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1
End-to-End
Pooled Mean Net
Period to Limited Partners (%)*
End-to-end calculation based on data compiled from 748 U.S. private equity funds (U.S. Buyouts, Private Equity
Energy, Growth Equity and Mezzanine), including fully liquidated partnerships, formed between 1986 and 2008.
*
Pooled end-to-end return, net of fees, expenses, and carried interest.
Sources: Bloomberg, Cambridge Associates LLC U.S. Private Equity Index®, Lehman Brothers, Inc., Standard &
Poor's, Frank Russell Company, Thomson Datastream, The Wall Street Journal , and Wilshire Associates, Inc.
Note: End-to-end calculation based on data compiled from 748 U.S. private equity funds, including fully
liquidated partnerships, formed between 1986 and 2008. All returns are net of fees, expenses, and carried interest.
Equal-
Pooled Weighted Upper Lower Residual Total
Mean Median Pooled Mean Quartile Quartile Standard Distribution/ Value/ Value/
Vintage Net to Net to Net to Net to Net to Deviation Paid In Paid In Paid In Number
Year L Ps (%) L Ps (%) L Ps (%) L Ps (%) L Ps (%) Net to LPs Net to LPs Net to LPs Net to LPs of Funds
1986 19.08 11.03 13.03 17.69 6.60 7.73 3.45 0.00 3.45 10
1987 10.84 11.33 14.66 17.99 8.57 8.76 1.88 0.00 1.89 13
1988 14.54 12.02 13.02 15.24 9.95 5.83 1.90 0.02 1.91 16
1989 22.85 20.36 22.56 29.79 12.42 25.17 2.57 0.00 2.57 17
1990 14.47 15.06 15.22 19.24 10.71 5.42 1.73 0.07 1.80 8
1991 30.90 32.64 28.20 42.03 12.60 19.86 3.23 0.01 3.24 10
1992 27.33 16.06 23.31 27.56 12.85 20.40 2.41 0.01 2.42 12
1993 26.09 22.29 23.28 33.05 11.21 30.17 2.28 0.06 2.34 23
1994 8.99 9.94 10.73 21.71 1.08 13.09 1.42 0.10 1.52 22
1995 20.34 10.88 17.86 30.40 0.27 23.55 1.89 0.03 1.92 32
1996 10.09 8.67 9.13 13.40 (0.59) 18.59 1.39 0.13 1.53 36
1997 6.29 6.97 6.10 11.78 (1.58) 10.91 1.22 0.13 1.35 47
1998 7.33 9.79 10.86 14.31 1.31 12.18 1.18 0.22 1.39 46
1999 15.01 12.27 13.50 18.26 6.92 14.46 1.41 0.36 1.77 56
2000 16.80 13.67 14.39 21.75 6.26 11.18 1.08 0.60 1.68 67
2001 31.01 23.86 25.87 42.20 11.55 24.66 1.22 0.57 1.79 23
2002 26.05 21.92 22.45 31.39 12.63 16.27 0.92 0.78 1.71 32
2003 23.12 18.00 19.46 27.82 7.02 17.18 0.59 0.96 1.55 26
2004 12.35 10.47 15.88 18.62 4.30 15.49 0.25 1.01 1.26 60
2005 2.50 2.27 5.93 13.60 (6.72) 18.90 0.09 0.94 1.03 70
2006 (7.42) (1.85) (3.45) 7.21 (15.96) 29.48 0.03 0.89 0.92 60
2007 (25.61) (16.99) (21.08) (4.89) (23.22) 34.98 0.01 0.84 0.85 54
Notes: Based on data compiled from 740 U.S. private equity funds, including fully liquidated partnerships, formed between 1986 and 2007.
Returns are net of fees, expenses and carried interest.
Vintage year funds formed since 2004 are too young to have produced meaningful returns. Analysis and comparison of partnership returns to
benchmark statistics may be irrelevant.
All Funds 1 Small Cap Mid Cap Large Cap Mega Cap
Notes: 1 Based on data compiled from 540 U.S. private equity funds , including fully liquidated partnerships, formed between 1993 and 2007.
Returns are net of fees, expenses and carried interest and exclude U.S. Mezzanine and Growth Equity funds.
Vintage year funds formed since 2004 are too young to have produced meaningful returns. Analysis and comparison of partnership returns to benchmark
statistics may be irrelevant. Fund capitalization groupings for vintage years are as follows (figures in millions):
1993 - 94: Sm Cap is < or = $100, Mid Cap is > $100, < or = $500, Lg Cap is > $500.
1995 - 96: Sm Cap is < or = $200, Mid Cap is > $200, < or = $500, Lg Cap is > $500, < or = $1000, Mega Cap is > $1000.
1997 - 99: Sm Cap is < or = $250, Mid Cap is > $250, < or = $750, Lg Cap is > $750, < or = $2000, Mega Cap is > $2000.
2000 - 05: Sm Cap is < or = $300, Mid Cap is > $300, < or = $1000, Lg Cap is > $1000, < or = $2500, Mega Cap is > $2500.
2006 - 07: Sm Cap is < or = $300, Mid Cap is > $300, < or = $1000, Lg Cap is > $1000, < or = $3500, Mega Cap is > $3500.
By Industry
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Chemical/Materials 153.56 (19.49) (2.42) (9.57) (4.02) 9.88 30.32 26.69 55.30 136.31 32.82 0.72 12.67
Consumer/Retail 29.29 12.02 11.49 9.74 4.92 24.85 31.24 39.76 29.72 31.24 14.55 12.36 (3.08)
Electronics 26.66 34.93 30.18 (43.90) 15.45 0.82 86.31 26.43 21.92 42.25 13.30 (23.85) 17.46
Energy 16.06 17.17 20.10 21.13 12.64 25.94 31.23 65.26 78.82 154.42 54.06 11.01 25.72
Environmental (2.21) (100.00) 1.66 8.08 0.91 18.47 14.40 17.47 41.69 46.08 141.20 30.38 0.21
Financial Services (2.93) 60.26 1.04 31.09 0.54 20.30 26.36 22.73 (1.37) 16.44 31.96 1.79 (16.69)
Hardware/Systems 67.13 (0.18) (16.46) (3.53) 78.98 38.68 30.69 609.76 NA 5.93 23.25 100.13 (19.90)
Health Care/Biotech * 10.33 9.51 20.30 19.35 19.47 18.05 16.80 43.59 31.84 28.96 24.97 7.61 5.11
Industrial 16.32 89.63 7.07 6.08 30.32 17.39 42.52 14.80 28.37 26.37 33.49 17.26 (2.59)
Information Technology * 62.29 43.00 98.06 14.24 1.75 (8.06) 10.92 10.93 40.09 92.92 34.66 (1.30) (4.02)
Manufacturing 24.08 0.56 14.60 6.69 10.21 (0.06) (0.62) 23.97 40.07 26.68 32.41 17.23 (3.24)
Media/Communications 52.30 37.94 15.19 2.57 4.52 (2.97) 10.31 40.50 36.30 13.72 34.57 8.44 (7.80)
Software/Services 17.09 45.44 96.88 20.28 8.93 (0.11) 26.50 47.11 36.67 31.19 15.63 22.29 3.12
Other/Fund of Funds 20.96 21.99 18.76 19.11 (1.59) (0.53) 19.13 37.70 89.68 64.89 43.86 4.10 0.45
All Companies 37.50 17.61 27.42 12.69 7.39 7.36 22.45 35.09 38.27 44.21 28.35 7.05 1.04
Number of Companies 281 358 468 538 785 1,155 425 395 488 635 724 845 977
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Biotechnology/Biopharm/R&D 32.62 NA 36.60 (7.95) 2.96 1.41 13.96 (29.92) 60.98 (22.04) 21.91 29.74 31.78
Health Care Devices 56.14 13.64 33.34 32.63 20.14 (0.70) 2.48 2.73 67.17 81.59 27.11 1.86 1.37
Health Care Services (5.78) 1.45 8.86 17.13 20.89 28.05 24.06 21.70 18.51 18.17 25.18 5.01 7.03
Health Care Software/Systems 22.18 1.03 3.85 (16.99) 9.11 (4.25) 49.13 NA 33.10 46.95 15.19 22.18 24.41
Pharmaceuticals 43.64 59.30 56.70 27.64 26.59 41.11 1.96 63.76 1.67 2.60 23.73 55.60 (2.10)
Internet-eBusiness NA 155.55 49.75 150.37 (14.37) (10.61) (26.47) 0.55 35.64 93.24 63.11 (17.94) 6.09
Internet-eCommerce (7.48) NA 21.81 (89.76) (15.51) (5.31) (5.84) (3.15) 41.86 65.12 30.86 9.07 (4.07)
Telecom Network/Systems 92.57 39.84 72.89 14.07 30.51 (2.65) 8.41 20.36 18.42 68.07 2.46 (15.11) (26.16)
Telecom Products (3.80) 68.92 123.19 (39.86) (26.83) (15.78) 3.77 14.99 96.27 1.80 151.29 43.80 (4.36)
Telecom Services 26.65 6.37 100.50 15.98 (6.51) (10.91) 18.47 13.46 53.21 105.71 37.26 (4.06) 5.51
Cambridge Associates LLC (CA) has established a database to monitor investments made by venture capital and
other alternative asset partnerships. On September 30, 2008, 748 U.S. private equity funds from the years 1986
through 2008 were included in the sample. Users of the analysis may find the following description of the data
sources, the CA classification process, and the calculation techniques helpful to their interpretation of information
presented in the report:
1. Partnership financial statements and narratives are the primary source for information concerning partnership
cash flows, portfolio company investments, and investor transactions.
2. The performance calculation solves for the discount rate (IRR) which makes the Net Present Value of an
investment equal to zero. The calculation is based on cash-on-cash returns over equal periods, modified for
the residual value of the partnership's equity or portfolio company's net asset value (NAV). The residual value
attributed to each respective group being measured is incorporated at its ending value. The database accounts
for transactions on a quarterly basis, but adopts annualized values for reporting purposes. The End-to-End
performance calculation is similar to the IRR, however, it is measuring the return between two points in time.
The calculation takes into account the beginning NAV, the quarterly cash flows and the ending NAV. All
returns greater than one year are annualized.
3. Recognizing the alternative asset community's sensitivity to the distribution of information pertaining to
individual fund investments, as a matter of policy CA only releases aggregated figures in its benchmark
report.
4. Vintage year is defined as the legal inception date as noted in a fund's financial statement.
5. Definitions:
a. The pooled mean aggregates or "pools" all cash flows and ending NAVs to calculate a dollar-weighted
return.
b. The arithmetic mean is the average of the discrete returns of each fund for a particular vintage year.
c. The median is the middle fund return of the group of funds included in a vintage year.
d. The equal-weighted mean equal-weights all cash flows and ending NAVs based on paid in capital to
calculate a dollar-weighted return.
e. The realization ratios described below are measures of return or contributed capital. Ratios are based on
actual dollar values and not averages
1) Distribution to Paid-In Capital measures the cumulative investment return relative to contributed
capital.
2) Residual Value to Paid-In Capital measures the amount of contributed capital still tied up in the
equity of the fund.
3) Total Value to Paid-In Capital measures the residual value and distributions received to date relative
to contributed capital.