PRIVATE EQUITY INVESTMENT FUNDS EUROPEAN UPDATE

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PRIVATE EQUITY INVESTMENT FUNDS EUROPEAN UPDATE
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SJ Berwin Recent Awards

• "Law Firm of the Year" at the EVCA/Real Deals
  Private Equity Awards 2004 and 2005
• "Law Firm of the Year" at the European Venture
  Capital Journal Private Equity Awards 2004, 2005
  and 2006
• "Best Law Firm (Fund Formation)" by Private
  EquityOnline and Private Equity International
  2004, 2005 and 2006
• "UK Firm of the Year" at the Legal Week Awards
  2005

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New Italian Offices
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Agenda

• Jonathan Blake European Overview and Trends
• Josyane Gold Terms and Conditions of European
  Funds 2006 Update
• Tamasin Little The Shifting Regulatory
  Landscape?
• Michael Trask Threats emerging from the
  changing tax environment
• Questions and Panel Discussion

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EUROPEAN OVERVIEW AND TRENDSJonathan Blake
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Overview and Trends

• Fundraising (Investments and Exits)
• Diversity
• Hedge funds
• Threats
• Opportunities
• The Future

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Fundraising

• Record year

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A fund raising all-time record at 60bn
European Private Equity Funds Raised

• Sustainable level?
• 77 of funds raised in 2005 allocated to buyout,
  vs. 65 in 2004
• Banks are back why?
• Pension funds invest massively baby boomers with
  a pension shortfall
• US fund raising also a record with 173bn, but
  second to 2000

Source EVCA/Thomson Financial/
PricewaterhouseCoopers
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Fundraising

• Record year
• Also for investments (and exits)

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Investments divestments growing too
billion

• Not too much capital overhang
• 66 of investments in 2005 related to buyout
  deals, vs. 70 in 2004

Source EVCA/Thomson Financial/
PricewaterhouseCoopers
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Fundraising

• Record year
• Also for investments and exits
• Terms

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Fundraising

• Record year
• Also for investments and exits
• Terms
• Venture

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Overview and Trends

• Fundraising (Investments and Exits)
• Diversity

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Diversity

• Private Equity
• Funds of funds and secondary funds
• Venture
• Mezzanine
• Infrastructure
• Real Estate
• Quoted funds
• Hedge

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Overview and Trends

• Fundraising (Investments and Exits)
• Diversity
• Hedge funds

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Overview and Trends

• Fundraising (Investments and Exits)
• Diversity
• Hedge funds
• Threats

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Threats

• Negative publicity
• Fee structures
• Tax
• Regulatory

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Overview and Trends

• Fundraising (Investments and Exits)
• Diversity
• Hedge funds
• Threats
• Opportunities

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Opportunities

• Liquidity-secondaries

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Opportunities

• Liquidity-secondaries
• LLPs

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Opportunities

• Liquidity-secondaries
• LLPs
• Europe and RoW

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Opportunities

• Liquidity-secondaries
• LLPs
• Europe and RoW
• So what have we been doing?

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So what have we been doing?

• Private equity fund formation
• Transaction support (opinions, merger clearance,
  tax)
• Acting for investors
• Secondary transactions (portfolios of deals and
  of funds)
• Internal carried interest arrangements
• Coinvestment plans
• LLPs for private equity houses
• Acquisition and sale of private equity houses

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Opportunities

• Liquidity-secondaries
• LLPs
• Europe and RoW
• So what have we been doing?
• Luxembourg SICARs and other structures

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Overview and Trends

• Fundraising (Investments and Exits)
• Diversity
• Hedge funds
• Threats
• Opportunities
• The Future

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PRIVATE EQUITY INVESTMENT FUNDS EUROPEAN UPDATE