SEE WHAT’S NEW AND NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 93 - May 2, 2013: - Logistics Company’s Billion Dollar Buyout to Attract PE - Google and Intel Dominate Corporate VC in 2013 - Record VC Activity in Europe; Latest Figures from Go4Venture - Why Big Buyouts Lack Luster: Analyst‘s View - Emerging Markets Dealflow Update - Quote of the Week: Sellers’ Market

1. DIGEST 93SEE WHAT’S NEW AND NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 93
May 2, 2013
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Logistics Company’s Billion Dollar
Buyout to Attract PE
Google and Intel Dominate
Corporate VC in 2013
Record VC Activity in Europe; Latest
Figures from Go4Venture
Why Big Buyouts Lack Luster:
Analyst‘s View
Emerging Markets Dealflow Update
Quote of the Week: Sellers’ Market
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LOGISTICS COMPANY’S BILLION
DOLLAR BUYOUT ATTRACT TO PE
This week’s deal of the week looks to be a buyout of Syncreon Logistics for about USD 1 billion, according
to Bloomberg citing anonymous sources. The report says that PE bidders are the likeliest buyers, though
logistics firms including Deutsche Post AG may also take a look. Syncreon handles logitstics for the likes of
General Motors and Dell Inc. It is based in Michigan and is active in 25 countries with about 12,000
employees, according to a November press release, quoted in the article.
GOOGLE AND INTEL DOMINATE
COPORATE VC IN 2013
A new report from Global Corporate Venturing says that Intel
and Google are currently the most active investors in startups
and technology companies. German-based firms and financial
institution-backed corporate venturing units were also busy.
The first quarter also saw 222 investments in corporate
venturing-backed companies worth USD 4 billion in the first
quarter. This compared with 231 investments in the fourth
quarter of 2012 worth USD 3.6 billion, and 249 investments
worth USD 5.2 billion in the first quarter of 2012. On the exit
front: there were 22 exits worth USD 1.4 billion which was a
drop compared with 34 exits worth USD 6.3 billion in the fourth
quarter of 2012.Image source: Global Corporate Venturing
RECORD VC ACTIVITY IN EUROPE,
LATEST FIGURES FROM GO4VENTURE
Late stage investment drove European VC to a
record level this month in terms of number
and value, according to the latest research
from Go4Venture.
By contrast the M&A market as a whole is
fairly lifeless, but there may be a few
glimmers of hope as strategic buyers snap up
successful startups.
Image source: Go4Venture

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Key trends:
• Germany is Europe's largest investment destination, and Russia is now third
• More US investors targeting European ventures (6 out of 16 large transactions)
• M&A exits slow in Europe, part of global trend for technology companies
WHY BIG BUYOUTS LACK LUSTER
ANALYST‘S VIEW
Despite some high-profile mega-buyouts announced this year, the private equity industry's capacity for
leveraged buyouts continues to decline. Some reasons for this trend are provided by SoberLook blog.
• Difficulty finding the exit - reducing PE fund capacity for redeployment in new funds or in some cases
for recycling in existing funds.
• Fundraising slowdown - even established managers have increasingly difficult time raising the same
amounts of capital they did in earlier funds. Large institutional investors have been cautious on private
equity due to liquidity constraints they encountered in 2008 as well as poor return expectations for the
whole sector.
• Pensions are shifting from defined benefits to defined contribution pensions - slower growth in
defined benefits accounts limits the overall demand for private equity, says SoberLook, making
fundraising for LBO shops enormously challenging in an already competitive environment.
• Co-investment trend squeezes mega-fund managers- Major investors are less attracted to mega-fund
and if they do invest in large LBO funds, they often demand to directly co-invest with these funds on
buyout deals, says SoberLook. Some years back when deals were too large for a single fund, LBO firms
would call each other to club on transactions. Now they call their investors to present co-investment
opportunities, but those investors have limits to how many deals they can do.

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EMERGING MARKETS DEALFLOW
UPDATE
Investment activity in terms of the number of deals done increased in the first quarter of the year but deal
size shrunk, according to the latest figures from the Emerging Market PE Association (EMPEA). There were
178 deals completed raising a total of USD 3.2 billion through 31 March, compared to 227 deals and USD
4.9 billion in the first quarter of last year. There was also a huge dip in fundraising, according to EMPEA, 25
funds raised USD 6.0 billion through 31 March, compared to 53 funds that raised USD 13.4 billion in the
first quarter of 2012.
“Over the last 15 months we've been a net seller," Black said. "We're selling
everything in our portfolio that's not nailed down, and if it is nailed down,
we're refinancing it. It's almost biblical. There's a time to reap and a time to
sow. We’re harvesting.“
Who said it: Leon Black who heads up PE industry giant Apollo Group
QUOTE OF THE WEEK: SELLERS MARKET
In Context: In a report from the recent Milken Global Conference,
Black said this is a great time to be selling companies and equities.
He expected credit and equity markets to keep rising as Federal
Reserve policy holds interest rates very low. The concern about
overvaluations could be the reason why, despite the availability of
relatively cheap money, there has been so little M&A activity this year.
Where we found it: CNBC

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