Ey Pe Capital Briefing Sept

September 2016
Private Equity Capital Briefing

Monthly insights and intelligence on PE trends
SEC likely to ramp up

PE fees probe
The agency will likely continue to
take a closer look at the industry
fee practices after settlements
The PE Capital Briefing has

been designed to help you
remain current on capital
market trends. It captures key
insights from subject-matter
professionals across EY, and
distils this intelligence into a
succinct and user-friendly
publication.
PE Capital Briefing provides
perspectives on both recent
developments and the longerterm outlook for private
equity (PE) fundraising,
acquisitions, and exits, as well
as trends in global M&A,
cross-border deal flows, IPOs,
and the debt and bond
markets.
Please feel free to reach out

to any of the subject-matter
contacts listed on the reverse
of this document if you wish to
discuss any of the topics
covered.
Contents
Section 1
Private equity: fundraising
Private equity: acquisitions
Private equity: exits
Section 2
M&A
Section 3
IPOs
Section 4
Loans
10
Section 5
Bonds
11
Appendices
Appendix A
PE activity by geography
13
Appendix B
M&A activity monthly flash
22
Appendix C
M&A multiples and bid premium
23
Appendix D
Capital Confidence Barometer
24
1.i. Private equity: fundraising

Executive summary
Buyout fundraising fell 4.4% in August, to US$23.1b versus a year ago. YTD, fundraising trails last years pace by 3.9%.
The average PE fund size in August climbed 17%, to US$747m, from a year ago.
Buyout dry powder ended August at US$536.4b, up 11% from a year earlier, as fundraising stays robust while the pace of new
investment remains muted.
Current state
Fundraising
PE firms raised less capital in August relative to a year ago on fewer

closes, a reflection the strong fundraising environment in recent years
that means a number of firms are not scheduled to start marketing
new investment vehicles. Buyout fundraising in August fell 4.4% to
US$23.1b from a year earlier on 18% fewer funds closed. YTD,
fundraising is down modestly versus last years pace, ending the month
at US$306.2b, 3.9% lower than a year earlier.
PE firms closed funds across a range of strategies in August. The top

10 closes during the period included three buyout funds, two real estate
and two infrastructure funds. A year earlier, 7 of the top 10 investment
vehicles were buyout funds. The latest mix of funds provides an
indication about how PE firms use diverse strategies for investments.
There were just four funds in the August that exceeded US$1b, vs seven
a year earlier. The reduced number of large funds, however, did not hurt
average fund size which rose 17% to US$747m from US$638m last
year.
Two of the largest funds in August included Blackstone Real Estate

Debt Strategies III, which held a final close of US$4.5b. The firm will use
the capital to invest in institutional-grade real estate in North America
and Europe; and Madison Dearborn Capital Partners VII, which hit its
US$4.43b hard cap. The Chicago-based firm will use the fund to invest
in the basic industries, business and government services, consumer,
financial and transaction services, health care, and telecommunications,
media and technology services sectors in North America.
Dry powder
Buyout dry powder remains elevated as PE firms continue to invest

capital at a slower pace than a year ago. The industry ended August
with buyout dry powder up 11% to US$536.4b from US$484.3b a year
earlier. The year-over-year increase is caused by fundraising in August
staying close to year earlier levels, while investment over the same
period remained muted.
Environment and horizon
Environmental, social and governance (ESG) could be increasingly

important for PE fundraising after the California Public Employees
Retirement System made ESG one of its strategic initiatives. The
plans six initiatives are: data and corporate reporting standards; UN PRI
Montreal Pledge company engagement; diversity and inclusion; manager
expectations; sustainable investment research; and private equity fee
and profit sharing transparency. The pension plan said, The strategic
plan serves as the framework by which CalPERS executes its
shareowner proxy voting responsibilities; engages public companies to
achieve long-term, sustainable risk-adjusted returns; and works with
internal and external investment managers to ensure their practices
align with CalPERS Investment Beliefs. Other public pensions may
follow CalPERS, which is the largest pension fund in the U.S.
PE firms may ultimately find Brexit helping fundraising efforts, as
demand from investors may increase despite the referendum result.
While the long-term effects yet to be determined, over the near- and
mid-term, PE firms could see attractive pricing for investments and a
resulting uptick in demand for Europe-focused vehicles. PE firms may
find lower entry points for investments in the U.K. because company
valuations slip as a result of the uncertainty from the vote. In addition,
Brexit could also increase cross border M&A opportunities for PE firms
located in other regions.
The Securities and Exchange Commission is poised to continue its
probe into PE fees; its crackdown on the industry has identified a
number of practices the agency wants to curtail. A common theme in
our recent enforcement actions against private equity firms is their
failure to properly disclose fees and conflicts of interest to fund
investors, SEC Enforcement Division Director Andrew Ceresney said. In
August, the SEC secured a settlements from two firms, including one
that agreed to pay US$52.7m to settle charges over fee practices. The
agency also started a review of another firm to find out if it properly
disclosed accelerated monitoring fees to its investors.
Global PE fundraising by month (in US$b)

Commitments (US$b)
Number of funds
120
$80
$70
100
$60
80
$50
60
$40
$30
40
$20
20
$10
$0
0
Aug
15
Sep
15
Oct
15
Nov
15
Dec
15
Jan
16
Feb
16
Mar
16
Apr
16
May
16
Jun Jul 16 Aug

16
16
Source: Preqin
Top five funds closed in August 2016 (US$b)

Target
(US$m)
Type
Geographic
focus
Real Estate
US
4,000
4,500
Madison Dearborn Capital Buyout

Partners VII
US
3,750
4,430
Bain Capital Distressed &

Special Situations 2016
US
3,000
3,100
T-C US Super Regional Mall Real Estate

Fund
US
NA
1,250
InfraVia III
US
830.38
848.9
Fund name
Blackstone Real Estate
Debt Strategies III
Distressed Debt
Infrastructure
Close
(US$m)
Source: Preqin
Global PE dry powder by region (in US$b)
600
North America
Europe
Asia and Rest of World
500
400
300
200
100
0
03
04
05
06
07
08
09
Source: Preqin YTD through 31 August 2016.
10
11
12
13
14
15
YTD
16
Capital Briefing
1.ii. Private equity: acquisitions

Executive summary
PE acquisitions fell 23% in August, to US$22.3b, from a year earlier, reflecting reduced investment in the UK. However, on a
year-to-date basis, global activity is behind last years pace by just 2.1%, with Americas helping the year-over-year
comparison.
PE investments in the UK for August fell to US$208m from US$3.6b a year earlier on half the volume and effects of Brexit.
The technology sector remains PEs top investment destination so far this 2016.
Current state
PE investment activity in the U.K. continues to feel the effects of

the Brexit vote. PE investments in the U.K. plummeted to US$208m
on just seven deals, versus US$3.6b on 14 transactions a year earlier.
As such, despite improved performance in the Americas and Asia
Pacific, global deal value fell 23% in August, to US$22.3b from a year
earlier. YTD, global PE investments are trailing last years pace by
2.1%, with US$202.8b in announced deals.
Apollo Global Management LLCs latest technology investment
ranks as the largest announced PE investment in August. Apollo
agreed to acquire Rackspace Hosting Inc. in a $4.3 billion deal that
will take the Texas-based provider of cloud-computing services
private. Rackspace CEO Taylor Rhodes expects Apollo will help his
companys strategy as it develops information technology products
and seeks new markets.
Technology remains the top destination of PE investment so far this
year; its share of aggregate PE investment has risen since the end
of last month. The segment accounted for a 26.5% industry share of
the total capital PE has put into play so far this year. Consumer goods
and services and healthcare round out the top three target sectors,
with the former seeing its industry share decline slightly (to 12% from
12.7%). Healthcare saw a bump to 11.5%, from 10.1% at the end of
last month.
PE acquisitions by month (in US$b)

Value (US$b)
$50
Volume
200
$40
150
$30
100
$20
50
$10
$0
0
Aug
15
Sep Oct Nov

15 115 15
Dec
15
Jan
16
Feb
16
Mar
16
Apr
16
May
16
Jun
16
Jul
16
Aug
16
Source: Dealogic
PE acquisitions by sector, YTD 2016 (US$b)

Sector
2016 value
Industry
share (%)
2016 volume
Industry
share (%)
Technology
50.60
26.5%
200
19.7%
Consumer goods
23.01
12.0%
133
13.1%
Health care
Real Estate
Industrials
21.98
15.37
14.91
11.5%
8.0%
7.8%
100
27
89
9.9%
2.7%
8.8%
Utilities
14.09
7.4%
18
1.8%
Financials
Consumer
services
13.52
7.1%
69
6.8%
12.56
6.6%
143
14.1%
Materials
11.94
6.2%
139
13.7%
5.11
4.72
3.52
2.7%
2.5%
1.8%
23
27
45
2.3%
2.7%
4.4%
Optimism remains high that global PE activity will increase, despite

continued concerns about valuations and the environment making it
harder to find attractive investment opportunities. Preqins recent
survey of 187 PE managers indicated that a majority (62%) of
managers plan to deploy more capital in the next 12 months
compared with a year ago, when only 37% were looking to invest
significantly more. The same survey also indicated that 38% of fund
managers believe it is harder now to find attractive opportunities
compared with 8% last year. Part of this reflects increased
competition within PE and not just from corporate rivals.
Real estate remains an attractive space for PE, and firms will
continue to look for new ways to invest in the area. Blackstone
Group LP recently entered the nontraded REIT market by seeking to
raise US$5b for Blackstone Real Estate Income Trust. Like other
nontraded REITs, the trust is primarily marketed by brokers to
individual buyers, many of whom have complained about conflicts of
interest and high commissions in the industry. Blackstone launched
the fund after rule changes that called for stricter guidelines on net
asset values and other measures to address these and other common
investor complaints. Blackstone expects its perpetual-life fund will
generate stable rental income from its investments in apartments,
shopping centers and hotels.
PE firms could find more attractive oil and gas investment
opportunities starting in the second half of 2016. The PE industry
started to raise funds to spend of oil assets after the crash of oil
prices began in mid-2014. However, opportunities to put capital to
work were held back by the continued free-fall in prices and the
willingness of banks to extend credit. In recent months however, both
factors have changed; oil prices stabilized in the $40-a-barrel range.
In addition, banks looking to reduce their sector exposure slashed
their lending to energy companies. PE firms will likely take years to
deploy the capital recently raised, but attractive opportunities are
emerging in distressed debt, equity stakes in large projects, and
consolidation plays.
Oil and gas

Telecom
Retail
Source: Dealogic. Data through Aug. 31, 2016.
Top five announced acquisitions in August 2016

Annoucement Date
26 Aug 16
Company
Acquirer
Rackspace Hosting Apollo Global

Inc.
Management LLC
Value Sector
(US$b)
4.4 Technology
2 Aug 16
Emerson Electric Co Platinum Equity LLC

(Network Power
division)
4.0 Technology
9 Aug 16
Press Ganey
Holdings Inc.
2.4 Consumer
services
1 Aug 16
inVentiv Group
Advent International
Holdings Inc. (50%) Corp
RCN Telecom
TPG Capital LP
Services LLC
15 Aug 16
EQT Partners AB
1.9 Health care

1.6 Telecom
Source: Dealogic.
Capital Briefing
1.iii. Private equity: exits

Executive summary
Global PE M&A exit value for August fell by nearly half, to US$21.3b, from a year earlier, on weaker activity in all regions.
YTD, M&A exits are trailing last year by 33%.
EMEA posted the largest drop in disclosed deal value for PE-backed M&A exits in August, on weaker U.K. activity.
PE may find itself using more Special Purpose Acquisition Companies (SPACs) in the near term as an alternative to IPOs.
Current state
PE firms saw reduced M&A exit activity in every region during August.
Firms are holding investments longer to focus on performance
improvement, but remain opportunistic as market valuations remain high.
Global PE M&A exit value for August fell nearly 50%, to US$21.3b from a
year earlier on roughly 20% fewer transactions. YTD, deal value for PE
M&A exits is 33% behind last years pace.
EMEA posted the largest drop in deal value for PE-backed M&A exits,
reflecting weaker activity in the U.K. The regions deal value fell 97%
from a year earlier. Announced deal value in Asia-Pacific is down 59%,
while the Americas posted the narrowest decline at 34%.
The largest PE-backed M&A exit in August 2016 involved JW Childs
Associates LP and Berkshire Partners LLCs proposed exit from
Mattress Firm Holding Corp. Steinhoff International Holdings NV, a South
African integrated furniture maker, agreed to acquire the Houston-based
mattress retail chain operator and franchiser for US$3.9b including net
debt. The transaction, which is subject to shareholders' and regulatory
approvals, is expected to close in the third quarter.
Unfavorable market conditions are keeping PE-backed IPO activity at
bay. In August, total proceeds fell 20.9% to US$657m from US$832m a
year earlier. The latest period included two fewer offerings compared with
a year earlier. YTD, total proceeds from PE-backed IPOs is down 55% on
nearly half the volume, reflecting weaker activity in every world region.
The largest PE-backed IPO for August 2016 was Cinven Ltd.'s partial
exit of Medpace Holdings Inc., which raised US$185.2m through the sale
of about 7 million shares. Shares of the Cincinnati-based provider of
clinical research organization services trades on Nasdaq under the ticker,
MEDP. Medpace plans to use proceeds to repay a portion of its outstanding
borrowings under its senior secured term loan facility. Cinven will continue
to own a majority stake in Medpace after the IPO.
PE M&A exits by month (US$b)

Value (US$b)
$45
IPO markets are expected to see a quiet year in 2016; many portfolio
companies are looking to go public starting next year. While the last
several months have seen markedly improved conditions leading to a
number of new offerings, the window for the balance of 2016 could be
compressed, as investors await the outcome of the US election. As a
result, PE firms are continuing to pursue dual track strategies. In some
instances, IPOs are losing out versus M&A as firms look for a quick exit
from older investments.
The PE industry could find itself using more Special Purpose Acquisition
Companies, or SPACs, in the near term as an alternative to IPOs. PE
firms have used SPACs to buy and exit portfolio holdings, and these
vehicles could have a place in the current environment that makes it
challenging to price companies that seek to go public. According to The
Deal LLCs PrivateRaise service, nine SPACs raised almost $3.8 billion in
IPOs led by PE-related entities since August 2015. "I think SPACs are
perfect vehicles for PE sponsors for a couple reasons," David Miller told
The Deal. First, PE guys are experts at finding solid target companies at a
pre-IPO stage, so it stands to reason that they will also be discovering
some interesting IPO-ready targets. Secondly, if for some reason their
SPAC fails to locate an appropriate target business within a reasonable
period of time, they will likely have a number of their own portfolio
companies which could make suitable SPAC targets." Miller is a managing
partner at the law firm of Graubard Miller.
100
90
80
70
60
50
40
30
20
10
0
$40
$35
$30
$25
$20
$15
$10
$5
$0
Aug Sept
15
15
Oct
15
Nov
15
Dec
15
Jan
16
Feb
16
Mar
16
Apr
16
May
16
Jun
16
Jul
16
Aug
16
Source: Dealogic
Top five announced M&A exits in August 2016

Value
(US$b)
Date
Company
Sponsor
7 Aug 16
Mattress Firm
Holding Corp.
JW Childs Associates
LP
3.9 Retail
9 Aug 16
Press Ganey
Holdings Inc.
EQT Partners
AB/Vestar Capital
Partners Inc.
Oaktree Capital Group
LLC/Apollo Global
Management LLC
2.4 Consumer
services
Thomas H. Lee
Partners LP/Advent
International
Corp./CVC Capital
Partners Ltd.
Jordan Company
LLC/Goldman Sachs
Capital Partners
1.9 Health care
29 Aug 16 Aleris Corp.
Volume
1 Aug 16
inVentiv Group
Holdings Inc.
(50%)
15 Aug 16 Sensus USA Inc.
Sector
2.3 Materials
1.7 Technology
Source: Dealogic
PE IPOs by month (in US$b)

Value (US$b)
$14
Volume
16
$12
14
$10
12
10
$8
$6
$4
$2
2
0
$0
Aug
15
Sep
15
Oct
15
Nov
15
Dec
15
Jan
16
Feb
16
Mar
16
Apr
16
May
16
Jun
16
Jul
16
Aug
16
Source: Dealogic
6
Capital Briefing
Appendices
Appendix A
Global PE fundraising activity

Global PE fundraising (in US$b)
Commitments (US$b)
Number of funds
$700.00
1,200
$600.00
1,000
$500.00
800
$400.00
600
$300.00
400
$200.00
200
$100.00
$0.00
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Source: Preqin
Dry powder buyout funds by region
North America
Europe
Asia and rest of world
Asia-Pac and ROW as percentage of total

16%
$600.0
14%
$500.0
12%
$400.0
10%
8%
$300.0
6%
$200.0
4%
$100.0
2%
$0.0
0%
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Source: Preqin
Capital Briefing
Appendix A
Global PE acquisition activity

PE acquisitions by year (in US$b)
Value
Number of deals
$800.0
4,000
$700.0
3,500
$600.0
3,000
$500.0
2,500
$400.0
2,000
$300.0
1,500
$200.0
1,000
$100.0
500
0
$0.0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Source: Dealogic
Global PE value and volume quarterly trend (US$b)

Value
Number of deals
$120.00
700
600
$100.00
500
$80.00
400
$60.00
300
$40.00
200
$20.00
100
$0.00
0
Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316
Source: Dealogic
Capital Briefing
Appendix A
Global PE acquisition activity by region Americas

Americas PE acquisitions (in US$b)
Value
Number of deals
$80.0
350
$70.0
300
$60.0
250
$50.0
200
$40.0
150
$30.0
100
$20.0
50
$10.0
$0.0
0
Source: Dealogic
Americas PE acquisitions top 10 in August 2016

Announcement Completion
date
date
26 Aug 16
Company
Sector
Rackspace Hosting Inc.
Technology
Value
Acquiror
(US$m)
4,404.7 Apollo Global Management LLC
Emerson Electric Co. (Network

Power division)
Press Ganey Holdings Inc.
Technology
4,000.0 Platinum Equity LLC
Consumer services
2,396.9 EQT Partners AB
1 Aug 16
inVentiv Group Holdings Inc

.(50%)
Health care
1,900.0 Advent International Corp.
15 Aug 16
RCN Telecom Services LLC
Telecom
1,600.0 TPG Capital LP
22 Aug 16
BioClinica Inc.
Health care
1,400.0 Cinven Ltd.
15 Aug 16
Grande Communications
Networks LLC
Signet Jewelers Ltd. (Stake%)
Telecom
650.0 TPG Capital LP
Retail
625.0 Leonard Green & Partners LP
19 Aug 16
JDA Software Group Inc.

(Stake%)
Technology
570.0 Blackstone Group LP/New Mountain

Capital LLC
1 Aug 16
Affinity Gaming LLC (59.4327%) Consumer goods
2 Aug 16
9 Aug 16
25 Aug 16
513.6 Z Capital Partners LLC
Source: Dealogic
10
Capital Briefing
Appendix A
Global PE acquisition activity by region EMEA

EMEA PE acquisitions (in US$b)
Value
No. of deals
$45.00
300
$40.00
250
$35.00
$30.00
200
$25.00
150
$20.00
$15.00
100
$10.00
50
$5.00
$0.00
0
Source: Dealogic
EMEA PE acquisitions top 10 in August 2016

Announcement
date
Completion
date
1 Aug 16
1 Aug 16
11 Aug 16
11 Aug 16
2 Aug 16
2 Aug 16
5 Aug 16
5 Aug 16
Company
Sector
Value
(US$m)
Acquiror
Shopping Centers:Centro Real estate

Navile and Metropolis in
Italy and L'Aljub in Spain
OVH SAS (Stake%)
Technology
279.4
TPG Capital LP/Partners Group

Holding AG
278.9
Portfolio of 10 German
properties
ByBox Holdings Ltd.
Real estate
223.4
KKR & Co. LP/TowerBrook Capital

Partners LP
Catalyst Capital Group Inc.
Technology
139.0
Metroweb SpA (10.6%)
Telecom
89.1
Beloxxi Industries Ltd.

(Minority%)
Consumer goods
80.0
5 Aug 16
www.Cruise.co.uk Ltd.
Consumer services
68.9
F2i Fondi Italiani per le

infrastrutture SGR SpA
8 Miles LLP/Deutsche Investitions
und Entwicklungsgesellschaft mbH
African Capital Alliance
Bridgepoint Advisers Ltd.
25 Aug 16
Graal SA (55.7688%)
Consumer goods
52.0
Abris Capital Partners Sp z oo
11 Aug 16
Mobyt SpA (81.767%)
Consumer services
29.1
HgCapital LLP
5 Aug 16
14 Aug 16
2 Aug 16
14 Aug 16
2 Aug 16
Empik Media & Fashion SA Retail

(1.2955%)
1.3
Existing Management/ LDC

(Managers) Ltd.
Penta Holding Ltd./Krockella Ltd.
Source: Dealogic
Capital Briefing
11
Appendix A
Global PE acquisition activity by region Asia-Pacific

Asia-Pacific PE acquisitions (in US$b)
Value
No. of deals
$18.00
140
$16.00
120
$14.00
100
$12.00
$10.00
80
$8.00
60
$6.00
40
$4.00
20
$2.00
$0.00
0
Source: Dealogic
Asia-Pacific PE acquisitions top 9 in August 2016

Announcement
date
4 Aug 16
Completion
date
25 Aug 16
19 Aug 16
29 Aug 16
3 Aug 16
22 Aug 16
22 Aug 16
22 Aug 16
17 Aug 16
19 Aug 16
Source: Dealogic
12
19 Aug 16
Value
Acquiror
(US$m)
271.9 Shanghai Pharmaceuticals Holding
Co Ltd (60%/40%);
Primavera Capital Management Ltd
228.4 Quadrant Private Equity Pty Ltd
Company
Sector
Vitaco Holdings Ltd
Health care
Worldmark Group Pty Ltd

(Majority%)
Goodlife Operations Pty
Ltd-Goodlife Health Clubs;
Hypoxi Australia Pty Ltd
PT Siloam International
Hospitals Tbk (15%)
Stellar Value Chain
Solutions Pvt Ltd (Stake%)
Broadway Industrial Group
Ltd (Foam plastics
solutions and flow control
device businesses)
JW Pharmaceutical Corp
(5.31%)
Industrials
Health care
61.8 JW Holdings Corp
Sagami Co Ltd (55.49%)
Retail
28.9 Aspirant Group Inc
Alliance Cosmetics Group

(20%)
Consumer goods
15.5 Navis Capital Partners
Consumer goods
199.8 Quadrant Private Equity Pty Ltd
Health care
165.3 CVC Capital Partners Ltd
Industrials
125.0 Warburg Pincus LLC
Materials
111.4 Platinum Equity LLC
Capital Briefing
Appendix A
Global PE exit activity

Global PE-backed exits by M&A value and volume quarterly trend (US$b)
Value
Number of deals
$140.00
350
$120.00
300
$100.00
250
$80.00
200
$60.00
150
$40.00
100
$20.00
50
$0.00
0
Source: Dealogic
Global PE-backed IPOs value and volume quarterly trend (US$b)
Value
Number of deals
$45.00
90
$40.00
80
$35.00
70
$30.00
60
$25.00
50
$20.00
40
$15.00
30
$10.00
20
$5.00
10
$0.00
0
Source: Dealogic
13
Capital Briefing
Appendix A
Global PE exit activity Americas

Americas PE exits (in US$b)
M&A value
IPO value
M&A volume
IPO volume
$90.0
160
$80.0
140
$70.0
120
$60.0
100
$50.0
80
$40.0
60
$30.0
40
$20.0
20
$10.0
$0.0
0
Source: Dealogic
Americas PE exits top 10 in August 2016

Announcement Completion Company
or filing date
or priced
date
7 Aug 16
Mattress Firm Holding
Corp.
9 Aug 16
29 Aug 16
Press Ganey Holdings

Inc.
Aleris Corp.
Sector
Value Sponsor
(US$m)
Type
Retail
3,900.3 JW Childs Associates LP
M&A Exit
Consumer services
2,396.9 EQT Partners AB/Vestar Capital

Partners Inc.
2,330.0 Oaktree Capital Group LLC/Apollo
Global Management LLC
M&A Exit
Materials
1 Aug 16
inVentiv Group Holdings Health care

Inc. (50%)
15 Aug 16
Sensus USA Inc.
Technology
15 Aug 16
RCN Telecom Services

LLC
Telecom
22 Aug 16
M&A Exit
1,900.0 Thomas H. Lee Partners LP/Advent M&A Exit

International Corp./CVC Capital
Partners Ltd.
1,700.0 Jordan Company LLC/Goldman
M&A Exit
Sachs Capital Partners
1,600.0 Abry Partners Inc./TPG Capital LP
M&A Exit
LanguageLine Solutions Telecom

Inc.
1,522.0 Abry Partners Inc.
M&A Exit
22 Aug 16
BioClinica Inc.
Health care
8 Aug 16
Rock Oil Holdings LLC
Oil and gas
1,400.0 JLL Partners Inc./Cinven Ltd./Water M&A Exit

Street Healthcare Partners
LLC;/Ampersand Capital Partners
980.0 Riverstone Holdings LLC
M&A Exit
15 Aug 16
Grande Communications Telecom

Networks LLC
650.0 Abry Partners Inc./TPG Capital LP
Source: Dealogic
14
Capital Briefing
M&A Exit
Appendix A
Global PE exit activity EMEA

EMEA PE exits (in US$b)
M&A value
IPO value
M&A volume
IPO volume
$70.0
160
$60.0
140
120
$50.0
100
$40.0
80
$30.0
60
$20.0
40
$10.0
20
0
$0.0
Source: Dealogic
EMEA PE exits top 3 deals in August 2016 with disclosed financial terms
Announcement Completion or
or filing date
priced date
Company
Sector
Value (US$m) Sponsor
Type
24 Aug 16
Westfalia-Automotive Industrials
GmbH
5 Aug 16
www.Cruise.co.uk Ltd. Consumer services
68.9 Risk Capital Partners

M&A Exit
Ltd./Bridgepoint Advisers Ltd
Liberata Ltd.
56.8 Endless LLP
2 Aug 16
2 Aug 16
Consumer services
189.2 DPE Deutsche Private Equity

GmbH
Source: Dealogic
15
Capital Briefing
M&A Exit
M&A Exit
Appendix A
Global PE exit activity Asia-Pacific

Asia-Pacific PE exits (in US$b)
M&A value
IPO value
M&A volume
IPO volume
$45.0
45
$40.0
40
$35.0
35
$30.0
30
$25.0
25
$20.0
20
$15.0
15
$10.0
10
$5.0
$0.0
0
Source: Dealogic
Asia-Pacific PE exits top 7 deals in August 2016 with disclosed financial terms
Announcement or
filing date
Completion or
Company
priced date
26 Aug 16
Sector
Value (US$m) Sponsor
Type
Property Portfolio
(Shanghai Central
Plaza)
WH Group Ltd.
(2.6141%)
Real Estate
369.5 Carlyle Group LP
M&A Exit
Consumer
goods
293.8 CDH China Holdings

Management Co. Ltd.
M&A Exit
4 Aug 16
Vitaco Holdings Ltd.
Health care
M&A Exit
25 Aug 16
Worldmark Group Pty.

Ltd. (Majority%)
Industrials
271.8 Next Capital Pty.

Ltd./Primavera Capital
Management Ltd.
228.4 Navis Capital
Partners/Quadrant Private
Equity Pty. Ltd.
180.6 Baer Capital Partners
Ltd./Gaja Capital
Partners/Multiples
Alternate Asset
Management Pvt. Ltd.
161.7 Bain Capital LLC
25 Aug 16
25 Aug 16
24 Aug 16
24 Aug 16
RBL Bank Ltd.
Financials
31 Aug 16
31 Aug 16
Real Estate
26 Aug 16
26 Aug 16
Ooedo Onsen Reit

Investment Corp.
Guardian Lifecare Pvt.
Ltd. (Majority%)
Retail
M&A Exit
IPO
IPO
8.2 Samara Capital

M&A Exit
Management Ltd./Mitsui &
Co. Global Investment Ltd.
Source: Dealogic
Capital Briefing
16
Capital Briefing
Appendix B
M&A activity monthly flash
Volume
Value
Calendar
YTD
YTD %
2015
J
Volume
Calendar
YTD
YTD %
2016
(to May 16)
vs. 2015
(to May 15)
LTM
LTM %
2014
2016
M
2016
(to May 16)
vs. 2015
(to May 15)
Value
LTM
2015
M A M
J A
LTM
(to May 16)
O N D J
LTM %
2016
M A
vs. PTM
(to May 5
LTM
(to May 16)
vs. PTM
(to May 15)
M&A activity by areas and regions

Global
14,585
-10%
1,200,960
-20%
36,551
-7%
4,005,902
15%
Americas
5,585
-9%
657,189
-21%
14,257
-4%
2,337,439
16%
Canada
1,129
13%
96,643
32%
2,638
18%
223,616
20%
-11%
MeCAR
87
-19%
10,354
1%
254
-18%
28,767
356
-23%
30,327
95%
1,018
-15%
76,718
-1%
US
4,424
-12%
578,566
-25%
11,410
-6%
2,139,683
18%
EMEA
SA region
5,316
-13%
406,722
-10%
12,738
-16%
1,266,500
15%
Africa
267
2%
15,502
37%
651
3%
35,451
-19%
BeNe
296
-31%
14,098
-87%
811
-19%
200,128
44%
CIS
431
-30%
13,813
53%
879
-55%
51,815
72%
CSE
458
-12%
15,728
2%
1,070
-14%
44,635
6%
1,022
-3%
64,267
-14%
2,255
-9%
165,416
5%
GSA
839
-16%
170,586
352%
2,217
-13%
297,997
63%
Israel
109
8%
6,882
-39%
270
8%
57,956
195%
Mediterranean
553
-26%
52,007
-24%
1,371
-23%
160,441
-17%
MENA
142
2%
3,319
-84%
354
3%
24,015
-40%
FraLux
Nordics
565
-16%
25,849
-17%
1,226
-25%
57,590
-26%
UK&I
1,361
0%
74,984
-61%
3,411
6%
420,079
7%
Asia-Pacific
5,296
-6%
451,470
-6%
13,674
3%
1,234,531
26%
710
-1%
36,153
65%
1,696
-12%
78,908
23%
2,063
-7%
305,653
4%
5,572
10%
823,440
35%
ASEAN
Greater China
India
523
-9%
16,755
-30%
1,294
6%
44,644
-6%
Japan
1,162
-13%
59,729
-3%
2,906
-5%
181,768
54%
Korea
549
17%
26,450
-54%
1,361
18%
69,048
-30%
Oceania
612
-2%
31,032
-36%
1,664
0%
88,212
-8%
30%
M&A activity by sectors

Aerospace and defense
135
-23%
9,684
12%
356
-17%
35,432
Automotive and transportation
958
-14%
111,907
9%
2,464
-9%
295,634
40%
Banking and capital markets
972
-14%
113,009
-2%
2,435
-12%
413,663
42%
Consumer products and retail
2,205
-11%
192,858
-9%
5,522
-8%
637,330
36%
Diversified industrial products
1,913
-12%
166,427
9%
4,856
-9%
457,555
20%
Government and public sector
261
-25%
10,638
-33%
663
-17%
27,903
-2%
Insurance
418
-11%
40,100
-36%
1,100
1%
288,607
114%
Life sciences
966
-8%
221,343
19%
2,454
2%
485,024
2%
Media and entertainment
980
-10%
60,059
-61%
2,495
-9%
207,767
-16%
Mining and metals
895
6%
49,875
10%
2,153
4%
142,972
36%
Oil and gas
552
-3%
80,454
-43%
1,413
-16%
332,462
-27%
1,679
-16%
60,760
55%
4,312
-14%
157,078
37%
526
-13%
90,930
93%
1,399
-14%
231,933
38%
Other sectors
Power and utilities
Provider care
455
-9%
13,990
-48%
1,174
0%
52,736
-5%
Real estate
1,320
-15%
73,292
-50%
3,245
-16%
207,316
-33%
Technology
3,881
-4%
226,946
-14%
9,520
4%
742,274
61%
Telecommunications
274
-29%
39,224
-60%
757
-19%
148,424
-33%
Wealth and asset management
412
-9%
19,355
-82%
1,019
-5%
42,204
-68%
Regions M&A numbers represent a summation of domestic, inbound and outbound M&A activity involving the region.
Sectors numbers represent involvement from either side, i.e., target or acquiror, except in the case of wealth and asset management, where only target-side involvement has been mapped.
M&A analysis as at 1 June 2016.
Source: Dealogic. All Rights Reserved.
Note: Data is continually updated and therefore subject to change.
17
Capital Briefing
Appendix C
M&A multiples and bid premium
Median deal multiple EV / EBITDA
Global
LTM
PTM
(to May 16)
(to May 15)
Americas
LTM
PTM
(to May 16)
(to May 15)
Asia-Pacific
LTM
PTM
(to May 16)
(to May 15)
EMEA
LTM
PTM
(to May 16)
(to May 15)
10.3x
11.3x
10.1x
16.6x
14.1x
11.5x
10.9x
10.6x
8.9x
10.3x
9.8x
9.2x
9.9x
10.2x
8.2x
10.6x
10.9x
11.3x
10.4x
14.7x
12.0x
11.0x
10.0x
9.6x
9.8x
10.5x
10.8x
10.7x
11.0x
11.7x
9.1x
9.2x
10.2x
15.0x
4.6x
15.6x
21.8x
5.5x
10.2x
25.4x
Life sciences
11.0x
17.2x
12.4x
19.2x
11.4x
18.3x
10.8x
12.5x
12.0x
12.4x
8.8x
10.8x
15.2x
13.8x
10.7x
11.9x
Mining and metals
8.8x
9.1x
7.8x
12.7x
10.4x
8.5x
9.4x
8.5x
Oil and gas
8.0x
7.4x
8.0x
6.6x
6.5x
9.7x
9.3x
7.7x
Other sectors
9.2x
9.5x
10.6x
8.6x
10.5x
11.6x
7.8x
8.6x
Power and utilities
11.9x
11.6x
11.5x
11.7x
18.0x
8.8x
10.2x
10.1x
Provider care
11.9x
11.1x
10.2x
11.6x
10.4x
9.1x
12.6x
12.7x
Real estate
10.0x
10.4x
10.4x
10.3x
10.5x
10.1x
8.7x
10.6x
Technology
11.2x
10.7x
13.6x
17.1x
11.3x
9.4x
10.2x
10.6x
7.3x
10.5x
6.9x
10.1x
8.2x
11.6x
7.3x
9.6x
10.3x
10.7x
10.4x
11.7x
11.1x
10.8x
9.5x
10.0x

Telecommunications
Total
Median bid premium to four-week stock price

Global
LTM
PTM
(to May 16)
(to May 15)
Americas
LTM
PTM
(to May 16)
(to May 15)
Asia-Pacific
LTM
PTM
(to May 16)
(to May 15)
EMEA
LTM
PTM
(to May 16)
(to May 15)
15%
26%
14%
NA
31%
32%
14%
13%
14%
17%
21%
7%
13%
17%
9%
18%
23%
17%
32%
24%
16%
16%
27%
9%
19%
14%
24%
24%
17%
12%
24%
27%
22%
20%
44%
23%
21%
12%
16%
14%
Life sciences
27%
22%
43%
31%
17%
16%
17%
23%
17%
20%
34%
34%
11%
20%
14%
18%
Mining and metals
23%
24%
28%
29%
18%
20%
36%
12%
Oil and gas
27%
18%
34%
17%
24%
18%
14%
30%
Other sectors
19%
25%
28%
27%
16%
17%
18%
31%
Power and utilities
17%
11%
27%
17%
10%
7%
17%
8%
Provider care
23%
12%
34%
21%
18%
13%
5%
3%
Real estate
14%
21%
13%
30%
15%
18%
3%
11%
Technology
22%
25%
34%
28%
15%
21%
23%
20%
Telecommunications
25%
14%
28%
12%
27%
13%
16%
17%
Total
21%
20%
30%
26%
16%
17%
18%
19%
Deal multiples greater than 30x and bid premium greater than 100% have been excluded from calculation of median.
M&A analysis as at 1 June 2016.
Source: Dealogic. All Rights Reserved.
Note: Data is continually updated and therefore subject to change.
18
Capital Briefing
Appendix D
Capital Confidence Barometer (April 2016): by Area
Respondents who expect their company to pursue acquisitions in the next 12 months
Global
Americas
EMEA
100%
100%
100%
75%
75%
56%
57%
54%
50%
50%
75%
67%
59%
50%
40%
34%
31%
25%
Oct 14
Apr 15
Oct 15
Asia-Pacific
Oct 14
Apr 15
Oct 15
Apr 16
China
100%
100%
75%
75%
75%
57%
50%
Apr 14
Oct 14
56%
44%
38%
25%
43%
50%
40%
43%
25%
25%
Apr 15
Oct 15
Apr 16
Japan
Apr 14
Oct 14
Apr 15
Oct 15
23%
Apr 14
Apr 16
UK
100%
Apr 16
56%
50%
28%
0%
0%
Oct 14
Oct 15
50%
33%
0%
Apr 15
51%
26%
Apr 14
33%
Germany
100%
45%
47%
0%
Apr 14
Apr 16
48%
25%
0%
0%
Apr 14
32%
28%
25%
49%
50%
Oct 14
Apr 15
Oct 15
Apr 16
US
100%
100%
75%
75%
74%
68%
75%
50%
50%
35%
29%
26%
25%
25%
16%
19
Oct 14
Apr 15
Oct 15
Apr 16
33%
25%
16%
0%
0%
Apr 14
57%
52%
43%
50%
61%
59%
58%
51%
0%
Apr 14
Oct 14
Apr 15
Oct 15
Apr 16
Apr 14
Oct 14
Apr 15
Oct 15
Apr 16
Capital Briefing
Notes
20
Capital Briefing
Notes
21
Capital Briefing
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Private equity: fundraising

Private equity: acquisitions

Private equity: exits

M&A activity monthly flash

M&A multiples and bid premium

Capital Confidence Barometer

1.i. Private equity: fundraising

PE firms raised less capital in August relative to a year ago on fewer

PE firms closed funds across a range of strategies in August. The top

Two of the largest funds in August included Blackstone Real Estate

Buyout dry powder remains elevated as PE firms continue to invest

Environment and horizon

Environmental, social and governance (ESG) could be increasingly

Global PE fundraising by month (in US$b)

Jun Jul 16 Aug

Top five funds closed in August 2016 (US$b)

Madison Dearborn Capital Buyout

Bain Capital Distressed &

T-C US Super Regional Mall Real Estate

Global PE dry powder by region (in US$b)

Asia and Rest of World

Source: Preqin YTD through 31 August 2016.

1.ii. Private equity: acquisitions

PE investment activity in the U.K. continues to feel the effects of

PE acquisitions by month (in US$b)

Sep Oct Nov

PE acquisitions by sector, YTD 2016 (US$b)

Environment and horizon

Optimism remains high that global PE activity will increase, despite

Oil and gas

Source: Dealogic. Data through Aug. 31, 2016.

Top five announced acquisitions in August 2016

Rackspace Hosting Apollo Global

Emerson Electric Co Platinum Equity LLC

1.9 Health care

1.iii. Private equity: exits

PE M&A exits by month (US$b)

Top five announced M&A exits in August 2016

1.9 Health care

29 Aug 16 Aleris Corp.

Environment and horizon

15 Aug 16 Sensus USA Inc.

PE IPOs by month (in US$b)

Global PE fundraising activity

Dry powder buyout funds by region

Asia and rest of world

Asia-Pac and ROW as percentage of total

Global PE acquisition activity

Global PE value and volume quarterly trend (US$b)

Global PE acquisition activity by region Americas

Americas PE acquisitions top 10 in August 2016

Rackspace Hosting Inc.

Emerson Electric Co. (Network

4,000.0 Platinum Equity LLC

2,396.9 EQT Partners AB

inVentiv Group Holdings Inc

1,900.0 Advent International Corp.

RCN Telecom Services LLC

1,600.0 TPG Capital LP