Performance Benchmarks 2007European Private Equity

Conducted by Thomson Financial on behalf of EVCA

Methodology for Performance Benchmarks

All calculations are done at the fund level by Thomson Financial based on cash flows and NAVs reported by participating LPs and GPs

Returns are net of management fees and carried interest Returns are calculated with cash flows in Euros Cash flow database contains altogether 1,215 European funds

Definitions: Pooled IRR:

IRR of a group of funds where their cash flows have been aggregated together before IRR calculation

Investment Horizon Return: IRR calculated with Net Asset Value as capital outflow at beginning of period, Net Asset Value at end of period, and actual cash flows in between

Background

More difficult market conditions for GPs in the last 6 months Leverage Refinancing options Pressure to invest IPO market Deal pipeline quality

Increased importance of reporting, benchmarking and analytics

Investment Benchmarks DatabaseEuropean Sample Growth

Report Year Number of Funds in the Sample

Committed € Bn.

1998 438 51.4

1999 511 68.8

2000 573 87.6

2001 665 108.8

2002 774 135.4

2003 881 149.5

2004 956 159.6

2005 1,069 205.2

2006 1,141 237.9

2007 1,215 300.3

Source: Thomson Financial on behalf of EVCA

Mid-to Long-Term Venture IRR Remains In Positive Territory

-15

-10

-5

0

5

10

15

20

25

30

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007R

olli

ng I

RR

s (%

)

10-year IRR

5-year IRR

3-year IRR

+1.8

+4.4

+0.9

European Venture 3-,5-,10-Year Rolling IRRs

Source: Thomson Financial on behalf of EVCA

Mid-to Long-Term IRRs Show Strong Momentum for Buyout Funds

0

5

10

15

20

25

30

35

40

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Rolli

ng I

RR

s (%

)

10-year IRR

5-year IRR

3-year IRR

+16.6

+21.9

+15.9

European Buyouts 3-,5-,10-Year Rolling IRRs

Source: Thomson Financial on behalf of EVCA

VC and BO Funds in Europe and USA5-Year Rolling IRRs

-10

0

10

20

30

40

50

60

70

80

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

5 Y

ear

Rolli

ng I

RR

(%

)

Venture

Buyouts

+0.9

+15.9

Returns calculated with cash flows in dollars

Source: Thomson Financial on behalf of EVCA

-20

-10

0

10

20

30

40

50

60

70

80

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Sep-

07

5 Y

ear

Rolli

ng I

RR

(%

)

Venture

Buyouts

+6.9

+14.5

Europe USA

Top Quarter European Funds return 23.5% Funds Formed 1980-2007

Stage Pooled IRR

Upper Quartile

Average Top

Quarter IRR*

Early Stage 0.1 2.2 14.7

Development 7.8 5.9 17.3

Balanced 6.1 8.0 20.2

All Venture 4.5 5.1 15.0

Buyouts 16.1 19.0 33.4

Generalist 9.5 9.4 20.4

All Private Equity

11.7 11.0 23.5

25

50

75

100

3rd quarter

4th quarter

11.0%

Net IRRPercentile

2nd quarter

357.2%Avg Top quarter23.5%

Source: Thomson Financial on behalf of EVCA

Indicators Show Good Average Performance for Europe

Stage 3 YR 5 YR 10 YR 20 YR

Early Stage 2.3 -4.7 -1.1 0.0

Development 6.9 1.2 7.1 8.5

Balanced 6.6 -1.8 7.9 8.1

All Venture 4.4 0.9 1.8 4.6

Buyouts 21.9 15.9 16.6 16.2

Generalist 15.2 9.0 8.0 9.5

All Private Equity

17.1 11.5 11.5 11.9

Source: Thomson Financial on behalf of EVCA

European Private Equity Funds Formed 1980-2007Investment Horizon IRR (%) for period ending 31-Dec-2007

European Venture Funds by Size Formed 1980-2007

Stage 3 YR 5 YR 10 YR 20 YR

$0-50 mill. 4.3 0.0 3.3 5.8

$50-100 mill. 0.5 -1.7 0.4 3.6

$100-250 mill. 1.2 -1.1 1.6 5.0

$250 mill. + 9.3 4.4 1.9 3.8

All Venture 4.4 0.9 1.8 4.6

Source: Thomson Financial on behalf of EVCA

Net IRRs to InvestorsInvestment Horizon IRR (%) for period ending 31-Dec-2007

These results refer to the fund size, not the deal size

European Buyout Funds by Size Formed 1980-2007

Stage 3 YR 5 YR 10 YR 20 YR

$0-250 mill. 9.7 8.0 10.5 12.8

$250-500 mill. 10.1 12.4 20.5 17.3

$500 - 1 bn. 15.3 11.8 24.8 21.9

$1 bn. + 28.6 19.4 15.5 15.6

All Buyouts 21.9 15.9 16.6 16.2

Source: Thomson Financial on behalf of EVCA

Net IRRs to InvestorsInvestment Horizon IRR (%) for period ending 31-Dec-2007

These results refer to the fund size, not the deal size

European Performance by Vintage Year Groups

Net IRRs to InvestorsGrouped By Vintage Years From Inception to 31-Dec-2007

Stage 1980-1984 1985-1989 1990-1994 1995-1999 2000-2004 2005-2007

IRR DPI IRR DPI IRR DPI IRR DPI IRR DPI IRR DPI

All Venture 6.5 1.62 8.1 1.46 8.7 1.04 4.3 0.7 -2.0 0.16 0.4 0.03

All Buyouts 9.2 1.88 12.6 1.5 19.4 1.98 12.6 1.24 22.0 1.04 3.5 0.13

All Private Equity

9.5 1.32 8.9 1.18 15.6 1.66 9.8 1.08 16.20 0.88 3.1 0.12

Source: Thomson Financial on behalf of EVCA

Private Equity and Public Market Comparators

-5

0

5

10

15

20

2000

2001

2002

2003

2004

2005

2006

2007

IRR

(%

)

Morgan Stanley Euro Equity

HSBC Small Company

J P Morgan Euro Bonds

European Private Equity

10-Year Rolling IRR for 2000-2007

*Comparators are Internal Rates of Return (IRR). IRRs for public market indices are calculated by investing the equivalent cash flows that were invested in private equity into the public market index. Then an equivalent IRR is calculated for each index.

Calculations based on methodology proposed by J Coller and published by A Long and C Nickles.

Source: Thomson Financial on behalf of EVCA

Conclusion

Long-term performance Stays constant at around 12% net IRR, with top quarter average IRR

of 23.5% 5-year rolling average is steadily increasing for both venture and

buyout funds

Shorter-term performance 3-year IRR remains very strong for buyout at 21.9% IRR, and

decreases slightly to 4.4% IRR for venture funds