Exploring
the New
Paradigm
Shift
MIDDLE MARKET PRIVATEEQUITY RESEARCHFEBRUARY 2023

Section Header Line One
Introduction
PARAGRAPH
LINE
ONEvolatile public markets, and a cloudy economic outlook,
Amid heightenedHEADER
geopoliticaltensions,
middle market
equitysponsors
are positioning
themselves
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enablemanagers to successfully navigate volatile conditions.
To better understand how middle market private equity sponsors are preparing for what is expected
PARAGRAPH
HEADER
LINE Capital
ONE LLC (“Apogem”) partnered with Coalition Greenwich toto be a challenging
2023, Apogem
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Our findings indicate that private equity sponsors are keenly monitoring new sources of risk that arepresenting themselves in this evolving investment landscape, and some are well positioned to benefit, seeing these risks as unique investment opportunities in the middle market.
In this report, we analyze these and other key research findings in detail, and identify five strategies
middle market private equity sponsors are implementing to optimize investment and business performance in a volatile environment.

2| PRIVATE EQUITY SPONSOR INSIGHTSAPOGEMCAPITAL.COM

Methodology
In the third quarter of 2022, Coalition Greenwich, in partnership with Apogem, interviewed 102 managing
directors and partners at middle market private equity sponsors in the United States. These in-depth phone
conversations centered on market conditions in 2022, as well as investment trends, exit strategies, funding
sources, and emerging challenges and opportunities.

Exhibit 1—Participant Profile1
AUM

3%

PARTICIPANT PROFILESIZE OF PRIMARYSTRATEGY FUND

AVERAGE EBITDA OFTARGET COMPANIES

5%

3%

3% 2%

8%

18%
56%

28%

31%

26%
36%

14%
34%

33%

<$1B

<$250M<$5M$1B—$4.99B$250M—$499M$5M—$9.99M$5B—$9.99B$500M—$999M$10M—$49.99M$10B—$19.99B$1B—$2.99B$50M+$20B—$49.99B$3B—$4.99B$50B+

1.	Based on information provided by interviewees, which has not been independently verified. Figures are approximate and represent the most recent
figures available to the interviewee at the time3

| PRIVATE EQUITY SPONSOR INSIGHTSAPOGEMCAPITAL.COM

Navigating a More Challenging
Environment
FINDING VALUE AMID RECORD-HIGH VALUATIONSIn 2021, private equity was bolstered by the combination of government stimulus, historically low interest
rates, and soaring public markets, fueling a boom that led to historic levels of both deal and exit activity.
As a result of these forces, managers participating in the study cite competition for assets and high valuations
as top concerns in 2022. As shown in Exhibit 2, more than half of study participants rank high valuations/competition for assets as one of their top two challenges.
“During 2021, there was an overabundance of capital, and valuations got overheated,” says one middle market
private equity sponsor. Another study participant agrees, labeling valuations as “unsustainable” in the current
environment. This challenge extended into 2022, as the record fundraising in recent years collides with slower
deal activity, resulting in even higher valuations than those experienced in 2021.
Despite high valuations, managers are diligently finding new opportunities. In the middle market, private equity
sponsors deployed 80% of capital into new deals in the past 12 months, 30% higher than 2021. With record-highvaluations, managers are focusing on proprietary and off-the-run opportunities, with over 70% citing theirproprietary network as the most common source for new deals. By focusing on off-the-run deals, managers
can avoid the aggressive bidding and high valuations typical of more competitive processes and deal sources,
such as brokers and auctions.

4| PRIVATE EQUITY SPONSOR INSIGHTSAPOGEMCAPITAL.COM

Discussed in more detail later in this paper, middle market sponsors are leaning on their lending relationships to
successfully close investments. As activity in the leveraged loan market has fallen sharply in 2022, PE sponsors
with the ability to finance transactions through direct lenders may be better positioned to continue transacting
in a challenged market.

Exhibits 2 and 3—Deteriorating Conditions: Challenges and Strategies
EXHIBIT 2—GREATEST CHALLENGES TO INVESTINGIN CURRENT ENVIRONMENTEXHIBIT 3—IMPACT OF CURRENT ENVIRONMENT ON
INVESTMENT STRATEGY AND EXECUTIONHigh Valuations /Competition
for Assets

Investing in recessionresilient sectors

14%

43%

Inﬂation

19%

Market volatility

16%

Rising rates

10% 11%

Supply Chain

8%

Technology /Disruption

28%
19%

20%

30%

19%

48%

17%

63%
18%

Rank 2

New deals
Add-ons

2022

27%

87%

Other

5%

Rank 3

Not Ranked

2021

22%

68%

26%

46%

14%

2021

9%

20%

44%

EXHIBIT 5—SOURCES OF NEW OPPORTUNITIES

10% 10%

Proprietary network

9% 9%

Inbound Requests/ Referrals

13%

31%

17%

Brokers

17%

15%

15%

Outbound calling
program

13% 12%20%

17%

Auctions

7%

16%

26%APOGEMCAPITAL.COM
33%

EQUITY
21%SPONSOR INSIGHTS
69%
2022 6%| PRIVATESupportcapital

5

60%

14%

46%

Targeting smaller companies orcompanies in out-of-favor sectors

80%

2021

54%

86%

EXHIBIT 4—CAPITAL DEPLOYMENT—PAST 12 MONTHS
2022

57%

Including multiple contractions
in base-case underwriting

56%

US elections /Geopolitical tensions

81%

Focusing on operational
improvements at portfolio
companies
Avoiding competitive auctions—focusing on proprietary deal
sources, limited auctions, etc.

34%

17%

4% 7%

Rank 1

13%

4%

25%

49%

17%

24%
24%

16%
17%
32%

15%
11%

38%

27%
Rank 1-Most Common

8%

Rank 2

Rising rates

10% 11%

Supply Chain

8%

Technology /Disruption

20%

17%

63%
18%

Including multiple contractions
in base-case underwriting

56%

4% 7%

US elections /Geopolitical tensions

46%

86%

Targeting smaller companies orcompanies in out-of-favor sectors

27%

87%

Other

5%

Rank 1
Rank 2
Rank 3
Not Ranked
Exhibits 4 and 5—Deteriorating
Conditions:
Challenges and Strategies

New deals

2022

Add-ons2022

SupportcapitalEXHIBIT 4—CAPITAL DEPLOYMENT—PAST 12 MONTHS

2022

6%

21%

2021

9%

20%

6

80%

2021

60%

14%

2021

10% 10%

Proprietary network

9% 9%

Inbound Requests/ Referrals

13%

31%

17%

Brokers

17%

15%

15%

Outbound calling
program

13% 12%

20%

17%

38%

Auctions

7%

16%

26%

33%

22%

68%

26%

46%

EXHIBIT 5—SOURCES OF NEW OPPORTUNITIES

14%

69%

4%

25%

49%

17%

24%
24%

16%
17%

8%
15%

32%

11%

27%

44%

Rank 1-Most Common

Rank 2

Rank 1-Most Common

Rank 2

Rank 3

Rank 4

Rank 3-Least Common

Not Ranked

Rank 5-Least Common

Not Ranked| PRIVATE EQUITY SPONSOR INSIGHTSAPOGEMCAPITAL.COM

MORE ATTRACTIVE ENTRY POINTS ON THE HORIZON?
While valuations continued to rise in 2022, the peak may be on the horizon. High valuations have been driven inpart by record fundraising in 2021 and early 2022, particularly by large and mega funds.2 The effect has been increasing competition for assets and the price private equity buyers are willing to pay to put their investors’ capital
to work. However, while macroeconomic challenges have not tempered valuations yet, they have impacted theprivate equity fundraising environment, which has deteriorated in the second half of 2022, with 60% of managers
saying fundraising is more challenged, up from 39% in 2021.

Exhibit 6—Fundraising is Becoming More Challenging

60%

More difﬁcult, but
still possible

18%

Limited impact

11%

No impact

Fundraising has beenplaced on hold2021: 27%2021: 15%

6%

UnsureFundraising environment
has improved

2021: 39%3%

2021: 12%

1%

When discussing
challenges sponsors
face while financing inthis environment, “It’seither feast—with 10+
lenders interested—or famine.”

Sourcing debt capital for new investments has also become morechallenging, which could ultimately impact the overall price that canbe paid for an asset. One participant says sponsors face a “risk-off
market environment” when it comes to financing. “It’s either feast—
with 10+ lenders interested—or famine.”
As the availability of both debt and equity capital becomes more
limited, competition for assets may become more subdued, creating more attractive entry points in the future. As a comparison, valuations decreased by approximately 25% from peak to trough during
the Global Financial Crisis, according to data from PitchBook.
With capital becoming increasingly scarce and the risk of recession
rising, sponsors are focusing on investing in recession-resilient
sectors, effecting operational improvements at portfolio companies, leaning into ESG and diversity & inclusion initiatives (“D&I”),
and reinforcing existing relationships.

2. Source: PitchBook, “US Annual Private Equity Breakdown, Q2 2022.”

7| PRIVATE EQUITY SPONSOR INSIGHTSAPOGEMCAPITAL.COM

PE Sponsors Shift Focus

WHAT IS A RECESSION-RESILIENT SECTOR?
IN THE MIDDLE MARKET, DEFINITIONS DIFFER
More than 80% of middle market private equity sponsors have started to focus their investments onrecession-resilient sectors. In general, the sponsors in the study are defining recession resiliency in two ways:
Non-cyclical industries with the potential to weather
economic downturns. At the top of that list are business services and healthcare services, which havedemonstrated recession resiliency historically and,critically, present attractive opportunities for digitaltransformation.
Asymmetric opportunities in industries traditionally considered more cyclical. These opportunities aresectors in which sponsors see valuations as having
fallen far enough to present attractive opportunities
to capitalize on long-term tailwinds. For example, inenergy, sponsors cite a decade of underinvestment,
durable and growing demand, and the opportunity inrenewables. “Energy transition has long tailwinds,” says
one sponsor. In software, technology, and tech services,
sponsors say crashing valuations are “making buying
opportunities” relevant again. As one sponsor put it, inany economic environment, “innovation never gets old.”More than 80%
of middle market
private equity
sponsors havestarted to focus
their investmentson recessionresilient sectors.

The wide variation illustrates the value of portfolio diversification as a means of lowering overall risk and enhancing
risk-adjusted portfolio returns. This is particularly relevant in challenging markets where public market volatility
and shifting sentiment can create varied opportunities and challenges for investors in different sectors.

8| PRIVATE EQUITY SPONSOR INSIGHTSAPOGEMCAPITAL.COM

Exhibit 7—Sectors Representing Attractive Investment Opportunities
Business Services

19%

Healthcare Services

10%

15%

Software11%

12%

Technology &Tech Services

10%

Energy9%Financial Services

9%

Consumer Staples

8%

Pharmaceuticals &Medical Devices

6%

Industrials

5%

Manufacturing

4%

17%
12%

12%

5%
20%

4%

1%

6%
4%
5%

6%
3%

3%
14%

5%

16%

10%
13%

Materials
Real EstateConsumer Discretionary

Rank 1-Most Attractive

5%

Telecommunications

Rank 2
Rank 3-Least Attractive

Utilities

9| PRIVATE EQUITY SPONSOR INSIGHTSAPOGEMCAPITAL.COM

BACK TO BASICS: EMPHASIS ON OPERATIONAL IMPROVEMENTS
In an increasingly challenging economic environment,
middle market private equity sponsors are focusing on
key value-creation levers. More than 70% of study participants say current market and economic conditions
have prompted them to focus on operational improvements at portfolio companies as a primary means ofcreating value. Talent recruitment/professionalizing
management teams and business rollup/buy & build
strategies are other primary value-creation strategies
cited by managers.

For many sponsors, driving operational improvements
has become a cornerstone of the value-creation process, allowing companies to weather economic headwinds and grow their way out of potential valuation
compression that may accompany an economic downturn. The long-term time horizon of private equity funds
can be an advantage in these environments: sponsors
can be patient, focus on value creation, and wait for theright opportunity to exit an investment.

Exhibit 8—Greatest Opportunities for Value Creation at Portfolio Companies

Operational improvements

71%

Talent recruitment / Professionalizing
management team69%

Buy & Build / Business roll ups

68%
42%

Product / geographic expansion

35%

Technology disruption
Take privates

2%

Other

5%

• Dual sourcing• Carveout• Commercial/sales
excellence• Tech advancement
and geographic
expansion• Cost control, debt
reduction, improvements in cash ﬂow
management

SUPPLY CHAIN CHALLENGES
In addition to the traditional operational improvements cited previously, sponsors are also lending their experienceand resources to support management teams facing new challenges. For example, sponsors are working withmanagement teams to address persistent supply chain disruptions and create competitive advantages throughmore sophisticated and effective supply chain management. Sponsors are helping companies find alternative
sourcing options, explore reshoring and onshoring strategies, and integrate local suppliers and manufacturers
into their supply chains. Participants in the study say lingering global supply chain issues are also creating opportunities to build efficiencies and create advantages through enhanced inventory management.

10| PRIVATE EQUITY SPONSOR INSIGHTSAPOGEMCAPITAL.COM

HIRING IN A TIGHT LABOR MARKET
Private equity sponsors participating in the study say
their portfolio companies continue to experience staffingpressures. “A tight labor market continues to starve goodcompanies of talent,” says one middle market private
equity sponsor. Private equity sponsors are applying theirskills and resources to help portfolio companies hire andretain top talent, both at the fund and portfolio company-level, by optimizing compensation and benefits androlling out new, flexible work arrangements.

One study participant explained the D&I initiative her firm
has adopted for portfolio company management teams:“We work with management to promote the best D&I
practices, including annual monitoring, D&I surveys, anda portfolio company roundtable to share best practices,”
she says. Finally, multiple sponsors detailed steps they aretaking to increase diversity on their boards, including actively recruiting women and partnering with organizations
that can help bring in women and minority candidates.

Despite a challenging labor market and economic
outlook, approximately 75% of managers said the vast
majority of their portfolio companies added jobs during
the hold period.

75% -100%
Exhibit 9— Share of Portfolio
Companies Adding Jobs

Further, managers are increasingly hiring with a focus
on enhancing the diversity of their employee base. Respondents indicating they have adopted diversity and inclusion (“D&I”) standards and goals within their own firms,
management teams, boards, and even in their portfolio
companies have increased markedly from the 2021 survey,
as presented in Exhibit 10. As one sponsor notes, “Inhiring, we have a huge focus on D&I, including womenon investment teams, as well as significant initiatives
around veterans and many other areas.” Another agrees,adding, “Our hiring practices are targeting diversity
through gender, education, ethnicity, and experience,
all in an effort to have a collaborative investment teamwith different perspectives among team members.”

2%
50% - 75%

24%

Less than 50%

2%

75% -100%24%

50% - 75%

74%

Less than 50%

74%

Exhibit 10—Where are PE Sponsors Adopting D&I Goals and Standards
Within Your Own Firm

64%

Management Teams

64%

Within Your Own Firm
Sellers (Founders/Owners)

31%

Management Teams

Sellers (Founders/Owners)

31%
2022

2022
| PRIVATE EQUITY SPONSOR INSIGHTS

39%

66%

66%
2021

83%
83%

64%
74%

2021

Board Governance/Advisors

11

83%
64%

39%

Board Governance/Advisors

83%

74%

APOGEMCAPITAL.COM

LEANING INTO ESG
Private equity sponsors looking to build relationships with limited partners (“LPs”) that endure across all stages ofthe market cycle should act now to incorporate environmental, social, and governance (“ESG”) and D&I into both theirinvestment processes and business operations.
Ninety percent of the middle market private equity sponsors participating in the study say LPs are driving interest in ESG investing. That increasing emphasis on ESG is playing out in their due diligence processes. In 2021, only
15% of study participants said their LPs were using diversity as a main due diligence category. This year, that sharejumped to 28%. Over the same period, the share of private equity sponsors reporting that LPs are using ESG as a
key criterion in due diligence grew to 37% from less than a quarter.

Exhibit 11—Main Diligence Areas for LPs in Underwriting

91%

Portfolio statistics

68%

Organizational structure /succession planning

46%

Operational infrastructure (e.g., cash
management, controls, compliance)

37%

ESG
Diversity

28%

Use of leverage / subscription
lines of credit

28%

Other

4%

Unsure6%122021: 83%

| PRIVATE EQUITY SPONSOR INSIGHTS

2021: 24%2021: 15%APOGEMCAPITAL.COM

These trends, combined with the broader advance of ESG in investment markets and business, suggest thatprivate equity investors will increasingly seek out investments and sponsors who demonstrate a commitment tosustainability and inclusion. Sponsors are actively working to ensure their values and business practices are inalignment with those of their LPs.
The industry is already taking strong steps in that direction. The share of middle market private equity sponsors
reporting that they evaluate ESG risks and opportunities in their investments increased to 80% in 2022 from just 63%
in 2021. Over the same period, the share of sponsors incorporating a formal process for evaluating ESG risks andopportunities into their investment processes increased to 54% from 37%, and the share regularly monitoring andreporting ESG factors increased from 30% to nearly 40%.
Exhibit 12—Considering ESG Risks and Opportunities
MOST PE SPONSORSCONSIDERING ESG RISKSAND OPPORTUNITIESSPONSORS WITH
FORMAL ESG PROCESSESSPONSORS MONITORING
AND REPORTING ESG RISKSAND OPPORTUNITIES

Yes

80%
63%

Yes

54%
37%

Yes

No

17%
33%

No

43%
60%

No

56%
61%

Unsure3%
4%

UnsureUnsure

5%
9%

2022

2021

3%
2%

2022

2021

39%
30%

2022

2021

80% of respondents evaluate
ESG risks and opportunities wheninvesting, up from 63% in 2021.

13| PRIVATE EQUITY SPONSOR INSIGHTSAPOGEMCAPITAL.COM

Exit Environment
AS THE IPO DOOR CLOSES, CORPORATE AND PE BUYERS CAN STEP IN

Considering economic and market conditions overall,exit activity has held up relatively well. While exit activity has fallen sharply from the 2021 record-setting
level, the level of activity in 2022 was largely in linewith the longer-term historical pace.3 Forty percent
of managers in the study say hold periods have remained the same, with 34% saying they have lengthened and 25% saying they have shortened.
However, if the macroeconomic environment continues to deteriorate, and public market volatility persists, M&A activity will likely slow meaningfully. Basedon findings from our study, middle market private
equity may prove more resilient.
The IPO market was effectively closed in 2022.
According to Ernst & Young, IPO volume fell 44%
year-over-year through September 2022, with the
US recording its lowest amount of aggregate IPO
proceeds since 2003,4 primarily impacting the exit
potential for large and mega private equity funds andventure capital managers. For example, in 2021, IPOs
accounted for approximately 16% of exits for venture funds and over 60% of venture exit value overthe past 5 years.5 Overall however, only 8% of middle
market managers cite IPOs as a common exit path.
As shown in Exhibit 13, middle market private equity
managers primarily exit their companies to corporations and larger private equity funds, which havesignificant and durable pools of dry powder that havegrown sharply in recent years. Dry powder available
to large / mega private equity funds has increasedby ~200% since 2010, while corporate cash has increased by 85% over the same period.6
When discussing fundraising challenges, many managers cited larger private equity managers comingback to market sooner with bigger funds. According to
Pitchbook, 46% of the capital raised by private equity
firms from 2019 to 2022 went to funds of $5 billion
or more, with another 34% raised by funds in the $1
billion to $5 billion range.7 While this has made fundraising more difficult for middle market managers, italso suggests a large pool of private equity dry powder
up market that will be motivated to continue to transact, buying the portfolio companies of middle market
funds, even in the event of a downturn.
Exhibit 13—Paths to Exit for Middle Market
Portfolio Companies

Corporate / strategics

42%

PE funds

36%

21%
25%

PE-backed strategies

13%

IPOs

8% 11% 10%

Secondaries buyers
Rank 1

37%

10%

24%

15%
30%

71%

8%
Rank 2

20%

27%

88%
Rank 3

Not Ranked

3. Source: PitchBook, “US Annual Private Equity Breakdown, Q2 2022.”
4. Source: https://www.ey.com/en_gl/ipo/trends
5. Source: PitchBook, “Q3 2022 PitchBook-NVCA Venture Monitor.”
6. Source for Corporate Cash: Bloomberg. Source for Dry Powder: PitchBook. Includes US and Canada PE Funds > $750 million. Accessed November 2022.
7. Source: PitchBook, “US Annual Private Equity Breakdown, Q2 2022.”

14| PRIVATE EQUITY SPONSOR INSIGHTSAPOGEMCAPITAL.COM

Cultivating
Relationships
Section Header
Line Onewith
ReliablePartners
PARAGRAPH
HEADER LINE ONE
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ship as one of the top criteria for
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PARAGRAPH HEADER LINE ONE

Middle market private equity
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to ensure continued access tocapital throughout any extended
market disruptions. “Financing
markets have been severely
impacted by market volatility thatis making it difficult to executedeals,” says one study participant.

As financing risks mount, it’s no surprise to see middle market private equity sponsors turning to capital partners
who have proven themselves over time. Sponsors describe trusted partners as “strong and reliable when things
do not go well,” who “continually stand by us whenever a challenging situation arises,” and who “step up for
hard-to-finance assets.” One sponsor adds that “our best capital partners have communicated well throughvolatility and uncertainty.”“Our best capital partners havecommunicated well throughvolatility and uncertainty.”

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15| PRIVATE EQUITY SPONSOR INSIGHTSAPOGEMCAPITAL.COM

Section Header Line One

In terms of specific needs, private equity sponsors are asking capital providers for flexibility and speed—two attributes that can make or break transactions in a volatile environment. As challenges arise, one sponsor says he is looking for lenders to offer “flexibility regarding covenants without being punitive.” When it comes to speed, sponsors sayquick actions by lenders make execution predictable and seamless, providing “certainty of closing.”

PARAGRAPH
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14, sponsors
also ONEcite the importance of relationships in investment tools ranging from establishedstrategies(co-investments)
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partner may be well positioned to capitalize on new opportunities.
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suntor molupti busdaepedi dolorer ibuscia sam laborerum, anist enihill aceatiam, eum repudi dolum inus, volumsinvellandit lique re alit vitae poruptati offic todam.
Exhibit 14—Relationship History Among the Top Priorities for GPs
NEW FLAGSHIPPARAGRAPH
HEADER LINE ONECONTINUATION FUNDS &FUND PROSPECTS

SPECIAL PURPOSE VEHICLESEXPLORING A GPSTAKE SALE

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quidis neste 12%
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8%8%9%eaqui quis dolore p
30%
12%

34%

9%

14%
15%

17%

17%

38%
23%

History / quality ofrelationship

History / quality ofrelationship

Prospective investor /relationship building

Prospective investor /relationship building

Time to close

Size of Investment

Stapled investment in fundStapled investment in fund

Ability to add value indue diligence

Time to close

Size of Investment

Ability to add value indue diligence

Qualities in a co-invest partner
Qualities in an SPV partner Respondents
Respondents
ranked “1”Copy. doluptatqui audis anis eate pawho
have asperrovid
completedevendi
or are accate
considering
FPO
SOURCE: Disclosure
solutemsimetacontinuation
fundlaborerum,
ranked “1” anist enihill
faci que expediti ut remos pla suntor molupti busdaepedi dolorer
ibuscia sam*Note (Base: 35)
aceatiam, eum repudi dolum inus, volum sinvellandit offic todam.

16| PRIVATE EQUITY SPONSOR INSIGHTS

46%

Price
Strategic value of relationship(e.g., abilityto assist withfundraising, deal sourcing,
capital needs, etc.)
Structure of investment(e.g., rights / controls of GP
stakes investor, conﬁdentiality)
Other

Biggest consideration when completingat GP stake sale for Respondents that have
explored or considered such.
*Note (Base: 13)

APOGEMCAPITAL.COM

Conclusion
FIVE STRATEGIES TO NAVIGATE A VOLATILE MARKETPLACE

Our research findings reveal several key trends that are emerging as middle market private equity sponsors position
themselves for a more unpredictable and volatile marketplace. Study participants describe five strategies they are
adopting to maximize some of the natural advantages presented by the middle market segment during a period ofchallenging market conditions:1Building diversified portfolios emphasizing recession-resilient sectors

2Focusing on creating value through operational improvements

3

Leaning into ESG and D&I	
4 Capitalizing on fundraising by larger private equity sponsors for attractive exit opportunities
5

Cultivating relationships with reliable partners

In this challenging market environment, sponsors in the middle market could benefit from less competition
for assets and more consistent opportunities for attractive exits relative to larger peers and sponsors operatingin other segments of the market.
Middle market sponsors are positioning themselves for a challenging period—capitalizing on the advantages
inherent in the middle market and adopting new strategies to mitigate the risks in the current environment.

17| PRIVATE EQUITY SPONSOR INSIGHTSAPOGEMCAPITAL.COM

About Apogem Capital
Apogem Capital was formed in April 2022 through the combination of PA Capital, Madison Capital Funding,and GoldPoint Partners to create a singular and unified private markets alternative investment firm.
With approximately $39 billion in assets under management as of September 30, 2022*, Apogem has thedeep relationships, data, and history in the middle market to deliver innovative solutions to both clientsand sponsors. Apogem Capital offers investors access to the middle market’s growth engine through investments in what we believe to be leading private companies and funds. The Firm manages a streamlined suiteof capital solutions, including direct lending, junior debt, primary fund investments, secondary investments,
equity-co-investments, GP stakes, and private real assets.
Apogem Capital is a wholly owned subsidiary of New York Life Insurance Company (“NYLIC”), throughNew York Life Investment Management Holdings, LLC (“NYLIM”).

For more information visit: apogemcapital.com*A UM is approximate, estimated, and unaudited as of September 30, 2022. AUM includes
non-discretionary and co-advised assets, as well as assets managed for New York Life and certain of its subsidiaries.

18| PRIVATE EQUITY SPONSOR INSIGHTSAPOGEMCAPITAL.COM

This report is being provided for informational purposes. Charts and graphs are provided for informational purposes only.
Past performance is not indicative of future results. You should not rely upon it or use it to form the definitive basis for any
decision, contract, commitment, or action whatsoever. Apogem makes no warranties or representations of any kind withrespect to the information in this report. In no event shall Apogem be liable for any use of or reliance on such information or
for any inaccuracies or errors in such information. A decision to purchase any securities should be made by you based solely
upon the information contained in the final offering documents related to such securities. Apogem, its employees, and affiliates, are not undertaking to provide impartial investment advice, or to give advice related to each recipient’s entire investment portfolio or financial plan. These materials are not intended to constitute legal, tax or accounting advice or investment
recommendations. Prospective investors should consult their own advisors regarding such matters.
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If at any time there should commence an offering of securities, any decision to invest in any such offer to subscribe for or
acquire such securities must be based wholly on the information contained in a final offering document issued or to beissued in connection with any such offer and not on the contents hereof. This document does not constitute and should
not be considered as any form of financial opinion or recommendation by us or any of our affiliates.
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金融商品取引業者

登録番号

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一般社団法人日本投資顧問業協会会員
一般社団法人第二種金融商品取引業協会会員

Securities managed by Apogem Capital LLC and distributed through NYLIFE Distributors LLC, 299 Park Avenue 37th floor, New
York, NY 10171. NYLIFE Distributors LLC is a Member of FINRA & SIPC. NYLIFE Distributors LLC is an affiliate and subsidiary of
New York Life Insurance Company.

5518097 AC004-23