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(2022)March 2024
The Japan Private Equity Association
PricewaterhouseCoopers Japan LLC
Confidential

Table of contents

2

Highlights

03

Survey overview

05

Survey results-

Since-inception net IRRs

07-

Horizon net IRRs

09-

Net total value to paid-in multiples

11

Supplementary information-

Data collected for this survey

14-

Considerations for use of this survey

15-

List of companies responding to current year’s survey

16

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

3

The since-inception net IRR through the end of 2022 for the funds surveyed in the 2010-19 vintage years
was 12.9%

 The net IRRs through the end of 2022 for eachfund group, where the funds surveyed aregrouped by fund inception year (vintage year),are shown in the upper 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 2010-19 vintage,
the net IRR since inception is calculated as
12.9% through the end of 2022. The IRRs since
inception through the end of each year are
shown in the lower right-hand chart.

Since-inception net IRRs by vintage year through 2022
17.6% 17.6%
12.2%
10.3%

IRRｓ of last 3 vintageYear funds are
for reference only

2.3%
Not
Not
Not
disclosed* disclosed* disclosed*

2010

2011

2012

Not
disclosed*

2013

2014

Not
disclosed*

2015

2016

2017

Vintage years mainly in
an investment collection stage

2018

2019

2020

2021 2022

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 net IRR through the end of each year
(Aggregate value of the funds of 2010-19 vintage years)

32.6%
30.3%

36.5%
All the funds in the aggregate
were in an investment
execution period until 2014

2010

2011

2012

2013

2014

21.6%

2015

2016

2017

2018

16.7% 17.1% 17.0%

2019

2020

2021

12.9%

2022

Highlights (2/2): Horizon net IRRs

4

The ten-year horizon net IRR (2013-22) for the funds surveyed was 20.8%, which outperformed the TOPIX
over the same period by +10.2%.

 The net IRRs of the funds surveyed overcertain 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

Horizon net IRRs as at the end of 2022
Return of TOPIX Total Return Index+10.2%pt

Reference only due to short measurement period+10.5%pt
20.8%
15.1%

- The net IRR for each measurement period includes
the performance of the funds which were in
existence at the 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 net IRR for all funds surveyed

15.2%

13.7%
10.6%

5.7%
3.2%

-2.5%
1 year

3 years

5 years

10 years(2022)(2020-22)(2018-22)(2013-22)

Survey overview

1. Companies responding to current year’s survey
31 of the full members of the Japan Private Equity Association (hereinafter referred to as the “JPEA”), not including companies
which had previously responded to the survey

2. Funds surveyed
Private equity funds managed by the responding companies (including companies which had previously responded to the survey),
mainly invested in Japan, which were in existence between January 2008 and December 2022 (including funds liquidated on or
before 31 December 2022), 131 funds in total

3. Periods for performance measurement
Fiscal periods ended through December 2022 of the funds surveyed, including liquidated funds

4. Method of survey- PricewaterhouseCoopers Japan LLC, commissioned by JPEA, asked the responding companies to provide the necessary data
- The responding companies provided PricewaterhouseCoopers Japan LLC with the basic information, cash flow data and net
asset value data at the end of each fiscal period of the funds surveyed- PricewaterhouseCoopers Japan LLC calculated the net internal rate of returns since inception of each fund (hereinafterreferred to as the “since-inception net IRRs”, the net internal rate of returns for 1, 3, 5 and 10 year horizons through the end of2022 (hereinafter referred to as the “horizon net IRRs”) and the net total value to paid-in (TVPI) multiples

56Highlights

03

Survey overview

05

Survey results-

Since-inception net IRRs

07-

Horizon net IRRs

09-

Net total value to paid-in multiples

11

Supplementary information-

Data collected for this survey

14-

Considerations for use of this survey

15-

List of companies responding to current year’s survey

16Survey results: Since-inception net IRRs

7

Since-inception net IRRs of the surveyed funds grouped by fund inception year (vintage year) througheach end of year are shown in the table below (the bottom row of each vintage year column shows thenumber of funds included in each group)

Vintage year

Measurement
Group

Number offunds
surveyed

Up to v.2009
Total

31

v.20101

v.2011

4v.20124v.20138v.20146v.20153v.20169v.201712v.201810v.20192v.2010-19 Total

59

Up to v.2019
Total(Reference only)
v.2020(Reference only)
v.2021(Reference only)
v.2022907
13
9Net IRRs for the year ended
2022

2021

3.50%
3

2019

2018

2017

4.10%
5

4.89%
7

1
1
Not disclosed
1
1
2
Not disclosed
14.67%
2
2
3
17.57%
16.30%
16.02%
7
7
7
17.65%
13.74%
17.83%
4
5
5
Not disclosed
16.68%
2
2
3
2.34%
0.50%
-1.12%
89910.31%
28.55%
27.02%
1112
12
12.22%
11.97%
11.67%
1010
10
Not disclosed
22
2
12.94%
16.99%
17.08%
48
51
54
10.00%
11.28%
10.75%
51
55
59
23.20%
7.29%-13.35%7
7
7
18.98%
22.98%
12
13-2.84%
91
12.81%
3
15.83%
3
18.57%
7
19.70%
5
16.13%
3-2.45%
924.53%
12
2.78%
10

5.89%
8.70%
9
16
Not disclosed
1
138.28%
37.76%
4
4
12.24%
22.21%
3
4
20.86%
21.68%
7
7
22.85%
41.02%
5
6
11.41%
16.03%
3
3-13.62%-17.72%9912.87%
37.94%
1212
24.90%
102
16.69%
55
10.02%
62

21.61%
54
11.00%
63

1

3.60%
4

2020

30.34%
46
12.34%
62

2016

2015

2014

2013

9.96%
20

10.23%
26

10.09%
27

8.26%
31

1
38.54%
4
18.68%
4
19.66%
8
51.88%
6-11.32%
3-15.80%9

140.09%
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%832.55%
35
12.74%
55

36.51%
26
12.24%
52

34.29%
23
11.21%
50

19.29%
17
8.51%
48

Considerations for since-inception net IRRs

8

Please consider the following when viewing the since-inception net IRRs

General explanation of since-inception net IRRs

Since-inception net IRRs of grouped funds in multiple vintage years

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

 The since-inception net IRR of a fund group with vintage years 2010-19 is calculated
by assuming the funds started between 2010 and 2019 as once fund, not using aweighted-average method of funds or vintage years.

 The since-inception net 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 net IRR for vintage year groups with fewer than three funds
surveyed is not disclosed to avoid identification of individual funds.
 The since-inception net 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".

 In general, the calculation of the since-inception net IRR for a grouping of funds withmultiple 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 net IRR through the amount of fund net assets at
year-end.

 The since-inception net 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 thefunds liquidated before the previous year are not included in the rates of each year.
For example, the performance 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”.

 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
net 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 net IRR would be 0% for the 1st to 4th year, and only in the 5th year is thestarting net IRR calculated to be 8%. Therefore, the since-inception net IRR of an
existing fund may be calculated lower if the fair value measurement of portfolio
investments that earn a positive return has not been performed.

 The since-inception net 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 net
IRR for a group with a vintage year of 2013 is calculated by grouping the funds that
had their first cash flow in 2013 as if they were one fund.

 Of the surveyed funds under management as of the end of 2022, the net assets of
those funds that measure portfolio investments at fair value accounted for 79% of the
net assets of all the surveyed funds as of the end of 2022.

 The since-inception net IRR of each vintage year group for each year is calculated forthe funds for which fiscal year ended in each calendar year (January 1 throughDecember 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 theyear in which the fiscal year end belongs.

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

Survey results: Horizon net IRRs

9

Horizon net IRRs through the end of 2022 of the surveyed funds grouped by fund inception year (vintageyear) shown in the table below (the bottom row of each vintage year column shows the number of funds
included in each group)
Measurement GroupUp to v. 2009 Total

34

v. 20103

v. 20111

v. 2012

Vintage year

(Reference only)
1 year:2022

Number of funds
surveyed

4v. 20134

v. 20147

v. 2015

6

v. 2016

3

v. 20178

v. 2018

12

v. 201910

v. 2020

2

v. 2021

7

v. 2022

-

Total

101

Return of TOPIX Total Return Index-(Reference only)
3 years:
2020-2224.12%
4
0
1
Not disclosed
1
Not disclosed
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%-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:

2018-222013-221.07%
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 net IRRs

10

Please consider the following when viewing the horizon net IRRs

General explanation of horizon net IRR

Difference and relationship between since-inception and horizon net IRRs

 In this survey, the “horizon net IRR” means the net annualized internal rate of return offunds surveyed, grouped by vintage year, over 1 year (2022), 3 years (2020-22), 5
years (2018-22) and 10 years (2013-22) up to the end of 2022. Calculating IRRs overa certain 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 ofother assets and benchmarks.

 The since-inception net 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
net IRR is calculated by aggregating each fund’s net assets at the beginning and theend of the measurement 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 beginning of measurement period. Thus, the starting point of the calculation differs
between the since-inception net IRR and the horizon net IRR.

 The horizon net 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 net IRR for vintage year groups with fewer than three funds surveyed is
not disclosed 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 2022).
 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 the
net IRR will be highly skewed. Therefore, net IRRs for one-year and three-year
horizons are calculated for reference purpose only. (However, if fair value
measurement is appropriately performed at every year-end as described on the right,
the horizon net IRRs for shorter measurement periods will be more meaningful.) The horizon net 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.

Fair value measurement of portfolio investments
 The horizon net 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
distortions of the IRR depending on whether portfolio investments are measured at fairvalue as of 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 net IRRof the 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 net IRR, the 5-year IRR to the end of 2022 forthe entire group of 53 surveyed funds (13.69%) is calculated by aggregating the net
assets at the end of 2017 for all surveyed funds, assuming that cash flows in thatamount occurred on 1 January 2018, the beginning of the measurement period, andaggregating the actual cash flows of the funds from 2018 to 2022, and the net assets
as at 31 December 2022, 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.

 TOPIX Total Return Index is obtained from Bloomberg.
 Of the surveyed funds under management as of the end of 2022, the net assets of
those funds that measure portfolio investments at fair value accounted for 79% of the
net assets of all the surveyed funds as of the end of 2022.

Survey results: Net total value to paid-in multiples

11

Net total value to paid-in (TVPI) multiples as at the end of 2022 of the surveyed funds grouped by fundinception year (vintage year) shown in the table

Vintage year

Measurement Group

Number of funds surveyed

Net TVPI as at the end of 2022

Up to v.2009 Total

43

1.48

v. 20101

v. 20114

1.91

v. 20124

1.55

v. 20138

1.91

v. 20146

1.38

v. 20153

1.90

v. 2016

9

1.08

v. 2017

12

2.05

v. 2018

10

1.40

v. 20192

v. 2010-19 Total

59

1.56

Up to v. 2019 Total

102

1.53

(Reference only) v.2020

7

1.32

(Reference only) v.2021

13

1.15

(Reference only) v.2022

9

0.99

Not disclosed

Not disclosed

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

General explanation of net TVPI multiples
 The net TVPI multiple as of the end of 2022 by vintage year is calculated using
the following method. The net TVPI of the funds which ceased operations before
the end of 2022.
(1) Calculate the net TVPI multiple of each fund using the following
formula:Net 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 up to 2019 (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 net TVPI multiples for the funds launched in 2020 and thereafter are alsopresented for reference.
 The net 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 net TVPI multiples is not affected by time value ofmoney, net TVPI multiples for a certain time frame are not calculated, while thehorizon returns are calculated for net IRRs which are affected by time value ofmoney.

12

13Highlights

03

Survey overview

05

Survey results-

Since-inception net IRRs

07-

Horizon net IRRs

09-

Net total value to paid-in multiples

11

Supplementary information-

Data collected for this survey

14-

Considerations for use of this survey

15-

List of companies responding to current year’s survey

16Supplementary information: Data collected for this survey

1.

PricewaterhouseCoopers Japan LLC, commissioned by JPEA, requested the responding companies 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.
0

𝐶𝐹

1

𝑟

𝑉 1

𝑟

𝐶𝐹 : i-th cash flow (-: inflow into the fund, +: outflow from the fund)𝑖 : Sequence of cash flow during the valuation period (1, 2, •••, I)
𝑟 : IRR𝑡 : Number of days from the first day of the valuation period to the i-th cash flow date
𝑉 : Value of the fund at the end of the valuation period
𝑇𝐷 : Number of total days in the evaluation period

14Supplementary information: Considerations for use of this survey

15

1.

This report does not disclose performance of any individual responding 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 PricewaterhouseCoopers Japan LLC, a contractor for preparation of this report, except as
set forth in the Confidentiality Agreement between PricewaterhouseCoopers Japan LLC and each responding company.

2.

The performance measurement made by PricewaterhouseCoopers Japan LLC does not constitute an audit or assurance service,
PricewaterhouseCoopers Japan LLC has not verified, validated or audited the reliability or accuracy of data obtained from the responding 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.

For funds managed by the companies which had previously responded to the survey, the performance of the period for which the data was provided for isreflected in this report.

5.

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 2022, the net assets of those funds that measure portfolio investments at fair value accounted for 79% of the net assets of all
the surveyed funds as of the end of 2022. Also, some funds may have investments in the portfolio companies for which audited financial data is not available.

6.

The net asset value of each fund at the end of each period used to calculate the net IRR and the net TVPI 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 forwhich 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 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.

8.

the net IRR and the net TVPI are 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 responding company. In addition, if the net IRR and the net TVPI of another fund can be
estimated by disclosing the net IRR and the net TVPI, they are also not disclosed.

9.

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

andList of companies responding to current year’s survey

Companies responding to current year’s survey (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.

D Capital, Inc.

PAG Japan Limited

Endeavor United Co., Ltd.

Ping An Japan Investment Co., Ltd.

Fukuoka Capital Partners Co., Ltd.

Polaris Capital Group Co., Ltd.

iSigma Capital Corporation

Rising Japan Equity, Inc.

Iwakaze Capital, Inc.

SMBC Capital Partners Co., Ltd.

J Will Partners, K.K.

T Capital Partners Co., Ltd.

Japan Industrial Solutions Co., Ltd.

Trustar Capital Partners Japan Limited

J-STAR Co., Ltd.

Unison Capital, Inc.

Karita & Company Inc.

Yukon Capital Partners Co. Ltd.

The Longreach Group, Inc.

16

17

Disclaimer
The data within this report was measured by PricewaterhouseCoopers Japan LLC, which was commissioned by the Japan Private Equity Association (hereinafter referred to as the"JPEA"), based on the data provided by the responding companies and the assumptions stated in "Supplementary information: Considerations for use of this survey". The JPEA
and PricewaterhouseCoopers Japan LLC 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 responding companies.
The performance measurement made by PricewaterhouseCoopers Japan LLC does not constitute an audit or assurance service, and reliability, completeness or accuracy of thedata used in the preparation of the report, including the valuation data, has not been independently verified, validated or audited by PricewaterhouseCoopers Japan LLC.
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 PricewaterhouseCoopers Japan LLC, 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 thispublication 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 PricewaterhouseCoopers Japan LLC andthis Disclaimer, for the purpose of distribution of the modified report to third parties, without prior written consent of JPEA and PricewaterhouseCoopers Japan LLC.
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.
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