BLOM-Quilvest
US Private Equity Opportunities
Beirut, December 2nd, 2013
BLOM-Quilvest
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BLOM-Quilvest – Beirut, December 2nd, 2013
Agenda
• Who is Quilvest?
• What is Private Equity?
• What is BLOM-Quilvest US Private Equity Opportunities?
BLOM-Quilvest
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BLOM-Quilvest – Beirut, December 2nd, 2013
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
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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
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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?
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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
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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
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BLOM-Quilvest – Beirut, December 2nd, 2013
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
Who is Quilvest & Partners?
(1)
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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
Who is Quilvest & Partners?
BLOM-Quilvest
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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)
Who is Quilvest & Partners?
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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.
Who is Quilvest & Partners?
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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.
Who is Quilvest & Partners?
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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
Who is Quilvest & Partners?
BLOM-Quilvest
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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
...
Who is Quilvest & Partners?
BLOM-Quilvest
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Q&P Strategy Quilvest & Partners intends to continue
implementing its strategy going forward…
Who is Quilvest & Partners?
BLOM-Quilvest
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Performance … with a clear goal of maintaining its superior track
record.
Who is Quilvest & Partners?
BLOM-Quilvest
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BLOM-Quilvest – Beirut, December 2nd, 2013
Agenda
• Who is Quilvest?
• What is Private Equity?
• What is BLOM-Quilvest US Private Equity Opportunities?
BLOM-Quilvest
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BLOM-Quilvest – Beirut, December 2nd, 2013
Private Equity
(1/2)
What is Private Equity?
BLOM-Quilvest
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BLOM-Quilvest – Beirut, December 2nd, 2013
Private Equity
(2/2)
Investing
In the Equity
Private Companies
What is Private Equity?
BLOM-Quilvest
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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
What is Private Equity?
BLOM-Quilvest
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BLOM-Quilvest – Beirut, December 2nd, 2013
Yo! Sushi Case Study
Investors
90+ restaurants in 2013
39 restaurants in 2008
Growth Capital
Robin Rowland
What is Private Equity?
BLOM-Quilvest
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BLOM-Quilvest – Beirut, December 2nd, 2013
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
What is Private Equity?
BLOM-Quilvest
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BLOM-Quilvest – Beirut, December 2nd, 2013
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
What is Private Equity?
BLOM-Quilvest
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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
What is Private Equity?
BLOM-Quilvest
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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
What is Private Equity?
BLOM-Quilvest
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BLOM-Quilvest – Beirut, December 2nd, 2013
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
What is Private Equity?
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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
What is Private Equity?
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BLOM-Quilvest – Beirut, December 2nd, 2013
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
What is Private Equity?
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BLOM-Quilvest – Beirut, December 2nd, 2013
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
What is Private Equity?
BLOM-Quilvest
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BLOM-Quilvest – Beirut, December 2nd, 2013
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
What is Private Equity?
BLOM-Quilvest
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BLOM-Quilvest – Beirut, December 2nd, 2013
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
What is Private Equity?
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BLOM-Quilvest – Beirut, December 2nd, 2013
Agenda
• Who is Quilvest?
• What is Private Equity?
• What is BLOM-Quilvest US Private Equity Opportunities?
BLOM-Quilvest
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BLOM-Quilvest – Beirut, December 2nd, 2013
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
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BLOM-Quilvest – Beirut, December 2nd, 2013
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
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BLOM-Quilvest – Beirut, December 2nd, 2013
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
• Joined Quilvest in 2005
• Fund and direct investment for Quilvest
in Europe
• Lazard
• ESCP
Thomas Vatier
Robyn Sacks Slutzky
• Principal
• Joined Quilvest in 2008
• 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
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BLOM-Quilvest – Beirut, December 2nd, 2013
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 -
BLOM-Quilvest – Beirut, December 2nd, 2013
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 -
BLOM-Quilvest – Beirut, December 2nd, 2013
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
fund valued at 1.6x CoC and 18.6% IRR
• 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
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
fund valued at 1.6x CoC and 18.6% IRR
• 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
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
fund valued at 1.6x CoC and 18.6% IRR
• 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
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
fund valued at 1.6x CoC and 18.6% IRR
• 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
Seasoned Team
BLOM-Quilvest
- 39 -
BLOM-Quilvest – Beirut, December 2nd, 2013
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 -
BLOM-Quilvest – Beirut, December 2nd, 2013
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
BLOM-Quilvest
- 41 -
BLOM-Quilvest – Beirut, December 2nd, 2013
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 -
BLOM-Quilvest – Beirut, December 2nd, 2013
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 -
BLOM-Quilvest – Beirut, December 2nd, 2013
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 -
BLOM-Quilvest – Beirut, December 2nd, 2013
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 -
BLOM-Quilvest – Beirut, December 2nd, 2013
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 -
BLOM-Quilvest – Beirut, December 2nd, 2013
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 -
BLOM-Quilvest – Beirut, December 2nd, 2013
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 -
BLOM-Quilvest – Beirut, December 2nd, 2013
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 -
BLOM-Quilvest – Beirut, December 2nd, 2013
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 -
BLOM-Quilvest – Beirut, December 2nd, 2013
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 -
BLOM-Quilvest – Beirut, December 2nd, 2013
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 -
BLOM-Quilvest – Beirut, December 2nd, 2013