Slow growth in deal activity since recession

Source: PitchBook.

Source: PitchBook.

Mergers and acquisitions — returns

U.S. versus Europe

Activist investingRecent events

Source: Forbes.

Activist investingAnnouncements’ impact on returns

Source: Wall Street Journal.

Biopharmaceutical sectorNotable activity

Source: Dealogic.

Technology sectorNotable activity

Source: Dealogic.

Strong start to M&A in 2014 after a relatively flat last four years

Source: SDC Thomson(a) 2104 YTD excludes Time Warner Cable / Charter and SFR/Bouygues transactions.

Underlying drivers favor sustained momentum

What is the potential upside if M&A activity approaches

historical relative levels?

Sources: SDC Thomson and Datastream

Risks to recovery

Eurozone

U.S.

Resurgence Of Large, Transformational M&A Deals

Source: Dealogic, Citi. Note: Data as of April 23, 2014.

Source: Citi, SharkWatch, Hedge Fund Research, Hedge Fund Intelligence, eVestment. Note: Data as of April 16, 2014.

Activist Funds’ Outperformance Continue To Spur Activity

Emerging Forms of Alternative Capital

Sources: Wall Street Journal – Big Firms Fill Funding Gap – April 22, 2014, Citi TTS Survey

Diverse Sectors Funded by Emerging Pools of Capital

Sources: McKinsey Global Institute – Financial globalization: Retreat or reset? – March 2013, Wealth – X – World Ultra Wealth Report - 2013 and 2011.

Private Wealth Continues to Grow, Spurring Strategic Activity