asia pe overview

March 2011

STRICTLY CONFIDENTIAL

UBS Private Funds GroupAsia private equity market overview

1

Table of contents

SECTION 1

Market overview

2

SECTION 2

Trends and developments by major country 18

SECTION 3

GP landscape

25

SECTION 1

Market overview

3

Asia—A region comprised of diverse economies and cultures…

AustraliaPopulation: 22 million

1

GDP: US$1.2 trillionGDP per capita: US$57,279

1

GDP growth 2: 3.1%

Language: English

New ZealandPopulation: 4 million

1

GDP: US$139 billionGDP per capita: US$32,336

1

GDP growth 2: 2.8%

Language: English

IndiaPopulation: 1,215 million

1

GDP: US$1.6 trillionGDP per capita: US$1,304

1

GDP growth 2: 8.6%

Languages: Hindi, English

China (PRC)Population: 1,343 millionGDP: US$5.8 trillion GDP per capita: US$4,351GDP growth

2: 8.9%

Languages: Mandarin, Others

JapanPopulation: 127 millionGDP: US$5.5 trillionGDP per capita: US$42,969 1

GDP growth 2: 1.7%

Language: Japanese

VietnamPopulation: 89 million

1


1

GDP growth 2: 7.1%

Language: Vietnamese

PhilippinesPopulation: 94 million

1


1

GDP growth 2: 4.7%

Languages: Filipino, English

MalaysiaPopulation: 28 million

1


1

GDP growth 2: 4.8%

Language: Malay

ThailandPopulation: 68 million

1

GDP: US$319 billion GDP per capita: US$4,677

1

GDP growth 2: 4.6%

Language: Thai

SingaporePopulation: 5 million

1


1

GDP growth 2: 4.7%

Languages: English, Mandarin

South KoreaPopulation: 49 millionGDP: US$1.0 trillionGDP per capita: US$20,791GDP growth

2: 4.0%

Language: Korean

IndonesiaPopulation: 233 million

1


1

GDP growth 2: 6.0%

Language: Bahasa Indonesia

Hong KongPopulation: 7 millionGDP: US$228 billionGDP per capita: US$32,178GDP growth

2: 4.9%

Languages: English, Cantonese

Source:

Global Insight, January 2011

Notes:

2010 estimates; based on 2009 statistics, unless otherwise noted1

Based on 2008 statistics

2

Forecast real GDP growth over 2011-2015

TaiwanPopulation: 23 millionGDP: US$430 billion GDP per capita: US$18,676GDP growth

2: 4.9%

Language: Mandarin

Asia represents approximately 56% of the world’s total population and approximately 29% of the world’s total GDP

By 2025, whilst Asia’s share of the world’s population is projected to remain steady, the region’s GDP is projected to account for over 40% of the world’s total GDP

4

…And rapidly becoming a prominent component of the global economy

Emerging Asia has become increasingly integrated and influential within the global economy, with market capitalization levels more than doubling over the past five years

Emerging economies will soon account for a greater share of global GDP than the developed economies, with Emerging Asia expected to account for over 30% by 2020. A key driver of this is the increase in intra-Asian trade, which experienced growth of nearly 11 times from 1990 to 2008

Source:

FactSet

Breakdown of global market capitalization

Source:


Emerging economies' share of global GDP

Growth in intra-Asian trade

Source:

IMF Directions of Trade Statistics

0%

20%

40%

60%

80%

100%

1990 1995 2000 2005 2010 2015 2020

Advanced economies Emerging economies

Emerging Asia

0

5

10

15

20

25

30

Dec-05 Dec-10

Mar

ket

Cap

(US$

tri

llio

n)

US

44%

US

31%

Japan 10% Japan 8%

Asia ex Japan 8%

Asia ex Japan

21%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Intr

a-A

sian

Tra

de

Leve

ls (U

S$b

n)

20%

22%

24%

26%

28%

30% Asia's Sh

are of G

lob

al Trade (%

)

Intra-Asian Trade Levels Asia's Share of Global Trade

5

The Asia Private Equity Market—A look back at 2010

Investments and divestments

In aggregate, private equity activity levels in 2010 were higher, further evidence of the region’s robust recovery following the global financial crisis

US$48.5 billion of private equity capital was invested in 2010, approximately 5% more than in 2009, but approximately 50% less than peak levels seen in 2007

–

Greater China was again the largest private equity market with total investments of US$21.6 billion, accounting for nearly 45% of the region’s activity and representing a 53% increase from 2009

–

Australia and India were the second and third largest private equity markets in the region with total investments of US$8.8 billion and US$6.9 billion, respectively. Both countries experienced a significant increase in activity, with total investments up 17% and 60%, respectively

–

PE activity in Japan declined for the fourth consecutive year, down 17% from 2009 and more than 75% from its peak in 2007

For the first time in five years, private equity exits in the region exceeded new investments, driven by unprecedented exit activity in the last quarter of 2010

Divestment through public markets rose to euphoric levels in Greater China, accounting for over 95% of the region’s private equity-backed IPO activity

–

Greater China saw 211 PE-backed IPOs in 2010, compared to 158 in 2008 and 92 in 2009. Greater China’s public markets were particularly heated towards the latter half of 2010, with 85 PE-backed IPOs in the last quarter alone

–

Approximately 30% of all IPOs in Asia, excluding Japan, were PE-backed in 2010

Divestment through trade sales increased significantly in 2010 to US$29.0 billion, up 75% year-on-year and approaching levels not seen since 2007/08

–

Trade sales continue to be a more common exit method in more developed markets such as Australia, Japan and South Korea

Fundraising

In aggregate, fundraising activity increased 23% from 2009 to 2010. However, the US$26.5 billion raised in Asia was still well below 2006-08 levels, a period where private equity fundraising averaged US$53.3 billion per year

The increase in fundraising from 2009 levels was most pronounced in Greater China and SE Asia

–

China-based funds raised US$16.9 billion in 2010, representing a 67% increase from 2009

–

SE Asia-based funds raised US$2.3 billion in 2010, representing a 27% increase from 2009

Despite a marked shift towards RMB-denominated funds in China, USD-denominated funds actually attracted more capital in 2010. The 71 RMB-denominated funds raised in 2010 (vs. 11 USD funds) accounted for approximately 40% of total capital raised

In China, about a quarter of the funds raised went towards funds with fund sizes of more than US$200 million –

a drop from 2009 where about one third of

the funds raised were above the US$200 million mark

Source:

AVCJ, Preqin database, EMPEA, Zero2IPO, Market intelligence

6

Continued positive macroeconomic outlook

Fundamentals for growth continue to look stronger in Asia than elsewhere in the developed world, underpinned by rapidly rising middle class populations, urbanisation, low interest rates, high savings and cost-effective labour

forces

For 2011 to 2015, GDP across Asia is forecast to grow at a blended average annual rate of approximately 6%

Securing acquisition finance generally remains a challenge in Asia, providing opportunities for the private equity industry

Private equity is quickly becoming a more recognised source of funding, particularly in Emerging Asia where public equity and debt capital markets are not as deep as those in the more developed parts of the world

In addition, entrepreneurs and other independent business owners are increasingly recognising the additional forms of value-add that private equity firms can offer

Continued evolution of Asia as a growth equity market, with limited but increasing number of buyout opportunities

Given ongoing challenges in securing scalable buyout investments, particularly in markets such as China and India, coupled with the global credit squeeze, a number of large-cap global and pan-Asian funds are seeking to execute minority growth equity investments

Increasing prevalence of “active minority” investments with control-like rights and protections, particularly as the

industry becomes increasingly focused on operational value-add expertise and initiatives

Intra-Asian trade and cross-border transactions to be more prominent

A growing number of successful, domestic-oriented companies are looking to expand their businesses regionally, as evidenced by the 48% increase in intra-Asian M&A transactions since 2005. Private equity will continue to play an important role in facilitating these transactions

Increasing exit activity

For a number of years, the level of private equity investment into Asia has significantly exceeded the value of realizations returned to investors, especially in a market like China where foreign investment and foreign exchange are tightly controlled. However, 2010 saw a marked increase in the level of exit activity, a trend that is expected to continue into 2011

In 2010, the total value of private equity-backed IPOs and trade sales (including secondary sales) was $113 billion,

compared with $48 billion in new investments

Secondary buyouts are becoming more common, a function of gradual market maturity. In 2009-10, secondary buyouts represented approximately 20% of all private equity-backed M&A transactions

The Asia Private Equity Market—2011 and beyond

Key market trends and developments

7

The Asia Private Equity Market—2011 and beyond

New fundraising was on the whole challenging in 2009 and 2010, with a divergence of outcomes between firms

Following the financial crisis, several funds have had to reduce their target fund sizes, extend fundraising timetables and

in some cases postpone fund launches. However, funds with top quartile returns have continued to experience marked fundraising success, including significantly oversubscribed fundraises

In general, LPs have become far more scrutinizing, both in terms of re-ups and establishing new GP relationships

On the whole, fund terms have shifted moderately in favour of LPs, particularly terms relating to fees (management and transaction), investment limitations, GP clawback obligations and fund dissolution provisions

International and Asia-based investors continue to increase their activity and presence in Asia

Most international LPs continue to be relatively underweight Asia; this should provide ongoing support for Asia fundraising activity. Increasing numbers of international investors and advisors are establishing investment offices in Asia, and this trend is set to continue as investors look to increase portfolio exposure to the region

There are now in excess of 55 fund of funds active in Asia, many of which are investing from a dedicated Asia-focused

pool of capital. However, it remains to be seen how many of these will ultimately be successful given the challenging

fundraising environment and increasingly competitive market

International private equity firms have increased their presence in Asia

Many global and international private equity firms have established offices in Asia to make investments and/or assist in the management of their portfolio companies. This trend is set to continue throughout 2011

In addition, international firms are increasingly investing in Asia from dedicated Asia-focused funds as opposed to global funds with an investment remit that encompasses Asia

Key market trends and developments

Increased focus and attention on RMB funds

An increasing number of RMB funds are being raised as GPs look to tap into China’s domestic investor base and take advantage of certain deal execution advantages from having access to RMB capital

Chinese state governments have become increasingly active with initiatives designed to support the ongoing development of the country’s private equity industry, including providing GPs with incentives to establish funds in select jurisdictions, as well as pilot programs relating to Qualified Foreign Limited Partners (“QFLP”)

Rapidly evolving regulatory landscape affecting the private equity industry globally

Regulatory changes being enacted in North America at both a federal and state level are starting to impact Asian-based private equity groups, particularly those with investors based abroad. Additionally, European regulatory changes will come into effect throughout 2011 and 2012

Heightened scrutiny surrounding taxation and private equity looks set to remain a key area of focus for 2011, notably in markets such as China and Australia

8

6% 8% 8%

14%

23%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009

Asia RoW

Asia continues to fare better than the West following the global downturn...

Economic recovery in Asia has been faster and more pronounced, as evidenced by the strong performance of public equity markets in the region. From Q4 2008 through Q4 2010, market indices in Indonesia, India and Hong Kong are up 102%, 55% and 28%, respectively, compared to more modest increases of 19% and 8% in the UK and US, respectively

Asia’s share of global buyout activity has grown from 6% in 2005 to 23% in 2009 – further evidence of the region’s resilience over the past few years

Source:

Thomson Reuters

Global buyout activity, by valuePerformance of public equity market indices

Source:

BloombergNote:

Market data as of 31 December 2010

50%

75%

100%

125%

150%

175%

200%

225%

Oct-08 Mar-09 Aug-09 Jan-10 Jul-10 Dec-10

US (S&P 500) UK (FTSE 100)

India (S&P CNX) Hong Kong (Hang Seng)

Indonesia (JCI)

Indonesia (+102%)

India (+55%)

HK (+28%)

UK (+19%)

US (+8%)

9

…And this relative trend is set to continue

Real GDP, China

Source:


Forecast Average Real GDP Growth (2011-2015)

Real GDP growth across the key markets in Asia is forecast to significantly outpace that of the US and Europe. Key elements that support this growth include an expanding middle class, urbanisation, high savings rates and cost- effective work forces

China and India have historically been the major growth engines in the region. Whilst this is likely to continue, other markets – such as Indonesia and Vietnam – are now showing similar growth dynamics

Real GDP, Indonesia

Real GDP, India Real GDP, Vietnam

0

200

400

600

800

2005 2008 2011 2014 2017 2020

(US$

bn

)

2.3x

0

50

100

150

2005 2008 2011 2014 2017 2020(U

S$b

n)

2.7x

2.03.1

1.73.1

4.04.7

4.96.0

7.18.6

8.9

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0

EuropeUS

JapanAustralia

South KoreaSingapore

TaiwanIndonesiaVietnam

IndiaChina

(%)

0

1,000

2,000

3,000

2005 2008 2011 2014 2017 2020

(US$

bn

)

3.3x

0

2,500

5,000

7,500

10,000

2005 2008 2011 2014 2017 2020

(US$

bn

)

3.8x

10

Despite rapid growth, the Asia PE market remains under-penetrated

Private equity investment as a % of GDP

M&A market trend

Source:

AVCJNote:

Figures represent M&A transactions with targets located in Asia

Private equity in Asia continues to be a relatively steady share of the region’s overall M&A activity

However, private equity penetration in Asian countries remains comparatively low

Source:

AVCJ, Dealogic, Global Insight, January 2011

251.4372.3

528.4422.2 343.9

245.5313.8

8.4

13.717.7 17.9

13.2 13.815.4

0100200300

400500600

2004 2005 2006 2007 2008 2009 2010(U

S$b

n)

0.0

5.0

10.0

15.0

20.0

(%)

M&A transaction value—Asia PE's share in M&A—Asia

0.5

0.8

0.10.1

0.2 0.20.3

0.4

0.020.0

0.2

0.4

0.6

0.8

1.0

1.2

Euro

pe

No

rth

Am

eric

a

Thai

lan

d

Jap

an

Sou

thK

ore

a

Ind

on

esia

Vie

tnam

Ch

ina

Ind

ia

(%)

11

PE investment activity levels continue to trend positively

Greater China continues to represent the single largest market for private equity investments in the region, with Australia and India a distant second and third, respectively

In 2010, both buyout and growth capital strategies represented the majority of private equity activity

Going forward, we expect growth capital transactions to continue to rise, driven by activity in China, India and, increasingly, SE Asia

PE investments, by country

Source:

AVCJ Source:

AVCJ

PE investments, by strategy

04–10 CAGR: 15%

0

10

20

30

40

50

60

70

80

90

100

2004 2005 2006 2007 2008 2009 2010

(US$

bn

)

Australia/NZ Greater China India

Japan SE Asia South Korea

21

34

66

95

56

4649

0%

20%

40%

60%

80%

100%

2004 2005 2006 2007 2008 2009 2010

Buy-outs (MBO/MBI/LBO) Expansion/Growth CapitalMezzanine/Pre-IPO PIPE Financing

12

Deal

Sponsor(s) Carlyle Asia, TPG

SAIF Partners (23% stake)

Silver Lake Blackstone Group

Wise Partners Hony Capital (29% stake)

Vogo Fund Hopu and Temasek-led consortium

TPG, KKR, existing CICC shareholders (34% stake)

TPG, GIC, CIC MBK Partners CHAMP Private Equity

Affinity Equity Partners 1

Carlyle Asia, Macquarie Group

Carlyle Japan Bain Capital, GIC

Country Australia China China India Japan Singapore S. Korea China China Indonesia Japan Australia New Zealand Australia Japan India

Date Jul-10 Jul-10 Aug-10 Aug-10 Aug-10 Oct-10 Nov-10 Nov-10 Dec-10 Dec-10 Dec-10 Jan-11 Feb-11 Feb-11 Mar-11 Mar-11

Recent “notable” PE investments

Source:

AVCJ, PEI Asia, Private Equity Analyst, Private Equity Review, market intelligence, and other publicly available information; may differ from actual data

Notes:1

Acquired from Pacific Equity Partners

2,340

260182

300176 220

800

200

1,000

400

212293

466

304

807 852

0

500

1,000

1,500

2,000

2,500

Inve

stm

ent

size

(US$

m)

13

As the Asia PE market matures, exit activity continues to increase

As the Asia PE market continues to mature, there has been a meaningful increase in exit activity

In China, PE-backed IPO volume has surged, surpassing 2006 and 2007 levels

Trade sales are expected to increase as international corporates continue to look to the East to fuel their future growth and manage costs

As the market matures, secondary buyouts are also expected to become a more meaningful exit route, similar to the more developed markets

Private equity-backed M&A trade sale exits Private equity-backed IPOs1

Source:

AVCJNote:1

Note that in many cases, private equity will represent a minority ownership stake. As such, aggregate IPO data can be misleading

Australia / NZ Greater China

India Japan

SE Asia South Korea

Australia / NZ Greater China

India Japan

SE Asia South Korea

0

10

20

30

40

50

60

70

80

90

2004 2005 2006 2007 2008 2009 2010

(US$

bn

)

1418

55

66

16

30

83

0

5

10

15

20

25

30

35

40

2004 2005 2006 2007 2008 2009 2010

(US$

bn

)

15

24

17

34 34

17

29

14

570318

211425 445

258

1,4001,190

4,100

860

573724

367255

540345

0

1,000

2,000

3,000

4,000

Inve

stm

ent

size

(U

S$m

)

Deal

Sponsor(s) CHAMP Private Equity 1

Palamon Capital Partners, Morgan Stanley AIP, AlpInvest

Lazard Carnegie Wylie PE

Daiwa SMBC Capital, Polaris Capital

Crescent Capital Partners

Lunar Capital MBK Partners Carlyle Asia Lone Star Carlyle Asia Ironbridge Capital

Actis, Sequoia Capital

KKR Asia, Morgan Stanley

Advantage Partners, CITIC Capital

CVC Asia Pacific

Archer Capital

Country Australia Australia Australia Japan Australia China Taiwan Taiwan S. Korea China Australia India Japan Japan Malaysia Australia

Date Jun-10 Jul-10 Sep-10 Sep-10 Oct-10 Oct-10 Oct-10 Nov-10 Nov-10 Dec-10 Dec-10 Dec-10 Jan-11 Feb-11 Feb-11 Feb-11

Recent “notable” PE divestments

Notes:1

Sold to Providence Equity Partners

Source:

AVCJ, PEI Asia, Private Equity Analyst, Private Equity Review, market intelligence, and other publicly available information; may differ from actual data

15

PE fundraising activity has increased over recent years

Fund Size (m) Geography

Carlyle Asia Partners III US$4,100 Pan-Asia

Baring Private Equity Asia Fund V US$2,460 Pan-Asia

SAIF Partners Fund IV US$1,275 Pan-Asia

CDH China Fund IV US$1,450 China

KKR China Growth Fund I US$1,000 China

CITIC Capital China Partners II US$925 China

New Horizon Capital III US$750 China

CX Partners Fund I US$515 India

Quadrant Private Equity No. 3 A$750 Australia

Japan Industrial Partners Fund III US$600 Japan

Asia has rapidly become a core part of an LP’s overall PE portfolio. This trend has helped fuel a major increase in fundraising activity over recent years

Pan-Asian funds continue to dominate the league tables in terms of fund size

The emergence of RMB- denominated funds in China has dramatically shifted the fundraising landscape

Source:

AVCJ

Selected funds recently closed (2010 / Q1 2011)

PE fundraising, by country

Fund Target Size

(m) Geography Pacific Alliance Pan-Asia Fund I US$2,500 Pan-Asia

AIF Capital Asia IV US$750 Pan-Asia

Orchid Asia V US$650 Pan-Asia

Blackstone Zhonghua Development Investment Fund

RMB5,000 China

Carlyle Beijing RMB Fund RMB5,000 China

CDH RMB Fund II RMB10,000 China

Hony Capital RMB Fund II RMB10,000 China

Saratoga Asia III (pre-marketing) TBD Indonesia

Hahn & Company Korea Fund I US$750 S. Korea

Selected funds currently in the market

Source:

Preqin Database, AVCJ, PEI Asia, market intelligence

Asia’s share of global PE fundraising

Source:

Preqin, The Rise of Asian Private Equity, November 2010

6.4

10.312.4

13.7

9.611.6

20.7

12.1

0

5

10

15

20

25

2004 2005 2006 2007 2008 2009 2010 Raising

(%)

0

10

20

30

40

50

60

70

2004 2005 2006 2007 2008 2009 2010

(US$

bn

)

Australia / NZ Greater China India

Japan SE Asia South Korea

16

29

47

60

53

2227

16

Performance in Asia continues to outperform other regions

Over the past several years, PE and VC fund managers in Asia have consistently outperformed their US and European counterparts, as well as key public market indices

Performance benchmarks, median net IRR (%) Performance benchmarks, upper quartile net IRR (%)

Performance benchmarks, key indices

Source:

Cambridge Associates Index and Benchmark Statistics, September 2010Note:

US PE and VC data only available separately; Asia PE and VC data

only available combined

Source:

Cambridge Associates Index and Benchmark Statistics, September 2010Note:

US PE and VC data only available separately; Asia PE and VC data

only available combined

(10.0)

0.0

10.0

20.0

30.0

One Year Period Three Year Period Five Year Period

(Inde

x le

vel)

Asia PE & VC Index W. Europe PE & VC Index US PE Index US VC Index DJIA Index MSCI EM Index

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

2004 2005 2006 2007 2008

Med

ian

Net

IRR

(%)

Asia PE & VC W. Europe PE and VC

US PE US VC

-20.0

-10.0

0.0

10.0

20.0

30.0

2004 2005 2006 2007 2008

Up

per

Qu

arti

le N

et IR

R (%

)

Asia PE & VC W. Europe PE and VC

US PE US VC

17

LP interest in Asia has increased, driven by higher expected returns

Allocations to Asian private equity funds are expected to continue to increase, fuelled by first time Asian investors, and more experienced investors increasing their allocations to the region

Approximately 44% and 28% of LPs surveyed expect to increase their allocations to China and India, respectively, while 26% will look to expand their attention to Indonesia, Vietnam, and other emerging economies in Asia

% of PE portfolio targeted at the Asia-Pacific region

North American LPs European LPs Asia-Pacific LPs

Source:

Coller Capital, “Global Private Equity Barometer”

Summer 2010, estimates

0

20

40

60

80

100

Now In 3 years time Now In 3 years time Now In 3 years time

Resp

onde

nts

(%)

LP’s planned changes to their emerging markets PE investment strategy over the next 2 years

Source:

Coller Capital and EMPEA, Emerging Markets Private Equity Survey, 2010

-20% -10% 0% 10% 20% 30% 40% 50% 60%

Russia/CIS

Central & Eastern Europe (inc Turkey)

Middle East

South Africa

Sub-Saharan Africa (ex S. Africa)

Latin America (ex Brazil)

Other Emerging Asia

Brazil

India

China

Decrease or stop investing Expand investment Begin investing

SECTION 2

Trends and developments by major country

19

Australia private equity

Overview

Represents one of the most active and developed private equity markets in Asia. A developed local GP community, coupled with both global and Pan-Asian PE Managers underpin this. Key differentiators include:

–

mature and transparent market

–

stable growth

–

no language barrier

Emerged relatively unscathed from the global economic crisis and well positioned to continue to benefit from robust

commodity links to the growth engines of China and India

A strong and relatively stable base of lenders with LBO experience providing debt finance with increasing levels of

sophistication is a clear advantage over most other Asian markets. Following a few years of caution, 2010 saw banks once

again open their doors to Australian GPs. However, leverage multiples remain significantly below the levels seen in 2006-07

High profile successful exits have encouraged vendors and management teams to consider private equity as an exit route and have also attracted new market entrants

Australia’s IPO markets have continued to struggle over the past few years. As a result, trade sales, and increasingly secondary buyouts, have been the preferred method of exit. There were twice the number of secondary buyouts in 2010 vs. 2009

The Australian tax authorities have upheld their 2010 decision to tax profits from private equity deals as income, rather than as capital gains. Some worry that the imposition of uncompetitive corporate taxation could work against the government’s policy goal of making Australian cities (like Sydney) financial hubs to rival Tokyo, Singapore and Hong Kong

–

established legal system

–

low political/country risk

–

established credit providers

Select Australia-focused funds

Ironbridge Capital—Ironbridge

Fund III,

A$1,000 million, in the market

Crescent Capital Partners—Crescent Capital Partners IV, A$500, in the market

CHAMP—Champ Buyout III,

A$1,500 million, 2010

Quadrant Private Equity—Quadrant Private Equity No. 3, A$750 million, 2010

Sentient Group—Sentient Global Resources Fund III, US$815 million, 2009

Pacific Equity Partners—Pacific Equity Partners Fund IV, A$4.0 billion, 2008

Archer Capital—Archer Capital Fund 4, A$1,360 million, 2007

Macroeconomic indicators

Key sponsor-related transactions July 2010—YTD

Redflex (Feb-11)—A consortium consisting of Carlyle Asia and

Macquarie Group have acquired the global traffic safety company for A$300 million

Constellation Brands (Jan-11)—CHAMP Private Equity completed the A$290 million acquisition and subsequent rebranding of the Australian and European wine businesses of Constellation Brands –

now dubbed Accolade Wines

Easternwell (Dec-10)—Ironbridge

Capital sold well drilling and

servicing group Easternwell to Transfield

Services, an Australian

engineering and maintenance services provider, for A$575 million

National Hearing Care (Sep-10)—Crescent Capital Partners sold the audiology business to Amplifon, an Italian hearing aid retailer, for A$460 million in an all-cash deal

Healthscope (Jul-10)—TPG and Carlyle Asia have de-listed the

hospital chain in a A$2.7 billion deal, the largest private equity transaction to take place in Australia in two years

Source: AVCJ, PEI Asia, Preqin Database, Market intelligence, UBS estimates

50

100

150

200

250

2005 2006 2007 2008 2009 2010 2011In

dex

Perf

orm

ance

(%)1

S&P/ASX 200 MSCI AC Asia

736 784952

1,036 974

1,232

0

500

1,000

1,500

2005 2006 2007 2008 2009 2010

Nom

inal

GD

P (U

S$bn

)

2.6

1.32.6

4.6

2.53.2

0.0

2.0

4.0

6.0

2005 2006 2007 2008 2009 2010

Real

GD

P G

row

th

(%)

2.9

1.8

4.4

2.73.5

2.3

0.0

2.0

4.0

6.0

2005 2006 2007 2008 2009 2010

CPI

Infla

tion

(%)

5.4

5.0

6.05.6

5.35.8

4.0

5.0

6.0

7.0

8.0

2005 2006 2007 2008 2009 2010Long

-Ter

m In

tere

st R

ate

(%)

Source:

Bloomberg, Global Insight, January 2011

Note:1

Market data as of 3 January 2011

20

China private equity

Overview

Regarded as one of the most prominent private equity markets, both in Asia, and globally

Sponsor activity continues to increase as SOE’s (State Owned Enterprises) become privatised and POE’s (Privately Owned Enterprises) continue to seek capital to fuel growth and expansion. A general lack of bank financing for growth businesses and in particular POE’s makes PE an attractive source of capital

The majority of deals continue to be non-control pre-IPO plays, with GPs looking to capitalize on China’s booming capital markets. That said, we are witnessing the emergence of some control transactions in more established companies

Publicly-traded companies continue to exhibit high entry valuations relative to other countries. As a result, Chinese GPs have generally invested at significant discounts to public trading multiples, and in many cases have been able to generate value upon exit via the buoyant domestic public markets. Note however the building concern surrounding a potential bubble, particularly in certain sectors such as real estate

The regulatory landscape in China has also become increasingly supportive of private equity, and the government (at both the national as well as provincial level) has recently announced

various measures that selectively encourage both foreign and

domestic LPs to invest in Chinese private equity through RMB-denominated funds

Competition amongst various local jurisdictions (such as Beijing and Shanghai) to attract capital is expected to continue to drive further policy developments in favor of both foreign GPs and foreign LPs

There has been a marked increase in onshore RMB-denominated funds managed by Chinese GPs also investing offshore USD-denominated funds (e.g. CDH, Hony, New Horizon). More recently, international GPs (e.g. KKR, Carlyle, TPG) have also

started to raise RMB-denominated funds following the government’s adoption of more supportive measures

The emergence of RMB-denominated funds is underpinned by a rapidly expanding and liquid domestic LP base. In August 2010, China’s insurance Regulatory Commission finally allowed domestic insurance companies to invest in private equity, which may translate to as much as RMB225 billion of new funds entering the local private equity market

Select Greater China-focused funds

Blackstone Group—Blackstone Zhonghua Development Investment Fund, RMB 5,000

million, in the market

Hony Capital—Hony

Capital RMB Fund II, RMB

10,000, in the market

KKR Asia—KKR China Growth Fund I, US$1,000 million, 2011

CITIC Private Equity Funds Management—CITIC Mianyang Private Equity Fund, RMB 9,000 million, 2010

CDH China Management Co.—CDH China Fund IV, US$1,450 million, 2010

New Horizon Capital—New Horizon Capital III, US$750 million, 2010


China Pacific Insurance (Dec-10)—Carlyle Asia divested approximately US$860 million on the HKSE. The private equity firm is expected to keep selling down its stake in the insurer over the next several months

China International Capital Corporation (Dec-10)—TPG, KKR, and existing CICC shareholders acquired the 34.3% stake from Morgan Stanley for approximately US$1 billion

Asian Citrus Holdings (Nov-10)—Hopu Investment Management,

along with Temasek, are among eight investors that have committed US$200 million to the orange plantation owner

Allyes Online Media (Aug-10)—Silver Lake, the US- headquartered technology-focused firm, acquired a majority stake

in the digital marketing solutions provider for US$182 million


2,2572,713

3,495

4,5194,985

5,844

0

2,000

4,000

6,000

2005 2006 2007 2008 2009 2010

Nom

inal

GD

P (U

S$bn

)

11.3

12.714.2

9.6 9.1

10.1

5.0

10.0

15.0

2005 2006 2007 2008 2009 2010

Real

GD

P G

row

th

(%)

3.4

-0.7

5.9

1.8 1.5

4.8

-3.0

0.0

3.0

6.0

9.0

2005 2006 2007 2008 2009 2010

CPI

Infla

tion

(%)

0

100

200

300

400

500

2005 2006 2007 2008 2009 2010 2011In

dex

Perf

orm

ance

(%)1

Shanghai SE Composite MSCI AC Asia

6.0

5.9

7.4

6.56.1

7.5

4.0

6.0

8.0

2005 2006 2007 2008 2009 2010Long

-Ter

m In

tere

st R

ate

(%)

Source:


Note:1

Market data as of 3 January 2011Source: AVCJ, PEI Asia, Preqin Database, Market intelligence, UBS estimates

21

India private equity

Overview

Together with China, India is widely recognised as one of the two key growth engines of Asia. Like China, a rapidly growing middle class population provides a favourable backdrop to PE investment opportunities

Over recent years, the number of PE firms focused on India has increased dramatically, including both domestic and international

participants:

–

several large global PE firms have established local offices

–

there are a large number of private equity teams and individuals “spinning out”

of institutional or established platforms

to establish new, independent PE firms

As the GP landscape has become more crowded and Indian promotors more savvy, high valuations continue to be a key

challenge

Indian capital markets remain relatively dominated by listed companies, many of which are effectively family owned and controlled and continue to be managed as such. Accordingly, a number of PE firms have been actively focused on PIPEs

Growth equity remains the most common form of PE in India, representing over 75% of the total value of PE investments in India in 2010

India has historically been criticised for having low levels of PE realizations. However, more recently, Indian PE firms divested over 120 companies in 2010, almost double the number in the preceding twelve month period

Whilst buyout investments are increasing, regulatory restrictions and leverage constraints, as well as the growth profile and family ownership of many companies, make LBOs challenging

Population and economic growth has outpaced the development of India’s infrastructure system, translating to an anticipated investment opportunity of US$1 trillion over the next five years. Much of this is expected to come from the private sector

Select India-focused funds

Multiples Alternate Asset Management— Multiples Private Equity Fund I, US$450 million,

in the market

Everstone Capital—Everstone

Capital Partners II,

US$550, 2011

Ascent Capital—Ascent India Fund III, US$350 million, 2010

CX Partners—CX Partners Fund I US$515 million, 2010

India Value Fund Advisors—India Value Fund IV, US$725 million, 2009

Jacob Ballas Capital India—NYLIM Jacob Ballas

India Fund III, US$440 million, 2009

IDFC Private Equity—IDFC Private Equity Fund III, US$700 million, 2008


Hero Honda (Mar-11)—Bain Capital and GIC have invested US$852 million in India’s Hero Investments to help it finance the buyout of a 26% stake in Hero Honda, the JV between the Japanese automaker and India’s Hero Group

QuEST (Dec-10)—Warburg Pincus

India invested US$75 million in

Quality Engineering & Software Technologies (“QuEST”), an outsourced engineering services company

Thyrocare Technologies (Dec-10)—CX Partners invested US$42

million for a 30% interest in the company, which operates a pan- India chain of clinical diagnostic centers

GVK Energy (Dec-10)—Actis has teamed up with GIC to invest

US$77 million each in the energy company. This follows 3i

Infrastructure’s US$182 million investment a month earlier

Moser Baer (Aug-10)—The developer of power generation facilities attracted an investment of INR 13.5bn (US$300 million) from Blackstone Group


840 9461,197 1,281 1,273

1,583

0

500

1,000

1,500

2,000

2005 2006 2007 2008 2009 2010

Nom

inal

GD

P (U

S$bn

)

8.5

6.85.1

9.69.49.3

4.0

8.0

12.0

2005 2006 2007 2008 2009 2010

Real

GD

P G

row

th

(%)

12.0

10.98.4

4.2 5.8

6.4

0.0

5.0

10.0

15.0

2005 2006 2007 2008 2009 2010

CPI

Infla

tion

(%)

7.9

7.0

8.07.77.0

7.9

4.0

6.0

8.0

10.0

2005 2006 2007 2008 2009 2010Long

-Ter

m In

tere

st R

ate

(%)

50

100

150

200

250

300

2005 2006 2007 2008 2009 2010 2011In

dex

Perf

orm

ance

(%)1

S&P CNX MSCI AC Asia

Source:


Note:1


22

Indonesia private equity

Overview

Represents one of the most attractive and swiftly developing private equity markets in Asia, after China and India

Third most populous nation in Asia after China and India, and fourth most populous in the world including the U.S., with 233 million people and a median age of under 30 years

Rich in natural resources and a major producer of commodities globally

–

2nd largest coal exporter after Australia

–

Largest palm oil producer globally

–

Also a major producer of cocoa, copper, tin, iron, nickel, natural gas, geothermal resources and forest products

Indonesia together with China and India are the only G20 members that posted growth during the global financial crisis.

Consumer Confidence and Retail Sales Indices are near an all-time high, and have already exceeded pre-crisis levels

Indonesia was one of the best performing equity markets in Asia in 2009-10, providing buoyant exit opportunities for private equity managers

Sovereign credit rating is expected to be upgraded to investment grade by 2011-12, and has been steadily improving since

2002. Indonesia’s credit rating was investment grade before the Asian crisis in 1997-98 and the country has on average run a current account surplus over the last decade since then. Foreign

exchange reserves increased by more than 45% in 2010

Strong manufacturing base supports sustained and balanced economic development, in parallel with strong commodity exports. Also a significant beneficiary of the ASEAN-China Free Trade Area, which is the world’s third largest by trade volume (after the European Economic Area and the NAFTA)

Apart from a select group of country-focused GPs, an increasing number of international and pan-Asian fund managers have established offices in Indonesia

Select Indonesia-focused funds

Saratoga Capital—Saratoga Asia III, fund size TBD, pre-marketing

Northstar Pacific—Northstar

Equity Partners

Fund III, US$500 million, in the market

Quvat Management—Quvat

Capital Partners III,

US$350 million, in the market

Ancora Capital Management—Ancora

Fund II,


Key sponsor-related transactions Jan 2010—YTD

Delta Dunia Makmur

(Dec-10)—TPG, GIC and CIC invested

US$400 million in Delta Dunia Makmur, which owns Indonesia’s

second biggest coal mining contractor. They will be significant shareholders of the company, together with Northstar, which previously acquired a 40% stake in the company in Nov-09

Tower Bersama Group (Mar-10)—Saratoga Capital acquired an

additional 5% of Tower Bersama Group for US$15 million.

Saratoga had previously acquired a 39% stake in 2005

Matahari Department Store (Jan-10)—CVC Asia Pacific

acquired over 90% of the company for US$770 million, which represents the largest foreign GP-led investment in Indonesia


286365

432511 540

701

0

250

500

750

1,000

2005 2006 2007 2008 2009 2010

Nom

inal

GD

P (U

S$bn

)

6.1

4.5

6.0

6.35.55.7

2.0

4.0

6.0

8.0

2005 2006 2007 2008 2009 2010

Real

GD

P G

row

th

(%)

5.1

6.4

10.1

10.5

13.1

6.3

0.0

5.0

10.0

15.0

2005 2006 2007 2008 2009 2010

CPI

Infla

tion

(%)

7.0

9.3

8.0

11.4

8.1

8.5

6.0

8.0

10.0

12.0

2005 2006 2007 2008 2009 2010Shor

t-Te

rm In

tere

st R

ate

(%)

0

100

200

300

400

500

2005 2006 2007 2008 2009 2010 2011In

dex

Perf

orm

ance

(%)1

Jakarta Composite Index MSCI AC Asia

Source:


Note:1


23


Tsubaki Nakashima (Mar-11)—Carlyle Japan acquired a 97%

stake in the Japanese bearings components maker from Nomura Principal Finance in a US$807 million buyout transaction

Enoteca (Feb-11)—Unison Capital delisted the wine importer via

an MBO alongside HCBC Enterprises, an investment firm headed by one of the company’s directors, for about US$75 million

Orient Corporation (Jan-11)—KKR and Morgan Stanley have sold US$367 million of preferred shares of the consumer credit firm to Mizuho Financial Group

Invoice (Dec-10)—MBK Partners, in a US$212 million deal, delisted the consolidated billing service provider alongside management

Q’Sai (Sep-10)—Japan’s Coca Cola West, a Coca Cola bottler,

acquired the vegetable juice producer from Daiwa SMBC, Polaris Capital and Japan Industrial Partners for US$425 million

Japan private equity

Select Japan-focused funds

Ant Capital Partners—Ant Catalyzer Fund #4,

¥30 billion (US$340 million), in the market

CITIC Japan—CITIC Japan Partners II, ¥30 billion (US$340 million), in the market

New Horizon Capital—New Horizon Capital Fund II, ¥50 billion (US$560 million), in the market

Tokio Marine Capital—TMCAP2010, US$500

million, in the market

Iwakaze Capital, Iwakaze

Fund II, ¥20 billion

(US$240 million), in the market

Japan Industrial Partners—Japan Industrial No. 3 Investment Enterprise, US$600 million, 2010

Unison Capital—Unison Capital Partners III, ¥140 billion (US$1.45 billion), 2009

Overview

Japan is widely regarded as one of Asia’s more mature private equity buyout markets. However, over recent years, Japan has declined in the region’s private equity rankings, with deal flow light relative to other key markets. Further, foreign LPs have generally been disappointed with the performance of Japanese-focused funds

The mega deals that defined the PE environment in the last decade have not been repeated in recent years; instead, small and medium sized investments have dominated the market with 26 buyouts worth US$1.4 billion recorded in 2010

Three of the more common types of private equity transactions in Japan currently are:

–

acquiring companies with business succession issues;

–

public to private transactions; and

–

corporate carve-outs of non-core businesses

Over the last few decades, corporations have become bigger, more diversified, and consequently less competitive. These

corporations are now making more of an effort to become more focused, which has led to an increase in divestitures of non- core businesses, and an increase in private equity deal flow, particularly in the middle market

Japan represents one of the largest economies globally, with high GDP per capita and a large population. To date, however, the success of private equity groups in Japan has been mixed. Business culture and language differences are often cited as barriers in this regard, as well as the country’s structural challenges, including fiscal imbalances and demographics marked by a declining birth rate and aging population

As some domestic LPs decrease their allocations to private equity, many managers, particularly in the middle market, are looking abroad for international capital for the first time

A large number of GPs are held 'captive' by large Japanese financial institutions looking to generate deal flow from their private equity affiliates (i.e. Nomura Principal Finance, Daiwa Securities, Tokio

Marine Capital, Mizuho Capital Partners)


4,557 4,365 4,3784,880 5,034 5,475

0

2,000

4,000

6,000

8,000

2005 2006 2007 2008 2009 2010

Nom

inal

GD

P (U

S$bn

)

4.3

(6.3)

(1.2)

2.32.01.9

-8.0

-4.0

0.0

4.0

8.0

2005 2006 2007 2008 2009 2010

Real

GD

P G

row

th

(%)

-0.7-1.4

1.4

-0.6

0.3 0.1

-2.0

-1.0

0.0

1.0

2.0

2005 2006 2007 2008 2009 2010

CPI

Infla

tion

(%)

1.11.3

1.71.7

1.4 1.5

1.0

1.5

2.0

2005 2006 2007 2008 2009 2010Long

-Ter

m In

tere

st R

ate

(%)

50

100

150

200

250

2005 2006 2007 2008 2009 2010 2011In

dex

Perf

orm

ance

(%)1

NIKKEI 225 MSCI AC Asia

Source:


Note:1


24

South Korea private equity

Overview

Despite political tensions, South Korea remains an active private equity market with participation from both local players (e.g. Vogo Capital Advisors, Hahn & Company, H&Q Korea) as well as some of the more well-established pan-Asia buyout funds

with a strong local track record (e.g. Unitas Capital, Affinity Equity Partners)

The increasing availability of local debt has led to an increase in buyout activity, which has been overshadowed by some of

the larger, well-publicized distressed deals in recent years (e.g. KEB, Hi-mart); in fact, buyout deals accounted for approximately half of PE activity since 2008 and approximately 67% in 2010

The higher level of sponsor activity in South Korea compared with some other Asian economies can be partly credited to the overall sophistication of the domestic market and the degree of involvement of overseas investors in both capital markets and corporate

activity

The uncertainty in the regulatory and tax environments, combined with attractive asset values, has resulted in a dichotomy for

PE investors—some have appetite for value while others are cautious about execution risk. (Noting, for example, the challenges Lone Star encountered with their eventual exit of KEB)

The country’s manufacturing-driven global competitiveness has resulted in the emergence of world-class multinational companies and brands with highly advanced technologies and R&D capabilities across multiple industries such as semiconductors, displays, automobiles and steel

Like Japan, the business culture in South Korea is highly relationship-driven, where personal reputation and trust is built over extended periods of time. This dynamic tends to favour the PE firms with a strong local presence


Hankook Jungsoo

Industries (Dec-10)—KDB Capital, the private

equity arm of Korean Development Bank, acquired a 72% stake in the water treatment equipment manufacturer for US$52.5 million

North East Chemicals (Dec-10)—Macquarie Korea Opportunities Management acquired the chemical storage company for Won 100 billion (US$88 million)

Korea Exchange Bank (Nov-10)—Lone Star, after two failed attempts, finally exited its 51% stake in the company for US$4.1

billion to the Hana Financial Group

Tong Yang Life Insurance (Nov-10)—Tong Yang Group, a South Korean conglomerate, agreed to sell an additional 46% stake in Tong Yang Life Insurance for US$800 million to a consortium led by Vogo Capital Advisors, which already held a 17% stake

Select Korea-focused funds

Hahn & Company Korea—Hahn & Company Korea Fund I, US$750 million, in the market

TStone Corp—TStone

Private Equity Fund III,


STIC Investments—STIC Asia Mid-market PE Fund II, US$300 million, 2010

H&Q Asia Pacific—H&Q Korea Private Equity Fund II, US$330 million, 2008

Woori Private Equity Corp.—Woori-Blackstone Korea Opportunities Fund, Won 600 billion, 2009

Vogo Fund—Vogo Fund I, US$670 million, 2006


844

951

1,049

934

833

1,008

600

800

1,000

1,200

2005 2006 2007 2008 2009 2010

Nom

inal

GD

P (U

S$bn

)

6.1

0.2

2.3

5.15.2

4.0

0.0

2.0

4.0

6.0

8.0

2005 2006 2007 2008 2009 2010

Real

GD

P G

row

th

(%)

3.0

2.8

4.6

2.8

2.2

2.6

0.0

2.0

4.0

6.0

2005 2006 2007 2008 2009 2010

CPI

Infla

tion

(%)

4.6

5.1

5.4

5.1

4.7

5.8

4.0

4.5

5.0

5.5

6.0

2005 2006 2007 2008 2009 2010Long

-Ter

m In

tere

st R

ate

(%)

50

100

150

200

250

2005 2006 2007 2008 2009 2010 2011In

dex

Perf

orm

ance

(%)1

KOSPI MSCI AC Asia

Source:


Note:1


SECTION 3

GP landscape

26

Actium Corporation $1,000* H&Q Asia Pacific $330 Hahn & Company Korea $750* Korean Development Bank Won 400,000 KTB Ventures $500 Mirae Asset MAPS Global Investments Won 359,000 Shinhan Private Equity Won 460,000 STIC Investments $300 TStone Corp $500* Vogo Fund $670 Woori Private Equity Corp. Won 600,000

Asian market map

USD Funds Capital Today $400 CDH China Management Co. (buyout) $1,450 CDH China Management Co. (venture) $500 China Renaissance Capital $600 CICC Private Equity $300*CID Group $430 CITIC Capital Partners $925 CITIC Private Equity Funds Management $800*Clarity China Partners $500*DT Capital Partners $355 EQT Partners Asia $540 FountainVest Partners $940 GSR Ventures $380 Hao Capital $500 Hony Capital $1,400 Hope Investments $2,500 IDGVC Partners $600 Infinity Equity $300 Keytone Ventures $250*KKR China $1,000 Kleiner Perkins Caufield & Byers (KPCB) TBD*Legend Capital $350 Milestone Capital Partners $500*New China Investment Management $550 New Horizon Capital $750 NewMargin Ventures $500*Northern Light Venture Capital TBD*Prax Capital $300 Primavera Capital Group $1,000*Qiming Venture Partners $400*RRJ Capital $2,000*SAIF Partners $1,600 SB China Venture Capital $350*Sequoia Capital (USD Fund) $1,000 Spring Capital Asia $250 Themes Investment Partners $500*Tripod Capital $260 Trust Bridge Partners $410 Zana Capital (fka CMIA Capital Partners) $300 RMB Funds Bank of Communications RMB 5,000*Blackstone Group RMB 5,000*BOCI Private Equity RMB 20,000*Carlyle Group RMB 5,000*China Bridge Capital RMB 5,000*CCB International (clean technology fund) RMB 10,000*CCB International (healthcare fund) RMB 5,000*CDH China Management Co. (RMB) RMB 10,000*Chengdu Investment Holdings Group RMB 3,000 China Everbright RMB 3,000*China Mining United Fund RMB 10,000*CITIC Private Equity Funds Management RMB 9,000 Delta International Capital / Tianjin Dohold Capital RMB 2,500 DT Capital RMB 1,000 Etech Securities RMB 5,000*First Eastern Financial Investment Group RMB 6,000*Hony Capital RMB 10,000*Huarong Yufu Capital RMB 2,000*GP Capital / CICC RMB 20,000*Legend Capital (RMB) RMB 1,000 Morgan Stanley / Hangzhou RMB Fund TBD*New Horizon Capital (RMB) RMB 1,000 Sequoia Capital (RMB Fund) RMB 1,000 TPG China (Shanghai) RMB 5,000*TPG China (Chongqing) RMB 5,000*Yun Feng Capital (RMB and USD fund) RMB 10,000*

Actis Capital $500 Asset Reconstruction Company of India $500* Ascent Capital $350 Avigo Capital Partners $240 Baer Capital Partners $300* Baring Private Equity Partners India $560 Blue River Capital $200* ChrysCapital Management $950 CX Partners $515 Everstone Capital $550 Exponentia Capital $400* Gaja Capital $200 ICICI Venture Funds Management $500* IL&FS Investment Managers $350* IndiaCo Ventures $500* India Equity Partners $500* India Value Fund Advisors $725 Jacob Ballas Capital India $440 Kotak Private Equity Group $520 Kubera Partners $400* KV Asia $500* MCap Fund Advisors $300* Multiples Alternate Asset Management $450* Nalanda Capital $400 New Silk Route Advisors $1,400 Peepul Capital $360 Pravi Capital $200* Reliance Equity Advisors $450* Samara Capital $250 Sequoia Capital India $300 Sequoia Capital India (growth) $725 South Asia Clean Energy Fund $300* Tata Capital $300*

ADM Capital $420 Affinity Equity Partners $2,800 AIF Capital $750* Ares Management $500* Asia Mezzanine Capital Group $300* Avenue Capital Group/ Avenue Asia Capital Management $3,000 Bain Capital Asia $1,000 Baring Private Equity Asia $2,460 Carlyle Asia $2,550 Carlyle Asia (growth) $1,040 Clearwater Capital Partners $1,000* CLSA Capital Partners $330 CVC Asia Pacific $4,100 Daiwa Quantum Capital $300* Darby Asia Investors $260 Equis Funds Group TBD* Excelsior Capital Asia TBD* Greater Pacific Capital $345 Harmony Capital Partners $500* Headland Capital Partners (FKA HSBC Private Equity) $1,470 Intermediate Capital Group $1,000 KKR Asia $4,000 L-Capital Asia $620 The Longreach Group $750* MBK Partners $1,500 Morgan Stanley Private Equity Asia $1,500 Myo Capital Advisors $300* Navis Capital Partners $1,200 Oaktree Capital (Hong Kong) $580 Olympus Capital (OCA) $750 Olympus Capital (AEP) $250 Orchid Asia Group Management $650* Pacific Alliance Group $2,500* PineBridge Investments $500* SAIF Partners $1,275 Southern Capital Group $300 Tembusu Partners S$300* TPG Capital $4,250 Unitas Capital $1,200

Pan-Asia/regional funds Greater ChinaIndia

Notes:1

Generally excludes funds less than US$300 million2

Generally excludes pure venture3

Size of the last closed fund4

Based on market intelligence and UBS estimates$

Denotes US$*

Target sizeRed

Fund in the market

Australia/New Zealand

Advent Private Capital TBD* AMP Capital Investors A$160 Archer Capital A$1,360 Archer Capital (growth) A$250* Anchorage Capital A$200 CHAMP A$1,500 CHAMP Ventures A$450* Catalyst Investment Managers A$440 Crescent Capital Partners A$500* Direct Capital NZ$325 Endeavour Capital $300* Goldman Sachs JBWere Principal Investments Area A$420 Gresham Investment House (TBD) TBD* Ironbridge Capital A$1,000* Lazard Carnegie Wylie Private Equity A$400* Next Capital A$285 Pacific Equity Partners A$4,000 Pacific Road Capital $500* Quadrant Private Equity A$750 Sentient Group $815 Tasman Capital Partners A$350*

Southeast AsiaAncora Capital Management $300* Aureos Capital $250* BankInvest $150* Dragon Capital $250* IDG Ventures $150* Kendall Court Capital Partners $150 Lombard Investments $300* Mekong Capital $150* Northstar Pacific $500* Quvat Management $350* Saratoga Capital (pre-marketing) TBD* SEAVI Advent $180 Vietnam Investments Group $160* VinaCapital $250*

Japan

Advantage Partners ¥171,154 Advent International ¥60,000 Ant Capital Partners ¥30,000* Carlyle Japan ¥215,600 CITIC Japan ¥30,000* CLSA Capital Partners $500* DRC Capital ¥10,000 Iwakaze Capital ¥20,000* JAFCO ¥148,500 Japan Industrial Partners $600 J-Will Partners ¥55,000 Mitsubishi Corp / Mitsubishi UFJ (Marunouchi Capital) ¥100,000 Mitzuho Capital Partners ¥41,000 New Horizon Capital ¥50,000* Nippon Mirai Capital ¥15,000 Nomura Principal Finance ¥107,000 Polaris Principal Finance ¥31,900 SBI Capital ¥30,000* Tokio Marine Capital $500* Try Hard Investments ¥30,000* Unison Capital ¥140,000 Valiant Partners ¥17,500

South Korea

27

Selected GPs—Pan-Asia/regional

Manager Last fund Vintage Size (m) Type

AIF Capital AIF Capital Asia IV In the market US$750 Growth

Ares Management Asia Growth Equity Fund I In the market US$500 Growth

Asia Mezzanine Capital Group Asia Strategic Capital Fund In the market US$300 Mezzanine

Clearwater Capital Partners Clearwater Capital Partners IV In the market US$1,000 Growth and special situations

Daiwa Quantum Capital Daiwa Quantum Capital Partners I In the market US$300 Growth

Equis Funds Group Equis Fund I In the market TBD Buyout and growth

Excelsior Capital Asia Excelsior Capital Asia Partners IV In the market TBD Buyout and growth

The Longreach Group Longreach Capital Partners II In the market US$750 Buyout

Myo Capital Advisors Myo Capital Special Situations Fund I In the market US$300 Special situations

Orchid Asia Group Management Orchid Asia V In the market US$650 Growth and buyout

Pacific Alliance Group Pacific Alliance Pan-Asia Fund I In the market US$2,500 Buyout

PineBridge Investments PineBridge Asia Partners III In the market US$500 Growth and buyout

Tembusu Partners Tembusu Asian Capital Fund In the market S$300 Buyout and growth

Baring Private Equity Asia Baring Asia Private Equity Fund V 2011 US$2,460 Buyout and growth

Carlyle Asia Carlyle Asia Partners III 2010 US$2,550 Buyout

L-Capital Asia L-Capital Asia Fund I 2010 US$620 Growth

Navis Capital Partners Navis Asia Fund VI 2010 US$1,200 Buyout and growth

SAIF Partners SAIF Partners Fund IV 2010 US$1,275 Buyout and growth

Carlyle Asia Carlyle Asia Growth Partners IV 2009 US$1,040 Growth

MBK Partners MBK Partners II 2009 US$1,500 Buyout and growth

Olympus Capital Asia Environmental Partners Fund I 2009 US$250 Growth

Southern Capital Group Pvt Mulberry Asia Fund II 2009 US$300 Buyout

ADM Capital ADM Maculus Fund V 2008 US$420 Distressed and special situations

CVC Asia Pacific CVC Capital Partners Asia Pacific III 2008 US$4,100 Buyout

Headland Capital Partners (FKA HSBC Private Equity Asia)

Headland Private Equity Fund 6 2008 US$1,470 Buyout

28

Selected GPs—Pan-Asia/regional


Intermediate Capital Group Intermediate Capital Asia Pacific Fund 2008 (Fund II)

2008 US$1,000 Mezzanine

TPG Capital TPG Asia V 2008 US$4,250 Buyout

Unitas Capital Asia Opportunity Fund III 2008 US$1,200 Buyout

Affinity Equity Partners Affinity Asia Pacific Fund III 2007 US$2,800 Buyout

Bain Capital Asia Bain Capital Asia Fund 2007 US$1,000 Buyout

Darby Asia Investors Darby Asia Mezzanine Fund II 2007 US$260 Mezzanine

Greater Pacific Capital Greater Pacific Capital Fund I 2007 US$345 Growth

Harmony Capital Partners Harmony Fund I 2007 US$500 Special situations

KKR Asia KKR Asian Fund 2007 US$4,000 Buyout

Morgan Stanley Private Equity Asia Morgan Stanley Private Equity Asia III 2007 US$1,500 Buyout and growth

Olympus Capital Olympus Capital Asia III 2007 US$750 Growth

Avenue Capital Group/Avenue Asia Capital Management

Avenue Asia Special Situations Fund IV 2006 US$3,000 Turnaround and restructuring

CLSA Capital Partners ARIA Investment Partners III 2006 US$330 Growth

Oaktree Capital (Hong Kong) OCM Asia Principal Opportunities Fund 2006 US$580 Buyout and growth

29

Selected GPs—Australia/New Zealand


Advent Private Capital Advent Private Equity Fund VI In the market TBD Buyout and growth

Archer Capital Archer Growth Fund II In the market A$250 Buyout and growth

CHAMP Ventures CHAMP Ventures Investment Trust No. 7 In the market A$450 Buyout

Crescent Capital Partners Crescent Capital Partners IV In the market A$500 Buyout

Endeavour Capital Endeavour Growth Capital I In the market US$300 Buyout and growth

Ironbridge Capital Ironbridge Fund III In the market A$1,000 Buyout

Lazard Carnegie Wylie Private Equity LCW Corporate Opportunities Fund In the market A$400 Buyout and growth

Pacific Road Capital Pacific Road Capital Fund II In the market US$500 Natural Resources

Tasman Capital Partners Tasman Capital Partners In the market A$350 Buyout

Gresham Investment House Gresham Private Equity Fund 3 TBD TBD Buyout

Anchorage Capital Anchorage Capital Fund 2010 A$200 Buyout and growth

CHAMP CHAMP Buyout III 2010 A$1,500 Buyout

Direct Capital Direct Capital IV 2010 NZ$325 Buyout and growth

Quadrant Private Equity Quadrant Private Equity No. 3 2010 A$750 Buyout

Catalyst Investment Managers Catalyst Buyout Fund 2 2009 A$440 Buyout

Next Capital Next Capital II 2009 A$285 Buyout and growth

Sentient Group Sentient Global Resources Fund III 2009 US$815 Natural Resources

Pacific Equity Partners Pacific Equity Partners Fund IV 2008 A$4,000 Buyout

Archer Capital Archer Capital Fund 4 2007 A$1,360 Buyout

Goldman Sachs JBWere Principal Investments Area

GSJB Were Trans-Tasman Private Equity Fund 07

2007 A$420 Buyout and growth

30

Selected GPs—Greater China (USD Funds)


China International Capital Corporation Private Equity

CICC Growth Capital Fund I In the market US$300 Growth

CITIC Private Equity Funds Management CITIC China Fund In the market US$800 Buyout and growth

Clarity China Partners Clarity China Partners II In the market US$500 Buyout

Keytone Ventures Keytone Ventures II In the market US$250 Venture

Kleiner Perkins Caufield & Byers (KPCB) KPCB China Fund II In the market TBD Venture and growth

NewMargin Ventures NewMargin Partners II In the market US$500 Growth

Northern Light Venture Capital Northern Light Venture III In the market TBD Venture

Primavera Capital Group Chunhua Fund In the market US$1,000 Buyout

Qiming Venture Partners Qiming Venture Partners III In the market US$400 Venture and growth

RRJ Capital RRJ Capital Fund I In the market US$2,000 Buyout and growth

SB China Venture Capital SB China Venture Capital Fund IV In the market US$350 Venture and growth

Themes Investment Partners Themes Investment Partners Fund In the market US$500 Special situations

KKR Asia KKR China Growth Fund I 2011 US$1,000 Growth

Prax Capital Prax Capital China Growth Fund III 2011 US$300 Growth

Capital Today Capital Today China Growth Fund II 2010 US$400 Growth

CDH China Management Co. CDH China Fund IV 2010 US$1,450 Growth

China Renaissance Capital China Harvest Fund II 2010 US$600 Buyout

CID Group CID Greater China Venture Capital Fund III 2010 US$430 Growth and venture

CITIC Capital Partners CITIC Capital China Partners II 2010 US$925 Buyout

New Horizon Capital New Horizon Capital III 2010 US$750 Growth

Sequoia Capital China Fund III (across two funds) 2010 US$1,000 Venture and growth

Spring Capital Asia Spring Capital China Fund 2010 US$250 Growth

Trust Bridge Partners Trust Bridge Partners III 2010 US$410 Growth

Tripod Capital Tripod Capital China Fund II 2009 US$260 Growth

CDH China Management Co. CDH Venture Partners II 2008 US$500 Venture

DT Capital Partners DT Capital China Growth Fund 2008 US$355 Growth

FountainVest Partners FountainVest Partners Fund 2008 US$940 Growth

GSR Ventures GSR Ventures III 2008 US$380 Venture

Hao Capital Hao Capital China Fund II 2008 US$500 Growth

31

Selected GPs—Greater China (USD Funds)


Hony Capital Hony Capital 2008 (Fund IV) 2008 US$1,400 Buyout and growth

Hope Investments Hopu Fund I 2008 US$2,500 Buyout and growth

IDGVC Partners IDG-Accel China Capital Fund 2008 US$600 Venture

Infinity Equity Infinity I-China Fund 2008 US$300 Venture

Legend Capital LC Fund IV 2008 US$350 Venture and growth

Cathay Capital Group/New China Management Corp.

Cathay Capital Holdings II 2007 US$550 Growth

Milestone Capital Partners Milestone China Opportunities Fund II 2007 US$310 Growth

Zana Capital (fka CMIA Capital Partners) Zana China Fund 2007 US$300 Growth

EQT Partners Asia EQT Greater China II 2006 US$540 Growth

32

Selected GPs—Greater China (RMB Funds)


Bank of Communications Co. Bank of Communications RMB Fund In the market RMB5,000 Growth

Blackstone Group Blackstone Zhonghua Development Investment Fund

In the market RMB5,000 Buyout and growth

BOCI Private Equity Bohai Industrial Investment Fund (second round; raised RMB6,000 in 2006)

In the market RMB20,000 Buyout and growth

The Carlyle Group Carlyle Beijing RMB Fund In the market RMB5,000 Buyout and growth

China Bridge Capital CBC CQ Private Equity Investment Fund In the market RMB5,000 Growth

CCB International CCB International Clean Technology Fund I In the market RMB10,000 Growth

CCB International CCB International Healthcare Fund I In the market RMB5,000 Growth

CDH China Management Co. CDH RMB Fund II In the market RMB10,000 Growth

China Everbright China Everbright Jiangyin New Energy Fund In the market RMB3,000 Buyout and growth

China Mining United Fund Hsiang-Ching Tseng China Mining United Fund (CMU)

In the market RMB10,000 Natural resources

Etech Securities Chongqing Etech Private Equity Fund In the market RMB5,000 Growth

First Eastern Financial Investment Group First Eastern China RMB Fund In the market RMB6,000 Buyout and growth

GP Capital / CICC Shanghai Financial Industry Investment Fund (SFIIF)

In the market RMB20,000 Growth

Hony Capital Hony Capital RMB Fund II In the market RMB10,000 Growth

Huarong Yufu Capital Huarong Yufu Capital Fund I In the market RMB2,000 Growth

IDG Capital Partners The Harmony Growth Fund In the market RMB3,500 Growth

Morgan Stanley / Hangzhou Municipal Goverment

Morgan Stanley / Hangzhou RMB Fund In the market TBD Growth

TPG China TPG China Partners I (Chongqing) In the market RMB5,000 Growth

TPG China TPG China Partners I (Shanghai) In the market RMB5,000 Growth

Yun Feng Capital Yun Feng Capital funds (across RMB and USD fund)

In the market RMB10,000 Growth

CITIC Private Equity Funds Management CITIC Mianyang Private Equity Fund 2010 RMB9,000 Buyout

DT Capital DT Capital RMB Fund 2010 RMB1,500 Growth

Legend Capital Legend Capital RMB Fund 2010 RMB1,000 Growth

33

Selected GPs—Greater China (RMB Funds)


New Horizon Capital New Horizon Capital RMB Fund 2010 RMB1,000 Growth

Chengdu Investment Holdings Group Chengdu Investment Holdings Group 2008 RMB3,000 Expansion and growth

Delta International Capital / Tianjin Dohold Capital

Delta International China Fund 2008 RMB2,500 Venture and growth

SAIF Partners Binhai Growth Fund 2008 RMB1,600 Buyout

Sequoia Capital Sequoia RMB Fund I 2008 RMB1,000 Growth

34

Selected GPs—India


Arka Capital Advisors Arka Capital Fund I In the market TBD Growth

Asia Growth Capital Advisors Unnati Opportunities Fund In the market US$400 Growth

Baer Capital Partners Baer Capital Partners Fund II In the market US$300 Growth

Blue River Capital Blue River Capital Fund II In the market US$200 Growth

Exponentia Capital Exponentia Capital Fund I In the market US$400 Growth

ICICI Venture Funds Management India Advantage Fund III In the market US$500 Buyout and growth

IL&FS Investment Managers Tara India Fund IV In the market US$350 Growth

India Equity Partners India Equity Partners Fund II In the market US$500 Buyout and growth

Kubera Partners TBD In the market US$400 Venture

KV Asia Capital KV Asia Capital Fund I In the market US$500 Buyout and growth

MCap Fund Advisors MCap Fund I In the market US$300 Growth

Multiples Alternate Asset Management Multiples Private Equity Fund In the market US$450 Growth

Pravi Capital Pravi Capital Fund I In the market US$200 Growth

Reliance Equity Advisors Reliance Private Equity Fund I In the market Rp20,000 Growth

Tata Capital Tata Capital Growth Fund In the market US$300 Growth

Everstone Capital Everstone Capital Partners Fund II 2011 US$550 Buyout and growth

Ascent Capital Ascent India Fund III 2010 US$350 Growth

Avigo Capital Partners Avigo SME Fund III 2010 US$240 Growth

CX Partners CX Partners I 2010 US$515 Growth

Kotak Group Kotak Growth Fund II 2010 US$520 Growth

Peepul Capital Peepul Capital Fund III 2010 US$360 Growth

India Value Fund Advisors India Value Fund IV 2009 US$725 Buyout

Jacob Ballas Capital India NYLIM Jacob Ballas India Fund III 2009 US$440 Growth

Actis Capital Actis India Fund 3 2008 US$500 Growth

Baring Private Equity Partners India Baring India Private Equity Fund III 2008 US$560 Buyout and growth

Gaja Capital Gaja Capital Fund I 2008 US$200 Growth

New Silk Route Advisors New Silk Route PE Asia Fund 2008 US$1,400 Growth

Sequoia Capital India Sequoia Capital Growth Fund II 2008 US$725 Growth

ChrysCapital Management ChrysCapital V 2007 US$900 Buyout and growth

Samara Capital Samara Capital Fund I 2007 US$250 Venture and growth

35

Selected GPs—Japan


Ant Capital Partners Ant Catalyzer Fund #4 In the market ¥30,000 Buyout

CITIC Japan CITIC Japan Partners II In the market ¥30,000 Buyout

CLSA Capital Partners Sunrise Capital Partners II In the market US$500 Buyout

Iwakaze Capital Iwakaze Fund II In the market ¥20,000 Buyout

New Horizon Capital New Horizon Capital Fund II In the market ¥50,000 Buyout

SBI Capital SBI Value Up Fund II In the market ¥30,000 Buyout

Tokio Marine Capital TMCAP2010 In the market US$500 Buyout

Try Hard Investments Try Hard Investments Fund II In the market ¥30,000 Buyout

DRC Capital DRC Fund II 2010 ¥10,000 Buyout

Japan Industrial Partners Japan Industrial No.3 Investment Enterprise 2010 US$600 Buyout

Nippon Mirai Capital NMC 2007 Toshi Jigyo Yugen Sekinin Kumiai

2010 ¥15,000 Buyout and restructuring

Unison Capital Unison Capital Partners III 2009 ¥140,000 Buyout

Advent International Advent Japan Private Equity Fund 2008 ¥60,000 Buyout

J-Will Partners J-Will Partners Fund IV 2008 ¥55,000 Buyout

Mitsubishi Corp. / Mitsubishi UFJ Marunouchi Capital Fund I 2008 ¥100,000 Buyout and growth

Polaris Principal Finance Polaris Private Equity Fund II 2008 ¥31,900 Buyout and growth

JAFCO JAFCO Super V-3 Series 2007 ¥148,500 Growth

Mizuho Capital Partners MCP III Investment Enterprise 2007 ¥41,000 Buyout

Advantage Partners Advantage Partners IV 2006 ¥171,154 Buyout

Carlyle Japan Carlyle Japan Partners II 2006 ¥215,600 Buyout

Nomura Principal Finance NPF-Harmony Toshi Jigyou Yugen Sekinin Kumiai

2006 ¥107,000 Buyout and restructuring

Valiant Partners Valiant Fund I 2006 ¥17,500 Buyout

36

Selected GPs—South Korea


Actium Corporation Actium Korea Partners Fund I In the market US$1,000 Buyout

Hahn & Company Korea Hahn & Company Korea Fund I In the market US$750 Buyout

TStone Corp TStone Private Equity Fund III In the market US$500 Buyout

STIC Investments STIC Asia Mid-market PE Fund II 2010 US$300 Buyout and growth

Woori Private Equity Corp. Woori-Blackstone Korea Opportunities Fund 2009 Won 600,000 Buyout

H&Q Asia Pacific H&Q Korea Private Equity Fund II 2008 US$330 Buyout

Mirae Asset MAPS Global Investments Mirae Asset Partners Private Equity Fund V 2008 Won 359,000 Buyout

Shinhan Private Equity Shinhan Private Equity Fund II 2008 Won 460,000 Buyout

KTB Ventures Korea Private Equity Fund 2007 US$500 Buyout

Korean Development Bank KDB Value Private Equity Fund II 2006 Won 400,000 Buyout

Vogo Fund Vogo Fund I 2006 US$670 Buyout

37

Selected GPs—Southeast Asia

Manager Last fund Geographic focus Vintage Size (m) Type

Ancora Capital Management Ancora Fund II Indonesia In the market US$300 Growth

Aureos Capital Aureos Southeast Asia Fund II Southeast Asia In the market US$250 Growth

BankInvest BankInvest Private Equity New Markets III

Vietnam In the market US$150 Growth

Dragon Capital Dragon Capital Vietnam Third Wave PE Fund


IDG Ventures IDG Ventures Vietnam Fund II Vietnam In the market US$150 Venture

Lombard Investments Lombard Asia IV Southeast Asia In the market US$300 Growth

Mekong Capital Mekong Enterprise Fund III Vietnam In the market US$150 Growth

Northstar Pacific Northstar Equity Partners Fund III Indonesia In the market US$500 Growth

Quvat Management Quvat Capital Partners III Indonesia In the market US$350 Growth

Vietnam Investments Group Vietnam Investments Fund II Vietnam In the market US$160 Buyout and growth

VinaCapital VinaCapital Vietnam Opportunity Fund II


Saratoga Capital Saratoga Asia III Indonesia Pre-marketing TBD Growth

Kendall Court Capital Partners Kendall Court Mezzanine (Asia) Bristol Fund

Southeast Asia 2010 US$150 Mezzanine

SEAVI Advent SEAVI Advent Equity Fund V Southeast Asia 2009 US$180 Growth

38

Selected GPs—Infrastructure

Manager Last fund Geography Vintage Size (m)

CapAsia Southeast Asia Strategic Assets Fund II SE Asia In the market US$300

CIMB Standard Islamic Infrastructure Fund Pan-Asia/ regional In the market US$500

Enam Holdings Enam Infrastructure Fund India In the market US$750

The Export-Import Bank of China (EXIM) China-ASEAN Investment Cooperation Fund

SE Asia In the market US$1,000

ICICI Venture Funds Management India Infrastructure Fund I India In the market US$500

L&T Infrastructure Finance TBD India In the market US$250

Macquarie Capital Funds Macquarie Everbright Greater China Infrastructure Fund

China In the market US$1,500

Macquarie Group Macquarie Korea Opportunities Fund II South Korea In the market US$1,000

Macquarie / State Bank of India / IFC Macquarie-SBI Infrastructure Fund India In the market US$2,000

Middle East & Asia Capital Partners MAP Clean Energy Fund Asia SE Asia In the market US$500

PTC India / Ashmore Energy Infrastructure Fund I India In the market US$750

Srei Infrastructure TBD India In the market US$500

Swiss-Asia Financial Services China District Energy Fund China In the market €500

UTI Asset Management/ HSH Nordbank/ Noor Financial Investment Company

India Infrastructure Development Fund India In the market US$500

AMP Capital Investors Asian Giants Infrastructure Fund Pan-Asia/ regional 2010 US$180

Challenger Financial Services Group/ Mitsui

Challenger-Mitsui Emerging Markets Infrastructure Fund

Pan-Asia/ regional 2010 US$273

JP Morgan Asset Management JPMorgan Asian Infrastructure & Related Resources Opportunity Fund


IL&FS Infrastructure Managers/ Standard Chartered Bank

Standard Chartered IL&FS Asia Infrastructure Growth Fund


IDFC Private Equity IDFC Private Equity Fund III India 2008 US$700

3i Infrastructure 3i India Infrastructure Fund India 2007 US$1,200

39

This presentation has been prepared by UBS AG and/or its affiliates (together, “UBS”) for the exclusive use of the party to whom UBS delivers this presentation (the “Recipient”) using information provided by the Recipient and other publicly

available information. UBS has not

independently verified the information contained herein, nor does UBS make any representation or warranty, either express or implied, as to the accuracy, completeness or reliability of the information contained in this presentation. This presentation should not be regarded by the Recipient as a substitute for the exercise of its own judgment and the Recipient is expected to rely on its own due diligence if

it wishes to proceed further.

The valuations, forecasts, estimates, opinions and projections contained herein involve elements of subjective judgment and analysis. Any opinions expressed in this material are subject to change without notice and may differ or be contrary to opinions expressed by other business areas or groups of UBS as a result of using different assumptions and criteria. This presentation may contain forward-looking statements. UBS undertakes no obligation to update these

forward-looking statements for events or circumstances that occur subsequent to such dates or

to update or keep current any of the information contained herein. Any estimates or projections as to events that may occur in the future (including projections of revenue, expense, net income

and stock performance) are based upon the best judgment of UBS from the information

provided by the Recipient and other publicly available information as of the date of this presentation. Any statements, estimates or projections as to UBS’

fees or other pricing are accurate only as at the date of this presentation. There is no guarantee that any of these estimates or

projections will be achieved. Actual results will vary from the projections and such variations may be material.

This presentation may also contain references to UBS Research. The UBS Research Department produces research independently of all other UBS business areas and UBS AG divisions and no other person or department within UBS may directly or indirectly offer or

guarantee

coverage by Research.

Research is produced for the benefit of the firm’s investing clients. The primary objectives of each analyst in the research department are: to analyse

the companies, industries and countries they cover and forecast

their financial and economic performance; as a result, to form

opinions on the value and future behaviour

of equity and equity-linked securities issued by the companies they cover; and to convey that information to UBS’

investing clients. Each issuer is covered by the Research Department at its sole discretion.

Nothing contained herein is, or shall be relied upon as, a promise or representation as to the past or future. UBS, its affiliates, directors, employees and/or agents expressly disclaim any and all liability relating or resulting from the use of all or any

part of this presentation or any of

the information contained therein except where stated otherwise in any signed engagement letter or other contract between UBS and the Recipient.

By accepting this presentation, the Recipient acknowledges and agrees that UBS is acting, and will at all times act, as an independent contractor on an arm’s length basis and is not acting, and will not act, in any other

capacity, including in a fiduciary capacity, with respect to the

Recipient. UBS, in its capacity as principal or agent, is involved in a wide range of commercial banking and investment banking activities globally (including investment advisory, asset management, research, securities issuance, trading (customer and proprietary) and brokerage) from which conflicting interests or duties may arise. UBS may provide

services to any other entity or person whether or not a member of the same group as the Recipient (a “Third Party”), engage in any transaction (on its own account or otherwise) with respect to the Recipient or a Third

Party, or act in relation to any matter for itself or any Third Party, notwithstanding that such services, transactions or actions may be adverse to the Recipient or any member of its group, and UBS may retain for its own benefit any related remuneration or profit.

This presentation has been prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The Recipient should not construe the contents of this presentation as legal, tax, accounting or investment advice or a recommendation. The Recipient should consult its own counsel, tax and financial advisors as to legal and related matters concerning any transaction described herein. This presentation does not purport to be all-inclusive or to contain all of the information that the Recipient may require. No investment, divestment or other financial decisions or actions should be based solely on the information in this presentation.

This presentation has been prepared on a confidential basis solely for the use and benefit of the Recipient; provided that the Recipient and any of its employees, representatives, or other agents may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the transaction and all materials of any kind (including opinions or other tax analyses) that are provided to the Recipient relating to such tax treatment and tax structure. Distribution of this presentation to any person other than the Recipient and those persons retained to advise the Recipient, who agree to maintain the confidentiality of this material and be bound by the limitations outlined herein, is unauthorized. This material must not be copied,

reproduced, distributed or passed to others at any time, in whole or in part, without the

prior written consent of UBS.

©

UBS 2011. All rights reserved. UBS specifically prohibits the redistribution of this material and accepts no liability whatsoever for the actions of third parties in this respect.

40

Contact information

UBS AGOne Raffles Quay

Level 50, North Tower Singapore 048583

Tel. +65-6495 8000

www.ubs.com

UBS Investment Bank is a business division of UBS AG UBS Limited is a subsidiary of UBS AG

asia pe overview

Documents