beirut, december 2nd, 2013 - blominvest bank invest/private... · blom-quilvest - 3 - organization...

BLOM-Quilvest

US Private Equity Opportunities

Beirut, December 2nd, 2013

BLOM-Quilvest

- 2 -

BLOM-Quilvest – Beirut, December 2nd, 2013

Agenda

• Who is Quilvest?

• What is Private Equity?

• What is BLOM-Quilvest US Private Equity Opportunities?

BLOM-Quilvest

- 3 -


Organization

Who is Quilvest?

Quilvest is a global wealth manager and a global

private equity and real estate investor with more than

$25 Billion under management.

Quilvest

Quilvest Wealth Management Quilvest & Partners Quilvest Consulting

$5B of AuM

Quilvest Banque

Privée

Compagnie de Banque

Privée Quilvest

$20B of AuM

Quilvest

Switzerland Private Equity Real Estate

BLOM-Quilvest

- 4 -


Group AuM Quilvest Group has grown its assets under management

by close to 7x since 2002 (or a 19% CAGR), reaching

$25B.

2002

$3.6B

Current

$25.0B

Quilvest Group AuM, $B

Who is Quilvest?

BLOM-Quilvest

- 5 -


13 offices in 10 countries

Paris

Created in 1917

14 specialists in Private Equity and Real Estate

96 specialists in Private Banking and Corporate Finance

New York

Created in 1950

19 specialists in Private

Equity and Real Estate

Zurich

Created in 1932

75 specialists in Multi Family Office

2 specialists in Private Equity

Montevideo (x2)

Created in 2007

2 specialists in

Private Equity

Dubai

Created in 2008

4 specialists in investments

London

Created in 2007

4 specialists in Private

Equity

Hong Kong

Opened in 2010

4 specialists in Private Equity

Global Footprint

Singapore

Opened by CBP in 2010

13 Trust & Wealth

Advisory professionals

São Paulo

Created in 2012

1 specialist in

Private Equity

Global presence was reinforced with recent office openings

in Europe, Asia and LatAm.

Luxembourg

Created in 1938

Quilvest SA listed in Luxembourg

(x2)

CBP based in Luxembourg

100+ specialists in Private Banking and

Administration

Geneva

Opened in 2012

Who is Quilvest?

BLOM-Quilvest

- 6 -


Employees

2002

~150

Current

~500

Headcount now reaches ~ 500 professionals at the Quilvest

level and more than 5,000 employees if we include the

majority owned porfolio companies.

Quilvest Group # Employees

• More than 5,000

employees if we

include majority

owned

companies

• Solid

presence in

senior ranking

Who is Quilvest?

BLOM-Quilvest

- 7 -


Quilvest & Partners Quilvest & Partners focuses on investments in funds

and directly in companies, always on a global basis.

Quilvest & Partners

Funds Direct

Private Equity

Real Estate

Companies

Properties

Who is Quilvest & Partners?

Top quartile

Global

High return investments

Global

Since 1972:

a pioneer

BLOM-Quilvest

- 8 -


Alpha overPublic Markets

10.2 ppt

Track Record

19 programs over 2002-2013

Quilvest has one of the best investment track

record in the world.

• All positive returns

• All expected to yield double digit

returns

(1) Net IRR of all buyout programs managed by Quilvest since 2002 (assuming $1M commitment in

each program) compared to IRR implied by investments in comparable public indices at the same

cashflow dates


(1)

BLOM-Quilvest

- 9 -


AuM Growth Quilvest & Partners has grown its assets under management

by a remarkable 34% CAGR since 2002.

2002

0.2

2003

0.3

2004

0.5

2005

0.7

2006

0.9

2007

1.3

2008

2.0

2009

2.2

2010

3.0

2011

3.4

2012

4.2

Current

5.0Q&P AuM, $B


BLOM-Quilvest

- 10 -


Investor Base Quilvest & Partners comprises around 400 investors, up from

a single investor a decade ago.

2001

1

2002

11

2003

36

2004

109

2005

180

2006

216

2007

255

2008

307

2009

323

2010

348

2011

367

2012

388

2013

402

Q&P, # Investors

(cumulative)


BLOM-Quilvest

- 11 -


Institutional Investors Although the core of Quilvest & Partners investor base

remains private investors, more than 25 blue-chip

institutions have become investors in our private equity

programs.


BLOM-Quilvest

- 12 -


AuM Dec. 2013

Proprietary $1.4B

Shareholders $0.3B

Third party $3.3B

$5.0BQ&P AuM, $B

28%

AuM Split Quilvest remains by far the largest investor in all Quilvest &

Partners private equity investments.


BLOM-Quilvest

- 13 -


Team Investment Quilvest & Partners’ team is also a significant investor in

all of Quilvest & Partners programs.

+ Team has been investing

every year $5M-$7M

in all of Quilvest & Partners Products


BLOM-Quilvest

- 14 -


Principal Investment Investment decisions reflect our principal investment

approach.

IC

process

My shareholders

monies.

My own monies:

Discipline

We are not asset gatherers.

We are investors

...


BLOM-Quilvest

- 15 -


Q&P Strategy Quilvest & Partners intends to continue

implementing its strategy going forward…


BLOM-Quilvest

- 16 -


Performance … with a clear goal of maintaining its superior track

record.


BLOM-Quilvest

- 17 -


Agenda




BLOM-Quilvest

- 18 -


Private Equity

(1/2)

What is Private Equity?

BLOM-Quilvest

- 19 -


Private Equity

(2/2)

Investing

In the Equity

Private Companies


BLOM-Quilvest

- 20 -


Purpose of Private Equity

Who needs Private Equity?

Steeve Jobs Mark Zuckerberg Thomas Edison

Business

Idea / Plan / Concept

Bank Dad

Private

Equity

Investors

Bank Dad

JP Morgan

as a Private

Investor

AC/DC


BLOM-Quilvest

- 21 -


Yo! Sushi Case Study

Investors

90+ restaurants in 2013

39 restaurants in 2008

Growth Capital

Robin Rowland


BLOM-Quilvest

- 22 -


BBB Case Study

2013:

500 stores / 3,000 employees / $300M in sales

Kamal Hatoum

2004

2005: Hard discounting stores in Mexico

0 store / 0 employees / 0 sales

Investors


BLOM-Quilvest

- 23 -


Private Capital

So what is Private Equity?

A Simplified Picture

Growth Maturity Early Growth Inception

Private Capital

+

Banks

Banks

+

Public Equities

(IPO)

Banks

+

Public Equities

(secondaries offerings)

A few $K $500Bn


BLOM-Quilvest

- 24 -


The Birth The roots of Private Equity can be traced back to the Industrial Revolution.

True Private Equity investments gained significance in the 1960’s, 70’s and

80’s, as a new kind of managers started setting the rules and foundations

of the industry.

(1) Launched under the name E.M. Warburg & Co

(2) Launched under the name Patricof & Co (USA). Merged in 1977 with Multinational Management Group (France and UK) to form Apax

(3) Launched under the name Schroder Ventures

1985 1890 1960

Merger between Edison

General Electric and

Thomson Houston

Electric

1892 1938

• First LBO

1955 1976 1969

• Growth of the

high-yield bond

market

1970’s 1981 1984 1985

• Strong governance + alignment of interest + financial engineering

= Improved operations, cash flow and value

(1)

(3) (2)

1917 1972

• Quilvest’s first

PE investment


BLOM-Quilvest

- 25 -


The Rise Private Equity gained significance in the 90’s and 2000’s –

not without crises and hiccups along the ride…

1989

1985 2007

1987

1990

2007

1992

1995

2001

1989 - 1990

2006 • Largest LBO for

nearly 17 years

• Collapse of the high-

yield bond market

• End of first LBO boom

• First PE investment by

Calpers

• Bursting of

internet Bubble

2003 - 2007

• KKR

permanent

vehicle IPO

• Blackstone IPO

1996 2002

• Quilvest’s first

royalty

investment

• Launch of the

QS PEP program

• Quilvest opens its

platform to third

party investors


http://en.wikipedia.org/wiki/File:TPG_Capital_Logo.png

BLOM-Quilvest

- 26 -


A Major Asset Class …to become, in the late 2000’s, a major asset

class and equity provider for companies around

the globe.

Sources: Private Equity Analyst, Thomson Reuters, Preqin, Mergermarket

1985 2007

• Total of over $1 trillion global PE dry powder

• $670Bn of global buyout volume

• $250Bn of commitments to US PE partnerships

• Large PE funds become significant players in the

global economy

- E.g. Blackstone’s consolidated portfolio

generates $94Bn of annual revenues and

employs 520,000

Key Figures, 2007


BLOM-Quilvest

- 27 -


The number of funds has dramatically increased.

There were 23 funds greater than $1Bn in 1995, more

than 400 in 2012.

Number of Funds

(1/2)

3i Growth Capital Fund Barclays Integrated Infrastructure Fund Charlesbank Equity Partners VII Finvest Private Equity Fund Horsley Bridge International V M atlinPatterson Global Opportunities III Pantheon Europe Fund VI Sun Capital Securities Fund II

AAC Capital NEBO Fund II Barclays Private Credit Partners Charterhouse Capital Partners IX First Reserve Energy Infrastructure Fund Huntsman Gay Capital Partners M BK Partners II Pantheon Global Secondary Fund IV Swicorp Joussour Company

Abbott Capital Private Equity Fund VI Barclays Private Equity European Fund III Chequers Capital XVI First Reserve Fund XII ICG European Fund 2006 M enlo Ventures X Pantheon USA Fund VIII Swiss Re Private Equity Partners IV

ABRY VI Baring Asia Private Equity Fund V Cherokee Investment Partners IV Five M ile Capital Partners II ICG Recovery Fund 2008 M etalmark Capital Partners Fund I Park Square Capital II Symphony Technology Group III

Actis Emerging M arkets 3 Baring Vostok Private Equity Fund IV China-ASEAN Investment Cooperation Fund Fortress Credit Opportunities Fund II IEV Capital Renewable Energy M GPA Asia Fund III Partners Group Secondary 2008 TA Atlantic & Pacific VI

Adams Street 2009 Global Opportunities BC European Cap VIII CIC-JC Flowers Financial Assets Fortress Investment Fund V Industri Kapital 2007 Fund M GPA Europe Fund III Pathway Private Equity Fund XIX TA XI

Adams Street US Partnership 2008 Beacon Capital Strategic Partners VI CIM IV Fortress Investment Fund V Co-Investment InSight Venture Partners VII M HR Institutional Partners III Pátria Brazilian Private Equity Fund IV Tamir Fishman Russia Venture Capital Fund

Advantage Partners Fund IV Berkshire Fund VIII Cinven IV Francisco Partners III Intermediate Capital Asia Pacific Fund 2008 M id Europa Fund III Patron Capital Partners III TCW / Crescent M ezzanine V

Advent Central & Eastern Europe IV Bessemer Venture Partners VIII Citadel Capital SPV Fund III Friedman Fleischer & Lowe Capital Partners III Inventages V M idOcean Partners Fund III Paul Capital Partners IX TCW Energy Fund XIV

Advent Global Private Equity VI Birch Hill Equity Partners IV CITIC M ianyang Private Equity Fund Fund Invention Investment Fund II M itsubishi Corp - UFJ Securities PCCP M ezzanine Recovery Partners I TDR Capital II

Advent Latin American Fund V BlackRock Diversified Private Equity Program III Citigroup Capital Partners II Gávea Investment Fund IV Investcorp Gulf Opportunity Fund I M oelis Capital Partners Co-Investment Fund Permira IV Technology Crossover Ventures VII

AEA 2006 Investment Program Blackstone Capital Partners VI Citigroup International Growth Partnership II Genstar Capital Partners V Investcorp Private Equity 2007 M ontagu III P ine Brook Road Partners I Tennenbaum Opportunities Fund V

Aetos Capital Asia II B lue Ridge China Clayton Dubilier & Rice VIII GI Partners III Investindustrial Fund IV M ontagu IV Platinum Equity Capital Partners Fund II Terra Firma Capital Partners III

Affinity Asia Pacific Fund III B lum Strategic Partners III Clessidra Capital Partners II Global Opportunistic Fund II IREO Fund II M organ Stanley Capital Partners V Polaris Venture Partners V Terra Firma Deutsche Annington

AG Capital Recovery Partners VII BM B Capital Sharia Fund of Funds Climate Change Capital Carbon Fund II Golden Gate Capital Fund III Irving Place Capital Partners III M organ Stanley Private Equity Asia Fund III Pomona Capital VII Texas Pacific Group Partners V

Alinda Infrastructure Fund II Bregal Fund II Code Hennessy & Simmons V Golder Thoma Cressey Rauner X J.P. M organ Digital Growth Fund M organ Stanley Private M arkets Fund IV Portfo lio Thomas H Lee VI

Almack M ezzanine I Bridgepoint Europe IV Coller International Partners V Golub Capital Partners V JAFCO V3 (A) M ount Kellett Fund I Portfo lio Advisors Private Equity Fund VI Tiger Global Private Investment Partners VI

Alpha Asia M acro Trends Fund Bridgepoint Europe IV Colony Investors VIII Goodman Australia Industrial Fund JBG Urban Natural Gas Partners IX Portfo lio Advisors Secondary Fund Tower Square Capital Partners III

A lpInvest Partners Secondaries 2009-2010 Brookfield Americas Infrastructure Fund Colyzeo II Goodman European Logistics Fund JC Flowers III Navis Asia Fund VI Providence Equity Partners VI TowerBrook Investors III

A lternative Energy Fund II Brookfield Americas Infrastructure Fund Commonfund Capital Private Equity Partners VII Gores Capital Partners III JLL Partners Fund VI NB Co-investment Partners Providence TM T Special Situations Fund TPG Asia V

Altima One World Agriculture Development Fund Brookfield Brazil Retail Fund Corsair Capital III GP Capital Partners V Jordan Resolute Fund II NB Crossroads Fund XVIII Quadrangle Capital Partners II TPG Partners VI

Altor Fund III Brookfield Brazil Retail Fund Court Square Capital Partners II Great Hill Equity Partners IV JPM organ US Corporate Finance IV NB Secondary Opportunities Fund II Quantum Energy Partners V TPG Star

American Capital Equity I Brookfield Global Timber Fund I CPI Capital Partners Asia Pacific Green Equity Investors V JPM organ Venture Capital Investors III NCH Agribusiness Partners Quantum Resources Trident Fund V

American Securities Partners V Brookfield Special Situations Fund II CPI Capital Partners Europe Greenbriar Equity Fund II Kaupthing Capital Partners II New Enterprise Associates XIII Raffles City China Fund Trilantic Capital Partners IV

Antin Infrastructure Fund Brysam Global Partners Crestview Capital Partners II Greenfield Acquisition Partners V Kelso Investment Associates VIII New M ountain Partners III RBS Special Opportunities Fund Triton Fund III

Apax Europe VII BTG Pactual Brazil Investment I Crown European Buyout Opportunities II Greenpark International Investors III KKR Asia Fund New Silk Route PE Asia Fund Redwood Grove International Unison Capital Partners III

Apax France VII Canadian Office Fund Crown Global Secondaries II Greylock XIII KKR China Growth Fund Newbury Equity Partners II Resource Capital Fund V VantagePoint Venture Partners V

APEP Dachfonds Candover 2005 CS Strategic Partners IV GS Capital Partners VI KKR European Fund III Nordic Capital Fund VII Riverside Capital Appreciation Fund V Varde Fund X

Apollo European Principal Finance Fund Canyon-Johnson Urban Fund III Cube Infrastructure Fund GS Distressed Opportunities Fund IV KKR Fund 2006 Norwest Equity Partners IX Riverstone/Carlyle Global Energy and Power Fund IV Vector Fund IV

Apollo Investment Fund VII Capital International Private Equity Fund V CVC Capital Partners Asia Pacific III GS Infrastructure Partners II KKR M ezzanine Partners I Norwest Venture Partners XI Riverstone/Carlyle Renewable and Venture Lending & Leasing V

Aquiline Financial Services Fund Carlyle Asia Growth Partners IV CVC European Equity Partners V GS M ezzanine Partners V Kohlberg Investors VI Oak Hill Capital Partners III Roark Capital Partners II Veritas Capital Fund IV

ARA Asia Dragon Fund Carlyle Asia Partners III Cypress Grove International GS Opportunity Partners KPS Special Situations Fund III Oak Investment Partners XII Sagard Private Equity Partners II Vestar Capital Partners V

Archer Capital Fund IV Carlyle Europe Partners III Denham Commodity Partners Fund V GS Private Equity Partners IX KRG Capital Fund IV Oaktree Power Opportunities Fund III Sageview Capital Partners Vinci Capital Partners II

Ares Corporate Opportunities Fund III Carlyle Global Financial Services Partners Diamond Castle Partners IV GS Vintage Fund V KSL Capital Partners III Oaktree Public Private Investment Program Fund SAIF Partners IV Vista Equity Fund III

Ashmore Global Special Situations Fund IV Carlyle Japan Partners II DLJ M erchant Banking Partners IV GSC European M ezzanine Partners II Landmark Equity Partners XIV OCM European Principal Opportunities Fund II Sankaty Credit Opportunities Fund IV Vitruvian Investment Partnership I

Astorg V Carlyle Partners V Doughty Hanson & Co V GSO Capital Opportunities Fund LaSalle Asia Opportunity Fund III OCM M ezzanine Fund III SB Asia Investment Fund III VSS Communications Partners IV

ATP Private Equity Partners IV Carlyle Strategic Partners II Dover Street VII GSO Capital Solutions Fund Lee Equity Partners OCM Opportunities Fund VIIIB Sequoia Capital 2010 Warburg Pincus Private Equity X

Audax M ezzanine Fund III Carlyle/Riverstone Global Energy and Power Fund III DRA Growth & Income Fund VII Guangdong Nuclear Power and New Levine Leichtman Capital Partners IV OCM Principal Opportunities Fund V Shanghai Financial Sector Investment Fund I Waterland Private Equity Fund V

Audax Private Equity Fund III CarVal Global Value Fund DST Global - 2 H.I.G. Bayside Debt & LBO Fund II Lexington Capital Partners VII OCM /GFI Power Opportunities Fund II Shanxi Energy Industry Investment Fund Wayzata Investment Partners II

Avenue Asia Special Situations Fund IV Catalyst Fund III Duke Street Capital VI H.I.G. Bayside Loan Opportunity Fund II Lime Rock Partners V Odyssey Investment Partners Fund IV Sheridan Production Partners II Wellspring Capital Partners V

Avenue Europe Special Situations Fund Catterton Partners VI EIG Energy Fund XV Hamilton Lane Co-Investment Fund II Lindsay Goldberg - Fund III OHA Strategic Credit Fund Siguler Guff Distressed Opportunities Fund III Welsh Carson Anderson & Stowe XI

Avenue Special Situations VI Cavendish Square Partners Electra European Fund II HarbourVest International V Partnership Lion Capital Fund II Olympus Growth Fund V Silver Lake Partners III Westbourne Yield Fund

Avista Capital Partners II CCM P Asia Opportunity Fund III Elevation Partners HarbourVest Partners VIII - Buyout Littlejohn Fund IV Onex Partners III Silver Lake Sumeru Weston Presidio V

AXA Capital Europe CCM P Capital Investors II EnCap Energy Capital Fund VIII HarbourVest Partners VIII - Venture LoanCore Capital P2Brasil Silverpeak Legacy Partners III White Knight VIII

AXA Co-investment Fund III CDH China Fund IV Energy Capital Partners II Headland Private Equity Fund 6 Lone Star Fund VII Pacific Equity Partners Fund IV Southern Cross Latin America Fund IV WLR Recovery Fund IV

AXA LBO Fund IV Celero Energy Energy Industrial Investment Fund I Hellman & Friedman VII M acquarie European Infrastructure Fund III PAI Europe V Spectrum Equity Investors V Yorktown Energy Partners VIII

AXA Secondary Fund IV Centerbridge Capital Partners II EnerVest Energy Institutional Fund XII Herkules Private Equity Fund III M acquarie Infrastructure Partners II Paine & Partners Capital Fund III Starwood Global Opportunity Fund VIII Yucaipa American Alliance Fund II

Bain Capital Asia Centerbridge Special Credit Partners EQT V HgCapital 6 M acquarie State Bank of India Infrastructure Pamlico Capital II Sterling Capital Partners III Yunfeng Fund

Bain Capital Europe III Cerberus Institutional Partners (Series Four) Europa Fund III Hony Capital Fund IV M adison Dearborn Capital Partners VI Pamodzi Resources Fund Summit Partners Europe Private Equity

Bain Capital Fund X CHAM P Buyout III European Strategic Partners 2006 Hony Capital RM B Fund II M agnum Capital Pamplona Capital Partners II Summit Partners Private Equity Fund VII

Bain Capital Fund X Co-investment Fund Chang Tao Bright Stone (HK) Investment Fund Exponent Private Equity Partners II Hopu USD M aster Fund I M apletree India China Fund Pangaea One Sun Capital Partners V

2012

Apollo Investment Fund

Blackstone Capital Partners

Carlyle Partners

Clayton Dubilier & Rice

Corporate Partners

Cypress Merchant Banking Partners

DLJ Merchant Banking Partners

Electra Private Equity Partners

Forstmann Little

GS Capital Partners

Hellman & Friedman

HSBC Private Equity Partnership Scheme

KKR

Lehman Brothers Merchant Banking

Merrill Lynch Cap App

Morgan Stanley Capital Partners

Stonington Capital Appreciation

Terra Firma Capital Partners

Warburg Pincus Investors

Warburg Pincus Ventures

Welsh Carson Anderson & Stowe

Whitehall Street

Zell / Chilmark Fund

1995

Private Equity Funds Greater than $1Bn

Sources: Preqin, TPG


BLOM-Quilvest

- 28 -


Number of Funds

(2/2) Globally, there are more than 6,000 teams/groups

investing in Private Equity.

Source: Preqin

Global Statistics:

• Over 6,400 Managers

• 1,781 fundraising Managers in 2012:

- 1,602 < $1bn

- 142 between $1bn and $3bn

- 37 > $3bn

Fundraising Managers in 2012

# Funds between $1bn – $3bn

# Funds < $1bn

# Funds > $3bn

x

z

y

Existing

Managers

UK

Germany

US

Latin America

France

Other Europe

Asia

791

84

3,375

Managers

265

901

282

854

Managers

813

Managers

198

477

Managers

138

157

63

185

Managers

1

6

56

31

189

Managers

1

30

79

Managers 28

5

23

186

26

5

14

2

10

2

15


BLOM-Quilvest

- 29 -


Why Private Equity?

10-Year IRR – Returns by Asset Class – %

Private Equity has been the asset class with the

highest returns over a 10-year period…

Note: As of March 31, 2013

Sources: S&P GSCI Total Returns for commodities, Dow Jones Credit Suisse Blue Chip Hedge Fund Index for hedge funds, JPM Global

Aggregate Total Return Bond Index for bonds and MSCI World Net USD for equities

(1) Thomson Reuters excluding venture capital


BLOM-Quilvest

- 30 -


Target Allocation to PE … and has now become a key component of

global asset allocation for all categories of

investors…

Sources: Private Equity Growth Capital Council, Preqin, BCG, Endowment annual reports, Quilvest analysis

Target Allocation to Private Equity – % of Asset Allocation


BLOM-Quilvest

- 31 -


High Dispersion of Returns

10 and 15-Year Returns by Quartile – IRR %

… however, returns of Private Equity funds show a very

large difference in performance between the best funds

and the rest of the asset class.

Note: As of March 31, 2013

Sources: Thomson Reuters


BLOM-Quilvest

- 32 -


Agenda




BLOM-Quilvest

- 33 -


BLOM-Quilvest PE Program

BLOM-Quilvest US PE

The BLOM-Quilvest PE program is designed to offer

access to top quartile PE managers in the US.

You

BLOM + Quilvest

Top quartile

Private Equity

Teams/Funds in the USA

BLOM-Quilvest

- 34 -


Rationale

BLOM – Quilvest

PE Program

Direct deal DNA

Alignment of

interest

Seasoned team

and rigorous

processes

Track record

Visibility and

access

Differentiated

focus

BLOM-Quilvest US PE

BLOM-Quilvest

- 35 -


Dedicated Fund Team Quilvest’s fund team includes 6 senior PE professionals who jointly

form the Investment Committee and 10+ additional investment

professionals across the globe.

Senior Team Members

Ali Khanbhai

• Principal

• Joined Quilvest in 2007

• Fund and direct investment for Quilvest

in Europe

• American Capital, Merrill Lynch

• Harvard, Harvard (MBA)

Note: Team members also involved in direct deal activity

• Principal


• Fund and direct investment for Quilvest

in Europe

• Lazard

• ESCP

Thomas Vatier

Robyn Sacks Slutzky

• Principal


• Fund and co-investment for Quilvest in

the US

• Alpinvest, DLJ/CSFB

• Richard Ivey School of Business (HBA),

Columbia (MBA)

Investment Committee Members

Fady Michel Abouchalache

• CEO of Quilvest S.A.

• 20+ years of Private Equity, consulting

and investment banking experience

• Bain and Tucker Anthony

• Co Founder of Delta Capital, an

emerging markets focused PE fund

• Wharton School, Harvard MBA,

Harvard MPA

Michele Kinner

• Head of Quilvest Private Equity fund

investments in the US

• 30+ years of Private Equity and

banking experience with JP Morgan,

Royal Bank of Canada and Chase

• Smith College, Whittemore School

MBA

Axelle Strain

• Managing Partner Europe

• Direct LBO and fund investments for

Quilvest in Europe

• Netscalibur (Morgan Stanley PE)

• Morgan Stanley M&A

• Ponts et Chaussées, Harvard MBA

Jean-François Le Ruyet

• Senior Member of QS PEP and QS

REP

• McKinsey & Company

• Bain & Company

• Société Générale

• HEC, Columbia MBA

Elan Schultz

• Managing Partner of Quilvest USA

• 20+ years of Private Equity experience,

• SG Partners, DLJ Merchant Banking,

and Alvarez & Marsal

• University of Texas (Highest Honors),

Stanford MBA

H. Whit Wagner

• 20 years as Managing Director and

General Partner of TCR

• Founder of Clearbrook Advisor, a

Private Equity advisory firm

• Chemical Bank, Credit and Lending

• University of Vermont

Other Team Members

Loeiz Lagadec Nadim Majdalani

Guillaume Laboureix Grégoire Le Blanc

de Choisay

Laura Carella Robert Soifer

Seasoned Team

BLOM-Quilvest

- 36 -


Fady Michel Abouchalache

• Quilvest CEO

• Quilvest Private Equity CEO since 2001

Europe Investment Team(1)

• Axelle Strain

• Jean-François Le Ruyet

• Ziad Joumblat

• Ali Khanbhai

• Thomas Vatier

• Loeiz Lagadec

• Nadim Majdalani

• Guillaume Laboureix

• Grégoire Le Blanc de Choisay

US Investment Team

• Elan Schultz

• Howard Rimerman

• George Moore

• Lawrence Neubauer

• Henrik Falktoft

• Michele Kinner

• Benton Cummings

• Jay Takefman

• Robyn Sacks Slutzky

• Jared Nagae

• Laura Carella

• Evan Ufer

• Robert Soifer

• Marc Manasterski

• Ione Permison

• Barry Hammerman

• Petro Azar

• David Israel

Global Real Estate

(1) Offices in Paris and London

(2) Dedicated professionals in Dubai/Paris + c. 15 support investment professionals in France, UK, the Americas, and Hong Kong

Business Development(2)

• Serge Rafie

• Ali Al-Husseini

• Jamal Al-Husseini

• Nadine Koniski-Ziadé

• Emile Zakhia

• Marc Harfouche

• Samih Barbir

• Andres Morrone

• Francisco de Posadas

Emerging Markets

• Carlos Heneine

• Mani Saluja

• Catherine Shih

• Daniel Arippol

• Lily Bui

• Qingkun Guo

• Abhishek Damani

• Marta Wypusz

• Whit Wagner

Advisors Operations

Switzerland:

• Hugh Parry

• Stefan Bishof

• Urs Frey

• Maria Teresa

Rocca

• Colin Hussey

• Wendelin Meier

• Leanne Vogel

• Casper Van Der Elst

• Jürgen Venter

• Khadija Ruoss

• Puja Unia

Luxembourg:

• Jean-Benoît Lachaise

• Daniel Dine

• Eric Triestini

• Manuel Fischer

• Paul Rosaci

• Christine Ries

• Sébastien Bach

• Noël Melou

• Anthony Vrenne

The Quilvest Private Equity team includes around

100 professionals of which c.50 investment

professionals.

Extensive, Global

Private Equity Team

Seasoned Team

BLOM-Quilvest

- 37 -


Funds presented

to the Investment

Committee

No go for now –

Keep in radar

screen

If IC approval:

portfolio of QS PEP

Core

No go for now –

Keep in radar screen

Quilvest applies a rigorous investment process,

combining both extensive top-down and bottom-up

approaches.

Extensive

Due Diligence

by Quilvest team

on selection of

Managers

Investment Process

Macro Trends (economic, tax, sector…)

Competitive Environment

Private Equity Environment

Market Momentum

Preliminary

Assessment of

Interest

Meetings with

Managers

Funds Split by

Strategy

Fund Universe

Bottom-up Approach

Top-down Analysis

Forward

Calendar

Monthly

Planning

Meetings to

Review Forward

Calendar and

Coming

Opportunities

Seasoned Team

BLOM-Quilvest

- 38 -


Thematic Reviews The Quilvest team regularly updates its knowledge on the

various strategies in order to produce a “short list” of funds

to be followed in the coming years.

Desk research on

65 funds (Germany,

Switzerland, Austria)

Discussion with

placement agents

Macro economic

analysis

PE press articles

e.g. PEI, Real

Deals, PEnews …

EVCA and Prequin

PE market data

Interviews of PE

professionals, other

FoF, McKinsey,

alumni etc…

In-person meetings

with 22 funds in

Munich, Berlin,

Hamburg, Frankfurt

in 2012

Sources of information

Example of German(1) Mid-Market 360° Analysis

(1) “DACH” countries

• Quilvest brief: views on the German /

DACH PE mid-market 2013 – 2016

• Pipeline of funds being raised and QS

PEP Core short list 2013 – 2014

• Full research report

• One-pager of funds (45 funds)

Output

Quilvest

- 33 -November 2012

Strictly Confidential – Not for

Distribution Outside Quilvest

• CapVis Equity Partners was founded in 1999 as the successor organization

to SBC Equity Partners

• From 1995 until the merger of UBS and Swiss Bank Corporation SBC in

1998, SBC Equity Partners was the Private Equity investment division of

Swiss Bank Corporation

• In 1999, the team established the Capvis I Fund and founded the

management company Capvis Equity Partners AG

• Capvis’ core markets are Switzerland, Austria and Germany, and the team

is based in Zurich, Switzerland

Capvis is a Swiss-based investor focusing on mid-size companies in

the DACH region.

History & Investors Offices and Team

• Based in Zurich, Switzerland, a representation office in Frankfurt (Georg P.

Helg as Chief Representative Germany)

• 8 partners including 3 members of the Management Committee (Rolf Friedli,

Daniel Flaig and Felix Rohner)

• 3 partners dedicated to Germany

• 8 investment professionals

• Since 1990 and as of September 2012, the firm has invested in 43 companies

and has exited 35 so far (9 through initial public offerings) realizing returns of

2.7x Coc and 33% IRR

5 funds raised since 1990 (1) (performance as of September 2012):

• SBC raised in 1990 at €56M: Fully realized at 3.9x CoC and 29.1% IRR

• SBC EP raised in 1995 at €82M: Fully realized at 2.9x CoC and 79.8% IRR

• Capvis I raised in 1999 at €207M: Fully realized at 2.2x CoC and 17.5% IRR

• Capvis II raised in 2004 at €340M: 7 out of 10 investments realized and total

fund valued at 1.9x CoC and 16.7% IRR

• Capvis III raised in 2008 at €600M : 1 out of 6 investments realized and total


• Capvis IV to be raised in 2013 at €600M +

Fundraising / Performance

• Geographic focus: Germany (65%), Switzerland and Austria

• Industry focus: Industrial (24%), Consumer (14%), Services (10%),

Chemicals (9%), Manufacturing (6%), Medical (6%)

• Preference for majority investments (86%)

• Focus on mid-market companies with EV between €100-250M and equity

tickets between €50-75M

• Focus on buyout and succession solutions

Type of Investments

Source: Capvis / Preqin

• Met by Jean-François Le Ruyet and Loeïz Lagadec in November 2012 (with

Daniel Flaig)

Meeting History

Last Update November 2012

• Probably the most “institutional” team in CH: i) caliber of professionals, ii)

long time together, iii) solid track record, iv) office in Shanghai

• However, unclear edge: what makes them really different in their approach ?

• => Warrants further diligence once Capvis get in active fundraising mode in

early 2013. Unclear whether it could be a QS PEP candidate

Quilvest View

(1) Gross figures

Quilvest

- 33 -November 2012













the DACH region.




























Type of Investments



Daniel Flaig)

Meeting History







Quilvest View

(1) Gross figures

Quilvest

- 33 -November 2012













the DACH region.




























Type of Investments



Daniel Flaig)

Meeting History







Quilvest View

(1) Gross figures

Quilvest

- 33 -November 2012













the DACH region.




























Type of Investments



Daniel Flaig)

Meeting History







Quilvest View

(1) Gross figures

Seasoned Team

BLOM-Quilvest

- 39 -


2015

Review of

Documents

Prepared by the

Fund (PPM...)

Detailed Review

of Portfolio

Companies

Due Diligence

Sessions with

Fund

Calls to Portfolio

Companies

Managers,

Advisors, LPs...

Macro

Environment Terms / Legals

Team

Dynamics Track Record 2015 Strategy

- Market opportunity

for the strategy

- Risks of changing

environment (macro,

PE competition, etc)

- Competition

- Consistency over

time

- Risk / return strategy

- Adequacy with team

skills

- Value add with

portfolio companies

- Succession issues

- Split of economics

- Past / expected

changes in

management team

- Economic terms

- GP commitment /

alignment of interest

- Other key terms

(investment

restrictions, key-man

clause, etc.)

- Source of value

creation for realized

deals

- Challenge valuations

for unrealized deals

- Expected returns on

remaining portfolio

- Benchmark against

peers

Quilvest approach: « Direct deal DNA », not « tick the box »

Quilvest performs thorough due diligence on

funds reviewed with a “direct deal DNA”.

Due Diligence Approach

Direct Deal DNA

BLOM-Quilvest

- 40 -


Direct Deal Experience Quilvest has completed more than 90 direct

investments since 2002.

Sample of Direct Investments

Leveraged Buyout

US

Leveraged Buyout

Europe

Venture / Growth Equity

US / Europe Growth Equity

Emerging Markets

Direct Deal DNA

http://www.hillarys.co.uk/default.aspx

BLOM-Quilvest

- 41 -


Opportunistic Approach

Tiendas 3B Facebook

Royalty Pharma

On the direct investment side, Quilvest has invested in

atypical projects in the past, e.g. businesses started from

scratch, new business models decorrelated from markets,

or high potential pre-IPO companies.

Direct Deal DNA

BLOM-Quilvest

- 42 -


Co-Investment Rights BLOM investors will have priority on all direct

investments offered by Quilvest.

(1) All investments below $6M are made through dedicated QS Direct fund opened to third party investors

(2) As of June 2013

Approach

• No adverse selection: All

investments above $6M are

offered to co-investors (1)

• Full alignment of interest

- Quilvest acts as

Principal investor in all

transactions

- No mark-up in entry

price

• Sizeable and diversified

pipeline, across geographies

and strategies

• Manufacturer of components for Swiss

watches and other high-precision parts

• Based in Switzerland

• Lead LBO investment

2011-2012 Investments

• Chain of casual dining pizza restaurants

• Based in the US

• Lead growth equity deal

• Asset Management (Asian equity-focused

mutual fund)

• Based in the US

• Co-investment with Lovell Minnick Partners

• Manufacturer of small diameter, thin wall

copper/specialty alloy tubes

• Based in the US

• Lead LBO investment

• Hard-discount food retail chain

• Based in Mexico

• Lead growth equity deal

Direct Deal DNA

Net IRR US. Public Indices (2)

Quilvest Direct Deals

Public Index

24.4%

6.7% 5.7%

23.2%

6.5%

-1.8%

2.5%

11.0%

2002-2004 2005-2007 2008-2010 2011-Present

BLOM-Quilvest

- 43 -


QS PEP Selection Process for 2012 (1)

(1) Includes funds met, diligenced and committed to for QS PEP and QS GEO in 2012/early 2013

Based on a universe of more than 800 funds in the

market in 2012 that made it onto Quilvest’s radar,

Quilvest reviewed data for around 620 and selected

only 24.

Screening Capacity

300

230

100

200

140

60

300

250

125

800

620

285

24

# Funds in Fundraising in QS PEP Scope

# Funds for which QPE Reviewed Data

# Funds Met # Funds Selected

Emerging Markets (1)

Europe

US

Emerging Markets: 9 (1)

Europe: 3

US: 12

Visibility & Access

BLOM-Quilvest

- 44 -


Since 2002, Quilvest has carefully selected top tier

managers in the middle market across the U.S.

Examples of Quilvest’s U.S. Mid Cap Managers 2002 – 2013

U.S. Mid Cap Experience

Visibility & Access

BLOM-Quilvest

- 45 -


Quilvest has leveraged its history and extensive network

to gain admission to grossly oversubscribed funds. Preferred Access

Recent Examples of Quilvest’s Preferred Access (2011 – 2013)

Visibility & Access

BLOM-Quilvest

- 46 -


The BLOM-Quilvest program will focus on small to

mid cap funds which have the potential to generate

the highest alpha.

Small/Mid Cap Focus

Sources: Preqin, Quilvest

(1) Defined as funds over $3Bn

(2) Source: Thomson Reuters; Torreycove Capital Partners (October 2012)

Market US. BLOM-Quilvest U.S. PE Fund Target %

Allocation between Small / Mid and Large Cap Funds

Large Cap (1)

Small / Mid Cap

~80-90%

~10-20%

QS PEP Core Target Allocation

47%

53%

Cumulative $ Committed to PE Funds 2006 to 2012

100% 100%

Market BLOM

BLOM – Quilvest U.S. PE

Fund Target Allocation

Differentiated Focus

8% 10%

8%

Small Mid Large

Median

Top Quartile

34% 34%

21%

15-Year Returns (2)

BLOM-Quilvest

- 47 -


U.S. Private Equity Market

Sources: Dealogic Analytics; Preqin “most up to date”; Q2 2013 S&P report

(1) Pooled benchmark data for buyout funds of all sizes in North America

The U.S. has been a long and active participant in

private equity that has resulted in strong investor

returns.

Fundraising Evolution for PE Funds in North America

$139$105

$219

$361

$549

$665 $685

$318 $290$326

$365

$284

0

100

200

300

400

500

600

700

800

0

200

400

600

800

1000

1200

1400

1600

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013YTD

Aggregate Capital Raised (bn USD) No. of FundsUSD $bn # PE funds

U.S. Buyout Volume as a Percent on U.S. M&A Activity

4%

9%11%

13%

16%

24%

10%

2%

10%11%

10%11%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Performance of U.S. Buyout Funds(1)

2.0x1.5x 1.4x 1.1x 0.9x

0.4x 0.5x 0.4x 0.3x 0.1x

2.2x1.9x 2.0x

1.7x1.6x

1.2x 1.3x 1.3x 1.3x1.1x

29%

18%

22%

14%

10%

4%

9%

14% 14%

8%

0%

5%

10%

15%

20%

25%

30%

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

4.5x

5.0x

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

DPI RVPI Net IRR Net IRRNet MoC

$22$47

$94$130

$233

$434

$111

$13

$79$111 $98

$68

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1H13

U.S. Buyout Volume

USD $ bn

Differentiated Focus

BLOM-Quilvest

- 48 -


Quilvest Approach Quilvest is committing $80M to Quilvest’s main fund of funds program, QS

PEP Core, representing a minimum of 20% of the program. Quilvest Private

Equity alignment of interest with investors is indisputably far beyond the

global PE industry standards and results directly from the Group’s

fundamental Principal investor approach.

80

Max 320

QS PEP Core

Max $400M

Third Party Commitments

Quilvest Commitment

QS PEP Core Commitment

3.2%

3.7%

3.0%

3.9%

3.6%

3.7%

4.6%

2012

2011

2010

2009

2008

2007

2006

Industry Average of Managers’ Capital

Commitments (1)

Global Private Equity buyout funds

• 3rd party fund managers’ capital commitments have been steadily decreasing with time and

represented an average of 3.3% of total fund commitments over the last 3 years

• Comparatively, Quilvest Private Equity Principal approach translates into a Quilvest, shareholder

and management commitment of a minimum of 20%

(1) Source: Preqin

Alignment of Interest

BLOM-Quilvest

- 49 -


QS PEP Historical

Track Record (1/2)

Net IRR: Forced Curve (1) US. Actual Performance (1), (2) US. Indices

The performance of QS PEP is already significantly above public

indices and meets the targeted double digit returns for more

mature vintages. The “Forced Curve” performance, as a proxy for

QS PEP Core, adds additional alpha to the program, exceeding

20% IRR for the 2002-2003 vintages.

(1) As of June 30, 2013. Performance net of all fees (i.e. net to investors)

(2) Actual performance of QS PEP as of June 30, 2013 including VC Funds and excluding QS PEP 2011-2012 because their performance is not meaningful at this stage (too early in J-Curve)

(3) Public equity indices performance is calculated using MSCI Wolrd Index, using the same date of cash-flows as QS PEP vintages

until June 30, 2013 and adjusted for a 1% management fee

(4) Assuming a $1M commitment per vintage

Track Record

26%

22%

9% 8% 9% 9% 9%

17%

24%

15%

25%

16%

8%

6% 6% 7%

5%

16%

18%

11%

17%

11%

6%

9%

6% 7%

6%

15%

17%

10%

4%

1% 0%

-1% 0%

2%

7%

9%

8%

2%

QS

PE

P 0

2

QS

PE

P 0

3

QS

PE

P 0

4

QS

PE

P 0

5

QS

PE

P 0

6

QS

PE

P 0

7

QS

PE

P 0

8

QS

PE

P 0

9

QS

PE

P 1

0

Cum

ul

2002-2

010

QS PEP 2002 QS PEP 2003 QS PEP 2004 QS PEP 2005 QS PEP 2006 QS PEP 2007 QS PEP 2008 QS PEP 2009 QS PEP 2010

“Forced Curve”

Public Indices (3)

Actual Performance

Target of 15% net return by QS PEP Core

backed by track record on mature vintages

Net of Fees

Total All Vintages (4)

2002-2010

Actual Performance without VC

BLOM-Quilvest

- 50 -


CoC and DPI (1) (as a Multiple of Cost) (2), (3)

All QS PEP vintages are already at or above 1.2x net

cost. The “Forced Curve” track record adds additional

returns in absolute and in % distributions to capital

called.

(1) DPI: Distribution to Paid-In

(2) As of June 30, 2013. Performance net of all fees (i.e. net to investors)

(3) Actual performance including VC funds and excluding QS PEP 2011-2012 because their performance is not meaningful at this stage (too early in J-curve)

(4) Assuming a $1M commitment per vintage

QS PEP Historical

Track Record (2/2)

Track Record

2.0

x

2.0

x

1.5

x

1.4

x

1.4

x

1.1

x

1.0

x

0.8

x

0.7

x

0.7

x

0.6

x

0.7

x

0.5

x

0.2

x

0.2

x

0.3

x

0.2

x

0.2

x

0.4

x

0.2

x

0.2

x

0.6

x

0.5

x

0.5

x

0.2

x

0.8

x

0.7

x

0.6

x

2.2x 2.2x

1.9x

1.7x 1.8x

1.6x

1.4x 1.4x 1.3x

1.4x 1.4x

1.5x 1.5x

1.3x 1.3x 1.3x 1.2x 1.3x 1.2x 1.1x 1.2x

1.4x 1.4x 1.4x

1.4x

1.3x 1.3x

1.5x 1.5x

1.4x

QS

P

E…

Q

S

PE

…

QS

P

E…

Q

S

PE

…

QS

P

E…

Q

S

PE

…

QS

P

E…

Q

S

PE

…

QS

P

E…

Q

S

PE

…

QS

P

E…

Q

S

PE

…

QS

P

E…

Q

S

PE

…

QS

P

E…

Q

S

PE

…

QS

P

E…

Q

S

PE

…

QS

P

E…

Q

S

PE

…

CoC “Forced Curve”

DPI “Forced Curve” DPI Actual Performance without VC

Net of Fees

DPI Actual Performance

QS PEP

2003

QS PEP

2002

QS PEP

2004

QS PEP

2005

QS PEP

2006

QS PEP

2007

QS PEP

2008

QS PEP

2009

QS PEP

2010

Total All Vintages

2002-10 (4)

CoC Actual Performance without VC CoC Actual Performance

BLOM-Quilvest

- 51 -


US Commitments to Date Quilvest has made 8 commitments to top quartile US

funds, that BLOM investors would haw access to, kicking

off the program with a strong and diversified porfolio.

Fund Fund Size Strategy CoC IRR -

Gross Track Record

22% Growth Equity (software focus)

1.8x $2.6bn

Track Record

$200M Lower middle market Buyout (Focus on “private IPO” deals)

32% 3.7x

$300M Generalist lower middle market Buyout 39% 1.9x

$1.0bn Lower middle market Secondary 17% 1.4x

$400M

Secondary direct venture 26% 1.6x

$400M Lower middle market Buyout (focus on branded consumer products)

28% 2.2x

$400M Lower middle market Buyout (focus on food and consumer products)

36% 2.3x

$1.3bn Lower middle market Buyout 29% 2.4x

BLOM-Quilvest

- 52 -
