields Bruckhaus Deringer 460'381 601 15
Linklaters 368'361 587 19
Allen & Overy LLP 241'571 546 26
DLA Piper 57'255 519 30
CMS 57'135 516 29
Clifford Chance LLP 222'898 495 26
Baker & McKenzie 64'322 404 41
Latham & Watkins LLP 185'166 338 13
Jones Day 56'706 331 19
White & Case LLP 85'248 316 25
Average 24
Law firms: ~8'800 PE specialists
Nooflawfirms
2’000
1’500
1’000
500
0
1’829
>100
deals
46
11-100
deals
243
2-10
deals
617
1
deal
923
No of deals advised since 2009
6
Number of deals advised by law firms1 Most active law firms since 2009
Assuming one PE specialist per
country a multiple of
~25 for the most active firms
seems reasonable
Identified
firms
Multiplier
Potential
number of
PE
specialists
x
=
8'803
x
923
1
=
3'085
5
x
=
3'645
15
x
=
=1'150
25
x
=
=+ + +

&
Financial advisor
Deal value
(in EURm)
Nr. of
deals
Countries
w. office
KPMG 44'060 508 152
Rothschild 245'446 498 42
PwC 39'462 459 149
Deloitte 26'401 405 150
Goldman Sachs 549'510 383 31
Morgan Stanley 476'915 378 42
Lazard 227'329 365 27
Credit Suisse 439'148 349 50
UBS Investment Bank 329'863 327 50
Ernst & Young 23'115 301 140
Average 83
Fin. advisors: ~11'000 PE specialists
1’500
Nooffin.advisors
1’000
500
0
1’289
>100
deals
30
11-100
deals
157
2-10
deals
489
1
deal
613
6
Number of deals advised by fin. advisors1 Most active fin. advisors since 2009
seems reasonable
11'043
x
613
1
=
4'890
10
x
=
3'140
20
x
=
=2'400
80
x
=
=+ + +
Identified
firms
Multiplier
Potential
number of
PE
specialists
x
=

&
PR advisor
Deal value
(in EURm)
Nr. of
deals
Countries
w. office
FTI Consulting 223'962 466 24
Brunswick Group 362'094 377 11
Finsbury Group 217'821 274 7
Citigate 53'721 273 30
Maitland 85'591 153 1
Barabino & Partners 36'515 122 4
Tulchan Communications 36'327 96 1
Abernathy MacGregor Group 93'864 91 1
Pelham Bell Pottinger 24'448 88 1
M:Communications 29'442 87 3
Average 8
PR advisors: ~900 PE specialists
600
NoofPRadvisors
400
200
0
523
>100
deals
6
11-100
deals
55
2-10
deals
168
1
deal
294
6
Number of deals advised by PR advisors1 Most active PR advisors since 2009
seems reasonable
898
x
294
1
=
336
2
x
=
220
4
x
=
=48
8
x
=
=+ + +
Identified
firms
Multiplier
Potential
number of
PE
specialists
x
=

&
Consultants
Countries
w. office
McKinsey & Co 55
Boston Consulting Group 42
A.T. Kearney 38
Booz & Company 34
Roland Berger SC 33
Bain & Company 30
Oliver Wyman 25
Arthur D. Little 20
Monitor Group 17
L.E.K. Consulting 14
Average 31
Consultants: ~1'500 PE specialists
400
Noofconsultancyfirms
300
200
100
0
315
>100
deals
0
11-100
deals
19
2-10
deals
72
1
deal
224
6
Number of deals advised by consultants1 Leading consultancy firms2
1. The analysis is based on league table credit of advisers in all M&A transactions recorded in mergermarket since January 2009. mergermarket includes transactions worldwide with at least USD5m
deal value. If the deal value is not disclosed and cannot be confirmed to be greater than or equal to USD 5m, deals are included if the target’s revenue is greater than USD 10m.
seems reasonable
1'514
x
224
1
=
720
10
x
=
570
30
x
=
=0
30
x
=
=+ + +
Identified
firms
Multiplier
Potential
number of
PE
specialists
x
=

&
Accountants
Deal value
(in EURm)
Nr. of
deals
Countries
w. office
Ernst & Young 157'737 774 140
PwC 86'376 498 149
KPMG 113'870 476 152
Deloitte 60'132 413 150
Grant Thornton UK 5'296 158 100
BDO 8'326 152 135
Baker Tilly International 591 35 100
PKF (UK) LLP 298 21 125
Mazars LLP 408 17 67
Accuracy 2'748 14 9
Average 113
Accountants: ~2'400 specialists
300
Noofaccountants
200
100
0
256
>100
deals
6
11-100
deals
9
2-10
deals
59
1
deal
182
6
Number of deals advised by accountants1 Most active accountants since 2009
seems reasonable
2'422
x
182
1
=
590
10
x
=
990
110
x
=
=660
110
x
=
=+ + +
Identified
firms
Multiplier
Potential
number of
PE
specialists
x
=

&
Sec. funds / FoFs
Non-trad. buyers
Fundraising Second-
aries
3 5
LPs / Investors
Pension funds
Insurance firms
Banks
SWFs
Family offices
Endowments
...
Insurance firms
...
Pension funds
4 5
LP interests only
Direct only
Targets
GPs / PE funds
Buyout
Venture Capital
Mezzanine
Balanced stage
Generalist
Fund of funds
...
PE trans-
actions
1
2
Service providers
6
Fund services
Associations8
PE/VC associations
Business angels
Source: BCG
Fund services
7
7

&
Firm
Nr. of funds
placed
(in USDbn)
Agg. capital
placed
(in USDbn)
Park Hill Group 9 22.4
Credit Suisse Private Fund Group 17 11.9
MVision Private Equity Advisers 13 11.1
UBS Investment Bank Private Funds Group 4 7.6
Greenhill Fund Placement Advisory Group 9 6.5
Atlantic-Pacific Capital 6 5.9
Probitas Partners 4 5.1
Campbell Lutyens 3 4.9
Capital and Marketing Group 3 4.9
Lazard Private Fund Advisory Group 7 4.8
PE Placement agents: Usage of placement agents
varies significantly by PE fund type
Main service
Leading placement agents by capital placed
Source: Private Equity International – A guide to fund placement specialists, Preqin, BCG
Usage of placement agents
North America
Asia and RoW Yes (47%)
Yes (42%)
No (53%)
Europe
No (58%)
Yes (48%) No (52%)By
geo-
gra-
phy
Venture
Fund of Funds
Mezzanine
Buyout
Yes (29%) No (71%)
Yes (32%) No (68%)
Yes (50%) No (50%)
Yes (65%) No (35%)
By
fund
type
Fund placement agents specialize in raising capital on
behalf of private equity funds by finding institutional
investor which are willing to invest
PE placement agent universe
~130 placement agents identified
7

&
PE Fund administrators: Fund administrators provide a wide
range of services to PEs
Services offered by PE fund admin.
Exemplary PE fund administrators
Source: Fund administrator websites, Preqin, BCG
Usage of PE fund administrators
PE fund administrator universe
~40 fund administrators identified
North America Yes (30%) No (70%)
Asia and RoW Yes (64%) No (36%)
Europe Yes (66%) No (34%)
By
geo-
gra-
phy
Register and
Transfer Agency
41%
Cash Mgmt and Provi-
sion of Bank Accounts
42%
Tax Services 47%
Corporate Services 58%
Fund Launches/
Fund Establishment
60%
Compliance and
Portfolio Monitoring
61%
NAV Calculation 61% 39%
39%
40%
42%
53%
58%
59%
% of fund administrators offering service
7
Firm Headquarter
Apex Fund Services Bermuda
Augentius Fund Administration UK
Aztec Group Jersey
Banque Privée Edmond de Rothschild Switzerland
BNP Paribas Securities Services France
BNY Mellon US
Caceis Fastnet France
Citco Fund Services Cayman
Citi Fund Services US
Deutsche Bank Alternative Fund Services UK
International Financial Services Mauritius
Ipes UK
JP Morgan Real Estate and PE Services US
Northern Trust US
State Street Global Services US

&
Sec. funds / FoFs
Non-trad. buyers
Fundraising Second-
aries
3 5
LPs / Investors
Pension funds
Insurance firms
Banks
SWFs
Family offices
Endowments
...
Insurance firms
...
Pension funds
4 5
LP interests only
Direct only
Targets
GPs / PE funds
Buyout
Venture Capital
Mezzanine
Balanced stage
Generalist
Fund of funds
...
PE trans-
actions
1
2
Service providers
6
Fund services
7
Associations
Source: BCG
Associations8
PE/VC associations
Business angels
8

&
PE/VC associations: ~ 100 PE/VC associations existing
VC and PE associations fulfill several purposes
Member groups
Maintain dialogue with key stakeholders to effect
changes to the tax and regulatory environment
Representation /
lobbying
Provide opportunities to exchange ideas and increase
cooperation / deal flow between members
Networking
Conduct and publish research on issues important to the
venture and private equity industry
Research
Offer trainings to enhance the professional skills and
expertise of practitioners
Trainings
Establish and maintain best practice ethical and
professional standards
Professional
standards
PE / VC Funds
Typically core members
Investors
Service providers
Typically associate members
8
Number of PE/VC associations
100
80
60
40
20
0
North America
39
Europe
26
Asia-Pacific
18
Africa / ME.
7
Latin A. 4
Intern. 2
Regional
40
National
47
International
9
n = 96 n = 96
No of
associations
by type by region
100
80
60
40
20
0
North America
39
Europe
26
Asia-Pacific
18
Africa / ME.
7
Latin A. 4
Intern. 2
Regional
40
National
47
International
9
n = 96 n = 96
No of
associations
by type by region
Note: Analysis based on information provided by VC/PE associations
Source: Associations, BCG

&
National and International PE/VC associations: Largest
associations focus on developed markets
• The European Venture
Capital Association
(EVCA) represents the
biggest Private Equity
Association with 1200
members
• Five national
associations focusing
on the emerging PE
markets Asia-Pacific,
Latin America and
Africa / Middle East
made it to the Top 20
while the Emerging
Markets Private Equity
Association ranks on
No 8
20 largest national and international PE/VC associations1
Nr. Association Type of Ass. Region Members
1 European Private Equity and Venture Capital Association International Europe 1200
2 National Association of Seed and Venture Funds National North America 850
3 Association Française des Investisseurs en Capital National Europe 470
4 British Private Equity and Venture Capital Association National Europe 450
5 National Venture Capital Association National North America 407
6 Swiss Private Equity & Corporate Finance Association National Europe 349
7 Bundesverband Deutscher Kapitalbeteiligungsgesellschaften National Europe 320
8 Emerging Markets Private Equity Association International International 300
9 Swedish Private Equity & Venture Capital Association National Europe 270
10 Canada's Venture Capital & Private Equity Association National North America 268
11 Institutional Limited Partners Association International International 250
12 Associazione Italiana del Private Equity e Venture Capital National Europe 250
13 Australian Private Equity & Venture Capital Association National Asia-Pacific 231
14 Taiwan Venture Capital Association National Asia-Pacific 228
15 Danish Venture Capital and Private Equity Association National Europe 190
16 Associação Brasileira de Private Equity e Venture Capital National Latin America 170
17 China Venture Capital Association National Asia-Pacific 150
18 Nederlandse Vereniging van Participatiemaatschappijen National Europe 149
19 Asociación Española De Entidades De Capital National Europe 143
20 South African Venture Capital Association National Africa / Middle East 129
1. International and national PE/VC associations considered which provide information on number of members. Members include full and associate members
8

&
National and International PE/VC associations: North
American associations generally larger than their peers
100%
80%
60%
40%
20%
0%
Members
4412 (55%)
973 (12%)
1561 (9%)
340 (4%)
235 (3%)
550 (7%)
Nr. of
Associations
23 (53%)
8 (19%)
4 (9%)
3 (7%)
3 (7%)
2 (5%)
• The 23 identified European associations count 4412
members, representing 55% of all identified members
• The range of European associations is broad: Both,
the smallest association (Slovak Venture Capital
Association, 7 members) and the largest association
(European Venture Capital Association, 1200
members) are European
• Generally, North American associations are the
largest with, on average, 390 members per
associations
100%
80%
60%
40%
20%
0%
4412 (55%)
973 (12%)
1561 (9%)
340 (4%)
235 (3%)
550 (7%)
Nr. of
Associations
23 (53%)
8 (19%)
4 (9%)
3 (7%)
3 (7%)
2 (5%)
Associations and members by
geographic region
n = 44 Σ = 8071
Members/
Association
192
122
390
113
78
275
Ø = 188
Europe
Asia-Pacific
North America
Latin America
Africa/Middle East
International
Associations and members by
geographic region
n = 44 Σ = 8071
Members/
Association
192
122
390
113
78
275
Ø = 188
Europe
Asia-Pacific
North America
Latin America
Africa/Middle East
International
1. International and national PE/VC associations considered which provide information on number of members. Members include full and associate members.
8

&
Business angels associations and networks/groups: Europe
most fragmented
National
22
North America
2
International
4
Europe
16
Latin America
2
Asia-Pacific
4
Africa / ME. 1
Intern. 1
8
16
24
4
28
20
12
0
by type
n = 26 n = 26
No of associations
by region
Business angels associations Business angels networks/groups
500
900
0
200
300
400
RoW
~ 60
100
North America
~ 370
600
800
Europe
~ 400
700
by region
n = ~ 830
No of networks/groups
Source: OECD "Financing high-growth Firms – The role of angel investors", Associations, BCG
Role of business
angels associations:
• Act as umbrella
organisations of
business angel groups
• Raise awareness about
the industry
• Liaise with policy
makers
• Collect data from
member organisations
and conduct research
• Provide a platform for
information sharing
Role of business angels
networks/groups:
• Connect angel investors
willing to invest with
entrepreneurs looking for
capital
• Business Angel Network
do not make any
investments or
investment decisions
• The networks can have a
general or specific
industry focus and are
typically established on a
international, national or
regional level
8

&
Summary: Rough sizing of the PE market
1. Based on a currency rate of CHF/USD 0.91. Based on 2011 Montana Capital Partners estimate.
Source: BCG
No of PE deals: 10'941
No of direct deals: 10'952
No of abandoned d.: 22'123
1
No of GPs / PE funds: 2'8072
No of funds raised: 1'0683
No of family offices: 7'070
No of M&A depart.: 9'000
4
Sec. deal volume: ~CHF 21.8b
No of secondaries: 908
PE specialists fin. adv.: 11'043
PE specialists law firms: 8'803
PE specialists account.: 2'422
PE specialists consult.: 1'514
PE specialists PR advis.: 898
No of fund administrators: 40
No of fund placement ag.: 130
No of VC/PE associations: 96
No of Angel associations: 26
No of Angel groups/netw.: 830
5
6
7
8

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