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Investor Presentaiton

53 CONFIDENTIAL I}} Glossary Secondary Fund Size Classification Vintage Year 2000-2004 2005-2009 2010-2011 Small-Cap Mid-Cap Large-Cap <$50MM $50-$250MM >$250MM <$300MM $300-$1,500MM >$1,500MM <$500MM $500-$2,500MM >$2,500MM Secondary Investments - Secondary Investments are interests in existing private equity funds that are acquired in privately negotiated transactions, typically after the end of the private equity fund's fundraising period. The investments of the acquired fund are usually known at the time of acquisition, and the majority of the fund's capital is typically drawn down and invested by the time of the fund's acquisition. SWF-Sovereign Wealth Fund Syndicate - A group of buyers who combine to purchase a specific interest Synthetic Secondary investors acquire an interest in a new limited partnership that is formed specifically to hold a portfolio of investments. Typically, the manager of the new fund had historically managed the assets as a captive portfolio Total Value to Paid-In Capital ("TVPI") - The ratio of Total Value (Net Asset Value plus distributions received) to Paid-In Capital (total invested capital) Transaction(s) - Transactions are defined as the number of individual investment transactions closed by the Fund during the measurement period. For example, a primary commitment is counted as one transaction. A completed secondary acquisition of assets is counted as one transaction, irrespective of the number assets acquired in that transaction. "Transactions" does not provide a measure of diversification but is intended to summarize the Fund's new investment activity during the measurement period. Venture - Investments in new and emerging companies are usually classified as venture capital. Such investments are often in technology and healthcare related industries. Companies financed by venture capital are generally not cash flow positive at the time of investment and may require several rounds of financing before the company can be sold privately or taken public. Venture capital investors may finance companies along the full path of development or focus on certain sub-stages in partnership with other investors.
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