1. Fairview Capital 2013 Symposium
Guest Speaker: David Snow, CEO & Co-Founder, Privcap
“Private Equity – It’s Just Like Other Industries!”

2. About Privcap
Success in private-capital investing depends on two things:
People and Ideas. Privcap connects you with both.
Founded Sept 2011
Digital Thought-Leadership:
• Video Programs –
Interviews, Panel Discussions
• Magazines/Special Reports
• Transcripts
• 4 to 8 New Programs Per Week
Growing Audience:
• 9,000 Visitors Per Month
• GPs, LPs, Service Providers
Media Promoted Via:
• Email Newsletter
• LinkedIn/Twitter
• YouTube
• Search Results

3. US Magazine Feature:
Stars – They’re Just
Like Us!
Readers can’t believe
that stars do regular
things and are subject
to banal human
frailties!

4. My Comments:
Private Equity – It’s Just Like Other Industries!
Market veterans can’t believe the exceptional, singular private equity
industry is evolving just like other maturing industries.
It is Being Disrupted by
Innovation!
The Largest Players
Are Becoming Ever
More Dominant!
Its Participants Are Using the
Internet More and More!Expensive, Luxury
Items Are Becoming
More Affordable!

5. Largest 50 PE Firms
5-Year Fundraising Totals
2007
Top 13: $278bn
Next 37: $273bn
Top 13 raised $5bn more than next 37
2013
Top 13: $305bn
Next 37: $278bn
Top 13 raised $27bn more than next 37
Source: PEI
The Biggest Get Bigger:

6. 1982
Motorola DynaTAC 8000X
$3995
Products Once Affordable Only by the
Rich Drop in Price
2013
Samsung Galaxy S III
$49.99
Private Equity Then Private Equity Today
$10 million minimum commitment KKR Income Opps Fund: $18 per share
2 and 20 1.25 and 20
Deal Fees 100% to GP Deal Fees 100% to LP

7. More and More Business Functions Take Place
Over The Internet
Private Equity Stone Age Private Equity Today
Reporting done via snail-mail Online reporting
Portfolio Company Data Stored on Your
Floppy Drive
Portfolio Data Stored in Cloud, Accessed
by LPs
Physical Data Rooms Virtual Data Rooms
Fundraisers Fly Around World Having
Meetings
Fundraisers Fly Around World Having
Meetings. . .

8. Behold the Least Efficient Market in the World:
Private Equity Fundraising
• Meetings, flights, meetings, flights, meet
ings, flights. . .
• Cumbersome due diligence process
• Myriad data formats
• Competing performance benchmarks
• Blizzard of different LP requests
• Two years to raise a fund, if ever
• Getting to “no” takes months
Can the internet help?

9. “No One is Going to Use the Internet For
Fundraising Because. . .”
• These are long-term, illiquid partnerships, not
impulse-purchases
• This process is driven by personal relationships
and face-to-face interaction
• Transactions of this magnitude won’t take place
online
• Prestige-minded participants would be
embarrassed to scout for deals online
• No one is going to list their private information
on a website

10. Sounds like: “No One is Going to Use the
Internet For Marriage Because. . .”
• These are long-term relationships
not impulse purchases
• This process is driving by personal
relationships and face-to-face
interaction
• Marriages won’t take place online
• Prestige-minded daters won’t be
caught scouting for mates online
• No one is going to list their private
information on a website

11. What Can the LP-GP Market Learn From the
Online Dating Market?
Online information doesn’t replace personal
interaction – it improves early decision-making
More and better information up front leads to
better dates
Don’t get on a plane or book a meeting unless you
have spent time with quality information about
your potential capital partner

12. Disruptive Innovations in PE Driven By:
Transparency, Standards, Data Tools Will Vastly
Change Market
“Portable Track Records” Means Talent
Can Be Better Verified and Backed
New Forms of Capital Formation
• Public Markets
• Defined Benefit Market
• Crowdsourcing
• Co-Investment
• Separate Accounts
New Liquidity Tools

13. Number-One Driver of Innovation in Private
Equity:
Popularity
Because of its performance and promise, more and more
capital, more and more people, will want access to private
investments. New technologies, regulations and business
practices will facilitate that participation.