The Dealmarket Digest provides concise summaries of private equity news and trends. This week's issue highlights that global private equity deal value more than tripled in February due to two large transactions. It also reports that private equity deals in Israel declined 10% in 2012 due to fewer high tech deals. Additionally, the issue summarizes surveys finding that family offices remain positive on private equity and that European venture philanthropy organizations are increasingly focusing on social enterprises.

1. DIGEST 88
SEE WHAT’S NEW AND NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 88
1 PE Deal Value Soars Boosted by Two
Blockbuster Transactions
• Zephyr
2 Israel: Private Equity Deals Down
10% In 2012
Family Offices Positive on PE
• Somerset Capital Survey
European Venture Philanthropy and
Social Investment 2011/2012: The
3 EVPA Survey
Sequoia Tops VC IPO Pipeline
Ranking by CB Insights
Quote of the Week: NFL Goes PE
March 22, 2013

2. PE DEAL VALUE SOARS BOOSTED BY
TWO BLOCKBUSTER TRANSACTIONS
The value of global private equity
transactions more than tripled in February
2013 to a new year‐high of USD 60.4
billion, up from USD 18 billion in January
2013, according to Zephyr’s latest
numbers and analysis. The value is also
more than double the USD 22.7 billion
recorded for February 2012. The total
value of PE transactions was boosted by
two blockbuster deals, HJ Heinz Company
and Dell Inc., which combined are worth
USD 52.4 billion, or 87 per cent of the
month’s total.
Image source: Zephyr M&A portal
Important to note, says Zephyr, is that despite the improvement in monetary terms, volume failed to
follow suit, declining 40 per cent to a new 12 month‐low of just 202 deals from 337 in January. Volume
was also down 27 per cent from February 2012 when 278 private equity transactions were signed off.
ISRAEL: PRIVATE EQUITY DEALS DOWN
10% IN 2012
Investment in Israel private equity sector decreased in 2012, falling to USD2.6 billion from the USD 2.9
billion invested in 63 deals in 2011, according to are report in Globes. The survey covered 82 private
equity funds. Investment in high tech companies in 2012 came in at USD 1.9 billion. A buyout of oil and
gas exploration software developer Paradigm Geophysical Inc. by Apax Partners and JMI Equity for USD 1
billion accounted for 39% of total private investments in 2012, which pushed the annual total upwards.
The average deal size rose to USD56.2 million in 2012 from USD 45.6 million in 2011.
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3. FAMILY OFFICES POSITIVE ON PE
In January 2013 Somerset Capital conducted
its third annual survey of the family office
investors in its network in order to determine
their investment plans for the year ahead. A
total of 51 family offices participated in the
survey, of which 75% were single family offices
(SFO). The investors in question were
predominantly located in the UK and Europe.
• Around half of the participants, over the
course of the next twelve months, plan to
increase their allocations to real assets
(50%), equities (48%), and private equity
(46%).
• A similar number plan to decrease their
allocations to bonds (52%), and cash (43%).
• Over the next two years, a majority of the
investors surveyed stated an interest in
continuing to back existing managers
through re‐ups, new managers, and to
invest in co‐investments and direct
investments. 39% stated an interest in
secondary transactions.
Image source: Somerset Capital
• The participants demonstrated a strong preference for growth equity transactions, with 67% showing
an interest, compared with 60% who were interested in mid‐market buyouts, 48% in secondary, 44%
in turnaround and 37% in venture capital. Only 15% showed interest in large buyouts. Geographically,
83% showed an interest in private equity investments in Europe, versus 60% in the US and 40% in
emerging markets, although it should be borne in mind that for the most of these investors Europe is
the home market.
• 19% of investors had a preference for control deals, versus 26% non‐control, with 56% showing no
preference.
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4. EUROPEAN VENTURE PHILANTHROPY
AND SOCIAL INVESTMENT 2011/2012:
THE EVPA SURVEY
Image source: EVPA
This month the EVPA released its second annual survey of European venture philanthropy (VP) and social
investment. The survey collected data from 61 VPOs from July to September 2012. Who knew that there
were more than five dozen VP organizations in Europe alone? We didn’t and so we read and summarized
the survey for you. The survey found that 753 people are employed by the organizations contacted for
the survey, employing 13 people on average. The size of teams dedicated to VPI activities is increasing.
The average annual financial spend per organization increased in 2012 to EUR 5.2 million from EUR 4.1
million.
Key findings:
• Societal returns remain the primary focus, but more venture philanthropists are looking for a financial
return (48% in 2011, compared with 38% in 2010) or are putting societal and financial return on an
equal footing (25% in 2011, compared with 10% in 2010).
• Use of tailored financing is evidenced by the significant increase in the use of equity and debt
instruments, and in the variety of financing instruments. Debt and equity emerge as the most
commonly used financing instruments, closely followed by grants.
• European VP organizations are increasingly focusing on social enterprise as a target investee and are
continuing to invest in small organizations with limited track records. This indicates they are taking
their role as risk‐takers very seriously.
• VP is filling a market gap by focusing on early‐stage social enterprises and non‐governmental
organizations with financing tailored to their needs, rather than aiming to achieve market rate returns.
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5. QUOTE SEQUOIA TOPS VC IPO PIPELINE
RANKING BY CB INSIGHTS
In its Tech IPO Pipeline Report, CB Insights identified 472
tech companies with valuations greater than USD 100
million, as potential tech IPO candidates. It subsequently
detailed the top investors in Tech IPO Pipeline companies
providing a view into which VCs are best at investing in
technology high fliers. The top three VCs in the new risk
adjusted ranking by CB Insights are Sequoia, Intel Capital,
and Accel partners. The report analyzed the venture capital
investors behind the Tech IPO Pipeline using a rather
complicated methodology that aims to reveal a so‐called
adjusted investor effectiveness ratio. The ratio sought to (1) reward investors who invested early in Tech
IPO Pipeline companies and (2) not penalize investors who make many investments (seed deals for
instance). Based on pure volume of IPO candidates, Intel Capital tops the ranking.
QUOTE OF THE WEEK: NFL GOES PE
“The NFL is the world’s premier sports and entertainment property and is in a unique
position to help and benefit from the growth of a wide range of media assets. We
believe there are many traditional and digital media properties that complement the
NFL’s business and can add lasting value. We look forward to a long and fruitful
partnership.”
Who said it: Paul Salem, a Senior Managing Director at Providence Equity Partners
In context: The quote is from a press release announcing the NFL’s intention to team up with Providence
to invest in digital media businesses that benefit the NFL and its fans. It is not unusual for large
organizations to create corporate venture funds, Intel Capital, is a classic example, but it is unusual to see
one in the area of professional sports franchising, and the announcement generated quite a bit of press
coverage. According to the WSJ, the two entities plan to jointly invest about USD 300 million. The two
will target start‐ups that work within sports, media and technology, specifically innovative media assets.
The deal with Providence highlights the league's new push to find revenues beyond the traditional
sources of media‐rights fees, ticket sales and licensing, says the WSJ.
Where we found it: NFL Communications
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6. The Dealmarket Digest empowers members of Dealmarket by providing
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through scores of industry and academic sources to find the most
noteworthy news items, scoping trends and currents events in the global
private equity sector. The links to the sources are provided, as well as an
editorialized abstract that discusses the significance of the articles
selected. It is a free service that embodies the values of the Dealmarket
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Editor: Valerie Thompson, Zurich
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