Private Equity Historically Outperforms Public Markets

Current levels of growth are being driven by the continued strong performance of private equity investments. Average returns within the private equity asset class have outperformed public market benchmarks in the medium and long term, generally by up to 10 full percentage points. Top-performing managers routinely exceed these industry averages, with returns that can dramatically exceed other asset classes.

In Canada, buyout funds reported internal rates of return (“IRR”) of 20.8% through the 10 year period ended June 30, 2006, compared to 8.70% recorded by Standard and Poor’s/Toronto Stock Exchange (“S&P/TSX”) composite index, according to data published by Thomson Venture Economics and Bloomberg. European private equity buyout markets also outperformed their comparable public market index by 7.11% (711 basis points) over the same 10 year period. In the U.S. market, private equity buyout investment averages similarly outperformed the S&P500 index by 2.30% (230 basis points) in the 10 year period ended December 31, 2005.

1 Source: Bloomberg. Composite Index performance is Total Return, no didvidend re-investment. S&P/TSX Index & S&P500 Index performance represents the required CAGR of an original investment made June 30, 1996.

2 Source: MSCI. Composite Index performance is Total Return, no didvidend re-investment. MSCI – Europe Index performance represents the required CAGR of an original investment made December 31, 1995.

2 Source: CVCA, NVCA, EVCA, Thomson, Bloomberg

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