ACG European Capital Tour Pamela Hendrickson and Dominique Gaillard

ACG European Capital Tour Pamela Hendrickson and Dominique Gaillard

• 1.
  Views and perspectiveson French and US Private Equity Pamela Hendrickson COO of the Riverside Company, Vice Chair of ACG Dominique Gaillard member of the executive board AXA Private Equity member of the board of the AFIC
• 2.
  Riverside: At AGlance  24 years focused on small company  200+ people organized by function control buyouts  295 acquisitions (152 platforms, 143  $3.2 billion in assets under management add-ons)  20 offices in 14 countries on  78 exits (78 platforms and their 4 continents corresponding 90 add-ons) Note: Acquisition and realization data is as of August 31, 2012. Valuation data is as of June 30, 2012. Past performance is not necessarily indicative of future results. See Important Information slide at the end of the Appendix.
• 3.
  Investment Criteria Size: Target companieswith less than $25 million in LTM EBITDA Growth: Healthy companies that are in rapidly growing markets or have the potential to take significant market share Specialness: Leaders or potential leaders in their niches with sustainable competitive advantages that provide clear opportunities for high margins and rapid growth Management: Strong leadership capable of working with Riverside to design and execute a compelling growth strategy Note: As of August 31, 2012. Number of investments reflects both platforms and add-ons.
• 4.
  Sector Specialization In our24-year history, Riverside has acquired 290+ investments across dozens of industries. Our industry specialties include: Healthcare 67 investments Education and Training 32 investments IT with Recurring Revenue 20 investments Franchise Model 6 investments We avoid companies with low margins, heavy capital expenditures, fashion risk and in “sin” industries Note: As of August 31, 2012. Number of investments reflects both platforms and add-ons.
• 5.
  Private Capital Matters Private capital-backed companies had more annual relative job growth every year except one compared to the general U.S. economy Private Capital-Backed Companies General U.S. Economy Total New Total New PC Growtheconomy.org
• 6.
  Private Capital IsInvested Everywhere Private capital-backed companies are widely dispersed through the U.S. 1995-2009 Growtheconomy.org
• 7.
  U.S. Tax Proposals Simpson Bowles Paul Ryan Rivlin Domenici Personal Fed Tax • 3 brackets • 2 brackets • 2 brackets • 8, 14, 23% • 10% < $100,000 • 15 and 27 OR • 25% above • 12,22,28% Corporate Tax 26% Flat territorial • Eliminate all 27% Flat rate corporate tax • Expense all investments immediately All other • Eliminate capital • 8.5% VAT • 6.5% VAT gains, dividends etc. • Eliminate capital • Eliminate capital gains, dividends etc. gains, dividends etc. 7
• 9.
  AXA Private Equityactivities Global reach across the asset class Funds of Funds Direct Funds  Managing and/or advising more than $28bn* Secondaries Mid Cap  Top quartile returns since inception Early Secondaries Small Cap  Strong local franchises with 270 professionals based Primaries Innovation & Growth in 10 offices Mandates Co-Investment $17bn $6bn Long term Private Equity philosophy  Reliable support to entrepreneurs for sustainable $2.5bn $2.5bn growth and value creation  Commitment to stringent corporate governance  Proprietary access to top corporate managers and Arranger & GPs thanks to a deep institutional and business Underwriting Brownfield network Acquisition financing Greenfield Private Debt Infrastructure Commitment to investor transparency  Frequent and personalized reporting  Close and trustworthy investor relationships *As of June 2012; Exchange rate €1 = $1.25765
• 10.
  AXA Private Equityclient base Type of investors* Location* Banks Funds of Funds 2% 2% Asia - Oceania Foundation/ & Middle East Endowment 6% 15% HNWI 7% Government Agencies Europe 12% 48% Pension Funds 49% North America Insurance Companies 22% 37% Source: AXA Private Equity as of June 30, 2012. Information provided for illustrative purposes only without any binding contractual force. * AUM Breakdown excluding AXA money.
• 11.
  AXA Private Equityhistory (AuM in US$bn) Launch of Office in Beijing CEE fund Launch of Infrastructure, Co-investment, Mezzanine Launch fifth generation Office in Office in of Secondary Fund and Zurich Vienna third generation of Office in Office Infrastructure Fund Singapore in Milan Renewal of the 28.0 28.0 ** Launch of Early partnership with CDPQ 26.0 Launch of Secondary 25.0* 25.0* Secondary activity Launch of 23.0 Small Cap LBO Launch of the first Venture fund Office in Creation by Frankfurt Dominique Senequier & Offices in AXA Group London and 14.0 New York First mandate for AXA France, Creation of the Buyout activity 8.0 with CDPQ 6.0 4.5 3.1 2.6 1.9 0.8 0.1 0.2 0.2 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Over the past decade, AXA PE has established an unquestionable leading position in PE * Decrease due to €/$ rate fluctuations. ** As of June 2012.