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pei 300
THE 2012 PEI 300:
AN INDUSTRY IN FLUX
The world’s only like-for-like ranking of private equity direct investment
programmes highlights how capital flows are changing
Private equity’s mega-firms are morphing into diversified asset managers
and steadily lining up to publicly list
their franchises – but as a group, the
top 50 of the world’s 300 largest firms
have also been raising less private equity
direct investment capital.
Those are just a few of the trends
highlighted by the 2012 PEI 300, our
sixth annual ranking of private equity
firms by size. Measuring capital raised
within a roughly five-year window, the
global ranking includes firms with varying structures and strategies, as well as
institutional investors with direct private
equity investment programmes such as
sovereign wealth funds (see p. 43).
This year’s ranking measures capital
raised from January 2007, meaning that
for the first time since we launched the
SLOWING AT THE TOP
Five-year fundraising total ($bn)
$704bn
2012 PEI 300
fundraising total
Total raised
by 50 largest firms
PEI 300, firms’ totals do not include any
funds closed in 2006 – many of which
were substantial ‘boom-era’ funds. Combine that with the fact that, post-GFC,
many GPs delayed fundraising and are
only now returning to market (where
they’re facing incredibly difficult conditions), and it’s easy to understand some
of the reshuffling in the ranks (see p. 42).
That reshuffling also extends to capital centres (see p. 51). For example, the
fundraising success achieved by Silicon
Valley venture firms, like Accel Partners
and Andreessen Horowitz, has meant that
for the first time, the San Francisco Bay
Area has displaced London as‘home’ to the
second-largest number of PEI 300 firms
(NewYork still leads the way). In terms of
regional representation, North America is
‘home’ to the largest number of PEI 300
firms, but Asia has overtaken the UK as the
second most important region.
We examine these and other trends
over the following pages, which also
include analysis from the data division
at Private Equity International.
THE FINE PRINT*
The 50 largest firms on the PEI 300 raised
substantial sums in the five years preceding
2008 and 2009, but have slowed their pace
since. Many are expected to replenish their
dry powder this year
PEI 50
1000
$1.3trn
How the rankings are determined
The 2012 PEI 300 rankings are based on
the amount of private equity direct investment capital a firm has raised between
1 January 2007 and 1 April 2012.
DEFINITIONS
Private equity: For the purposes of the
PEI 300, the definition of private equity is
capital raised for a dedicated programme
of investing directly into businesses. This
includes equity capital for diversified
private equity, buyouts, growth equity,
venture capital, turnaround or control-oriented distressed investment capital and
mezzanine debt.
800
600
400
Capital raised: This means capital definitively committed to a private equity direct
investment programme. In the case of a
fundraising, it means the fund has had a final or official interim close after 1 January
2007. We also count capital raised through
other means, such as co-investment vehicles, deal-by-deal co-investment capital,
publicly traded vehicles, recycled capital,
and earmarked annual contributions from
a sponsoring entity.
What does NOT count as private equity?
Funds of funds, secondaries, real estate,
infrastructure, debt, PIPE and hedge funds.
200
551
0
2007
810
813
772
734
704
2008
2009
2010
2011
2012
Source: Private Equity International
* The PEI 300 is not a performance ranking, nor does it constitute investment recommendations.
For the PEI 300’s full methodology, email PEI Research Manager Eduardo Roman
([email protected])
private equity international pei 300
TPG still top of the class
It’s a second consecutive year at the top
for TPG, whose remarkable fundraising
machine accumulated a cool $49.9 billion in the period covered by this year’s
PEI 300 ranking, down from $50.6 billion in 2001.
Diversification has been key to TPG’s
success. Buyouts remain its strength – but
if investors want growth capital, or venture, or even special situations,TPG – led
by managing partner James Coulter – has
a fund for them. It’s also a genuinely global
operation: in addition to its traditional
strongholds of North America andWestern
Europe, it has been a trailblazer in emerging markets like Brazil, Russia and China.
Indeed, exploiting Asia’s growth opportunity might be a hot topic for most
managers these days, for TPG it’s old
Coulter: leading the world’s largest firm
news – the firm has been raising funds
there successfully since the 1990s. And it
shows no sign of slowing down: this year
it held a first close on its first two RMB
funds, and even bought a minority stake
in Indonesian manager Northstar Pacific
(as it looks to get a foot in the door of
another high-potential emerging market).
It’s also reportedly nearing a $1.5 billion
first close on a new Asian buyout fund that
could ultimately garner up to $4 billion.
It’s a story that investors clearly like.
The firm continues to attract huge commitments from big LPs, including the US
pension funds, and has also been selected
as an official partner by the state-owned
Russian Direct Investment Fund and China
Development Bank, as the two countries’
respective governments look to boost foreign investment.
Impeccably well-connected and incredibly well-resourced – no wonder investors
keep giving TPG their money in such vast
quantities...
pei 300 – the top 50
Rank
Fund manager
Headquarters
PEI 300 Five-Year
Fundraising Total ($m)
1
vw
TPG
Fort Worth (Texas)
$49,897.00
2
p
The Blackstone Group
New York
$49,638.30
3
p
Kohlberg Kravis Roberts
New York
$47,689.87
4
q
Goldman Sachs Principal Investment Area
New York
$43,469.25
5
q
The Carlyle Group
Washington, DC
$30,741.39
6
p
CVC Capital Partners
London
$25,068.77
7
p
Apax Partners
London
$22,823.88
8
q
Apollo Global Management
New York
$21,035.00
9
q
Bain Capital
Boston
$21,033.49
10 p
Oaktree Capital Management
Los Angeles
$17,632.31
11 q
Hellman & Friedman
San Francisco
$17,200.00
12 vw
General Atlantic
Greenwich (Connecticut)
$16,800.00
13 p
Providence Equity Partners
Providence (Rhode Island)
$16,300.00
14 vw
Cerberus Capital Management
New York
$15,900.00
pHigher rank than 2011
qLower rank than 2011 vwSame rank as 2011 ✪PEI 50 debut
private equity international
pei 300
Rank
Fund manager
Headquarters
PEI 300 Five-Year
Fundraising Total ($m)
15 q
Warburg Pincus
New York
$15,000.00
16 q
Advent International
Boston
$13,895.43
17 q
First Reserve Corporation
Greenwich (Connecticut)
$13,521.70
18 p
Silver Lake
Menlo Park
$12,258.31
19 p
Lone Star Funds
Dallas
$12,207.60
20 p
Riverstone Holdings
New York
$10,920.00
21 p
Leonard Green & Partners
Los Angeles
$10,300.00
22 p
Thomas H. Lee Partners
Boston
$10,100.00
23 p
Golden Gate Capital
San Francisco
$9,614.00
24 p
BC Partners
London
$9,418.71
25 p
JC Flowers & Co.
New York
$9,300.00
26 q
Terra Firma Capital Partners
London
$9,266.78
27 p
American Capital
Bethesda (Maryland)
$9,192.00
28 q
Teachers' Private Capital
Toronto
$9,045.43
29 p
NGP Energy Capital Management
Dallas
$8,994.00
30 p
Fortress Investment Group
New York
$8,650.00
31 q
Clayton Dubilier & Rice
New York
$8,250.00
32 p
CPP Investment Board
Toronto
$8,050.90
33 p
Bridgepoint
London
$7,996.04
34 p
PAI Partners
Paris
$7,993.44
35 q
AXA Private Equity
Paris
$7,646.80
36 p
Mount Kellett Capital
New York
$7,522.00
37 p
EQT Partners
Stockholm
$7,449.61
38 p
Marfin Investment Group
Athens
$7,310.17
39 q
EnCap Investments
Houston
$6,948.00
40 p
Abraaj Capital
Dubai
$6,723.87
41 q
Citi Capital Advisors
New York
$6,577.46
42 q
Onex
Toronto
$6,364.70
International Petroleum Investment Company
Abu Dhabi
$6,344.49
44 p
Stone Point Capital
Greenwich (Connecticut)
$6,330.58
45 q
TA Associates
Boston
$6,270.00
46 p
Hony Capital
Beijing
$6,083.37
47 q
Nordic Capital
Stockholm
$6,056.59
48 p
ArcLight Capital Partners
Boston
$5,951.00
49 p
Equistone Partners Europe
London
$5,852.32
50 p
CDH Investments
Hong Kong
$5,794.22
43
✪
pHigher rank than 2011
qLower rank than 2011 vwSame rank as 2011 ✪PEI 50 debut
private equity international pei 300
pei 300 highlights
Shuffling in the ranks
A look at some of the climbers, fallers and newcomers to this year’s ranking
The PEI 300 certainly isn’t static. Given
it measures capital raised over a five-year
period, the rankings fluctuate based on
firms’ marketing schedules and broader
global marcro and fundraising trends
within the window measured.
It used to be considered typical for
a firm to spend 12-18 months raising a
fund (usually larger than its predecessor), and then to spend three or four
years investing the majority of it before
heading back to market to replenish
dry powder. Of course, that model only
holds up if the economy – and investors
– allows it to. In more difficult times,
firms often take longer to deploy their
capital while investors may pull back on
the size and pace of commitments.
With that in mind, it’s easier to understand why some firms have significantly
risen or fallen in this year’s PEI 300.
Seven firms have climbed their way
up the rankings over the last three years,
some more quickly than others. Chinese
private equity firm CDH Investments has
moved up a whopping 64 rankings in that
time period, raising a separate fund each
year from 2007 to 2011. Distressed-forcontrol specialist Oaktree Capital Management, which has marketed several
vehicles over the last five years, has also
climbed the ranks – moving up 27 spots
since 2009 to make its first appearance
in the top 10 this year.
Of the firms with lower rankings this
year, the most noteworthy drop was that
of Permira, which sticks to raising global
private equity funds and has stayed off the
fundraising trail since closing an €11 billion
fund in 2006. It later reduced the fund to
€9.6 billion to help liquidity-starved LPs
post-Lehman Brothers. Because funds
closed in 2006 do not count in this year’s
PEI 300, the European-based private
equity firm fell from being 16th overall
in 2011 to not making the list in 2012.
However, don’t count Permira – or any of
the firms that have fallen in the ranks – out
THREE YEARS OF
CLIMBING
These PEI 50 firms have
advanced in our rankings
for three consecutive years
BIG DROPS
These PEI 50 firms have
fallen at least 10 spots
in our rankings from the
previous year
• Abraaj Capital
• CDH Investments
• JC Flowers & Co.
• Marfin Investment Group
• Oaktree Capital
Management
• The Blackstone Group
• Thomas H. Lee Partners
• Clayton Dubilier & Rice
• Nordic Capital
• Permira
• TA Associates
Marks: climbing up the PEI 300 ranks
in 2013.The firm is targeting €6.5 billion
for a 2011 vintage, which may help catapult
it back to the top next year.
OUT OF THE TOP 50
These firms appeared in last
year’s PEI 50 but not in this
year’s
NEW ENTRANTS
These firms made it to the
PEI 50 for the first time this
year
• 3i
• AlpInvest Partners
• Ares Management
• Charterhouse Capital
Partners
• Cinven
• Energy Capital Partners
• GTCR Golder Rauner
• Lindsay Goldberg
• Madison Dearborn
Partners
• Permira
• Summit Partners
• ArcLight Capital Partners
• Equistone Partners
Europe
• Hony Capital
• Leonard Green & Partners
• Mount Kellett Capital
private equity international
pei 300
pei 300 highlights
Not so ‘private’
The industry’s largest firms are becoming publicly listed asset managers with
multiple business lines
This year, five of the 10 largest firms on
the PEI 300 – Apollo Global Management, The Blackstone Group, Goldman
Sachs, Oaktree Capital Management,
and Kohberg Kravis Roberts – are publicly listed companies. (Oaktree, led by
Bruce Karsh and Howard Marks, just
made the cut by listing a portion of its
management company on the NewYork
Stock Exchange in April).
One characteristic that sets listed
firms apart from the rest of the stillprivate industry, aside from a ticker
symbol, is the fact that they are multifaceted asset management firms that in
most cases have a wide range of private
equity funds as well as other strategies.
Publicly listed: mega-firms stop putting
the ‘private’ in private equity
KKR, for example, has set the pace for
large-scale institutionalisation and diversification, forming, among other things, a
capital markets division as well as investment platforms for mezzanine, energy
and other strategies.
The Blackstone Group’s president,
Tony James, said during a recent earnings call that going public allows a firm
to raise capital for acquisitions or other
business development and also serves as
a means to retain and motivate employees. Not all limited partners, however,
like the idea, worrying that a firm could
become too focused on short-term
results to please shareholders.
Yet the percentage of “public” private
equity firms gracing the top 10 could
rise, given the Carlyle Group’s plans
to list and rumours about a few other
mega-firms considering the prospect.
Watch this space.
Sovereign sponsors
State-backed investment groups feature prominently among the world’s largest
private equity groups
Sovereign funds have become major
sources of capital for private equity managers via fund commitments, separate
accounts and even stake sales in private
equity firms’ management companies. But
they increasingly do direct deals, partnering and competing against private equity
firms, thus for the first time they have
been included on the PEI 300. In prior
years, only institutional investors with
direct investment programmes, such
as the Canada Pension Plan Investment
Board, had been included.
Abu Dhabi’s International Petroleum
Investment Company was the largest sovereign fund on this year’s PEI 300, placing
at no. 43 on the list with a $6.3 billion
total. The fund, established by the Abu
Dhabi government in 1984, formed a joint
project in March with Mubadala Oil and
Gas, a business unit of fellow sovereign
INSTITUTION
RANK
PEI 300
TOTAL
International Petroleum
Investment Co.
43
$6.3bn
Mubadala Development
Company
55
$5.54bn
Qatar Investment Authority
157
$2.39bn
Temasek Holdings
172
$2.16bn
China Investment Corporation
176
$2.1bn
Khazanah Nasional
201
$1.66bn
Government of Singapore
Investment Corporation
204
$1.59bn
Source: Private Equity International
fund Mubadala Development Company,
no. 55 on the list that will work to secure
gas supplies to meet the energy demands
of the United Arab Emirates’ growing
economy.
Another example of direct investment is Brazilian investment bank BTG
Pactual, which at press time had just
raised nearly $2bn in an IPO. The sponsors set up to profit from that success
were a group of private equity heavyweights and sovereign funds, including
JC Flowers, GIC, CIC, Ontario Teachers’
Pension Plan (Teachers’ Private Capital)
and the Abu Dhabi Investment Council.
Sources say to expect more such consortia going forward.
private equity international
pei 300
pei 300 highlights
Bright lights from afar
Fund managers in Asia, Latin America and the Middle East are attracting
increasing levels of investor interest
As the eurozone crisis rolls on
Investor appetite for the region
and growth prospects in the US
has been strong; a recent report
continue to flounder, it’s perhaps
from Private Equity International’s
unsurprising to learn emerging
data team found that 84 percent of
Asian-based GPs are able to raise
markets-focused managers have
their funds in 18 months or less,
been gaining ground on the
beating the global average. Hony
fundraising trail. Four emerging
Capital set records when it held a
markets firms were included in
the PEI 50 this year, compared to
final close on its $2.4 billion fourth
just one (Abraaj Capital) in 2011.
US dollar-denominated fund after
Asian firms continue to feaonly four months, a fundraising
ture most prominently on the
success that moved the firm to
PEI 300 – in fact, Asia has dis- Hong Kong: PEI 300 illuminates emerging market GPs’ rise 46th from 90th on the PEI 300
placed the UK as the secondrankings.
representative in the emerging market
Middle Eastern-headquartered
largest region in which PEI
300 firms are headquartered (North top 10. In 2011, Gávea raised $1.8 bil- firms and institutional investors were also
lion, the largest amount ever raised for among the largest emerging markets manAmerica still leads).
But fund managers from other regions, a Latin American vehicle. And the firm agers ranked by the PEI 300. Dubai-headtoo, are rising in the ranks – for example, wasn’t alone on the fundraising trail (or quartered Abraaj was once again the largest
the number of Latin America-headquar- in the PEI 300 ranking):Vinci Partners, emerging markets firm, having moved up
tered firms on the 2012 PEI 300 is double BTG Pactual and Pátria Investimentos eight places in the PEI 300 to seal 40th
last year’s figure – catapulting a number were among the other Brazilian man- place. Abraaj grew substantially last year
of newcomers on to the list.
agers that closed large funds last year. when it annexed rival Amundi’s North
Latin America shattered regional
Even with a surging Brazil, Asian firms Africa operation, and is expected to grow
fundraising records last year, and no dominated the emerging market top 10 further still given its recent agreement
firm went bigger than Gávea Inves- this year; three China-headquartered firms to purchase emerging markets-focused
timentos – Latin America’s sole featured prominently in the rankings. Aureos Capital.
THE EMERGING MARKET TOP 10
2012 PEI 300 RANK
FUND MANAGER
HEADQUARTERS
PEI 300 FIVE-YEAR FUNDRAISING TOTAL ($M)
40
Abraaj Capital
Dubai
$6,723.87
43
International Petroleum Investment Company
Abu Dhabi
$6,344.49
46
Hony Capital
Beijing
$6,083.37
50
CDH Investments
Hong Kong
$5,794.22
55
Mubadala Development Company
Abu Dhabi
$5,546.02
60
Dubai International Capital
Dubai
$5,201.96
69
Investcorp Bank BSC
Manama (Bahrain)
$4,791.04
84
Gávea Investimentos
Rio de Janeiro
$4,181.20
86
Capital International
London
$4,160.00
91
Baring Private Equity Asia
Hong Kong
$3,975.00
private equity international
pei 300
2012 PEI 300 Rank
Fund Manager
Headquarters
PEI 300 Five-Year Fundraising Total ($m)
51
HitecVision AS
Stavanger (Norway)
$5,729.60
52
JP Morgan Asset Management
New York
$5,719.76
53
Charterhouse Capital Partners
London
$5,634.04
54
American Securities Capital Partners
New York
$5,571.38
55
Mubadala Development Company
Abu Dhabi
$5,546.02
56
Summit Partners
Boston
$5,542.94
57
Tiger Global Management
New York
$5,473.91
58
Avista Capital Partners
New York
$5,405.88
59
AlpInvest Partners
Amsterdam
$5,318.53
60
Dubai International Capital
Dubai
$5,201.96
61
MatlinPatterson Global Advisers
New York
$5,165.00
62
GI Partners
Menlo Park
$5,139.00
63
New Mountain Capital
New York
$5,121.80
64
Kelso & Co.
New York
$5,100.00
65
Denham Capital Management
Boston
$5,072.00
66
Sun Capital Partners
Boca Raton (Florida)
$5,000.00
67
Ares Management
Los Angeles
$4,972.11
68
Lion Capital
London
$4,957.96
69
Investcorp Bank BSC
Manama (Bahrain)
$4,791.04
70
Lindsay Goldberg
New York
$4,785.45
71
Pamplona Capital Management
New York
$4,648.08
72
H.I.G. Capital
Miami
$4,613.11
73
Doughty Hanson
London
$4,583.54
74
Accel Partners
Menlo Park
$4,554.07
75
Berkshire Partners
Boston
$4,500.00
76
Vista Equity Partners
San Francisco
$4,500.00
77
WL Ross & Co.
New York
$4,449.86
78
Welsh Carson Anderson & Stowe
New York
$4,403.00
79
Centerbridge Capital Partners
New York
$4,400.00
80
Energy Capital Partners
Short Hills (New Jersey)
$4,385.00
81
Intermediate Capital Group
London
$4,295.92
82
Cinven
London
$4,225.53
83
Oak Hill Capital Partners
Stamford (Connecticut)
$4,204.40
$4,181.20
84
Gávea Investimentos
Rio de Janeiro
85
Sequoia Capital
Menlo Park
$4,174.75
86
Capital International
London
$4,160.00
87
EIG Global Energy Partners
Washington DC
$4,120.00
88
Madison Dearborn Partners
Chicago
$4,100.00
$4,000.00
89
Pacific Equity Partners
Sydney
90
Aquiline Capital Partners
New York
$3,984.00
91
Baring Private Equity Asia
Hong Kong
$3,975.00
92
Eurazeo
Paris
$3,848.55
93
IK Investment Partners
Stockholm
$3,767.76
94
IDG Ventures
San Francisco
$3,754.29
95
Actis
London
$3,753.90
96
HgCapital
London
$3,744.60
97
ABRY Partners
Boston
$3,700.00
$3,687.06
98
Shanghai International Group (SIG)
Shangai
99
The Gores Group
Los Angeles
$3,663.00
100
Morgan Stanley Investment Management
New York
$3,596.00
101
Wayzata Capital Management
Wayzata (Minnesota)
$3,550.00
private equity international
pei 300
2012 PEI 300 Rank
Fund Manager
Headquarters
PEI 300 Five-Year Fundraising Total ($m)
102
Citadel Capital
Cairo
$3,543.35
103
Montagu Private Equity
London
$3,521.28
104
The Jordan Company
New York
$3,500.00
105
MHR Fund Management
New York
$3,500.00
106
Brookfield Asset Management
Toronto
$3,492.63
107
Energy Investors Funds
Boston
$3,487.60
108
CCMP Capital
New York
$3,379.32
109
Insight Venture Partners
New York
$3,343.00
110
Court Square Capital Partners
New York
$3,275.00
111
Archer Capital Pty Ltd
Sydney
$3,268.89
112
GTCR Golder Rauner
Chicago
$3,250.00
113
Kleiner Perkins Caufield & Byers
Menlo Park
$3,228.69
114
Arcapita
Manama (Bahrain)
$3,171.70
115
Triton Partners
Frankfurt
$3,169.15
116
LS Power Group
New York
$3,085.00
117
Investindustrial
Milan
$3,047.59
118
Platinum Equity Partners
Los Angeles
$3,030.00
119
3i
London
$3,005.63
120
Technology Crossover Ventures
Palo Alto
$3,000.00
121
Bessemer Venture Partners
Larchmont (New York)
$2,950.00
122
AEA Investors
New York
$2,950.00
123
Altor
Stockholm
$2,936.74
124
Bregal Capital
London
$2,929.70
125
Mid Europa Partners
London
$2,902.23
126
CITIC Private Equity Funds Management
Beijing
$2,869.00
127
TCW Group
Los Angeles
$2,850.00
128
Draper Fisher Jurvetson
Menlo Park
$2,828.20
129
TowerBrook Capital Partners
New York
$2,800.00
130
Affinity Equity Partners
Hong Kong
$2,800.00
131
Waterland Private Equity Investments
Bussum (Netherlands)
$2,737.30
132
Andreessen Horowitz
Menlo Park
$2,652.20
133
SAIF Partners
Hong Kong
$2,623.07
134
Advantage Partners
Tokyo
$2,620.21
135
Astorg Partners
Paris
$2,606.45
136
Trilantic Capital Partners
New York
$2,600.00
137
KSL Capital Partners
Denver
$2,586.22
138
GP Investments
São Paulo
$2,584.00
139
Crestview Partners
New York
$2,578.00
140
Yucaipa Companies
Los Angeles
$2,542.93
141
Thoma Bravo
Chicago
$2,521.50
142
SBI Holdings
Tokyo
$2,520.45
$2,515.43
143
New Horizon Capital
Beijing
144
Quantum Energy Partners
Houston
$2,506.36
145
Metalmark Capital Partners
New York
$2,500.00
146
Hopu Investment Management
Beijing
$2,500.00
147
New Enterprise Associates
Chevy Chase (Maryland)
$2,482.26
148
Index Ventures
Geneva
$2,470.24
149
Yorktown Partners
New York
$2,450.00
150
The Sentient Group
Grand Cayman
$2,446.00
151
Pine Brook Road Partners
New York
$2,433.51
private equity international
pei 300
2012 PEI 300 Rank
Fund Manager
Headquarters
PEI 300 Five-Year Fundraising Total ($m)
152
Southern Cross Group
Buenos Aires
$2,431.00
153
Lime Rock Partners
Westport (Connecticut)
$2,428.50
154
Tencent Holdings Limited
Shenzhen
$2,426.08
155
Tenaska Capital Management
Omaha (Nebraska)
$2,400.00
156
Partners Group
Zug
$2,398.69
157
Qatar Investment Authority
Doha
$2,396.81
158
The Riverside Company
New York
$2,365.34
159
JAFCO Co., Ltd.
Tokyo
$2,351.39
160
Khosla Ventures
Menlo Park
$2,350.00
161
RRJ Capital
Hong Kong
$2,300.00
162
Navis Capital Partners
Kuala Lumpur
$2,283.52
163
AAC Capital Partners
Amsterdam
$2,278.69
164
New York Life Capital Partners
New York
$2,265.00
165
Apax Partners France
Paris
$2,253.62
166
MBK Partners
Seoul
$2,243.00
167
CCB International Holdings Limited
Hong Kong
$2,240.63
168
CITIC Capital
Hong Kong
$2,203.86
169
TSG Consumer Partners
San Francisco
$2,200.00
170
Energy Spectrum Partners
Dallas
$2,191.88
171
Bright Stone (Beijing) Investment Management Limited
Beijing
$2,178.72
172
Temasek Holdings
Singapore
$2,166.55
173
Genstar Capital
San Francisco
$2,150.00
174
Babson Capital Management
Boston
$2,134.25
175
HarbourVest Partners
Boston
$2,121.66
176
China Investment Corporation
Beijing
$2,100.52
177
Matrix Partners
Waltham (Massachusetts)
$2,100.00
178
LBO France
Paris
$2,066.28
179
BDT Capital Partners
Chicago
$2,065.00
180
Levine Leichtman Capital Partners
Beverly Hills
$2,064.00
181
KPS Capital Partners
New York
$2,020.40
182
Kohlberg & Co.
Mount Kisco (New York)
$2,020.00
183
Francisco Partners
San Francisco
$2,000.00
184
Primavera Capital Group
Hong Kong
$2,000.00
$2,000.00
185
Audax Group
New York
186
Clessidra SGR
Milan
$1,990.22
187
Pátria Investimentos
São Paulo
$1,986.23
188
KRG Capital Partners
Denver
$1,960.00
189
Norwest Equity Partners
Minneapolis
$1,950.00
$1,948.65
190
Pinebridge Investments
New York
191
Baring Vostok Capital Partners
Moscow
$1,904.31
192
Moelis Capital Partners
Los Angeles
$1,904.00
193
Black Diamond Capital Management
Greenwich & Lake Forest
$1,782.00
194
Symphony Technology Group
Palo Alto
$1,770.00
195
Battery Ventures
Waltham (Massachusetts)
$1,750.00
196
Catalyst Capital Group
Toronto
$1,728.80
197
PAG
Hong Kong
$1,700.00
198
ARC Financial Corp.
Calgary
$1,679.41
$1,675.94
199
YunFeng Capital
Hong Kong
200
Lightspeed Venture Partners
Menlo Park
$1,675.00
201
Khazanah Nasional
Kuala Lumpur
$1,662.20
private equity international
pei 300
2012 PEI 300 Rank
Fund Manager
Headquarters
PEI 300 Five-Year Fundraising Total ($m)
202
Harvest Partners
New York
$1,651.70
203
BTG Pactual
São Paulo
$1,600.00
204
Government of Singapore Investment Corporation
Singapore
$1,590.05
205
Corsair Capital Partners
New York
$1,571.60
206
Headland Capital Partners
Hong Kong
$1,569.50
207
Lightyear Capital
New York
$1,566.30
208
Kayne Anderson Capital Advisors
Los Angeles
$1,559.00
209
Victoria Capital Partners
Buenos Aires
$1,543.20
210
CHAMP Private Equity
Sydney
$1,539.06
211
Veritas Capital
New York
$1,536.25
212
Credit Suisse Private Equity
New York
$1,530.00
213
Olympus Partners
Stamford (Connecticut)
$1,530.00
214
Legend Capital
Beijing
$1,503.59
215
Charlesbank Capital Partners
Boston
$1,500.00
216
Odyssey Investment Partners
New York
$1,500.00
217
Friedman Fleischer & Lowe
San Francisco
$1,500.00
218
JMI Equity Fund
Baltimore
$1,475.00
219
Roark Capital Group
Atlanta
$1,467.00
220
Vision Capital
London
$1,465.22
221
Snow Phipps Group
New York
$1,464.00
222
Blue Ridge China
Beijing
$1,450.00
223
Softbank Group
Tokyo
$1,437.41
224
Actera Partners
Istanbul
$1,436.60
225
Hamilton Lane
Bala Cynwyd (Pennsylvania)
$1,431.30
226
ChrysCapital
New Delhi
$1,425.00
227
Cartesian Capital
New York
$1,418.89
228
Vinci Partners
Rio de Janeiro
$1,400.00
229
New Silk Route Partners
New York
$1,383.00
230
Quadrant Private Equity
Sydney
$1,380.28
231
Swicorp
Riyadh
$1,379.13
232
Parthenon Capital Partners
Boston
$1,368.00
233
Duke Street
London
$1,356.40
234
Institutional Venture Partners
Menlo Park
$1,350.00
235
Littlejohn & Co
Greenwich (Connecticut)
$1,340.00
236
Sterling Partners
Baltimore
$1,340.00
237
Vitruvian Partners
London
$1,302.87
238
Pamodzi Investment Holdings
Athol (South Africa)
$1,300.00
239
Olympus Capital Holdings Asia
Hong Kong
$1,300.00
240
Unison Capital Partners
Tokyo
$1,297.97
241
Exponent Private Equity
London
$1,286.29
242
Flexpoint Ford
Chicago
$1,280.00
243
Alchemy Partners
London
$1,278.30
244
Pegasus Capital Partners
Cos Cob (Connecticut)
$1,277.00
245
Newstone Capital Partners
Los Angeles
$1,272.30
246
MidOcean Partners
New York
$1,250.00
247
Canaan Partners
Menlo Park
$1,250.00
248
Clearwater Capital Partners
New York
$1,245.99
249
Tata Capital
Mumbai
$1,241.00
250
Trustbridge Partners
Shangai
$1,235.00
251
Northstar Pacific Capital
Singapore
$1,215.00
private equity international
pei 300
2012 PEI 300 Rank
Fund Manager
Headquarters
PEI 300 Five-Year Fundraising Total ($m)
252
General Catalyst Partners
Boston
$1,215.00
253
Helios Investment Partners
London
$1,205.00
254
Wellspring Capital Management
New York
$1,200.00
255
Norwest Venture Partners
Palo Alto
$1,200.00
256
Unitas Capital
Hong Kong
$1,200.00
257
Vector Capital
San Francisco
$1,200.00
258
Paine & Partners
Foster City (California)
$1,200.00
259
Chequers Capital
Paris
$1,197.23
260
Magnum Capital Industrial Partners
Madrid
$1,197.23
261
Mercapital
Madrid
$1,174.68
262
Aurora Capital Group
Los Angeles
$1,171.80
263
Charles River Ventures
Waltham (Massachusetts)
$1,167.19
264
Gilde
Utrecht (Netherlands)
$1,126.81
265
Global Investment House
Safat (Kuwait)
$1,115.30
266
Pamlico Capital
Charlotte (North Carolina)
$1,115.00
267
India Value Fund Advisors Private Limited
Mumbai
$1,115.00
268
Venrock
Palo Alto
$1,114.00
269
American Industrial Partners
New York
$1,105.50
270
Huntsman Gay Global Capital
Boston
$1,105.30
271
Modal Administradora de Recursos
Rio de Janeiro
$1,105.05
272
Bencis Capital Partners
Amsterdam
$1,102.86
273
Great Hill Partners
Boston
$1,100.00
274
Lee Equity Partners
New York
$1,100.00
275
Founders Fund
San Francisco
$1,099.00
276
Emerging Capital Partners
Washington DC
$1,097.29
277
SV Life Sciences
Boston
$1,095.00
278
Duff Ackerman & Goodrich
San Francisco
$1,080.00
279
Wind Point Partners
Chicago
$1,078.72
280
Clyde Blowers Capital
East Kilbride
$1,070.73
281
Herkules Capital
Oslo
$1,070.05
282
Orchid Asia
Hong Kong
$1,070.00
283
North Bridge Venture Partners
Waltham (Massachusetts)
$1,070.00
284
Birch Hill Equity Partners
Toronto
$1,065.62
$1,065.00
285
GSR Ventures
Menlo Park
286
IFC Asset Management Company
Washington DC
$1,060.00
287
The CID Group
Taipei
$1,055.00
288
Redpoint Ventures
Menlo Park
$1,050.25
289
Intel Capital
Santa Clara (California)
$1,050.00
$1,041.17
290
21 Partners
Venice
291
BRZ Investimentos
São Paulo
$1,039.23
292
The Longreach Group
Hong Kong
$1,035.00
293
First Israel Mezzanine Investors Fund (FIMI)
Tel Aviv
$1,030.00
294
ACON Investments
Washington DC
$1,025.95
295
Hudson Clean Energy Partners
Teaneck (New Jersey)
$1,024.34
296
Resource Capital Funds
Denver
$1,020.00
297
Invest AD (Abu Dhabi Investment Company ADIC)
Abu Dhabi
$1,020.00
298
BLUM Capital Partners
San Francisco
$1,009.80
299
Greylock Partners
San Mateo (California)
$1,000.00
300
JLL Partners
New York
$1,000.00
erkshire Partners Vista Equity Partners WL Ross & Co. Welsh Carson
Anderson & Stowe Centerbridge Capital Partners Energy Capital
artners Intermediate Capital Group Cinven Oak Hill Capital Partners
private equity international
pei 300 data
Number crunching
How the PEI 300 firms relate to each other and the broader deal economy
TOP 50 VS. NEXT 250
CAPITAL STACK
The PEI 300 five-year fundraising bar chart
Capital raised ($bn)
$0
$10
$20
$30
$40
$50
From 1 January 2007 to 1 April 2012, the largest 50 firms in the world
raised 16.2% more equity capital than the next 250 firms. In 2011, 2010
and 2009, the proportions were 29.1%, 42.2% and 55.1%, respectively
PEI 50
NEXT 250
812.5 771.5 733.9 704.4
523.9 542.5 568.5 606.1
2009
2009
10
Five-year fundraising total ($bn)
20
30
40
50
60
70
80
90
100
110
Firm rank
600
400
200
0
120
130
800
2010
2011
2012
2010
2011
2012
Source: Private Equity International
140
150
160
170
180
190
RECORD-SETTERS
A look at the largest private equity funds closed between 2011 and the
first quarter of 2012
RANK
FUND NAME
FUND
MANAGER
STRATEGY
FUND
SIZE
1
Blackstone
Capital Partners
VI
The Blackstone
Group
Buyout / Corporate
Private Equity
$16bn
2
BC European
Capital IX
BC Partners
Buyout / Corporate
Private Equity
€6.5bn
3
EQT VI
EQT Partners Buyout / Corporate
Private Equity
€4.75bn
4
Lone Star Fund VII
Lone Star
Funds
Distressed-forcontrol
$4.6bn
5
Berkshire Fund
VIII
Berkshire
Partners
Buyout / Corporate
Private Equity
$4.5bn
200
210
220
230
240
250
260
270
280
290
300
Source: Private Equity International
Source: Private Equity International
private equity international
pei 300
CAPITAL CENTRES
WHERE THEY SPENT IT
The San Francisco Bay Area has for the first time displaced London as
home to the second-largest number of PEI 300 firms
Telecoms, followed by finance and technology, was again the most
popular sector among PEI 300 firms over the five-year period
$bn
500
No
80
n Five-year fundraising total ($bn)
72
n Number of firms
70
400
60
24
30
22
n Finance
6
33
30
28
10
n Professional Services
n Healthcare
n Retail
n Utility & Energy
n Dining & Lodging
$90bn
$102bn
0
n Chemicals
n Construction/Building
$95bn
hi
ng
An
$81bn
$97bn
rW
as
rL
os
50
7
6
ge
le
s
to
n
D
H
C
on
g
Ko
ng
53
7
re
at
e
G
re
at
e
re
at
e
ew
Source: Dealogic
G
G
G
83
Te
xa
s
97
Yo
rk
Lo
nd
rS
on
an
Fr
an
G
ci
re
sc
at
o
er
Bo
st
on
441 136 101
n Technology
$113bn
20
15
Pa
ris
12
To
ro
nt
o
100
rN
n Telecommunications
$50bn
40
32
200
re
at
e
$122bn
50
300
0
$47bn
$49bn
Source: Private Equity International
WHERE THEY CALL HOME
North American-headquartered firms continue to comprise the bulk of the PEI 300 both in terms of number of firms and total capital raised
No
n 2010
n 2011
n 2012
Firms in the 2012 PEI 300
200
3.3% 0.3%
4.3%
150
n North America
Firms
15%
n UK
n Europe ex-UK
100
n Asia
59.3%
50
9.3%
n MENA
n Latin America
n Sub-Saharan Africa
0
North
America
UK
Europe
ex-UK
Asia
MENA
Latin
America
SubSaharan
Africa
8.3%
Source: Private Equity International
OUTPERFORMING
Pooled IRRs recorded by PEI 300 firms continue to beat aggregate industry performance data as tracked by Cambridge Associates, whose
research also shows PEI 300 firms accounting for nearly 75% of distributions recorded during the first three quarters of 2011
2011
PEI 50
2010
2009
2011
PEI 300
2010
2009
CA Composite
2011
2010
2009
Inception-to-date performance1
Pooled IRR
15.1%
15.9%
15.4%
16.7%
17.4%
17.2%
13.7%
14.2%
13.8%
US pooled IRR
15.1%
15.7%
15.2%
17.6%
18.1%
17.9%
14.3%
14.6%
14.3%
Non-US pooled IRR
15.3%
16.5%
16.2%
14.0%
15.2%
14.6%
11.8%
12.7%
11.9%
Total value/paid-in ratio
1.4x
1.5x
1.4x
1.5x
1.5x
1.4x
1.4x
1.4x
1.4x
Distributions/paid-in ratio
0.8x
0.7x
0.7x
0.8x
0.8x
0.7x
0.8x
0.8x
0.7x
Calendar Year Performance2
Calendar year IRR
2.9%
20.8%
22.3%
3.8%
20.3%
20.0%
4.0%
19.0%
17.3%
Calendar year distributions ($bn) $65.6
$59.0
$17.9
$101.2
$98.2
$31.6
$134.6
$134.1
$43.5
Percentage of distributions
49%
44%
41%
75%
73%
73%
100%
100%
100%
Notes: Based on data compiled from over 3,400 private investment funds, including fully liquidated partnerships, formed between 1981 and 2011.
1 Internal rates of return (IRR) are net of fees, expenses and carried interest. Inception to date performance for 2011 is as of 30 September 2011.
2 Calendar year IRR is a pooled end-to-end return net of fees, expenses, and carried interest. Calendar year performance for 2011 represents the 9 months ended 30 September 2011.
Source: Cambridge Associates
private equity international
pei 300
pei 300 data
PE VS. THE REST: M&A
PE VS THE REST: DEBT
PE VS. THE REST: IPOS
The largest 50 and 300 private equity
firms were respectively responsible for
approximately 5.7% and 7.3% of global M&A
values over the five-year window. That’s down
from 2011, when they’d accounted for 7.4%
and 9.2% over the preceding five years
The 50 largest firms were responsible for
about 1% of all debt issuance by value in the
five-year window ending 1 April 2012. The
figure was unchanged from the preceding
five-year window
The top 50 firms have sponsored 3.2% of
all IPO activity by volume in the five-year
window ending 1 April 2012. That’s down
slightly from 3.6% recorded in the prior fiveyear window
$bn
20.000
$bn
35.000
$bn
10.000
15.000
150
10.000
100
5.000
$16.3
1,712
0
$923
4,394 10,571
$1.183 $1.4
PEI 50
PEI 300
All PE
n $bn
50
All M&A
30.000
No. of deals in hundreds
200
118,877
$30,78
25.000
100
$965
6,133
8.000
60
4
15.000
5.000
$319
699
$370
914
$437
PEI 50
PEI 300
All PE
2.000
20
0
0
n No. of deals
4.000
40
511
n $bn
7
5
6.000
10.000
8
6
80
20.000
0
Source: Dealogic
120
0
All debt
3
$120
$92
382
200
PEI 50
PEI 300
n $bn
n No. of deals
$162
2
635
1
All PE
All IPO
0
n No. of deals
Source: Dealogic
Source: Dealogic
MAKING A COMEBACK
FEE-FOR-ALL
A breakdown of PEI 300 firms’ activity over the past five years
shows IPO activity has been increasing
Last year PEI 300 firms paid $3bn in fees to investment banks and
advisors. About 25% of that amount went towards M&A fees, with
the balance split between fees relating to debt and IPO activity
3.5
800
600
3.0
$36.7
$78.6
Fees paid ($bn)
Deal volume ($bn)
700
500
400
$24.6
300
$33.9
$6.0
$32.5
200
$93.4
$86.7
$46.8
100
0
$13.7
$5.1
$559.1
$153.3
$91.2
$179.9
$170.6
2007
2008
2009
2010
2011
n M&A
Source: Dealogic
n Debt
n IPO
$31.6
$28.7
2012ytd
38.9%
2.5
30.7%
2.0
1.5
21.8%
1.0
17.9%
16.6%
0.5
0
37.6%
39.4%
2007
n M&A
65.6%
2008
n Debt
36.5%
48.4%
43.2%
20.3%
2009
n IPO
Source: Dealogic
Contributors: Kristen Reidlinger, Eduardo Roman, Sam Sutton, Graham Winfrey, Christopher Witkowsky
37.6%
25.8
20.9%
24.7%
62.5%
11.7%
2010
2011
2012ytd
No. deals (in hundreds)
220,826 250
PEI London
Sycamore House
Sycamore Street
London
EC1Y 0SG
PEI New York
3 East 28th Street
7th Floor
New York
NY 10016
PEI Singapore
105 Cecil Street
Unit 10-01
The Octagon
Singapore 069534
PEI Hong Kong
Level 19,
Silver Fortune Plaza
1 Wellington Street
Central
Hong Kong