Private Equity in Europe 2007

Overview

Catalyst

Summary

Executive Summary

Market Context

Customer Focus

MARKET CONTEXT

Introduction

Key findings

Demand for private equity funds is increasing

Demand for private equity funds is likely to remain strong and steady

Institutional demand is likely to increase by around 5-10% per year

High net worth interest in private equity funds is predicted to grow by around 0-10% per year

Mass market demand for private equity funds is likely to increase over the next 3 years

AXA is the leading competitor for private equity funds in France

Goldman Sachs leads the field in Germany

Société Générale is the top player in Italy

Allianz Dresdner holds a third of the private equity market in Spain

The UK private equity market is led by HSBC, but is more closely competitive than most European markets

AXA Private Equity manages investments in excess of EUR10 billion worldwide

Goldman Sachs runs a comprehensive global private equity program

Société Générale is growing its private equity business

Allianz Dresdner has developed its private equity activities after its merger

HSBC has a strong presence in both European and global private equity

CUSTOMER FOCUS

Introduction

Key findings

The institutional market is the biggest customer group in Europe for private equity products in Europe

Institutional investors are likely to remain the biggest customer base for these funds in the future

The high net worth market is likely to see the biggest increase in demand for private equity funds

The retail banking channel is the most successful method of distributing private equity funds to the mass market in Europe

High net worth investors prefer financial advisors as a distribution channel

Institutional investors across Europe tend to purchase private equity funds directly

APPENDIX

Definitions

Methodology

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

TABLE OF FIGURES

Figure 1: In your opinion, what is the most important reason why wealthy clients are demanding alternative investments?

Figure 2: Which is your biggest customer group for private equity products?

Figure 3: Which is your biggest customer group for venture capital products?

Figure 4: In 3 years, what will be your biggest customer group for private equity products?

Figure 5: In 3 years, what will be your biggest customer group for venture capital products?

Figure 6: What do you think is the best way for private equity products to be distributed to mass market investors?

Figure 7: What do you think is the best way for venture capital products to be distributed to mass market investors?

Figure 8: What do you think is the best way for private equity products to be distributed to high net worth investors?

Figure 9: What do you think is the best way for venture capital products to be distributed to high net worth investors?

Figure 10: What do you think is the best way for private equity products to be distributed to institutional investors?

Figure 11: What do you think is the best way for venture capital products to be distributed to institutional investors?

TABLE OF TABLES

Table 1: In your opinion, what is the most important reason why wealthy clients are demanding alternative investments?

Table 2: What type of alternative investment fund is most in demand by your wealthy clients or the wealth managers who offer your funds to their clients?

Table 3: Thinking of the next 3 years, how do you think demand for the following alternative investments will change among institutional investors?

Table 4: Thinking of institutional investors, what do you think will be the major barriers to wider take-up of the following alternative investments in the next three years?

Table 5: Thinking of the next 3 years, how do you think demand for the following alternative investments will change among high net worth investors?

Table 6: Thinking of high net worth customers, what do you think will be the major barriers to wider take-up of the following alternative investments in the next three years?

Table 7: Thinking of the next three years, how do you think demand for the following alternative investments will change among mass market investors?

Table 8: Thinking of mass market customers, what do you think will be the major barriers to wider take-up of the following alternative investments in the next three years?

Table 9: Which is your biggest customer group for the following products?

Table 10: In 3 years, which will be your biggest customer group for the following products?

Table 11: For the following investments, from which customer base will the most increase in demand come in 3 year's time?

Table 12: In France, who are the 3 best asset managers at building private equity investments?

Table 13: In Germany, who are the 3 best asset managers at private equity investments?

Table 14: In Italy, who are the 3 best asset managers at building private equity investments?

Table 15: In Spain, who are the 3 best asset managers at building private equity investments?

Table 16: In the UK, who are the 3 best asset managers at building private equity investments?

Table 17: Goldman Sachs private equity fund overview, as of 31/12/2006

Table 18: Sectors within SGAM private equity group

Table 19: Montagu sample investment portfolio, 2004-2006

Table 20: What do you think is the best way for the following alternative investments to be distributed to mass market investors?

Table 21: What do you think is the best way for the following alternative investments to be distributed to high net worth investors?

Table 22: What do you think is the best way for the following alternative investments to be distributed to institutional investors?