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Mesirow Private Equity

Sector Stage Headquarters Co-Investment Example PDFTron Systems, Inc. CEO Description M PDFTron Systems, Inc. ■ Enterprise Software Buyout Vancouver, BC, Canada Catherine Andersz Developer of software tools to help enable document processing, conversion, viewing and collaboration Investment Thesis ■ Core product is a software development kit ("SDK") which is a set of tools, libraries, code and processes that 3rd party developers utilize to enable document processing capabilities ▪ Leader in the highly-fragmented PDF SDK ecosystem, due to its comprehensive offering, superior developer experience, strong technical support and high quality cross-platform capabilities PDFTRON Diversified base of 650+ paying customers with the top customer accounting for 3% of March 2019 ACV Fragmented market provides substantial opportunity for growth via tuck-in acquisitions Financial Performance ($ in millions)¹ 2019 $14 11 75% 2017 $10 8 84% 2.5x (as of 6/30/2021) 2018 $13 11 83% 2020 $33 18 56% 6/30 LTM $55 31 56% Source Other Key Investors Initial Investment Investment / Ownership Description ■ ■ Mesirow Status: Partial realization ▪ The integration of prior acquisitions are on plan as the company continues to selectively pursue additional M&A opportunities Investment Overview Silversmith Capital Partners Thoma Bravo Discover May 14, 2019 $22.0 million / 9.6% (post sale to Thoma Bravo) Participated alongside Silversmith in the acquisition of 85% of the company at a $150 million enterprise value; Post-Investment Activity For the quarter ending June 30, 2021, the Company generated revenue of $16.7 million and Adjusted EBITDA of $9.7 million, representing growth of 125% and 171%, respectively, relative to the comparable quarter in the prior year Fund VII-B Valuation ▪ On May 28, 2021, Thoma Bravo Discover acquired a majority stake in PDFTron at an enterprise value of $625 million. As part of the transaction, Fund VII-B realized $82.1 million and retains an interest valued at $53.1 million 6/30/2021 Valuation ($ in millions) Realized Total Value Cost $22.0 MOIC² 6.1x $82.1 $135.2 Valued at 20.3x LTM pro forma adjusted EBITDA based on recent recapitalization of the business Revenue PF Adjusted EBITDA Margin Net Debt / EBITDA 1. April 31st fiscal year. LTM figures are pro forma acquisitions. 2. Gross MOIC represents multiple of invested capital, calculated by dividing the investment's cumulative distributions and unrealized value by the total invested capital. Accordingly, it is not reduced by fees incurred by the fund. The above referenced company and general partner relationship have been included to illustrate Mesirow Private Equity's investment process. The inclusion is not designed to convey that such past specific selections would have been successful for any person. It should not be assumed that this or similar investment opportunity selections made in the future will be successful or will equal the past performance of that described above. 17 | MESIROW PRIVATE EQUITY TRADE SECRET, CONFIDENTIAL AND PROPRIETARY FOR INSTITUTIONAL USE ONLY
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