PitchBook Annual Overhang 2012

S p

Bet ter Data. Bet ter Decisions.PitchBook

CAPITAL OVERHANG

Report

The 2012 PitchBook

Presented by:

and

FUND CASHFLOW

The 2012 Capital Overhang and Fund Cashflow Report | PitchBook Data

www.pitchbook.com877.267.5593 Bet ter Data. Bet ter Decisions.

PitchBook

TABLE OF CONTENTSIntroduction ................................................................................................ ii

Private Equity .............................................................................................. 3Capital Overhang ................................................................................................. 3

Percent Unfunded ............................................................................................... 4

Fund Cashflows ..................................................................................................... 5

Returns Multiples Tables .................................................................................. 6

Venture Capital .......................................................................................... 9Capital Overhang ................................................................................................. 9

Percent Unfunded ............................................................................................. 10

Fund Cashflows .................................................................................................. 11

Returns Multiples Tables ................................................................................ 13

Cashflow Tables ....................................................................................... 14Private Equity ....................................................................................................... 15

Venture Capital ................................................................................................... 16

About PitchBook ..................................................................................... 17

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COPYRIGHT © 2012 by PitchBook Data, Inc.

All rights reserved. No part of this publication may be reproduced in any form or by any means – graphic, electronic, or mechanical, including photocopying, recording, taping, and information storage and retrieval systems – without the express written permission of PitchBook Data, Inc. Contents are based on information from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. Nothing herein should be construed as any past, current or future recommendation to buy or sell any security or an offer to sell, or a solicitation of an offer to buy any security. This material does not purport to contain all of the information that a prospective investor may wish to consider and is not to be relied upon as such or used in substitution for the exercise of independent judgment.



PitchBook

ON CAPITAL OVERHANG AND FUND CASHFLOWOver the last five years, many private equity (PE) and venture capital (VC) professionals have expressed concern

over the surfeit dry powder that built up during the years leading up to the financial crisis. Our report shows

that while the capital overhang remains large, reduced fundraising and a steady level of investment have

helped to shrink PE reserves by 25% from their peak. The same cannot be said of venture capital, where larger

funds have propelled a spike in fundraising activity and curtailed the steady decline of dry powder that had

been seen in recent years. In addition to the capital overhang, this report also examines fund distributions,

contributions, and returns dating back to 1999 in an effort to understand how the last couple of years have

impacted cashflow for PE and VC funds. Some of the key findings include:

• Annualized cashflows for both private equity and venture capital were positive for the

second consecutive year in 2011, fueled by strong distributions to limited partners.

• The theoretical 10-year lifespan for funds is rarely accomplished in practice. In 2011,

PE and VC funds dating back to 1999 were still distributing significant amounts of

capital to limited partners and continued to hold investments in their portfolios.

• VC firms have failed to deliver strong returns to their investors for more than a decade,

with just one vintage since 1999 maintaining a TVPI (total value/paid-in) multiple of

1.3x or higher.

• PE firms have fared better than their VC counterparts, consistently averaging a TVPI of

1.5x or better for funds with vintages of 2004 or earlier.

Inside this report, you will find additional analysis of these trends and developments in PE and VC investing

accompanied by descriptive graphs, charts, and tables. We hope the information and data included in the

report will provide insight into recent investing activity and help you make better decisions moving forward.

- ii -

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PitchBook

PRIVATE EQUITYCAPITAL OVERHANGFor several years, the headline story in PE fundraising has been the massive glut of dry powder, which peaked at $576.3 billion during the boom year of 2008. It seems that a couple of years of subdued fundraising and steady investment have helped to chip away at the overhang, but firms still hold more than $432 billion in uncalled commitments. While the cumulative overhang has fallen by 25% since 2008, firms are still struggling to find investments for older vintage funds. 2008 vintage funds have $102 billion in reserves, more than any vintage since and nearly double the amount of dry powder in 2010 vintage funds. Fundraising was constrained in 2009 and 2010, which has helped reduce the capital overhang and should facilitate the distribution of the nearly $170 billion still left in 2007 and 2008 vintage funds.

Firms closed funds totaling $18.95 billion in 1Q 2012, setting a slightly slower pace than in 2011. However, the overall fundraising environment has been evolving in recent years. The $1 billion to $5 billion fund range has emerged as the sweet spot, consistently attracting more than half of all PE capital during the last three years. The first quarter saw the close of zero mega funds (more than $5 billion), which returned in 2011 after a noticeable absence in 2010. From 2010 to 1Q 2012, Blackstone VI was the only mega-fund that closed, albeit with a staggering $14.9 billion in commitments.

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2006 2007 2008 2009 2010 2011 2012Under $100M $0.26 $0.27 $0.90 $0.32 $1.06 $0.09 $0.01 $100M-$250M $0.75 $2.63 $3.18 $1.83 $2.39 $3.57 $1.05 $250M-$500M $1.79 $5.46 $5.92 $3.60 $6.90 $7.97 $2.02 $500M-$1B $3.36 $4.82 $12.91 $6.82 $12.80 $16.55 $5.27 $1B-$5B $9.57 $25.59 $35.58 $30.89 $32.66 $50.78 $10.60 $5B+ $7.65 $28.15 $43.85 $27.36 $ - $14.89 $ -

Total Current Overhang $23.39 $66.91 $102.33 $70.82 $55.80 $93.86 $18.95

Source: PitchBook

Cumulative O

verhang ($B) C

urre

nt O

verh

ang

($B)

by

Vint

age

$18.95

2006 2007 2008 2009 2010 2011 2012$463.43 $530.12 $576.31 $560.67 $477.33 $456.04 $432.07

Cumulative Overhang

Cumulative Overhang

Overhang by Vintage

*As of 5/1/2012

*

(all values in $B)



PitchBook

PRIVATE EQUITYPERCENT UNFUNDED

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Vintage Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20111999 84% 2000 53% 80% 2001 50% 65% 84% 2002 34% 48% 72% 75% 2003 23% 36% 53% 60% 81% 2004 14% 23% 33% 41% 62% 84% 2005 9% 13% 20% 29% 40% 64% 86% 2006 8% 9% 14% 19% 25% 39% 62% 78% 2007 8% 8% 12% 13% 22% 22% 40% 53% 70% 2008 8% 7% 13% 9% 16% 15% 24% 35% 53% 72% 2009 8% 5% 8% 8% 11% 11% 21% 27% 45% 61% 73% 2010 7% 4% 7% 6% 8% 9% 17% 20% 31% 43% 57% 73% 2011 6% 4% 7% 6% 8% 7% 12% 11% 23% 38% 48% 65% 79%

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In theory, a PE firm has a 10-year timespan after the final close of a fund to make and exit its various investments—but this has not been the case. Beginning with the 2008 vintage, the rate that capital is called down has been gradually slowing. Funds raised from 1999 to 2007 held an average of 29% in unfunded commitments at the end of their third year. For the 2008 vintage, however, that number has risen to 38%, largely attributable to the rampant fundraising that occurred that year. The amount of committed capital that firms fail to allocate during the typical five-year investing window now averages more than 10% and continues to rise. This phenomenon has created a bottleneck and slowed the rate of investment for subsequent vintages. The longer this trend continues, the deeper the problem will become.

Source: PitchBook

Dry Powder from Select PE FundsFund Investor Vintage Dry Powder ($B)*GS Capital Partners VI GS Capital Partners 2007 9.4 TPG Partners VI TPG Capital 2008 9.2 Carlyle Partners V The Carlyle Group 2009 5.7 Berkshire Fund VIII Berkshire Partners 2011 4.3Silver Lake Partners III Silver Lake Partners 2007 4.0Bain Capital Fund X Bain Capital 2008 3.7TPG Partners V TPG Capital 2006 2.1Apollo Investment Fund VI Apollo Global Management 2006 1.2 Cerberus Institutional Partners IV Cerberus Capital Management 2007 1.1

*As of 12/31/2011 Source: PitchBook



PitchBook

PRIVATE EQUITYANNUALIZED FUND CASHFLOW

Following several years of negative cashflows, determined by the difference of fund distributions and contributions, PE firms barely crossed the threshold into positive territory in 2010 and were able to replicate the feat in 2011, achieving positive cashflows of $11.93 billion for the year. The most promising characteristic of this development is that the improved cashflows are largely attributable to increases in distributions, as opposed to decreases in fund contributions. While distributions in 2011 were down 14% year-over-year, the $155.1 billion given back to limited partners was the second highest in the last decade. Positive cashflows have been elusive for the PE industry as a whole and have only been achieved in four separate years since 1999.

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2011 CASHFLOW BY VINTAGE YEAR

The sluggish pace of PE distributions becomes apparent when looking at funds by vintage year. By the fifth year of a fund, limited partners would expect the vast majority of their commitments to have already been called and invested. However, general partners are still calling down contributions from funds raised as far back as 2003, and 2007 vintage funds currently have negative cashflows of $18.75 billion, an indication that significant investment is still underway. On the flip side, 2000 vintage funds currently boast positive cashflows of $20.5 billion. While this appears encouraging at first blush, these funds are 12 years old and should have already exited all of their investments under a standard timetable.

Source: PitchBook

Source: PitchBook

Capi

tal (

$B)

Capi

tal (

$M)

Cashflow (Distributions-Contributions)

Cashflow (Distributions-Contributions)

Distributed ($B)Contributed ($B)

Distributions ($M)Contributions ($M)



PitchBook

PRIVATE EQUITY

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RVPI MULTIPLESThe struggles of the reduced rate of distributions are underscored by the RVPI (remaining value/paid-in) multiples of older vintage funds. PE fund limited partners should theoretically no longer be worrying about a fund that was raised in 1999, but the vintage still maintains an average RVPI of 0.2x. The problem persists through all vintages and appears to be worsening; each vintage since 2003 currently has an RVPI of 0.6x or greater and the 2006 vintage still has an RVPI of 0.9x more than five years after its final close despite a paltry average DPI of 0.3x.

Vintage Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1999 1.2 2000 0.9 1.1 2001 1.1 1.2 0.8 2002 0.7 0.6 1.2 0.6 2003 0.8 0.9 1.3 0.9 0.8 2004 0.7 0.9 0.8 0.9 0.8 0.7 2005 0.6 0.7 0.8 0.8 0.8 1.0 0.9 2006 0.6 0.6 0.8 0.8 0.8 1.0 1.0 0.9 2007 0.4 0.6 0.6 0.6 0.7 1.0 1.1 1.0 0.9 2008 0.3 0.4 0.5 0.5 0.7 0.8 1.0 0.9 0.9 0.9 2009 0.3 0.5 0.6 0.5 0.6 0.8 0.9 0.8 0.9 0.8 0.9 2010 0.3 0.3 0.5 0.4 0.5 0.8 0.9 0.9 0.9 0.9 0.9 1.0 2011 0.2 0.3 0.3 0.4 0.6 0.7 0.8 0.9 0.9 0.9 1.0 0.9 0.8

DPI MULTIPLESWhile the flow of distributions has slowed since the middle of the 2000s, PE firms continue to deliver positive cash-on-cash returns to their investors. However, the financial crisis has caused a significant change in the length of time it takes for funds to realize their investments. A typical 2002 vintage fund was able to achieve a DPI (distributed/paid-in) of 1.0x and make a limited partner whole after five years, while the average 2003 vintage fund has yet to return all invested capital back to its stakeholders eight years into its lifecycle.

Vintage Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1999 0.0 2000 0.1 0.0 2001 0.1 0.0 0.1 2002 0.1 0.1 0.1 0.0 2003 0.2 0.3 0.2 0.1 0.0 2004 0.4 0.4 0.3 0.3 0.1 0.1 2005 0.6 0.6 0.5 0.5 0.2 0.1 0.0 2006 0.8 1.0 0.8 0.8 0.4 0.2 0.1 0.0 2007 1.1 1.0 1.1 1.0 0.6 0.4 0.1 0.1 0.1 2008 1.1 1.1 1.1 1.1 0.7 0.5 0.2 0.1 0.1 0.0 2009 1.1 1.2 1.2 1.1 0.7 0.5 0.2 0.1 0.1 0.0 0.1 2010 1.2 1.3 1.5 1.1 0.9 0.7 0.3 0.2 0.2 0.1 0.1 0.1 2011 1.3 1.5 1.6 1.3 0.9 0.8 0.5 0.3 0.2 0.2 0.2 0.1 0.0

RVP

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DPI

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Source: PitchBook

Source: PitchBook



PitchBook

PRIVATE EQUITYTVPI MULTIPLESAlthough PE firms have had trouble finding investment and liquidity opportunities in recent years, they continue to deliver strong returns to their investors. Funds raised from 1999 to 2004 all have TVPI multiples of 1.5x or higher, as well as more upside potential from current portfolio investments. The numbers begin to lag somewhat beginning with 2005, but all vintages maintain a TVPI of 1.0x or greater. The exceptions is 2011, which is to be expected at the beginning of the fund’s lifecycle as the result of the traditional J-curve pattern.

Vintage Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1999 1.2 2000 1.0 1.1 2001 1.2 1.3 0.9 2002 0.8 0.7 1.3 0.7 2003 1.0 1.1 1.5 1.0 0.8 2004 1.2 1.3 1.1 1.1 0.9 0.8 2005 1.2 1.3 1.3 1.3 1.0 1.1 0.9 2006 1.3 1.5 1.5 1.5 1.1 1.2 1.0 0.9 2007 1.5 1.5 1.7 1.6 1.3 1.4 1.2 1.0 1.0 2008 1.4 1.6 1.6 1.6 1.3 1.3 1.2 1.0 1.0 0.9 2009 1.4 1.7 1.8 1.6 1.3 1.3 1.1 0.9 1.0 0.9 0.9 2010 1.5 1.7 2.1 1.6 1.5 1.5 1.2 1.1 1.1 1.1 1.0 1.1 2011 1.5 1.8 2.0 1.7 1.5 1.5 1.3 1.1 1.2 1.2 1.2 1.0 0.8

TVP

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Source: PitchBook

1 All Pitchbook data sourced from the PitchBook Platform as of 5/22/12.

CompaniesTransactionsProfessionalsInvestment Firm ProfessionalsInvestors (Financial & Strategic)Investors (PE & VC)FundsFunds with ReturnsOpen/Upcoming FundsService ProvidersLimited Partners% Funds with Dry PowderFunds with Cash FlowsFunds with IRR

50,39874,994

189,35384,80819,6179,671

16,2175,4272,8627,6536,599

70%3,4873,191

PitchBook Platform Data Tallies1PitchBook’s fund data includes detail-intensive drill-downs on returns, portfolio companies, lead partners on deals, limited partners, service providers and much more.

All of PitchBook’s data goes through a rigorous multi-stage cleaning (secondary research) and validation process (primary research) to ensure its accuracy.

PitchBook's data is fully transparent, allowing users to see where the data has been sourced, accompanied by complete sets of quarterly and annual historic returns.

PitchBook's powerful analytics and charting tools allow users to customize information for individual purposes (cash flows, IRRs, cash-on-cash multiples and/or fund dry powder for both individual funds or customized groups of funds).

Comprehensive Coverage

Rigorous Research

Transparent Data

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PitchBook

VENTURE CAPITAL

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CAPITAL OVERHANG BY VINTAGE YEARThe VC capital overhang has been in steady decline since 2007 and now sits at $62.5 billion. However, the

stockpiles of dry powder only fell by 2% from 2011 to 2012. Furthermore, 2012 has set a breakneck pace in VC

fundraising, with firms already closing on $6.3 billion in commitments, a trend that will only intensify the overhang

if it continues. While a large total in aggregate, the overhang is not as pressing of a concern for VC investors as it is

for PE; at the current rate of investment, the reserves will last just a little more than two years.

In the last three years, an increasing proportion of VC capital has been allocated to larger funds, diminishing the

importance of smaller sized funds on the overhang. 2011 saw a record-setting number of funds in excess of $1

billion and nearly three-quarters (72%) of the capital raised so far in 2012 has come through funds of $500 million

and larger, compared to just 39% in 2006. With memories of the tech bubble still fresh in people’s minds, many in

the industry view the large funds and droves of capital entering the asset class as a troubling trend, as the push by

VCs to invest this increasing dry powder could potentially fuel another bubble.

2006 2007 2008 2009 2010 2011 2012Under $100M $0.18 $0.61 $0.44 $0.12 $0.61 $0.34 $0.21 $100M-$250M $1.08 $1.55 $2.33 $1.10 $1.60 $1.85 $0.26 $250M-$500M $2.10 $3.94 $3.93 $1.69 $3.26 $2.41 $1.24 $500M-$1B $1.00 $1.86 $4.55 $1.98 $4.05 $3.44 $3.14 $1B-$5B $1.19 $3.56 $1.41 $ - $1.47 $5.02 $1.45

Total Current Overhang $5.55 $11.51 $12.66 $4.89 $10.98 $13.06 $6.30

Source: PitchBook

Cumulative O

verhang ($B) C

urre

nt O

verh

ang

($B)

by

Vint

age

2006 2007 2008 2009 2010 2011 2012$78.90 $86.69 $84.64 $79.34 $67.98 $63.85 $62.53

Cumulative Overhang

Cumulative OverhangOverhang by Vintage

*As of 5/1/2012

(all values in $B)



PitchBook

VENTURE CAPITALAVERAGE OF UNFUNDED

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Vintage Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1999 79% 2000 43% 72% 2001 33% 63% 87% 2002 25% 50% 75% 79% 2003 17% 36% 61% 69% 92% 2004 12% 26% 46% 53% 77% 89% 2005 8% 19% 31% 37% 56% 72% 90% 2006 6% 12% 18% 24% 37% 54% 72% 89% 2007 4% 7% 10% 18% 26% 37% 53% 69% 84% 2008 3% 6% 7% 12% 16% 23% 36% 53% 66% 77% 2009 3% 6% 5% 7% 12% 16% 27% 39% 55% 69% 77% 2010 2% 8% 5% 7% 9% 12% 19% 25% 38% 56% 57% 80% 2011 1% 4% 3% 3% 5% 7% 14% 19% 30% 43% 40% 63% 87%

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Across the VC universe, firms have been fairly consistent with the rate that they call down capital from limited partners during the last 13 years. At the beginning of the decade, firms routinely invested more than half of the capital committed to a fund within the first three years of the fund’s close. Funds through the 2008 vintage were able to maintain this pace, and 2009 vintage funds are even ahead of schedule, having allocated 60% of their capital in the first two years thanks in part to muted fundraising during the period. However, with the wave of money flowing into funds so far in 2012, venture capitalists will either have to increase their pace of investment or take more time calling down capital.

Source: PitchBook

Dry Powder from Select VC FundsFund Investor Vintage Dry Powder ($M)*Bessemer Venture Partners VIII Bessemer Venture Partners 2011 1,600Invention Investment Fund II Intellectual Ventures 2008 1,449Technology Crossover Ventures VII Technology Crossover Ventures 2007 1,444 New Enterprise Associates 13 New Enterprise Associates 2010 1,175Invention Development Fund I Intellectual Ventures 2007 633SV Life Sciences Fund V SV Life Sciences Advisers 2010 499InterWest Partners X InterWest Partners 2008 470VantagePoint Venture Partners V VantagePoint Capital Partners 2006 360 Lightspeed Venture Partners VIII Lightspeed Venture Partners 2008 352

*As of 12/31/2011 Source: PitchBook



PitchBook

VENTURE CAPITALANNUALIZED FUND CASHFLOW BY YEAR

Net cashflows in the VC industry have historically been sporadic, frequently undergoing seismic shifts year-over-year. However, 2011 marked the first time in more than a decade that VC firms delivered positive cashflows in two consecutive years. Contributions increased 8% in 2011 but were outpaced by a 14% increase in distributions from 2010 levels, driving positive cashflow up 53% to $5.61 billion. Unlike PE, where broad trends appear to emerge over time, cashflows in VC are prone to substantial changes year-over-year as the smaller overall size of the market allows it to be distorted by major deals. To that end, the IPO of Facebook, with a valuation around $100 billion, will likely lead to a third consecutive year of positive returns for the VC industry.

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2011 CASHFLOW BY VINTAGE YEAR

The cashflows by vintage year for the VC industry do not reveal any major surprises: flows are positive for funds closed in 2005 and earlier, and negative for all newer funds. What is somewhat surprising, however, is that 2003 vintage funds called down nearly $700 million in capital from their limited partners during 2011. Already eight years into their investment lifespan, these funds will inevitably take more than the expected 10 years to return capital to their limited partners. In fact, this is already happening; 2000 vintage funds delivered nearly $7.5 billion to limited partners in 2011, which would seem like a positive sign, except these funds still have yet to return 60% of their investors’ original capital commitment after more than a decade.

Source: PitchBook

Source: PitchBook

Capi

tal (

$B)

Capi

tal (

$M)

Cashflow (Distributions-Contributions)Distributions ($M)Contributions ($M)

Cashflow (Distributions-Contributions)Distributed ($B)Contributed ($B)



PitchBook

VENTURE CAPITAL

RVPI MULTIPLESDespite the middling distributions seen over the last decade, investors can look to RVPI multiples for a glimmer of hope. Funds from every vintage year 2001 and later maintain an average RVPI multiple of 0.5x or higher, meaning the funds still hold a significant amount of value and upside potential. However, investors would expect these funds to be more proactive in divesting their holdings, particularly the funds that are more than a decade old.

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DPI MULTIPLES

Vintage Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1999 1.3 2000 1.1 0.9 2001 0.8 1.0 0.8 2002 0.4 0.7 0.7 1.0 2003 0.5 0.6 0.7 0.7 0.8 2004 0.4 0.6 0.7 0.8 0.9 0.8 2005 0.3 0.6 0.7 0.7 0.9 0.8 0.8 2006 0.3 0.6 0.7 0.7 1.0 0.8 0.9 0.8 2007 0.3 0.9 0.7 0.8 0.9 0.9 0.9 0.9 0.9 2008 0.3 0.5 0.6 0.7 0.8 0.8 0.9 0.9 0.8 0.9 2009 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0.9 0.9 0.9 1.0 2010 0.2 0.4 0.5 0.5 0.7 0.8 0.9 0.9 1.0 0.9 1.0 0.9 2011 0.2 0.3 0.5 0.5 0.6 0.7 1.1 0.9 1.1 1.1 1.0 0.9 1.0

Distributions have been difficult, if not impossible, to come by for limited partners invested in venture capital funds. Going back to 1999, not a single vintage year has managed to achieve a DPI multiple of 1.0x, let alone 0.8x. Now six years into their investing, 2006 vintage funds have delivered a measly DPI multiple of 0.1x. While some of the top performers have certainly achieved favorable returns for investors, the overall VC landscape seems pretty fruitless, especially with the outsized gains that investors have been conditioned to expect from the asset class.

Vintage Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1999 0.1 2000 0.1 0.2 2001 0.1 0.2 0.0 2002 0.1 0.2 0.0 0.0 2003 0.2 0.2 0.0 0.1 0.0 2004 0.3 0.3 0.0 0.1 0.0 0.1 2005 0.3 0.4 0.1 0.1 0.0 0.1 0.1 2006 0.3 0.4 0.2 0.2 0.1 0.1 0.1 0.0 2007 0.5 0.5 0.3 0.4 0.2 0.1 0.1 0.0 0.0 2008 0.6 0.5 0.4 0.4 0.3 0.2 0.1 0.0 0.0 0.0 2009 0.6 0.6 0.4 0.4 0.3 0.2 0.2 0.0 0.0 0.0 0.0 2010 0.6 0.7 0.5 0.5 0.4 0.2 0.2 0.1 0.0 0.1 0.0 0.0 2011 0.7 0.6 0.6 0.6 0.4 0.3 0.4 0.1 0.1 0.1 0.1 0.0 0.0

DPI

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RVPI

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Source: PitchBook

Source: PitchBook



PitchBook

VENTURE CAPITALTVPI MULTIPLESA quick glance at TVPI multiples will reveal a rather grim reality—VC firms simply aren’t living up to investors’ expectations. 1999 and 2000 vintage funds currently have a TVPI multiple of less than 1.0x, meaning that investors probably will not be made whole on their original investment. The trouble does not stop there however; in fact, 2005 is the only vintage with a TVPI multiple greater than 1.2x. The total value tends to rise later in the life of the fund, so there still is hope for the later vintages.

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Vintage Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1999 1.4 2000 1.2 1.1 2001 1.0 1.2 0.8 2002 0.5 0.8 0.7 0.7 2003 0.8 0.8 0.7 0.8 0.8 2004 0.7 0.9 0.8 0.9 0.9 0.9 2005 0.7 0.9 0.9 0.8 0.9 0.8 0.9 2006 0.7 1.0 0.9 0.9 1.1 0.9 0.9 0.9 2007 0.8 1.4 1.0 1.1 1.2 1.0 1.0 0.9 0.9 2008 0.9 1.0 1.0 1.1 1.0 1.0 1.0 0.9 0.9 0.9 2009 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.9 0.9 0.9 1.0 2010 0.8 1.2 1.0 1.0 1.1 0.9 1.1 1.0 1.0 1.0 1.1 0.9 2011 0.9 0.9 1.1 1.1 1.1 1.0 1.6 1.0 1.2 1.2 1.1 1.0 0.8

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Source: PitchBook



PitchBook

VENTURE CAPITALCASHFLOW TABLESCombining data from more than 16,000 PE and VC funds, the PitchBook Cashflow Tables provide a clear overview of fund distributions and contributions by vintage year, dating back to 1999. These tables allow readers to easily see the cashflows for specific vintages while gauging how performance on a cashflow basis has changed on a year-to-year basis. In addition, the data can easily be used to perform a quick side-by-side benchmarking of fund performance by vintage year, as well as an analysis of industry-wide trends on an annualized basis.

UNDERSTANDING THE TABLES

Average of Called: These tables illustrate what percentage of committed capital has been called down by funds according to their vintage year. The percentages are calculated by dividing the amount of contributed capital by the total commitment on an aggregate basis for all funds in a particular vintage; the higher the percentage, the more capital that has been called.

Average of Distributed: These tables depict the ratio of capital that has been distributed to limited partners relative to the total commitments to funds with a particular vintage. The percentages are calculated by dividing the aggregate amount of distributions with the total amount of committed capital. Vintages with a percentage greater than 100 have, on average, distributed more than their limited partners’ initial fund commitment.

Net Cashflow: These tables take the difference of the two aforementioned statistics (Average of Distributed – Average of Called) to show the net cashflow as a percentage of committed capital. For example, a value of -45% means that limited partners currently have recieved distributions equal to 65% of thier total committed capital invested in the fund. Conversely, a positive percentage indicates that investors have realized a gain on their overall fund investment by that percentage of thier original commitment. By combining distributions and contributions into a single metric, the table is able to show how limited partners’ net investment cash flow changes throughout the life of a fund and across different vintages.

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PitchBook

PRIVATE EQUITY

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AVERAGE OF DISTRIBUTED CAPITALVintage Year

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20121998 0%1999 1% 0% 2000 4% 1% 11% 2001 7% 2% 6% 0%2002 10% 6% 5% 0% 0%2003 18% 15% 10% 4% 1% 11%2004 40% 35% 25% 22% 5% 5% 0%2005 64% 56% 51% 39% 14% 5% 1% 0%2006 82% 80% 93% 65% 33% 13% 2% 1% 1% 2007 103% 97% 122% 97% 54% 50% 5% 3% 2% 1%2008 105% 110% 128% 104% 65% 61% 13% 6% 5% 2% 3%2009 105% 112% 135% 108% 73% 61% 15% 8% 7% 3% 4% 1%2010 121% 126% 142% 117% 86% 82% 25% 16% 14% 10% 7% 2% 1%2011 127% 136% 153% 126% 89% 79% 45% 25% 18% 22% 8% 4% 2% 0%

AVERAGE OF CAPITAL CALLEDVintage Year

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20121998 13%1999 16% 6% 2000 47% 20% 13% 2001 50% 35% 16% 14%2002 66% 52% 28% 25% 6%2003 77% 64% 47% 40% 19% 18%2004 86% 77% 67% 59% 38% 16% 5%2005 91% 87% 80% 71% 60% 36% 14% 10%2006 92% 91% 86% 81% 75% 61% 38% 22% 16%2007 92% 92% 88% 87% 78% 78% 60% 47% 30% 19%2008 92% 93% 87% 91% 84% 85% 76% 65% 47% 28% 22%2009 92% 95% 92% 92% 89% 89% 79% 73% 55% 39% 27% 16%2010 93% 96% 93% 94% 92% 91% 83% 80% 69% 57% 43% 27% 12%2011 94% 96% 93% 94% 92% 93% 88% 89% 77% 62% 52% 35% 21% 6%

As

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As

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NET CASHFLOWVintage Year

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20121998 -12% 1999 -15% -6%2000 -43% -19% -2% 2001 -43% -33% -10% -14%2002 -55% -45% -23% -25% -6%2003 -59% -49% -37% -35% -18% -7%2004 -46% -42% -42% -37% -33% -11% -5%2005 -27% -30% -29% -32% -46% -30% -13% -10%2006 -9% -11% 7% -16% -42% -48% -36% -21% -15%2007 11% 5% 34% 10% -24% -28% -55% -45% -28% -18%2008 13% 17% 42% 14% -18% -24% -64% -59% -43% -26% -19%2009 13% 18% 43% 15% -17% -28% -64% -65% -48% -37% -23% -15%2010 28% 30% 49% 22% -6% -9% -58% -65% -56% -47% -36% -25% -11%2011 33% 39% 60% 32% -3% -14% -43% -63% -59% -40% -45% -31% -19% -6%

As

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Source: PitchBook

Source: PitchBook

Source: PitchBook



PitchBook

VENTURE CAPITAL

- 16 -

AVERAGE OF DISTRIBUTED CAPITALVintage Year

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20121998 0% 1999 3% 0%2000 8% 19% 0%2001 10% 16% 0% 0%2002 12% 17% 0% 2% 0%2003 15% 25% 1% 2% 0% 0% 2004 22% 27% 3% 4% 0% 6% 0%2005 27% 35% 11% 8% 2% 7% 1% 0%2006 30% 41% 21% 13% 9% 7% 5% 0% 0%2007 41% 50% 31% 25% 16% 10% 5% 1% 0% 0%2008 53% 56% 37% 31% 24% 17% 7% 2% 1% 0% 0%2009 57% 60% 40% 35% 26% 18% 10% 3% 1% 1% 1% 2%2010 59% 71% 47% 45% 37% 14% 15% 8% 3% 3% 2% 1% 0%2011 66% 58% 58% 59% 41% 24% 38% 10% 10% 6% 4% 2% 0% 0%

AVERAGE OF CAPITAL CALLEDVintage Year

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20121998 44%1999 21% 34%2000 57% 28% 19%2001 67% 37% 13% 25%2002 75% 50% 25% 21% 9%2003 83% 64% 39% 31% 8% 18%2004 88% 74% 54% 47% 23% 11% 3%2005 92% 81% 69% 63% 44% 28% 10% 1%2006 94% 88% 82% 76% 63% 46% 28% 11% 11%2007 96% 93% 90% 82% 74% 63% 47% 31% 16% 17%2008 97% 94% 93% 88% 84% 77% 64% 47% 34% 23% 14%2009 97% 94% 95% 93% 88% 84% 73% 61% 45% 31% 23% 20%2010 98% 92% 95% 93% 91% 88% 81% 75% 62% 44% 43% 20% 15%2011 99% 96% 97% 97% 95% 93% 86% 81% 70% 57% 60% 37% 13% 5%

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As

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NET CASHFLOWVintage Year

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20121998 -44%1999 -17% -34%2000 -49% -9% -19% 2001 -57% -21% -13% -25%2002 -63% -33% -25% -20% -9%2003 -68% -39% -38% -29% -8% -18%2004 -67% -47% -51% -43% -23% -5% -3%2005 -65% -46% -58% -55% -42% -20% -9% -1%2006 -64% -47% -61% -64% -54% -39% -23% -10% -11%2007 -55% -43% -59% -57% -57% -54% -42% -30% -16% -17%2008 -44% -38% -56% -56% -59% -59% -56% -45% -33% -23% -14%2009 -40% -34% -55% -58% -62% -66% -63% -59% -44% -30% -22% -17%2010 -39% -22% -49% -48% -54% -74% -65% -67% -58% -41% -41% -19% -15%2011 -32% -38% -39% -38% -54% -70% -47% -71% -60% -51% -56% -35% -13% -5%

As

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Source: PitchBook

Source: PitchBook

Source: PitchBook

Contact PitchBook: www.pitchbook.com l main: (877) 267-5593 l email: [email protected]

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Competitive AdvantagePLATFORM HIGHLIGHTSPitch B ook

1 Data sourced from 4Q 2011 nearest competitor publication. All other competitor data sourced from nearest competitor site on 4/4/12.2 All PitchBook data sourced from the PitchBook Platform as of 5/22/12.

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More Transactions

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PitchBook Annual Overhang 2012

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