This English version is a translation of the original in Japanese for information purposes only. In case of any discrepancy orinconsistency between the Japanese version and its English version, the Japanese version shall always prevail.

JPEA Private Equity
Performance Measurement Survey(2019)March 2021
The Japan Private Equity Association
PricewaterhouseCoopers Aarata LLC

2

Contents
1. Survey overview and methodology

4

2. Since-inception internal rate of return7

3. Periodic internal rate of return

9Appendices11

A. Total value to since-inception paid-in capital
B. List of Participating Companies31. Survey overview and methodology (1/3)
I. Private equity funds within the scope of this report
Private equity funds, mainly invested in Japan, managed by 27 of the full members (hereinafter referred to as
the “Participating Companies") of the Japan Private Equity Association (hereinafter referred to as the "JPEA"),
which were in existence between January 2008 and December 2019 (including funds liquidated on or before 31
December 2019) (hereinafter referred to as the "Funds").

II. Periods for performance measurement
Fiscal periods ended in the 10 years from January 2010 to December 2019 of the Funds, including liquidated
Funds.

III.Performance calculation method(1) The annualised internal rate of return (hereinafter referred to as “IRR") since inception and for certain
periods up to the end of 2019 for each Fund is calculated using the following formula:𝐼𝐼0 = � 𝐶𝐶𝐶𝐶𝑖𝑖 (1 + 𝑟𝑟
𝐶𝐶𝐶𝐶𝑖𝑖𝑖𝑖
𝑟𝑟
𝑡𝑡𝑖𝑖
𝑉𝑉𝐸𝐸
𝑇𝑇𝑇𝑇

𝑖𝑖=1−𝑡𝑡𝑖𝑖
365 )+ 𝑉𝑉𝐸𝐸 (1 + 𝑟𝑟)

−𝑇𝑇𝑇𝑇
365

: i-th cash flow (-: inflow into the fund, +: outflow from the fund): Sequence of cash flow during the valuation period (1, 2, •••, I): IRR: Number of days from the first day of the valuation period to the i-th cash flow date
: Value of the Fund at the end of the valuation period: Number of total days in the evaluation period(1) All of the Funds are grouped according to the year of the Fund’s first drawdown (vintage year) to calculate
the IRR for each group.
(2) The IRR of each vintage-year group for each period is calculated by asset-weighting the individual Fund
returns using a method that reflects both beginning-of-period values and weighted cash flows (each cash
flow is weighted by the length of stay in the Fund).

4

1. Survey overview and methodology (2/3)
IV. Method of survey(1) In July 2020, PricewarterhouseCoopers Aarata LLC (hereinafter referred to as "PwC Aarata"),
commissioned by JPEA, asked the Participating Companies to provide the following data:
a. Basic information of the Funds (fund name, investment strategy and targets, size (commitment amount),fiscal year end date, accounting standards, audit requirement and valuation method of the investees).
b. Cash flow data of the Funds from inception to the end of the most recent fiscal period (for the liquidated
or closed Funds, to the end of the final fiscal period or liquidation).
c. Net asset value data of the Funds as of the end of each fiscal period from inception to the most recent
fiscal period (for the liquidated or closed Funds, to the final fiscal period or liquidation)(2) Based of the above data provided, PwC Aarata calculated the following figures in accordance with themethod stated in “III. Performance calculation method”:
a. Since-inception IRR, on an annualised basis, of each vintage-year group at the end of each fiscal year
from 2010 to 2019 (*) [Refer to “2. Since-inception internal rate of return]* Performance of each Fund for each year should be calculated for the fiscal year ended in each calendar

year (January 1 through December 31). However,• For the Funds that provisionally close their accounts at December month-end or closer to December
month-end, the provisional closing date is deemed as the fiscal year end.
• Performance of the Funds for which fiscal year ends in January, February or March is included in
the performance of the previous calendar year of the year in which the fiscal year end belongs. For
example, the Fund's performance for the fiscal year ended in January 2018 will be included in the2017 performance.
Reference: Fiscal year-end or deemed fiscal year-end of the funds subject to the calculation in this report
Fiscal year-end (or deemed fiscal year-end)
Number of Funds
January (IRR is included in the previous year of the year in which the fiscal year end belongs)
4February (IRR is included in the previous year of the year in which the fiscal year end belongs)
1March (IRR is included in the previous year of the year in which the fiscal year end belongs)
1June (IRR is included in the year in which the fiscal year end belongs)
2
September (IRR is included in the year in which the fiscal year end belongs)
3
December
77
Total
88

b. IRR, on an annualised basis, of each vintage-year group for one year (2019), three years (2017-2019),
five years (2015-2019) and ten years (2010-2019) ended at the end of 2019. [Refer to “3. Periodic
internal rate of return”]

51. Survey overview and methodology (3/3)
V. Considerations for use of this report(1) This report does not disclose performance of any individual Participating Company or Fund, and theinformation used in the preparation of this report will not be disclosed to any other JPEA members and thirdparties other than PwC Aarata, a contractor for preparation of this report, except as set forth in theConfidentiality Agreement between PwC Aarata and each Participating Company.
(2) The performance measurement made by PwC Aarata does not constitute an audit or assurance service, andPwC Aarata has not verified, validated or audited the reliability or accuracy of data obtained from theParticipating Companies.
(3) The Funds in scope of this report are mainly the funds that invest in Japan, but include also the funds thatinvest mainly in Japan but have some foreign investees. The Funds also include carve-outs from global
funds that have investments in Japan. However, the Funds which invest in Japan as a small proportion of
their investment portfolio in comparison to global territories, for which the Japan portion cannot be carved
out, are therefore excluded from the scope of this report.
(4) Valuation of investee companies are measured at fair value under International Financial ReportingStandards or U.S. GAAP, however, some Funds measure the investee companies at cost (minus impairment)
or using certain valuation method specified in limited partnership agreements. The Funds also include thefunds for which the investee's valuation is not audited by an external auditor.
(5) The net asset value of each Fund at the end of each period used to calculate the IRR is after deduction of
the estimated carried interest and additional costs that would be incurred if the investee were sold at the endof each period. However, these are not deducted for the Funds for which such data are not available.
(6) The vintage year is generally defined as the year in which the first cash flow (initial drawdown) occurs.
However, if it is impossible to calculate the IRR for the year, such as when the first cash flow is close to theend of the year and/or only costs and expenses are paid in the first year, then the year in which the IRR isfirst calculatable is the vintage year.
(7) The IRR is not disclosed if the number of the Funds in each vintage year is less than three or if the numberof the Funds in each vintage year is three or more, but all of these Funds are managed by a single
Participating Company. In addition, if the IRR of another Fund can be estimated by disclosing the IRR, it isalso not disclosed.
(8) The IRR is calculated and presented on an annualised basis in principle. However, the IRR for the Fundwith a measurement period of less than one year (e.g., the since-inception IRR in 2018 for the Fundlaunched in September 2018) is not annualised.

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2. Since-inception internal rate of return (1/2)
Annualised since-inception IRR by vintage year(*1)
Upper: IRR
Lower: Number ofFunds(*2)

Totalnumberof Funds
To 2019 To 2018 To 2017 To 2016 To 2015 To 2014 To 2013 To 2012 To 2011 To 2010
byvintageyear(*3)

Vintage year up to 2008

37

Vintage year 20092

Vintage year 2010

1

Vintage year 2011

3

Vintage year 20123

Vintage year 20138

Vintage year 2014

52

Vintage year 20167

Total – Vintage year upto 2016(*4)

68

Vintage year 2017

9Vintage year 2018

8Reference(*4)

Vintage year 2015

Vintage year 201913.87%

5.51%

6.55%

6813

9.72% 10.82% 10.97%
17229.08%

7.98%

5.67%

6.80%

2327

33

35

37

2

2222

1

1

1

1n/a(*5)
1

12

2

2n/a

1n/a(*5)

1

1

1

1

12.89% 12.48% 10.30%

9.06%

5.77%

3

32n/a
2

13(*5)

3-1.10% -11.39% -95.97%
3

3

24.88% 21.75% 31.05% 25.55% 15.39%-7.98%

233
3

3

17.78% 19.91% 20.38% 18.21%

5.06%

7(*5)

77883333-1.56% -27.00%
88

19.73% 22.76% 27.62% 32.44% 40.31% 36.43%
55n/a225552225(*5)-2.01% -14.06% -20.00% -20.27%
7

7

8.99%

9.51%

33

36

43

21.64% 12.05%-6.66%

9977

9.51% 10.71% 11.53% 10.98%
48

46

45

8.56%

7.34%

5.31%

6.52%

4442

41

40

9-18.05% 35.13%
8n/a8(*5)

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2. Since-inception internal rate of return (2/2)[Notes]For a general explanation of this table, see Section 1. IV. (2) a. of this report.
*1

The IRR for each year end includes the performance of the Funds that started or ended in the middle ofeach year. However, the performance of the Funds liquidated before the previous year are not included inthe rates of each year. For example, the performance of the Fund, which ended in September 2015, isincluded in the IRR in and before “To 2015” and is not included in and after “To 2016”. The IRR for each
Fund is calculated from the date when the first cash flow is generated until the end of the most recent
fiscal period or the date when the last cash flow is generated. The IRR of the Fund during the liquidation
period is also included in the calculation.

*2

Number of Funds: The number of the Funds whose return is included in each IRR by vintage year and by
period end. This includes the number of the Funds that started or ended in the middle of each year.

*3

Total number of Funds by vintage year: The total number of all Funds included in each vintage-year
group. This includes the number of the Funds ended before the end of 2019.

*4

The total figures for each year end are based on the Funds for which the vintage year is prior to 2016 (i.e.
the Funds that were more than three years old, aligning with the nature of private equity funds which aredesigned to obtain medium-to-long-term returns). The IRRs for the Funds launched in 2017 and thereafter
are also presented for reference.

*5

The IRR is not disclosed but presented as “n/a” if the number of Funds in each vintage year is less thanthree.

83. Periodic internal rate of return (1/2)
Annualised IRR of return by vintage year for each period ended in 2019(*1)
Upper: IRR
Lower: Number of Funds(*2)

Total numberof Funds byvintage year(*3)

Vintage year up to 2008

37

Vintage year 20093

Vintage year 20123

Vintage year 20138

Vintage year 2014

5Vintage year 2015

2

Vintage year 2016

7

Vintage year 2017

9

Vintage year 20188

Vintage year 2019

-Total85-

5 years:
2015-2019

2.60%

6

12

10 years:
2010-2019

0.94%

13.96%

2237

12

2

1

1

32.96%

20.03%

3

3

22.53%

23.60%

2

3

3

4.91%

15.92%

22.03%

77

88.97%

9.41%

17.44%

55n/a
1n/a1

Vintage year 2011

3 years:
2017-2019-38.09%2

Vintage year 2010

Reference: Return of TOPIX
Total Return Index(*4)

1 year:2019

1n/a(*5)n/a(*5)25n/a(*5)

(*5)

(*5)

2

2

15.17%-1.17%

7

7

32.76%
9-23.55%
814.80%12.07%

10.50%

13.43%

50

41

44

39

18.12%

6.65%

6.40%

8.93%

9

3. Periodic internal rate of return (2/2)[Notes]For a general explanation of this table, see Section 1. IV. (2) b. of this report.
*1The IRR for each measurement period includes the performance of the Funds which were in existence atthe beginning of the measurement period - one, three, five, and ten years up to the end of 2019. For
example, the three-year (2017-2019) rate covers the Funds which started before 2016 and includes theFunds that ceased operations before the end of 2019.

*2

Number of Funds: The number of Funds whose return is included in each IRR by vintage year and bymeasurement period. This includes the number of Funds that ceased operations before the end of themeasurement period (i.e. the end of 2019).

*3

Total number of Funds by vintage year: The total number of all Funds included in each vintage-year
group. This includes the number of Funds which ceased operations before the end of the measurement
period (i.e. the end of 2019).

*4

Source of TOPIX Total Return Index: Bloomberg*5

The IRR is not disclosed but presented as “n/a” if the number of Funds in each vintage year is less thanthree.

10AppendicesA. Total value to since-inception paid-in capital
B. List of Participating Companies

11A. Total value to since-inception paid-in capital (1/2)
Total value to since-inception paid-in capital (hereinafter referred to as “TVPI”) asof the end of 2019 by vintage year(*1)
Number of Funds(*2)

TVPI as of the end of 201939

Vintage year 2009

2n/a(*4)

Vintage year 2010

1n/a(*4)

Vintage year 2011

3

1.41x

Vintage year 2012

31.55x

Vintage year 201381.80x

Vintage year 201451.76x

Vintage year 2015

2

Vintage year 201670.97xTotal – Vintage year up to 2016(*3)

70

1.50x

Vintage year 201791.37x

Vintage year 201880.85x

Vintage year 20191Reference(*3)

Vintage year up to 2008

1.50xn/a(*4)

n/a(*4)12

A. Total value to since-inception paid-in capital (2/2)[Notes]*1

TVPI as of the end of 2019 by vintage year is calculated using the following method. The TVPI of theFunds which ceased operations before the end of 2019 is also included in scope of the calculation.
(1) The TVPI of each Fund is calculated using the following formula:
TVPI = (Accumulated distributions + Residual value at the end of the period) / Accumulated paid-incapital(2) TVPI by vintage year is calculated by weighting the TVPI of each Fund with the accumulated paid-incapital.

*2

Number of Funds: The number of Funds whose return is included in each TVPI by vintage year. This
includes the number of Funds which ceased operations before the end of 2019.

*3

The total figures are based on Funds of which vintage year is prior to 2016 (i.e. the Funds that were morethan three years old, aligning with the nature of private equity funds that are designed to obtain medium-tolong-term returns). The TVPI for Funds launched in 2017 and thereafter are also presented for reference.

*4

The TVPI is not disclosed but presented as “n/a” if the number of the Funds in each vintage year is lessthan three.

13B. List of Participating Companies
Participating Companies (in alphabetical order)
Advantage Partners Inc.
Ant Capital Partners Co., Ltd.
Basic Capital Management, Limited
Carlyle Japan, L.L.C.
CAS Capital, Inc.
CITIC Capital Partners Japan Limited
CLSA Capital Partners (Japan) K.K.
Endeavor United Co., Ltd.
iSigma Capital Corporation
Iwakaze Capital, Inc.
J Will Partners, K.K.

Japan Industrial Solutions Co., Ltd.
J-STAR Co., Ltd.
KKR Japan Limited
The Longreach Group, Inc.
Marunouchi Capital Inc.
Mercuria Investment Co., Ltd.
Mizuho Capital Partners Co., Ltd.
New Horizon Capital Co., Ltd.

Nomura Capital Partners Co., Ltd.
Permira Advisors K.K.
Ping An Japan Investment Co., Ltd.
Polaris Capital Group Co., Ltd.
Rising Japan Equity, Inc.
T Capital Partners Co., Ltd.
Unison Capital, Inc.
Yukon Capital Partners Co. Ltd.

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Disclaimer
The data within this report was measured by PricewaterhouseCoopers Aarata LLC (hereinafter referred to as “PwC Aarata”), which was commissioned by the Japan
Private Equity Association (hereinafter referred to as the "JPEA"), based on the data provided by the Participating Companies and the assumptions stated in "1. Survey
overview and methodology". The JPEA and PwC Aarata do not assume any responsibility for any inaccuracy in the data included in this report nor for the accuracy of
the underlying amounts submitted by the Participating Companies.
The performance measurement made by PwC Aarata does not constitute an audit or assurance service, and reliability, completeness or accuracy of the data used in thepreparation of the report, including the valuation data, has not been independently verified, validated or audited by PwC Aarata.
This publication has been prepared for provision of general information only, and does not constitute professional advice. You should not act upon the information
contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy orcompleteness of the information contained in this publication, and, to the extent permitted by law, the JPEA and PwC Aarata, its member firms, its partners, employees
and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on theinformation contained in this publication or for any decision based on it.
You are not allowed to make changes, additions or deletions to the contents in this report, including the names and brands of JPEA and PwC Aarata and this Disclaimer,
for the purpose of distribution of the modified report to third parties, without prior written consent of JPEA and PwC Aarata.

PwC refers to the PwC network member firms and/or their specified subsidiaries in Japan, and may sometimes refer to the PwC network. Each of such
firms and subsidiaries is a separate legal entity. Please see www.pwc.com/structure for further details.
This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
© 2021 The Japan Private Equity Association. All rights reserved.