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

JPEA Private Equity
Performance Measurement Survey(2021)March 2023
The Japan Private Equity Association
PricewaterhouseCoopers Aarata LLC
Confidential

Table of contents

2

Highlights

03

Survey overview

05

Survey results-

Since-inception IRRs

07-

Horizon IRRs

09-

Total value to paid-in multiples

11

Supplementary information-

Data collected for this survey

14-

Considerations for use of this survey

15-

List of participating companies

16Highlights (1/2): Since-inception IRRs

3

The since-inception IRR through the end of 2021 for the funds surveyed in the 2009-18 vintage years was
17.6%

 The IRRs through the end of 2021 for eachfund group, where the funds surveyed aregrouped by fund inception year (vintage year),are shown in the lower right-hand chart- Considering that the investment period of most funds
is 10 years, with the first five years generally being
the investment execution period and the second five
years being the investment collection period, the IRRsof the most recent three-year vintages are shown forreference purpose only as they are not very
meaningful.

 Aggregating the funds of the 2009-18 vintage,
the IRR since inception is calculated as 17.6%
through the end of 2020. The IRRs since
inception through the end of each year are
shown in the upper right-hand chart.

Since-inception IRRs by vintage year through 2021
29.1%

16.3%

13.7%

Not
Not
Not
Not
applicable disclosed* disclosed* disclosed*

2009

2010

2011

2012

Not
disclosed*

2013

2014

2015

13.3%

IRRｓ of last 3 vintageYear funds are
for reference only

2018

2019

1.1%

2016

Vintage years mainly in
an investment collection stage

20172020 2021

Vintage years mainly in
an investment execution stage*IRRs for vintage year groups with fewer than three funds surveyed are not disclosed

Trends of since-inception IRR through the end of each year
(Aggregate value of the funds of 2009-18 vintage years)

23.3%

26.2% 25.0%

24.8%
19.2%

All the funds in the aggregate
were in an investment
execution period until 2013

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

15.8%

2019

17.5% 17.6%

2020

2021

Highlights (2/2): Horizon IRRs

4

The ten-year horizon IRR (2012 to 2021) for the funds surveyed was 22.2%, which outperformed the
TOPIX over the same period by +9.2%.

 The IRRs of the funds surveyed over certain
time frames, calculated by aggregating the net
assets at the beginning and end of themeasurement period and the cash flows during
the measurement period to enable a
comparison with benchmarks such as TOPIX,
are shown on the right. The IRRs of the funds
surveyed outperformed the TOPIX Total Return
Index for each measurement period- The IRR for each measurement period includes theperformance of the funds which were in existence atthe beginning of the measurement period- Given the life cycle of private equity funds, if themeasurement period is short, the IRR is likely to beaffected by investment collections on a specific few
deals that occur during that period, and the IRR will
be highly skewed. Therefore, please refer mainly to
the IRRs over 5 years and 10 years in the chart on theright. 1-year and 3-year IRRs are calculated forreference purpose only.

Horizon IRRs as at the end of 2021
Return of TOPIX Total Return Index

Horizon IRR for all funds surveyed+9.2%pt

Reference only due to short measurement period+2.5%pt
18.0%
12.7%

22.2%

16.9%
13.0%

12.7%
8.0%

10.5%

1 year

3 years

5 years

10 years(2021)(2019-21)(2017-21)(2012-21)

Survey overview

1. Companies participating in the survey
32 of the full members of the Japan Private Equity Association (hereinafter referred to as the "JPEA")

2. Funds surveyed
Private equity funds managed by the participating companies, mainly invested in Japan, which were in existence between January
2008 and December 2021 (including funds liquidated on or before 31 December 2021), 119 funds in total

3. Periods for performance measurement
Fiscal periods ended in the 10 years from January 2012 to December 2021 of the funds surveyed, including liquidated funds

4. Method of survey- PricewarterhouseCoopers Aarata LLC (hereinafter referred to as “PwC Aarata”), commissioned by JPEA, asked theparticipating companies to provide the necessary data
- The participating companies provided PwC Aarata with the basic information, cash flow data and net asset value data at theend of each fiscal period of the funds surveyed- PwC Aarata calculated the internal rate of returns since inception of each fund (hereinafter referred to as the “since-inception
IRRs”, the internal rate of returns for 1, 3, 5 and 10 year horizons through the end of 2021 (hereinafter referred to as the“horizon IRRs”) and the total value to paid-in (TVPI) multiples

56Highlights

03

Survey overview

05

Survey results-

Since-inception IRRs

07-

Horizon IRRs

09-

Total value to paid-in multiples

11

Supplementary information-

Data collected for this survey

14-

Considerations for use of this survey

15-

List of participating companies

16Survey results: Since-inception IRRs

7

Since-inception IRRs of the surveyed funds grouped by fund inception year (vintage year) through eachend of year are shown in the table below (the bottom row of each vintage year column shows the numberof funds included in each group)
Measurement
Group
Up to v.2008
Total

34

v.20093v.20101

v.2011v.2012v.2013

Vintage year

Number offunds
surveyed

v.2014v.2015v.2016v.2017v.2018v.2009-18 Total
Up to v.2018
Total(Reference only)
v.2019(Reference only)
v.2020(Reference only)
v.2021

IRRs for the year ended
2021
3.60%
4
0

2020
4.10%
5
0

1
1
Not disclosed
4
1
2
Not disclosed
14.67%
4
2
3
16.30%
16.02%
8
7
7
13.74%
17.83%
6
5
5
Not disclosed
16.68%
3
2
3
1.05%-0.37%
8
8
8
29.09%
27.72%
1212
12
13.34%
11.61%
1010
10
17.65%
17.55%
59
48
51
11.56%
10.93%
93
52
56
Not disclosed
2
2
2
7.37%
-13.35%7
7
7
23.44%
11
11

2019

2018

4.23%
5.35%
6
8
Not disclosed
11
112.81%
3
15.83%
3
18.57%
7
19.70%
5
16.13%
3-1.65%
825.55%
122.45%
1015.84%
53
10.13%
592

138.28%
4
12.24%
3
20.86%
722.85%
5
11.41%
3-13.43%8
12.87%
12
22.58%
10
19.20%
54
11.01%
62

2017

2016

6.27%
8.04%
13
17
19.57%
19.40%
3
3
Not disclosed
1
137.76%
38.54%
4
4
22.21%
18.68%
4
4
21.68%
19.66%
7
8
41.02%
51.88%
6
6
16.03%-11.32%3
3-17.83%-14.16%8
837.94%
12
24.76%
48
12.34%
61

24.96%
37
12.74%
54

2015

2014

2013

2012

8.64%
23
20.53%
3

8.93%
24
19.07%
3

7.85%
28
12.59%
3

6.51%
34
7.33%
3

1
40.09%
428.75%
45.90%
867.49%
6-6.15%
3

1
37.12%
424.38%
4-1.28%
8
83.97%
6

1
29.19%
4
13.43%
4-32.95%8

1
18.39%
4-19.21%
4

26.18%
29
12.24%
52

23.33%
26
11.21%
50

13.95%
20
8.51%
48

7.19%
12
6.56%
46

Considerations for since-inception IRRs

8

Please consider the following when viewing the since-inception IRRs

General explanation of since-inception IRRs

Since-inception IRRs of grouped funds in multiple vintage years

 In this survey, the “since-inception IRR” means the annualized internal rate of return
since inception of each fund. Since most private equity funds are closed-end, thesince-inception IRR is the most meaningful way to measure the performance.

 The since-inception IRR of a fund group with vintage years 2009-18 is calculated byassuming the funds started between 2009 and 2018 as once fund, not using aweighted-average method of funds or vintage years.

 The since-inception IRR is calculated by grouping the funds by vintage year, andaggregating the cash flows and the net assets at the end of the evaluation period of
the funds surveyed.
 The since-inception IRR for vintage year groups with fewer than three funds surveyed
is not disclosed to avoid identification of individual funds.
 The since-inception IRRs for the most recent three vintage years are calculated forreference purpose only. This is to take into account the nature of private equity
investments and the "J curve".
 The IRR for each year end includes the performance of the funds that started or
ended in the middle of each year. However, the performance of the funds liquidated
before the previous year are not included in the rates of each year. For example, theperformance of the fund, which ended in September 2019, is included in the IRR in
and before “2019” and is not included in and after “2020”.
 The since-inception IRR is calculated by vintage year, grouping the funds started in
the same year as if they were one large fund. For example, the since-inception IRR fora group with a vintage year of 2013 is calculated by grouping the funds that had theirfirst cash flow in 2013 as if they were one fund.
 The since-inception IRR of each vintage year group for each year is calculated for thefunds for which fiscal year ended in each calendar year (January 1 through December
31). However, the IRR 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 inwhich the fiscal year end belongs.

 In general, the calculation of the starting IRR for a grouping of funds with multiple
vintage years is greatly affected by the performance of funds with older vintage years.

Fair value measurement of portfolio investments
 Whether or not the portfolio investments held are measured at fair value will affect thecalculation of the since-inception IRR through the amount of fund net assets at yearend.
 For example, if you invest in 100 units at the beginning of a year and sell them at theend of 5 years after they have increased in value by 8% each year, the since-inception
IRR for each year will be calculated as 8% if you measure the investments at fairvalue. However, if you measure the investments at acquisition cost, the sinceinception IRR would be 0% for the 1st to 4th year, and only in the 5th year is thestarting IRR calculated to be 8%. Therefore, the since-inception IRR of an existing
fund may be calculated lower if the fair value measurement of portfolio investmentsthat earn a positive return has not been performed.
 Of the surveyed funds under management as of the end of 2021, the net assets of
those funds that measure portfolio investments at fair value accounted for 85% of the
net assets of all the surveyed funds as of the end of 2021.

Comparison with benchmarks
 It is difficult to compare the performance of closed-end private equity funds tobenchmarks of other assets using since-inception IRRs. For this reason, this survey
intends to calculate the IRRs over a given time frame (“horizon IRRs”) to help you
compare the performance of closed-end private equity funds to the benchmarks.
Please refer to the next page and beyond for more information on horizon IRRs.

Survey results: Horizon IRRs

9

Horizon IRRs through the end of 2021 of the surveyed funds grouped by fund inception year (vintage year)
shown in the table below (the bottom row of each vintage year column shows the number of funds included ineach group)
Measurement GroupUp to v. 2008 Total

34

v. 20093

v. 20101

v. 2011

Vintage year

(Reference only)
1 year:2021

Number of funds
surveyed

4v. 20124

v. 20137

v. 20146

v. 2015

3

v. 20168

v. 201712

v. 2018

10

v. 20192

v. 2020

7v. 2021

-

Total

101

Return of TOPIX Total Return Index-

24.12%
40

Not disclosed
Not disclosed

1
1

2
21.84%
7-10.12%5
Not disclosed
2
4.64%
8
33.08%
12
16.40%
10
Not disclosed
2
12.71%
7
17.98%
61
12.74%(Reference only)
3 years:
2019-21-7.37%
6
Not disclosed
1
Not disclosed
1
173.77%3
21.03%
3
4.39%
7
2.50%
5
40.43%
35.80%
835.33%
1212.84%
10

16.93%
59
12.67%

5 years:

10 years:2017-212012-211.07%
13
21.23%
3

18.65%
34
25.80%
3

1
40.22%
4
18.65%
4
13.51%
76.19%
631.39%
31.47%
8

139.64%
4

10.46%
49
7.99%

22.23%
42
13.01%

Considerations for horizon IRRs

10

Please consider the following when viewing the horizon IRRs

General explanation of horizon IRR

Difference and relationship between since-inception and horizon IRRs

 In this survey, the “horizon IRR” means the annualized internal rate of return of funds
surveyed, grouped by vintage year, over 1 year (2021), 3 years (2019-21), 5 years(2017-21) and 10 years (2012-21) up to the end of 2021. Calculating IRRs over acertain time frame, while not very rigorous, enables the performance of private equity
funds, many of which are closed-end, to be compared to the performance of otherassets and benchmarks.

 The since-inception IRR is calculated by aggregating each fund’s all cash flows since
inception and the net assets at the end of the measurement period. The horizon IRR is
calculated by aggregating each fund’s net assets at the beginning and the end of themeasurement period and the actual cash flows during the measurement period, where
it is assumed the cash flow in the amount of the net assets occurred at the beginningof measurement period. Thus, the starting point of the calculation differs between thesince-inception IRR and the horizon IRR.

 The horizon IRR for each group of vintage years is calculated by aggregating the net
assets at the beginning and end of the measurement period and the cash flows during
the measurement period for the funds in each group.
 The horizon IRR for vintage year groups with fewer than three funds surveyed is notdisclosed to avoid identification of individual funds.
 “Number of funds surveyed” by vintage year includes the number of funds whichceased operations before the end of the measurement period (i.e. the end of 2020).
 Given the life cycle of private equity funds, most of which are operated for a period of
about 10 years, if the measurement period is short, the IRR is likely to be affected byinvestment collections on a specific few deals that occur during that period, and theIRR will be highly skewed. Therefore, IRRs for one-year and three-year horizons arecalculated for reference purpose only. (However, if fair value measurement isappropriately performed at every year-end as described on the right, IRRs for shortermeasurement periods will be more meaningful.) The horizon IRR of each vintage year group for each year is calculated for the funds
for which fiscal year ended in each calendar year (January 1 through December 31).
However, the IRR 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 inwhich the fiscal year end belongs.
 TOPIX Total Return Index is obtained from Bloomberg.

Fair value measurement of portfolio investments
 The horizon IRR is calculated as if there were cash flow in the amount of the fund's
net assets at the beginning of the measurement period, which may result in distortionsof the IRR depending on whether portfolio investments are measured at fair value asof the beginning date.
 For example, if a fund group includes a large number of funds which are performing
well but the portfolio investments are not measured at fair value, the horizon IRR ofthe group tends to be calculated relatively high. This is because the cash flows
deemed to have occurred at the beginning of the valuation period are the amount offund net assets based on acquisition cost, not fair value, while fair value measurement
does not affect the actual cash flows generated during the period (e.g. sales proceedsof investments).
 As an example of the specific horizon IRR, the 5-year IRR to the end of 2021 for theentire group of 49 surveyed funds (10.46%) is calculated by aggregating the net
assets at the end of 2016 for all 49 surveyed funds, assuming that cash flows in thatamount occurred on 1 January 2017, the beginning of the measurement period, andaggregating the actual cash flows of the funds from 2017 to 2021, and the net assets
as at 31 December 2021, the end of the measurement period. Whether or not theportfolio investments held are measured at fair value will affect both the amount offund net assets at the beginning and end of the valuation period.
 Of the surveyed funds under management as of the end of 2021, the net assets of
those funds that measure portfolio investments at fair value accounted for 85% of the
net assets of all the surveyed funds as of the end of 2021.

Survey results: Total value to paid-in multiples

11

Total value to paid-in (TVPI) multiples as at the end of 2021 of the surveyed funds grouped by fundinception year (vintage year) shown in the table

Vintage year

Measurement Group

Number of funds surveyed

TVPI as at the end of 2021

Up to v.2008 Total

40

1.40x

v. 20093

2.05x

v. 20101

v. 20114

1.91x

v. 20124

1.54x

v. 20138

1.77x

v. 20146

0.97x

v. 20153

1.95x

v. 20168

1.03x

v. 201712

2.08x

v. 201810

1.32x

v. 2009-18 Total

59

1.62x

Up to v. 2018 Total

99

1.53x

(Reference only) v.20192(Reference only) v.2020

7

1.06x

(Reference only) v.2021

11

1.10x

Not disclosed

Not disclosed

Considerations for total value to paid-in multiples
Please consider the following when viewing the TVPI multiples

General explanation of TVPI multiples
 The TVPI multiple as of the end of 2021 by vintage year is calculated using
the following method. The TVPI of the funds which ceased operations before
the end of 2021.
(1) Calculate the TVPI multiple of each fund using the following formula:
TVPI multiple＝Accumulated distributions + Residual value at the period end
Accumulated paid−in capital(2) Calculate the TVPI multiple by vintage year by weighting the TVPI
multiple of each fund with the accumulated paid-in capital The total figures are based on the funds of which vintage year is prior to 2018
(i.e. the funds that were more than three years old), aligning with the nature ofprivate equity funds that are designed to obtain medium-to-long-term returns.
The TVPI multiples for the funds launched in 2018 and thereafter are alsopresented for reference.
 The TVPI multiples for vintage year groups with fewer than three funds
surveyed is not disclosed to avoid identification of individual funds.
 Since the calculation of the TVPI multiples is not affected by time value ofmoney, TVPI multiples for a certain time frame are not calculated, while thehorizon returns are calculated for IRRs which are affected by time value ofmoney.

12

13Highlights

03

Survey overview

05

Survey results-

Since-inception IRRs

07-

Horizon IRRs

09-

Total value to paid-in multiples

11

Supplementary information-

Data collected for this survey

14-

Considerations for use of this survey

15-

List of participating companies

16Supplementary information: Data collected for this survey

1.

PwC Aarata, commissioned by JPEA, requested the participating companies by sending the letter “Data Request for Fund Performance Measurement”
to provide the following data:
Basic information of the funds surveyed•

Fund name•

Investment strategy and targets•

Size (commitment amount)•

Fiscal year end date•

Accounting standards•

Audit requirement•

Valuation method of portfolio investments

 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)
 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, tothe final fiscal period or liquidation)
2.

The internal rate of return (hereinafter referred to as “IRR") is calculated using the following formula.
𝐼𝐼

0 = � 𝐶𝐶𝐶𝐶𝑖𝑖 (1 + 𝑟𝑟)
𝑖𝑖=1

−

𝑡𝑡 𝑖𝑖
365

+ 𝑉𝑉𝐸𝐸 (1 + 𝑟𝑟)

−

𝑇𝑇𝑇𝑇
365

𝐶𝐶𝐶𝐶𝑖𝑖 : i-th cash flow (-: inflow into the fund, +: outflow from the fund)𝑖𝑖 : Sequence of cash flow during the valuation period (1, 2, •••, I)
𝑟𝑟 : IRR
𝑡𝑡 𝑖𝑖 : Number of days from the first day of the valuation period to the i-th cash flow date
𝑉𝑉𝐸𝐸 : Value of the fund at the end of the valuation period
𝑇𝑇𝑇𝑇 : Number of total days in the evaluation period

14Supplementary information: Considerations for use of this survey

1.

This report does not disclose performance of any individual participating company or fund, and the information used in 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.

2.

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 participating companies.

3.

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 foreigncompanies. 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 thescope of this report.

4.

Portfolio investments are measured at fair value under International Financial Reporting Standards or U.S. GAAP, however, some funds measure the portfolio
investments at cost (minus impairment) or using certain valuation method specified in limited partnership agreements. Of the surveyed funds undermanagement as of the end of 2021, the net assets of those funds that measure portfolio investments at fair value accounted for 85% of the net assets of all
the surveyed funds as of the end of 2021. Also, some funds may have investments in the portfolio companies for which audited financial data is not available.

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 portfolio investments were sold at the end of 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 theyear, 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.

7.

The IRR is not disclosed if the number of the funds in each vintage year is less than three or if the number of 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 is also
not disclosed.

8.

The IRR is calculated and presented on an annualised basis in principle. However, the IRR for the fund with a measurement period of less than one year is
not annualised.

15

List of participating companies

16

Participating companies (in alphabetical order)
Advantage Partners Inc.

Marunouchi Capital Inc.

Ant Capital Partners Co., Ltd.

MBK Partners K.K.

Basic Capital Management, Limited

MCP Capital Co., Ltd.

Carlyle Japan, L.L.C.

Mercuria Investment Co., Ltd.

CAS Capital, Inc.

New Horizon Capital Co., Ltd.

CLSA Capital Partners (Japan) K.K.

Nomura Capital Partners Co., Ltd.

Endeavor United Co., Ltd.

PAG Japan Limited

Fukuoka Capital Partners Co., Ltd.

Permira Advisors K.K.

iSigma Capital Corporation

Ping An Japan Investment Co., Ltd.

Iwakaze Capital, Inc.

Polaris Capital Group Co., Ltd.

J Will Partners, K.K.

Rising Japan Equity, Inc.

Japan Industrial Solutions Co., Ltd.

SMBC Capital Partners Co., Ltd.

J-STAR Co., Ltd.

T Capital Partners Co., Ltd.

Karita & Company Inc.

Trustar Capital Partners Japan Limited

KKR Japan Limited

Unison Capital, Inc.

The Longreach Group, Inc.

Yukon Capital Partners Co. Ltd.

17

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 "Supplementary information:
Considerations for use of this survey". 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 theunderlying 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 the
preparation 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 thispublication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness 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 the information 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 aseparate 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.
© 2023 The Japan Private Equity Association. All rights reserved.