North American Private

Equity in Review
Full-year 2009 edition
Contents
Foreword 3
Buyout and exit deal trends 4
North American private equity deals 9
Private equity activity tables - buyouts 11
Private equity activity tables - exits 12
Financial advisor activity tables - buyouts 13
Financial advisor activity tables - exits 14
Legal advisor activity tables - buyouts 15
Legal advisor activity tables - exits 16
Appendix 17
Notes and contacts 19

North American Private Equity in Review 2

Foreword
Welcome to the full-year 2009 edition of North American Private Equity in Review. This report provides a comprehen-
sive review of private equity investment trends across all industry sectors in the North American region, drawing from
historical data to offer a detailed analysis of current activity and a forecast for potential activity in the year ahead.

Private equity activity in North America has declined considerably
since 2008, as is to be expected while the region continues to
grapple with economic uncertainty, unfavorable valuations and an
unusually difficult financing climate. In 2009, buyouts fell 36% in
volume and 34% in value from the previous year, with 461 buyouts
worth US$50.6bn in 2009, compared to 720 worth US$77.2bn
in 2008. Exit activity also dropped dramatically over this period,
with 311 exits worth US$30.1bn, a 28% decrease in volume and
a 23% decrease in value from the 432 exits worth US$23.3bn an-
nounced in 2008.
At face value, these figures paint a rather bleak picture of the cur-
rent private equity market. A closer look, however, reveals a grad-
ual increase in deal volume with each quarter of 2009, allowing
for a more promising second-half of the year. Buyouts increased
from 219 worth US$23.3bn in H1 2009 to 242 worth US$27.3bn in
H2 2009—a slight but significant increase given that more than H1
2009 buyout value depends heavily on a single deal. The March-
announced US$13.9bn buyout of IndyMac Federal Bank FSB by
private equity-backed OneWest Bank FSB accounts for more than
half of H1 2009 buyout value, while H2 2009 aggregate deal value is
more evenly spread across several large-cap deals.
Exit activity was even more resilient over the course of 2009,
increasing from 136 exits worth US$8.7bn in H1 2009 to 175 worth
US$21.4bn in H2 2009, marking a 29% increase in volume and a
remarkable 146% increase in value.
We hope you find North American Private Equity in Review
both interest­ing and informative, and as always, we welcome
your feedback.

North American Private Equity in Review 3

 Buyout and exit deal trends
Buyout and exit trends by volume
300
300
Buyouts Number of Deals
Exits Number of Deals
250
250

200
200
Volume of deals

150
150

100
100

50
50

0
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2004 2004 2004 2004 2004 2005 2005 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009

Buyout and exit trends by value

2 5 0 , 0 0
250,000 0
Buyouts value (US$m)
Exits value (US$m)

2 0 0 , 0 0
200,000 0
Value of deals (US$m)

1 5 0 , 0 0
150,000 0

1 0 0 , 0 0
100,000 0

5
50,000
0 , 0 0 0

0
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2004 2004 2004 2004 2004 2005 2005 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009

Key sectors boost aggregate deal values
Private equity activity in North America throughout 2009 often
mirrored major developments in the region’s economy, with
buyouts and exits in the Financial Services and Life Sciences &
Healthcare sectors taking place against the backdrop of a struggling
banking industry and the rapidly consolidating healthcare system.
Financial Services sector buyouts have a strong presence amongst
the year’s largest private equity deals: 32.3% of total buyout value
attributed to the space, where deals generally stemmed from
US banks. The largest buyout of the year was that of IndyMac
Federal Bank FSB, when OneWest Bank FSB announced in March
its US$13.9bn acquisition of the bank backed by a consortium of
private equity investors led by US-based J.C. Flowers & Co. May
generated another, smaller private equity-backed bank bailout
when Florida-based BankUnited was acquired by a group of buyout
firms including The Carlyle Group, W.L. Ross & Co, Blackstone
Group Holdings, Centerbridge Partners and East Rock Capital for
US$900m.
The Life Sciences & Healthcare industry also produced several
significant transactions in 2009. In the second largest deal of
2009, announced in November, a group of funds managed by TPG
Capital and the CPP Investment Board acquired IMS Health for
US$5.1bn. But it was exit activity that truly took center stage as
strategic bidders looked to private equity portfolios for acquisi-
tion targets. Indeed, although the industry represents just 2.5%
of 2009 aggregate buyout value, it generated five of the top 20
largest private equity transactions, most of which were exits, and
represents an impressive 37.9% of aggregate exit value for 2009.

North American Private Equity in Review 4

 Buyout and exit deal trends

Sector splits of buyouts by value Sector splits of exits by value

2.2% 1.2% 2.3%

2.4%
2.5% 3.3%
5.3% Financial Services Life Sciences & Healthcare
Business Services 7.1% TMT
32.3%
6.3% Leisure Consumer
37.9%
Energy, Mining, Oil & Gas Business Services
TMT 9.1% Energy, Mining, Oil & Gas
8.5% Industrials, Chemicals & Engineering Financial Services
Consumer Industrials, Chemicals & Engineering
Life Sciences & Healthcare Agriculture
Construction
9.1% Transportation
15.1%

12.2% 20.4%
22.8%

Sector splits of buyouts by volume Sector splits of exits by volume

0.9%
0.7% 1.9% 1.3%
2.8% 1.3%
0.4% 2.3%
4.1% 6.2%
21.3% Industrials, Chemicals & Engineering TMT
5.2%
TMT Business Services
6.9%
Consumer Life Sciences & Healthcare
6.3%
Business Services Industrials, Chemicals & Engineering
Life Sciences & Healthcare 42.5% Consumer
6.5% Energy, Mining, Oil & Gas Energy, Mining, Oil & Gas
10.1%
Financial Services Financial Services
Leisure Leisure
6.9% 15.8% Construction Transportation
Transportation Construction
Defense
13.7%
Agriculture
14.1% Real Estate
15.0% 13.7%

In the fourth largest private equity transaction of the year,
Blackstone Group Holdings sold US-based dermatology
specialist Stiefel Laboratories to UK-based healthcare
group GlaxoSmithKline Plc for US$3.3bn, in a deal driven
by GlaxoSmithKline’s efforts to grow and diversify its own
dermatology businesses.
In February, another private equity exit resulted from the expan-
sion plans of a foreign strategic bidder. In this case, US-based
private equity firm GTCR Golder Rauner sold Ovation Pharma-
ceuticals (since remaned Lundbeck Inc.), to Denmark-based H.
Lundbeck A/S, for US$900m. The deal was aimed at building
Lundbeck’s presence in the US, and at expanding its pipeline
and its existing portfolio of products. The end of the year saw
yet another Life Sciences & Healthcare exit driven by strategic
buyers’ appetite for growth when Ethicon Inc. purchased Acclar-
ent for US$785m, in line with its efforts to strengthen its global
presence. Acclarent was sold by a group of investors including
Delphi Ventures, Johnson & Johnson Development Corporation,
Meritech Capital Partners LP, New Enterprise Associates and
Versant Ventures.
Volume tells a different story
Financial Services and Life Sciences & Healthcare may have
the upper hand in terms of value this year, but in terms of
volume, buyouts and exits were generally concentrated in other
industries: Industrials, Chemicals & Engineering and Technol-
ogy, Media (TMT) and Telecommunications industries repre-
sent 21.3% and 15.8% of the year’s total buyouts, respectively.
Putting things in perspective, buyout activity in the Financial
Services sector is low by comparison, accounting for just 6.3%
of aggregate buyout volume.

North American Private Equity in Review 5

 Buyout and exit deal trends

Buyout deal size by volume Buyout deal size by value

1,200
1,200
Not disclosed 500,000
5 0 0 ,0 0 0

< US$15m
< US$15m US$15m - US$100m
US$15m - US$100m
450,000
4 5 0 ,0 0 0

US$101m - US$250m
1,000
1,000
US$101m - US$250m US$251m - US$500m
400,000
4 0 0 ,0 0 0

US$251m - US$500m > US$500m

> US$500m 350,000
3 5 0 ,0 0 0

Value of deals (US$m)

800
800
Volume of deals

300,000
3 0 0 ,0 0 0

600
600 250,000
2 5 0 ,0 0 0

200,000
2 0 0 ,0 0 0

400
400
150,000
1 5 0 ,0 0 0

100,000
1 0 0 ,0 0 0

200
200

50,000
5 0 ,0 0 0

00 0 0

2004
2004 2005
2005 2006
2006 2007
2007 2008
2008 2009
2009 2004
2004
2005
2005
2006
2006
2007
2007
2008
2008
2009
2009

Exit deal size by volume Exit deal size by value

800
800

Not disclosed 160,000

1 6 0 ,0 0 0
< US$15m
< US$15m US$15m - US$100m
700
700
US$15m - US$100m 140,000
1 4 0 ,0 0 0
US$101m - US$250m
US$101m - US$250m US$251m - US$500m
600 US$251m - US$500m 120,000 > US$500m
Value of deals (US$m)

600 1 2 0 ,0 0 0

> US$500m
Volume of deals

500
500
100,000
1 0 0 ,0 0 0

400
400
80,000
8 0 ,0 0 0

300
300
60,000
6 0 ,0 0 0

200
200 40,000
4 0 ,0 0 0

100
100 20,000
2 0 ,0 0 0

00 0 0

2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009
2004 2005 2006 2007 2008 2009
2004 2005 2006 2007 2008 2009

Consumer industry buyouts were also relatively high in volume
this year, representing 15% of total buyout volume, as were buy-
outs in the Business Services space, which follows closely behind
with 14.1%. Buyout volume elsewhere is somewhat evenly spread
across the Life Sciences & Healthcare, Energy, Mining, Oil & Gas,
and Financial Services industries.
Exits, meanwhile, were particularly prominent in the TMT sector.
Just as Financial Services saw high deal values but a relatively
low deal volume, the Life Sciences & Healthcare industry, a hub
for large-cap exits, is actually outpaced by other sectors in terms
of aggregate exit volume. The TMT sector represents 42.5% of to-
tal private equity exits announced this year, more than triple that
of other sectors. Business Services and Life Sciences & Health-
care exits each represent 13.7% of total exit volume for 2009.
A closer look at deal values
In the half-year edition of this report, multi-billion dollar trans-
actions were few and far between: the only three deals to break
the US$1bn mark were the US$13.9bn acquisition of IndyMac
Federal Bank FSB by private equity-backed One West Bank FSB,
the US$4.4bn acquisition of Barclays’ iShares by CVC Capital
Partners affiliate Blue Sparkle LP and Blackstone Group Hold-
ings’ US$3.3bn exit from Stiefel Laboratories, which was sold to

North American Private Equity in Review 6

 Buyout and exit deal trends

GlaxoSmithKline plc. The second half of 2009, however, pro-
duced triple this amount, with nine buyouts exceeding US$1bn
announced in this period. A closer look at this select group of
deals reveals that financing packages played a major role in
boosting deal values across the board.
In the fifth largest deal of 2009, for example, Blackstone Capital
Partners V LP, a fund managed by US-based private equity firm
Blackstone, announced its US$2.3bn acquisition of SeaWorld
Parks & Entertainment from Anheuser-Busch InBev. Black-
stone provided US$1bn in equity financing, but a substantial
portion of the deal, which was announced in early October, was
financed with debt. In addition to a US$100m revolving credit
facility, backing the transaction with US$950m in senior credit
facilities were Bank of America Merrill Lynch, Barclays Capital,
Deutsche Bank, Goldman Sachs, and Mizuho Corporate Bank,
while an additional US$450m in mezzanine financing came from
Goldman Sachs and GSO Capital Partners, a division
of Blackstone.
Another Leisure industry deal emerged the following December,
when Apollo Management announced its plans to acquire US-
based Cedar Fair LP, a regional amusement park operator and
hotel owner, for US$2.2bn. The implied equity value of the deal
totaled US$635m, which pales in comparison to the US$1.95bn
financing commitment from affiliates of J.P. Morgan, BofA
Merrill Lynch, Barclays Capital Inc., UBS Investment Bank and
KeyBanc Capital Markets.
The financing for the acquisition of TASC, while not completely
disclosed, also involved major global banks, with financing
provided by Barclays Capital, Deutsche Bank Securities, RBC
Capital Markets and CPPIB Credit Investments Inc. The financ-
ing consisted of senior secured credit facilities and senior sub-
ordinated notes, arranged by an affiliate of KKR and Highbridge
Mezzanine Partners.
Lucrative Financial Services opportunities
boost deal value further
The Financial Services sector was clearly quite appealing to
financial buyers this year, as evidenced by the various private
equity groups that bid either individually or collectively for
a diverse group of targets in the industry. Zooming in on a
handful of these deals, it seems many were made possible
by specific agreements that allowed private equity firms to
make investments with relatively low levels of risk, and by the
wealth of opportunities resulting from sellers’ need to divest
non-core assets.
In the largest buyout of 2009, a consortium of investors including
JC Flowers & Co LLC, MSD Capital LP and Stone Point Capital
LLC, among others, formed IMB HoldCo, a holding company of

Secondary buyout trends by volume and value

70 18,000
18,000
70 Volume
Value (US$m)
16,000
16,000
60
60

14,000
14,000
Value of deals (US$m)

50
50
12,000
12,000
Volume of deals

40
40
10,000
10,000

30
30 8,000
8,000

6,000
6,000
20
20
4,000
4,000

10
10
2,000
2,000

00 00
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2004 2004 2004 2004 2005 2005 2005 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009

North American Private Equity in Review 7

Buyout and exit deal trends
OneWest Bank FSB, to acquire IndyMac Federal Bank FSB for
US$13.9bn. Under the terms of the agreement, OneWest agreed
to purchase US$20.7bn of assets at a discount of US$4.7bn and
to assume all of the target bank’s deposits. The deal also includ-
ed a US$16bn loan portfolio which on the surface seems like the
riskiest portion of the deal, but much of the potential risk was
absorbed by loss-sharing agreements on the part of the Federal
Deposit Insurance Corporation (FDIC). In this case, the FDIC
agreed to share losses on a portfolio of qualifying loans, with
the new IndyMac assuming the first 20% of losses after which
the FDIC will share losses 80/20 for the next 10% of losses and
95/5 thereafter. The FDIC also entered into a loss-share transac-
tion with BankUnited, which in May was acquired by a group of
private equity firms for US$900m. Under the terms of the agree-
ment, the FDIC will share losses of roughly US$10.7bn in assets.
In other Financial Services deals, trying times for US banks
translated into asset sales, and private equity firms were quick
to capitalize on the opportunity to purchase particularly attrac-
tive operations. In April, for example, UK-based Barclays plc
announced it would sell its exchange traded funds unit, iShares,
to CVC Capital Partners affiliate company Blue Sparkle, while
Fifth Third Bank sold a 51% stake in Fifth Third Processing
Solutions—a Business Services company—to international
private equity firm Advent International Corporation for US$1.8bn.
After a competitive auction process, iShares ultimately ended
up in the hands of strategic bidder BlackRock, which included
the business in its US$13.7bn acquisition of Barclays Global
Investors in June and agreed to pay CVC Capital Partners a
US$175n termination fee. The proposed deal nevertheless takes
its place among several other bank divestitures announced
during 2009, such as Bank of America’s (BOA) sale of US-based
bank and wealth management business First Republic Bank.
In October, US-based private equity firms General Atlantic LLC,
Colony Capital LLC, and Sequoia Capital backed the US$1bn
management buyout of the bank, which BOA divested as part of
its strategy of shedding non-core operations. Up until the deal’s
announcement, the unit received interest from other high-profile
private equity firms, including The Carlyle Group, Blackstone
Group and TPG Capital.
Outlook for 2010
The economic uncertainty overshadowing much of 2009 seems
to be dissipating as the private equity industry moves into a
new decade. With buyouts and exits increasing steadily with
each passing quarter, there is good cause for optimism going
forward. Additionally, signs of life in the debt financing markets,
which had been virtually inaccessible during the worst phases
of the economic downturn, suggest an even higher volume of
larger deals could emerge in the upcoming months.
North American Private Equity in Review 8
North American private equity deals

Top 20 private equity deals

Rank Announced Status Target Target Bidder company Bidder description Seller company Deal type Deal
date company sector value
(US$m)

1 Mar-19-09 C IndyMac Federal Financial OneWest Bank FSB MBI 13,900

Bank FSB Services

2 Nov-05-09 P IMS Health Life Sciences IMS Health A consortium formed with investment IBO 5,276
& Healthcare Consortium funds managed by TPG Capital and the
CPP Investment Board.

3 Apr-09-09 L Barclays Financial Blue Sparkle LP UK based affiliate of CVC Capital Part- Barclays plc IBO 4,404
(iShares Services ners Group SICAV-FIS S.A.
exchange traded
funds business)

4 Apr-20-09 C Stiefel Life Sciences GlaxoSmithKline Plc UK based healthcare group Blackstone Group Exit 3,300
Laboratories & Healthcare Holdings LLC

5 Oct-07-09 C SeaWorld Parks Leisure Blackstone Capital US based private equity fund of Anheuser-Busch IBO 2,300
& Entertainment Partners V LP The Blackstone Group InBev

6 Dec-16-09 P Cedar Fair LP Leisure Apollo Management US based private equity IBO 2,179
LP

7 Mar-30-09 C Fifth Third Business Advent International US based private equity firm Fifth Third Bank IBI 1,811
Processing Services Corporation
Solutions LLC
(51% stake)

8 Nov-08-09 C TASC TMT General Atlantic US based private equity firm Northrop MBO 1,650
LLC; Kohlberg Kravis Grumman
Roberts & Co Corporation

9 Aug-10-09 C Dynegy (five Energy, LS Power Group US based private equity firm Dynegy Inc IBI 1,498
peaking and Mining, Oil
three combined- & Gas
cycle generation
assets)

10 Nov-19-09 C Birds Eye Foods Consumer Pinnacle Foods US manufacturer of branded food Pro-Fac Cooperative Exit 1,300
Group Inc products Inc; Vestar Capital
Partners Inc

North American Private Equity in Review 9

North American private equity deals

Top 20 private equity deals

Rank Announced Status Target Target Bidder company Bidder description Seller company Deal type Deal
date company sector value
($m)

11 Sep-23-09 P SkyTerra Com- TMT Sol Private Corp. US based new corporation formed and IBI 1,206
munications indirectly wholly-owned by Harbinger
(51% stake) Capital Partners Master Fund I, Ltd and
Harbinger Capital Partners Special Situ-
ations Fund, L.P., the US based funds

12 Jul-22-09 C Zappos.com Consumer Amazon.com Inc US based company Sequoia Capital; Exit 1,134
Venture Frogs, LLC

13 Oct-21-09 P First Republic Financial Colony Capital LLC; US based private equity firm MBO 1,000
Bank Services General Atlantic LLC ;
Sequoia Capital

14 May-21-09 C BankUnited FSB Financial Blackstone Group US based private equity firms MBI 900
Services Holdings LLC, The
Carlyle Group LLC,
Centerbridge Partners
L P, W.L. Ross & Co
LLC, East Rock Capital
LLC,

15 Feb-09-09 C Lundbeck Life Sciences H. Lundbeck A/S Denmark based pharmaceutical GTCR Golder Rauner Exit 900
& Healthcare company LLC

16 Dec-16-09 C Acclarent Life Sciences Ethicon Inc US based medical device company Delphi Ventures; Exit 785
& Healthcare Johnson & Johnson
Development
Corporation; Meritech
Capital Partners LP;
New Enterprise
Associates;
Versant Ventures

17 Sep-25-09 C Simmons Bed- Consumer Ares Management US based private equity firm; Canada IBO 760
ding Company LLC; Ontario Teachers based pension plan and investment
Pension Plan group

18 Nov-09-09 P AdMob TMT Google Inc US based company operating web search Accel Partners & Co Exit 750
engines Inc; Draper Fisher
Jurvetson; Northgate
Capital; Sequoia
Capital

19 Feb-23-09 C CoreValve Life Sciences Medtronic Inc US based manufacturer and supplier of Apax Partners LLP; Exit 700
& Healthcare medical devices HealthCap; Maverick
Capital Ltd; Sofinnova
Partners

20 Nov-13-09 C United Malt Agriculture GrainCorp Limited Australia based handler and supplier of Castle Harlan Inc; Exit 674
Holdings LP agriproducts and bulk products CHAMP Private Equity

North American Private Equity in Review 10

Private equity activity tables - buyouts

Buyouts - Volume Buyouts - Value

Rank Company name Value (US$m) Number of deals Rank Company name Value (US$m) Number of deals

1 Marlin Equity Partners 43 7 1= J.C Flowers & Co 13,900 1

2 Platinum Equity 94 6 1= MSD Capital 13,900 1

3 TPG Capital 5,470 5 1= Soros Strategic Partners 13,900 1

4 Golden Gate Capital 528 5 1= Stone Point Capital 13,900 1

5 Patriarch Partners 125 4 5 TPG Capital 5,470 5

6 ABS Capital Partners 99 4 6 Canada Pension Plan Invest- 5,057 1

ment Board
7 Wayzata Investment Partners 92 4 7 Blackstone Group Holdings 3,200 3

8 Milestone Partners 31 4 8 General Atlantic 2,800 3

9 Catterton Partners - 4 9 Apollo Management 2,662 2

10 Blackstone Group Holdings 3,200 3 10 Advent International Corporation 2,223 3

11 General Atlantic 2,800 3 11 Kohlberg Kravis Roberts & Co 1,650 2

12 Advent International 2,223 3 12 LS Power Group 1,498 1

Corporation
13 The Carlyle Group 940 3 13 Harbinger Capital Partners 1,206 1

14 Centerbridge Partners 900 3 14 Clayton, Dubilier & Rice 1,096 2

15 One Equity Partners 371 3 15= Colony Capital 1,000 1

16 Vista Equity Partners 275 3 15= Sequoia Capital 1,000 1

17 HIG Capital 195 3 17 The Carlyle Group 940 3

18 ComVest Investment Partners 164 3 18 Centerbridge Partners 900 3

19 Berkshire Partners 125 3 19= East Rock Capital 900 1

20 Wynnchurch Capital Ltd 65 3 19= W.L. Ross & Co 900 1

Note: The tables are based on private equity houses as the bidder on buyouts and buyins announced between 01/01/2009 and 12/31/2009, where the target is US and Canada, excluding lapsed and withdrawn deals.

The Private Equity Activity Tables reflect the activity of buyout firms, venture capitalists, investment firms, financial institutions and all parties whose activities wholly involve, or lude making private equity
investments. Please note that the values in the ‘Value’ column do NOT reflect the equity contribution of the investors but represent the total values of deals they were involved in.

North American Private Equity in Review 11

Private equity activity tables - exits

Exits - Volume Exits - Value

Rank Company name Value (US$m) Number of deals Rank Company name Value (US$m) Number of deals

1 Benchmark Capital 1,578 10 1 Blackstone Group Holdings 3,320 2

2 Intel Capital 361 9 2 Sequoia Capital 2,690 7

3 Sequoia Capital 2,690 7 3 Highland Capital Partners 2,135 5

4 Accel Partners & Co 1,723 7 4 Accel Partners & Co 1,723 7

5 New Enterprise Associates 1,305 6 5 Benchmark Capital 1,578 10

6 TA Associates 788 6 6 Kleiner Perkins Caufield & 1,401 5

Byers

7 American Capital Ltd 571 6 7 New Enterprise Associates 1,305 6

8 US Venture Partners 418 6 8 Vestar Capital Partners 1,300 1

9 Highland Capital Partners 2,135 5 9 Delphi Ventures 1,202 3

10 Kleiner Perkins Caufield & 1,401 5 10 Venture Frogs, 1,134 1

Byers

11 Warburg Pincus 407 5 11 Apax Partners 930 2

12 Polaris Venture Partners 398 5 12 GTCR Golder Rauner 900 3

13 Greylock Partners 336 5 13 TA Associates 788 6

14 August Capital 187 5 14= Johnson & Johnson Develop- 785 2

ment Corporation

15 Menlo Ventures 137 5 14= Versant Ventures 785 2

16 Draper Fisher Jurvetson 750 4 16 Meritech Capital Partners 785 1

17 Redpoint Ventures 645 4 17 Draper Fisher Jurvetson 750 4

18 Austin Ventures 427 4 18 Northgate Capital 750 1

19 Bay Partners 420 4 19 Domain Associates 713 3

20 DAG Ventures 288 4 20 VantagePoint Venture Partners 707 3

Note: The tables are based on private equity houses as the seller on exits announced between 01/01/2009 and 12/31/2009, where the target is US and Canada, excluding lapsed and withdrawn deals.

The Private Equity Activity Tables reflect the activity of buyout firms, venture capitalists, investment firms, financial institutions and all parties whose activities wholly involve, or include making private equity
investments. Please note that the values in the ‘Value’ column do NOT reflect the equity contribution of the investors but represent the total values of deals they were involved in.

North American Private Equity in Review 12

Financial advisor activity tables - buyouts

Buyouts - Volume Buyouts - Value

Rank Company name Value (US$m) Number of deals Rank Company name Value (US$m) Number of deals

1 Goldman Sachs 9,082 8 1 Bank of America Merrill Lynch 25,988 7

2 Credit Suisse 2,236 8 2 Barclays Capital 11,941 6

3 Bank of America Merrill Lynch 25,988 7 3 Goldman Sachs 9,082 8

4 Morgan Stanley 5,021 7 4 JPMorgan 7,622 6

5 Barclays Capital 11,941 6 5 Evercore Partners 5,057 1

6 JPMorgan 7,622 6 6 Morgan Stanley 5,021 7

7 RBC Capital Markets 2,967 5 7 Deutsche Bank AG 3,950 3

8 UBS Investment Bank 3,812 4 8 UBS Investment Bank 3,812 4

9 Wells Fargo Securities 119 4 9 Blackstone Group Holdings 3,200 2

10 Deutsche Bank AG 3,950 3 10 RBC Capital Markets 2,967 5

11 WestLB Mergers & Acquisitions 1,597 3 11 Credit Suisse 2,236 8

12 Jefferies & Company 368 3 12 WestLB Mergers & Acquisi- 1,597 3

tions

13 Blackstone Group Holdings 3,200 2 13 Citigroup 1,498 2

14 Citigroup 1,498 2 14 Sandler O'Neill & Partners 1,000 1

15 William Blair & Company 246 2 15 Sagent Advisors 619 1

16 KPMG 54 2 16 PricewaterhouseCoopers 541 1

17 Houlihan Lokey – 2 17 KeyBanc Capital Markets 539 1

18 Lazard – 2 18 Stephens 488 1

19 Evercore Partners 5,057 1 19 BNP Paribas 483 1

20 Sandler O'Neill & Partners 1,000 1 20 HSBC Bank 477 1

Note: The tables are based on financial advisors to the bidder on buyouts and buyins announced between 01/01/2009 and 12/31/2009, where the target is US and Canada, excluding lapsed and withdrawn deals.

North American Private Equity in Review 13

Financial advisor activity tables - exits

Exits - Volume Exits - Value

Rank Company name Value (US$m) Number of deals Rank Company name Value (US$m) Number of deals

1 Credit Suisse 1,521 10 1 Goldman Sachs 5,405 7

2 Goldman Sachs 5,405 7 2 JPMorgan 4,513 7

3 JPMorgan 4,513 7 3 Morgan Stanley 3,741 6

4 America's Growth Capital 72 7 4 Blackstone Group Holdings 3,300 1

5 Morgan Stanley 3,741 6 5 Deutsche Bank 2,010 5

6 Piper Jaffray & Co 721 6 6 Credit Suisse 1,521 10

7 Lincoln International 11 6 7 UBS Investment Bank 1,300 3

8 Deutsche Bank AG 2,010 5 8 Centerview Partners 1,300 1

9 Lazard 748 5 9 Wells Fargo Securities 838 2

10 Jefferies & Company 547 5 10 Lazard 748 5

11 William Blair & Company 43 5 11 Piper Jaffray & Co 721 6

12 Harris Williams & Co 41 4 12 M&A International 700 1

13 UBS Investment Bank 1,300 3 13 Bank of America Merrill Lynch 691 3

14 Bank of America Merrill Lynch 691 3 14 Royal Bank of Scotland Group 674 1

15 Robert W. Baird & Co. 517 3 15 Jefferies & Company 547 5

16 Raymond James & Associates 170 3 16 Robert W. Baird & Co. 517 3

17 Updata Advisors 22 3 17 Evercore Partners 481 2

18 Pagemill Partners 12 3 18 Financial Technology Partners 370 1

19 Moelis & Company 0 3 19= Barclays Capital 350 1

20 Wells Fargo Securities 838 2 19= Stone Key Partners 350 1

Note: The tables are based on financial advisors to the seller/target on exits announced between 01/01/2008 and 12/31/2008, where the target is US and Canada, excluding lapsed and withdrawn deals.

North American Private Equity in Review 14

Legal advisor activity tables - buyouts

Buyouts - Volume Buyouts - Value

Rank Company name Value (US$m) Number of deals Rank Company name Value (US$m) Number of deals

1 Kirkland & Ellis 2,160 38 1 Cleary Gottlieb Steen 19,526 6

& Hamilton
2 Jones Day 1,081 21 2 Weiner Brodsky Sidman Kider 13,900 1

3 Latham & Watkins 3,811 20 3 Simpson Thacher & Bartlett 11,526 13

4 Simpson Thacher & Bartlett 11,526 13 4 Sullivan & Cromwell 6,252 7

5 Weil Gotshal & Manges 4,090 9 5 Ropes & Gray 5,387 4

6 Skadden Arps Slate Meagher 1,568 9 6 Hogan & Hartson 5,325 8

& Flom
7 DLA Piper 466 9 7 Dechert 4,675 7

8 Bingham McCutchen 334 9 8= Cadwalader, Wickersham 4,404 1

& Taft
9 Hogan & Hartson 5,325 8 8= SJ Berwin 4,404 1

10 O'Melveny & Myers 2,662 8 10 Weil Gotshal & Manges 4,090 9

11 Stikeman Elliott 559 8 11 Latham & Watkins 3,811 20

12 Sullivan & Cromwell 6,252 7 12 Fried Frank Harris Shriver 3,474 1

& Jacobson
13 Dechert 4,675 7
13 Torys 2,998 4

14 Cleary Gottlieb Steen 19,526 6

14 Dewey & LeBoeuf 2,704 2
& Hamilton
15 Willkie Farr & Gallagher 1,791 6 15 O'Melveny & Myers 2,662 8

16 Greenberg Traurig 1,460 6 16 Wachtell, Lipton, Rosen & Katz 2,292 2

17 Paul Weiss Rifkind Wharton 1,248 6 17 Kirkland & Ellis 2,160 38

& Garrison
18 Akin Gump Strauss Hauer 578 6 18 Willkie Farr & Gallagher 1,791 6
& Feld
19 Gibson Dunn & Crutcher 398 6 19 Arnold & Porter 1,672 4

20 Debevoise & Plimpton 1,493 5 20 Arent Fox Kintner Plotkin 1,650 1

& Kahn

Note: The tables are based on law firms advising the bidder on buyouts and buyins announced between 01/01/2009 and 12/31/2009, where the target is US and Canada, including lapsed and withdrawn deals.

North American Private Equity in Review 15

Legal advisor activity tables - exits

Exits - Volume Exits - Value

Rank Company name Value (US$m) Number of deals Rank Company name Value (US$m) Number of deals

1 Kirkland & Ellis 3,190 18 1 Simpson Thacher & Bartlett 5,417 4

2 Wilson Sonsini Goodrich 2,293 15 2 Willkie Farr & Gallagher 3,557 5

& Rosati

3 Cooley Godward Kronish 1,444 12 3 Kirkland & Ellis 3,190 18

4 Fenwick & West 1,352 8 4 WilmerHale (Wilmer Cutler 2,905 7

Pickering Hale and Dorr )

5 Goodwin Procter 1,307 8 5 Wilson Sonsini Goodrich 2,293 15

& Rosati

6 Jones Day 1,061 8 6 Gunderson Dettmer Stough 1,672 7

Villeneuve Franklin & Hachi-

7 Morrison & Foerster 625 8 7 Latham & Watkins 1,641 7

8 Pillsbury Winthrop Shaw 207 8 8 Cooley Godward Kronish 1,444 12

Pittman

9 WilmerHale (Wilmer Cutler 2,905 7 9 Vinson & Elkins 1,415 3

Pickering Hale and Dorr )

10 Gunderson Dettmer Stough 1,672 7 10 Fenwick & West 1,352 8

Villeneuve Franklin & Hachigian

11 Latham & Watkins 1,641 7 11 Skadden Arps Slate Meagher 1,350 7

& Flom

12 Skadden Arps Slate Meagher 1,350 7 12 Sullivan & Cromwell 1,317 3

& Flom

13 Dorsey & Whitney 333 6 13 Goodwin Procter 1,307 8

14 Willkie Farr & Gallagher 3,557 5 14 Davis Polk & Wardwell 1,134 1

15 Morgan Lewis & Bockius 915 5 15 Jones Day 1,061 8

16 DLA Piper 892 5 16 Katten Muchin Rosenman 940 2

17 Edwards Angell Palmer 670 5 17 Morgan Lewis & Bockius 915 5

& Dodge

18 Simpson Thacher & Bartlett 5,417 4 18 DLA Piper 892 5

19 O'Melveny & Myers 480 4 19 White & Case 674 2

20 Bingham McCutchen 75 4 20= Bennett Jones 674 1

20= Brodies 674 1

20= Mallesons Stephen Jaques 674 1

Note: The tables are based on law firms advising the seller/target on exits announced between
01/01/2009 and 12/31/2009 where the target is US and Canada, including lapsed and withdrawn deals.

North American Private Equity in Review 16

Appendix
Source data
Buyouts and exit trends Secondary buyouts trends
Buyouts Buyouts Exits Exits
Value of deals Volume Value of deals Volume Volume of Value of deals
(US$m) of deals (US$m) of deals deals (US$m)
Q1 2004 30,804 162 16,029 96 Q1 2004 31 9,083

Q2 2004 31,208 166 15,756 99 Q2 2004 32 7,590

Q3 2004 45,644 174 23,330 100 Q3 2004 38 10,672

Q4 2004 31,689 175 56,737 98 Q4 2004 30 5,052

Q1 2005 33,833 175 19,042 116 Q1 2005 34 3,278

Q2 2005 31,226 204 36,850 130 Q2 2005 44 12,211

Q3 2005 40,855 185 35,749 154 Q3 2005 40 7,184

Q4 2005 46,292 198 35,830 132 Q4 2005 46 11,524

Q1 2006 56,368 218 25,236 154 Q1 2006 40 5,021

Q2 2006 82,064 239 34,354 195 Q2 2006 46 12,337

Q3 2006 122,472 252 30,759 189 Q3 2006 57 9,784

Q4 2006 174,396 229 35,778 145 Q4 2006 38 6,114

Q1 2007 122,239 264 34,770 168 Q1 2007 61 11,072

Q2 2007 202,772 280 57,170 206 Q2 2007 61 15,949

Q3 2007 68,523 233 29,117 169 Q3 2007 61 9,222

Q4 2007 45,341 225 26,422 166 Q4 2007 46 7,415

Q1 2008 23,484 188 25,281 122 Q1 2008 26 3,486

Q2 2008 25,758 204 52,707 140 Q2 2008 36 1,253

Q3 2008 21,924 217 12,159 106 Q3 2008 35 1,819

Q4 2008 6,078 111 2,659 64 Q4 2008 18 627

Q1 2009 19,407 109 3,390 67 Q1 2009 8 91

Q2 2009 3,960 112 5,355 70 Q2 2009 15 497

Q3 2009 9,291 117 5,903 78 Q3 2009 8 386

Q4 2009 18,143 125 17,946 98 Q4 2009 14 754

North American Private Equity in Review 17

 Appendix: source data

Buyout Deal Size Data by Volume Exit Deal Size Data by Volume
2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009
Not disclosed 257 359 433 522 429 264 Not disclosed 96 159 223 277 191 151

< US$15m 40 34 61 35 34 34 < US$15m 26 24 36 36 30 26

US$15m - US$100m 170 172 193 159 121 102 US$15m - US$100m 122 146 188 143 99 71

US$101m - US$250m 93 82 86 99 62 32 US$101m - US$250m 68 92 110 98 58 26

US$251m - US$500m 51 50 53 64 40 15 US$251m - US$500m 45 60 63 80 33 21

> US$500m 66 65 112 123 34 16 > US$500m 36 51 63 75 21 18

TOTAL 677 762 938 1,002 720 463 TOTAL 393 532 683 709 432 313

Buyout Deal Size Data by Value Exit Deal Size Data by Value
Value 2004 2005 2006 2007 2008 2009 Value 2004 2005 2006 2007 2008 2009
< US$15m 376 307 587 328 323 311 < US$15m 225 214 341 337 229 278

US$15m - US$100m 8,269 9,049 9,359 7,954 5,931 4,607 US$15m - US$100m 6,273 7,734 9,782 7,913 5,503 2,977

US$101m - US$250m 15,868 13,808 14,172 16,415 10,483 4,934 US$101m - US$250m 11,753 14,912 18,550 16,400 9,786 4,557

US$251m - US$500m 18,808 18,133 19,024 23,275 15,521 5,531 US$251m - US$500m 15,950 21,267 22,261 28,692 11,597 7,786

> US$500m 96,024 110,909 392,158 390,902 44,986 35,419 > US$500m 77,650 83,344 75,193 94,137 65,690 16,996

TOTAL 139,345 152,206 435,300 438,874 77,244 50,800 TOTAL 111,851 127,471 126,127 147,479 92,805 32,593

Sector splits of buyouts Sector splits of exits

Buyouts Exits
Value (US$m) Volume Value (US$m) Volume
Industrials, Chemicals & Engineering 3,167 98 Industrials, Chemicals & Engineering 707 31
Financial Services 16,323 29 Financial Services 953 7
Business Services 10,333 65 Business Services 2,652 42
Consumer 2,678 69 Consumer 4,413 21
Energy, Mining, Oil & Gas 4,626 30 Energy, Mining, Oil & Gas 2,060 19

TMT 4,317 73 TMT 6,657 130

Leisure 6,194 24 Leisure 360 6

Transportation 574 13 Transportation 31 4
Life Sciences & Healthcare 1,247 32 Life Sciences & Healthcare 11,040 42
Construction 1,135 19 Construction 212 4
Real Estate – 2 Real Estate – 1
Agriculture 11 3 Agriculture 674 2
Defense – 4 Defense – 2

Total 50,605 461 Total 30,134 311

North American Private Equity in Review 18

Notes & contacts

The following notes pertain to data contained in mergermarket

this publication:
• Deals included are buyouts or exits where the deal value is
greater than or equal to US$5m.
• Where no deal value has been disclosed, deals are included if
the turnover of the Target is greater than or equal to US$10m
or if the Target employs more than 100 people.
mergermarket is an unparalleled, independent Mergers &
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other service of its kind, mergermarket provides a complete
overview of the M&A market by offering both a forward
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• Deals are included within the analysis, charts and graphs for Remark
each section if the dominant geography of the Target is North Remark, the publishing, market research and events division
American. of The Mergermarket Group, offers a range of services that
give clients the opportunity to enhance their brand profile,
• Please refer to individual notes beneath each Activity Table for and to develop new business opportunities within their target
the precise criteria by which each table has been run. audience. Remark achieves this by leveraging off The Merg-
• The Sector Trend analysis is based on deals using the ermarket Group’s core intelligence and connections within the
dominant industry of the target. financial services and corporate markets. Remark publishes
over 50 thought leadership reports and holds over 70 events
across the globe each year which enable its clients to demon-
strate their expertise and underline their credentials in a given
Mergermarket Contacts
market, sector or product.
Erik Wickman
Managing Director, Remark
Visit www.mergermarket.com/remark/ or
Tel: +1 212 686 3329
www.mergermarket.com/events/ to find out more.
Email: erik.wickman@mergermarket.com

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Tel: +44 (0)20 7059 6100
Email: elias.latsis@mergermarket.com

North American Private Equity in Review 19

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