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(2018)- Periodic internal rate of return -March 2020
The Japan Private Equity Association
PricewaterhouseCoopers Aarata LLC

Survey overview and considerations
I. Private equity funds within the scope of this report
Private equity funds, mainly invested in Japan, managed by 25 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 2018 (including funds liquidated on or before 31 December 2018)(hereinafter referred to as the "Funds").

II. Method of survey
PricewarterhouseCoopers Aarata LLC (hereinafter referred to as "PwC Aarata"), commissioned by JPEA, calculated theinternal rate of return (hereinafter referred to as “IRR") based on the data provided by the Participating Companies asfollows:(1) The annualised IRR for for one year (2018), three years (2016-2018), five years (2014-2018) and ten years (20092018) ended at the end of 2018 for each Fund is calculated.
(2) 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.

III.Considerations for use of this report(1) This report is an excerpt of the “Periodic internal rate of return” from “JPEA Private Equity P erformance
Measurement Survey (2018)” issued to the Participating Companies.
(2) This report does not disclose performance of any individual Participating Company or Fund, and the information usedin the preparation of this report will not be disclosed to any other JPEA members and third parties other than PwC
Aarata, a contractor for preparation of this report, except as set forth in the Confidentiality Agreement between PwC
Aarata and each Participating Company.
(3) The performance measurement made by PwC Aarata does not constitute an audit or assurance service, and PwC
Aarata has not verified, validated or audited the reliability or accuracy of data obtained from the ParticipatingCompanies.
(4) The Funds in scope of this report are mainly the funds that invest in Japan, but include also the funds that invest
mainly in Japan but have some foreign investees. The Funds also include carve-outs from global funds that haveinvestments in Japan. However, the Funds which invest in Japan as a small proportion of their investment portfolio incomparison to global territories, for which the Japan portion cannot be carved out, are therefore excluded from thescope of this report.
(5) Valuation of investee companies are measured at fair value under International Financial Reporting Standards 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 the funds for which the investee'svaluation is not audited by an external auditor.
(6) The net asset value of each Fund at the end of each period used to calculate the IRR is after deduction of the estimatedcarried interest and additional costs that would be incurred if the investee were sold at the end of each period.
However, these are not deducted for the Funds for which such data are not available.
(7) 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 the end of the year and/or
only costs and expenses are paid in the first year, then the year in which the IRR is first calculatable is the vintage year.
(8) The IRR is not disclosed if the number of the Funds in each vintage year is less than three or if the number of theFunds in each vintage year is three or more, but all of these Funds are managed by a single Participating Company. Inaddition, if the IRR of another Fund can be estimated by disclosing the IRR, it is also not disclosed.
(9) The IRR is calculated and presented on an annualised basis in principle. However, the IRR for the Fund with ameasurement period of less than one year is not annualised.

Periodic internal rate of return
Annualised IRR of return by vintage year for each period ended in 2018(*1)
Upper: IRR
Lower: Number of Funds (*2)

Total number ofFunds by vintageyear(*3)

Vintage year up to 2008

Vintage year 2009

Vintage year 2010

1 year:2018

39

Vintage year 20123

Vintage year 2013

8Vintage year 2014

5

Vintage year 2015

2Vintage year 2016

7

Vintage year 2017

7

Vintage year 2018

7Total83-

5 years:
2014-201810 years:
2009-2018-0.93%

15.22%

12.58%

172339

2

2

1

12

2

-12.43%22.40%

2

3

3

18.25%

7.80%

22.37%

7

8

88.85%

15.21%

8n/a(*5)

1n/a(*5)

1
2

Reference: Return of TOPIX Total
Return Index(*4)-8.72%

2

Vintage year 2011

3 years:
2016-2018

1n/a(*5)2n/a(*5)55n/a(*5)

22-10.28%74.81%
76.04%

12.80%

18.22%

12.58%

4240

39

39-15.97%

1.00%

4.95%

7.92%

*1

The IRR for each measurement period includes the performance of the Funds which were in existence at the beginning of themeasurement period - one, three, five, and ten years up to the end of 2018. For example, the three-year (2016-2018) rate covers
the Funds which started before 2015 and includes the Funds that ceased operations before the end of 2018.

*2

Number of Funds: The number of Funds whose return is included in each IRR by vintage year and by measurement period.
This includes the number of Funds that ceased operations before the end of the measurement period (i.e. the end of 2018).

*3

Total number of Funds by vintage year: The total number of all Funds included in each vintage-year group. This includes thenumber of Funds which ceased operations before the end of the measurement period (i.e. the end of 2018).

*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 than three.

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.
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.
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.

Disclaimer
The data within this report was measured by PricewaterhouseCoopers Aarata LLC (hereinafter referred to as “PwC Aarata”), wh ich was commissioned by the Japan
Private Equity Association (hereinafter referred to as the "JPEA"), based on the data provided by the Participating Co mpanies and the assumptions stated in "Survey
overview and considerations". 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, co mpleteness 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 informat ion 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.
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