2015 PEGCC Annual Report

1. PRIVATE EQUITY GROWTH
CAPITAL COUNCIL
ANNUAL REPORT 2015

2. 1 | Table of Contents
TABLE OF
CONTENTS
Letter from the Chairman 3
Government Affairs 6
Member Services 12
Public Affairs 17
Research22
Member Firms 26

3. Introduction | 2
WHO WE ARE
Established in 2007 and based in Washington, the
Private Equity Growth Capital Council (PEGCC)
is an advocacy, communications, member services,
and research organization representing leading
private equity and growth capital firms united by
their commitment to growing and strengthening
the businesses in which they invest.
WHAT WE DO
The PEGCC advocates on behalf of the private
equity and growth capital industry on Capitol
Hill and before regulatory agencies, educates
the public about the value of private equity,
develops new research highlighting the critical
role private equity and growth capital plays in the
U.S. and global economies, and provides a vital
forum for our members to discuss industry trends
and challenges.
ABOUT PRIVATE EQUITY
Private equity is a critical source of capital
investment in the U.S. Our investment model
is simple: we seek out companies that have
significant potential for growth and invest capital,
time and effort to improve their performance and
increase their value. Private equity investment
creates stronger, more valuable American
businesses, and provides public and private
pension funds, university endowments and
charitable foundations with superior returns.
Senator Rob Portman (R-OH) delivers remarks at our 2015
Annual Meeting.

4. 3 | Letter from the Chairman
LETTER FROM
THE CHAIRMAN
This past year saw global economic instability
and uneven economic growth for millions of
Americans. Through our investments in companies
and strong performance for retirement pensions
and endowments, the private equity and
growth capital industry can continue to provide
solutions to these challenges. This year, the
PEGCC provided critical leadership to enable
these important investments, engaging with
policymakers, regulators, the media, and other
key stakeholders.
I am proud of their work. The PEGCC’s smart
legislative and regulatory engagement, expanded
media relations, original and innovative research,
and enhanced member services all contributed to
an impressive year for the Council. The PEGCC
also expanded our membership and worked to add
even more value to all of our members.
As we enter another Presidential campaign
and new leadership in Congress, policymakers
are laying early foundations for future tax
PEGCC Chairman of the Board Ken Mehlman
“The PEGCC’s smart legislative and
regulatory engagement, expanded
media relations, original and
innovative research, and enhanced
member services all contributed to an
impressive year for the Council.”

5. Letter from the Chairman | 4
reform. There were also critical legislative
matters before Congress over the last year.
The PEGCC creatively and proactively engaged
with policymakers and other key stakeholders,
explaining the critical investments we make, and
their importance to building companies, enhancing
retirement, and rebuilding infrastructure.
For the second year in row, the PEGCC facilitated
political support for House Resolution 464; a
Resolution that affirms how private equity plays
an important role in growing and strengthening
American businesses. Throughout the country,
the PEGCC worked with national and state-based
policy centers to inform influential policy thinkers
and activists of the current tax treatment of
carried interest and to develop their support for
the maintenance of this important policy.
The PEGCC also led efforts, through their
membership in the Businesses United for Interest
and Loan Deductibility Coalition (BUILD), to
explain how targeting interest would harm the
economy by raising costs on all businesses,
which would reduce investment and growth in
direct opposition to the goals of tax reform. Such
outreach resulted in more balanced, accurate
depiction of this key policy.
Just as the PEGCC conducted extensive outreach
in the states and on Capitol Hill, it increased its
presence in regulatory arenas. In 2015, it filed
15 comment letters with multiple agencies in the
United States and around the world. They also
met with key regulators on multiple issues, and
are prepared to scale up their presence in the
coming year.
In all efforts, the PEGCC’s advocacy was
supported by the innovative analyses produced
by our research department. Along with analyzing
industry trends and performance, the research
team showed key audiences the positive economic
impact of private equity throughout the country,
and specifically the outsized returns that private
equity produces for limited partners such as public
pensions. More and more, the PEGCC is the go-to
resource for top-notch private equity research.
Last year, the Council also upped our efforts
in supporting you, our membership. We held a
record 33 non-governance calls and events in
2015. We have worked to make these events of
value to you, and the all-time highs in attendance
at these events seems to indicate that we are
doing just that. PEGCC events have become
the type of exclusive, industry-leading meetings
that advance new ideas and serve as a forum
for impactful information. The member firm
representatives I encounter – from GCs to CCOs
to CFOs – constantly tell me that PEGCC events
“Throughout the country, the PEGCC
worked with national and state-based
policy centers to inform groups of
the current tax treatment of carried
interest and to develop their support
for the maintenance of this important
tax policy.”

6. 5 | Letter from the Chairman
are appreciated. I agree. And I look forward to
even more engagement this year.
Finally, the PEGCC faced a major transition in
2015. Our President and CEO Steve Judge, who
led the outstanding efforts described above,
decided to step down in August. Fortunately for
the Council, he remained a part of the PEGCC
as Senior Advisor through the end of 2015.
Personally, I am extremely grateful for his hard
work and contributions to the PEGCC over the
years, and I know our membership feels the same.
Our industry as a whole is stronger because of
Steve Judge. He is a gentleman and will always be
a friend.
Please enjoy the PEGCC’s 2015 Annual Report.
I look forward to the continued growth of this
association in the coming year.
Sincerely,
Ken
Ken Mehlman, Chairman of the Board, Private
Equity Growth Capital Council
“PEGCC events have become the type
of exclusive, industry-leading meetings
that advance new ideas and serve as a
forum for impactful information.”

7. Government Affairs | 6
GOVERNMENT AFFAIRS

8. 7 | Government Affairs
The Council faced challenges on multiple
legislative and regulatory issues important
to private equity in 2015. Fortunately, our
proactive engagement and advocacy
enabled us to successfully address a
multitude of topics. Key areas of legislative
focus included defending the appropriate
tax treatment of carried interest as
capital gains income, maintaining
interest deductibility, preserving pass-
through taxation with upcoming changes
in partnership audits, and advancing
practical modifications to the Investment
Advisers Act.
On carried interest, the Council launched a new
campaign focused on engaging with grassroots
organizations nationally and in key states to
strengthen and expand support for the current tax
treatment of carried interest amongst presidential
candidates and policymakers in Washington.
Our advocacy efforts through the BUILD
Coalition (Businesses United for Interest and
Loan Deductibility) continued to focus on
preventing any efforts that may place limits on
interest deductibility.
In addition, the Council continued to engage on
many outstanding regulatory issues; obtaining
important revisions to various regulations, such as
CFTC aggregation relief.
We reached out to presidential campaigns to educate
them and advocate for the proper tax treatment of carried
interest in their tax proposals.

9. Government Affairs | 8
LEGISLATIVE PRIORITIES
CARRIED INTEREST
We saw a continuation of efforts by the Obama
Administration and certain Congressional
Democrats to push for tax increases on carried
interest. In addition, the issue continued to
receive attention from the news media and from
presidential candidates of both parties. Given
this dynamic, the Council moved aggressively
to safeguard the appropriate taxation of carried
interest as capital gains income. While continuing
extensive internal advocacy and communications
efforts on carried interest, the Council also began
working with multiple grassroots organizations
that shared the Council’s concerns. This
effort included:
»» Engagement with every Republican
presidential campaign.
»» Publication of 19 op-eds or articles focused
on the importance of maintaining current law
treatment of carried interest.
»» Engagement by multiple third-party experts
to rebut negative or misleading stories on
carried interest.
»» Publication of a joint letter to Congress from
multiple organizations urging Congress
not to increase taxes on carried interest as
part of any end of year spending deals or
budget compromises.
CARRIED INTEREST?
CARRIED INTEREST IS A PROFITS INTEREST. NOT A FEE.
Carried interest is taxed at the long-term capital gains rate because it is a profits interest
in a long-held capital asset. Changing the taxation of carried interest would upend a
long-standing, successful policy that rewards entrepreneurial risk and has helped
America prosper for more than 100 years.
A limited partner
and a general
partner create
a partnership
to invest in
capital intensive
businesses such
as manufacturing
companies.
(Limited Partner) (General Partner)
Contributes most of
the capital.
The LP practices
PATIENT INVESTING
over 3-7 years.
Receives ALL OF ITS INVESTED
CAPITAL as well as a HURDLE
RATE OF RETURN (e.g. 8% of
profits from sale) before remaining
profits are split with the GP.
Contributes some capital but also
expertise. For managing the fund’s
investments, the GP receives a
management fee, on which IT
PAYS ORDINARY INCOME TAXES.
Manufacturing Co.
Both the LP
and the GP
contribute to
the business.
The GP GROWS and
STRENGTHENS THE BUSINESS
over 3-7 years.
The private equity
partnership decides
to sell the business
for a profit, either
through an initial
public offering (IPO)
or strategic sale.
+
Invested Capital Hurdle Rate
General
Partner
80% distributed to the LP and 20%
(carried interest) distributed to the
GP. The carried interest is SUBJECT
TO A CLAWBACK if the hurdle rate
for all fund investments is not
subsequently satisfied.
Limited Partner
HOW CARRIED INTEREST WORKS IN PRIVATE EQUITY
Remaining profits are shared
Limited
Partner
Carried interest is an equity interest in the future
profits of a fund partnership. A private equity fund
sponsor retains this interest at the start of a fund. As
a profits interest in a capital asset – an operating
business – owned for years, carried interest bears with
it the risk that the business will not generate a profit.
WHAT IS
October 27, 2015
Dear Congressman:
As the end of the Congressional session approaches, you will face many calls to raise taxes in
order to “pay for” higher levels of spending and debt. On behalf of millions of conservative and
free market activists, grasstops leaders, and ordinary Americans, we urge you to firmly reject
these calls.
The most common form this takes inside the Beltway is a clamor to raise taxes in order to bust
the Budget Control Act caps, which have helped to restrain spending, reduce the deficit and save
the average American household nearly $9,000 to date. Higher taxes are also floated in
connection with things like a highway bill, raising the debt ceiling, passing an omnibus spending
bill or continuing resolution, or any of a number of other “must pass” vehicles.
This year alone, higher taxes have been called for on gasoline, “carried interest” long-term capital
gains, itemized deductions, income earned overseas by U.S. companies and which has already
faced taxation abroad, oil and gas exploration and development, cigarettes and other tobacco
products, insurance transactions with non-US affiliates, and many others.
The proper context to have these conversations is within revenue-neutral tax reform that doesn’t
raise tax rates, not as “pay fors” within hurried year-end spending packages.
We urge you to reject any tax increases in the spending and debt conversations between now
and the end of the year.
Sincerely,
Grover Norquist, Americans for Tax Reform
Brandon Arnold, National Taxpayers Union
Tom Schatz, Council for Citizens Against Government Waste
Andrew Moylan, R Street
Phil Kerpen, American Commitment
Neil Bradley, Conservative Reform Network
IV
114TH CONGRESS
1ST SESSION
H. RES. 464
Affirming that private equity plays an important role in growing and strength-
ening United States businesses throughout all sectors of the economy
and in every State and congressional district and that it has fostered
significant investment in the United States economy.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 6, 2015
Mr. CONAWAY (for himself, Mr. ALLEN, Mr. CARTER of Texas, Mr. COLLINS
of New York, Mr. BABIN, Mrs. BLACKBURN, Mr. BOUSTANY, Mr.
FARENTHOLD, Mr. FLORES, Mr. FRANKS of Arizona, Mr. GOHMERT, Mr.
HUDSON, Mr. HURT of Virginia, Mr. LAMALFA, Mr. LAMBORN, Mr.
LUCAS, Mr. LUETKEMEYER, Mr. MARCHANT, Mr. MCHENRY, Mr. MOON-
EY of West Virginia, Mr. OLSON, Mr. PEARCE, Mr. ROKITA, Mr. SALM-
ON, Mr. SESSIONS, Mr. SMITH of Texas, Mr. STIVERS, Mr. WEBER of
Texas, and Mr. YOUNG of Indiana) submitted the following resolution;
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committee on Financial Services, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
RESOLUTION
Affirming that private equity plays an important role in
growing and strengthening United States businesses
throughout all sectors of the economy and in every State
and congressional district and that it has fostered signifi-
cant investment in the United States economy.
Whereas private equity and growth capital is an industry that
partners with pensions, foundations, and endowments to
VerDate Sep 11 2014 03:17 Oct 07, 2015 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6300 E:BILLSHR464.IH HR464
emcdonaldonDSK67QTVN1PRODwithBILLS

10. 9 | Government Affairs
»» Introduction by Congressman Mike Conaway
(R-TX) and 28 original cosponsors of H. Res.
464 in support of the important role that
private equity plays in the U.S. economy and
in support of maintaining appropriate tax
law treatment of carried interest as capital
gains income.
INTEREST DEDUCTIBILITY
Throughout the year, several presidential
candidates issued proposals which would limit or
eliminate interest deductibility in exchange for
providing “100 percent expensing” for certain
business activities. The BUILD Coalition helped to
contextualize this proposed trade off and what
losing interest deductibility would mean for capital
intensive businesses of all sizes in the U.S.
economy. The battle to maintain full interest
deductibility is far from over, and our efforts with
the BUILD Coalition to protect this important
business expense will continue in 2016.
DEFENDING PASS-THROUGH TAXATION
AS REVISIONS TO PARTNERSHIP AUDITS
BECOME LAW
In mid-2015, proposals resurfaced to revise
the partnership audit process. The Council held
multiple meetings with our members and worked
with other trade groups with a vested interest
in the issue. Ultimately, the collective efforts of
interested parties including the Council ensured
that substantial changes were made to the audit
proposal prior to it becoming law. Beginning
in 2018, the new audit regime will apply to all
partnerships. Partnerships with 100 or fewer
partners can elect out. While the collection of
audit adjustments will generally take place at the
partnership level in the year that judicial review
is completed, the new law allows a partnership
to elect to send amended K-1s to the reviewed
year partners as an alternative means of making
the adjustments at the partner rather than the
partnership level. Importantly, there will also be no
joint and several liability for any audit adjustments.
The proposal ended up much less burdensome
than it started out at least in part due to the
Council’s engagement on the topic.
INVESTMENT ADVISERS ACT
REFORM LEGISLATION
The Council continued working with policymakers
and other interested organizations to find
bipartisan ways to make the Investment Advisers
Act registration regime less burdensome and
more appropriately tailored for private equity.
To this end, the Council developed a series of
recommended changes, which could make the
Adviser Act regime function more efficiently and
effectively. The list includes fixing the custody
rule, streamlining certain books and records
requirements, removing Form PF portfolio

11. Government Affairs | 10
the industry.
As all of regulatory processes continue,
the Council will remain actively engaged as
appropriate with our membership, regulators,
agency staffs, and legislators in the United States
and where necessary around the world.
company reporting requirements, preventing
application of Rule 156 for advertising in the
private equity space, and forestalling costly
additions to the Regulation D process. The
Council expects that it will continue to be
actively engaged on this effort in 2016 as related
legislative proposals take shape.
REGULATORY PRIORITIES
The Council filed 15 comment letters with
multiple agencies in the United States and around
the world. These regulators and organizations
included the Securities and Exchange Commission
(SEC), the Commodity Futures Trading
Commission (CFTC), the Financial Stability
Oversight Council (FSOC), The Financial Stability
Board (FSB), the European Securities and Markets
Authority (ESMA), the European Commission, the
United Kingdom Treasury, and the Organisation
for Economic Co-operation and Development
(OECD). The Council also met with key regulators
on multiple issues throughout the year.
LOOKING AHEAD
The Government Affairs department will continue
to play a central role in our advocacy efforts. As we
approach the next presidential and congressional
elections, it is important that the Council remain
engaged, educating presidential candidates,
congressional leaders, the media, and thought
leaders about the positive role that private equity
plays in the economy and the important tax,
regulatory, and other policy choices that impact
19CARRIED INTEREST
OP-EDS OR ARTICLES
15COMMENT
LETTERS
28ORIGINAL CO-SPONSORS
OF H. RES. 464

12. 11 | Government Affairs
November 12, 2015
Submitted Electronically
Mr. Christopher Kirkpatrick
Secretary
Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street NW
Washington, DC 20581.
Re: Aggregation of Positions; Supplemental Notice of Proposed Rulemaking (RIN 3038-
AD82)
Dear Mr. Kirkpatrick:
The Private Equity Growth Capital Council (“PEGCC”, “we” or “us”, as applicable)
appreciates the opportunity to provide comments on the supplemental notice of proposed
rulemaking published by the Commodity Futures Trading Commission (“CFTC”, or the
“Commission”) (the “Supplemental Proposal”)1
regarding the proposed revision to the
aggregation provisions of part 150 of the Commission’s regulations on position limits.
The PEGCC is an advocacy, communications and research organization and resource
center established to develop, analyze and distribute information about the private equity and
growth capital investment industry and its contributions to the national and global
economy. Established in 2007 and formerly known as the Private Equity Council, the PEGCC is
based in Washington, D.C. The members of the PEGCC are the world’s leading private equity
and growth capital firms united by their commitment to growing and strengthening the
businesses in which they invest.
Please consider these comments as supplemental to (i) our earlier meetings with the
Commission on this subject2
and (ii) the comments we have previously submitted to the
Commission on aggregation and position limits.3
1
Aggregation of Positions, 80 Fed. Reg. 58365 (September 29, 2015).
2
E.g., Meeting with CFTC on July 30, 2012 on Aggregation Policy for Position Limits, details
available here; Meeting with CFTC on September 22, 2014 on Aggregation Policy for Position
Limits, details available here.
3
See, e.g., PEGCC Comments to the CFTC on the Disaggregation Proposal, June 29, 2012;
PEGCC Comments to the CFTC on Notice of Proposed Rulemaking on Aggregation, August 20,
2012; PEGCC Comments to the CFTC on Notice of Proposed Rulemaking on Aggregation,
August 11, 2015
Brent J. Fields, Secretary
Securities and Exchange Commission
100 F Street, NE
Washington, DC 20549-1090
Re: Amendments to Form ADV and Investment Advisers Act Rules
(File No. S7-09-15)
Dear Mr. Fields:
The Private Equity Growth Capital Council (the “PEGCC”) appreciates the opportunity
to comment on the proposed amendments (the “Proposed Amendments”) to Form ADV
and certain rules under the Investment Advisers Act of 1940, as amended (the “Advisers
Act”).1
The PEGCC is an advocacy, communications and research organization
established to develop, analyze and distribute information about the private equity and
growth capital investment industry and its contributions to the national and global
economy. Established in 2007, and formerly known as the Private Equity Council, the
PEGCC is based in Washington, D.C. The PEGCC members are the world’s leading
private equity and growth capital firms united by their commitment to growing and
strengthening the businesses in which they invest.
The PEGCC generally supports the efforts of the Securities and Exchange Commission
(the “Commission” or the “SEC”) to modernize Form ADV, particularly changes that
reduce burdens on private fund sponsors. The PEGCC respectfully submits the following
comments, discussed in more detail below:
 The definition of “separately managed accounts” should be narrowed to exclude
(1) non-U.S. clients where the adviser’s principal place of business is outside the
United States and (2) all pooled investment vehicles. In addition, the information
on separately managed accounts of private fund sponsors (or at least those
managed in parallel with private funds) should be reported on Form PF to the
extent that the Commission believes that such information is necessary to assist in
the SEC staff’s ability to effectively carry out its risk-based examination program
and other risk assessment and monitoring activities.
 The PEGCC strongly supports the Commission’s proposal to codify “umbrella
registration” for private fund advisers. Umbrella registration is an important
option for private fund sponsors and, we believe, makes the registration process
1
SEC Release No. IA-4091 (May 20, 2015) (the “Proposing Release”).
SUBMITTED ELECTRONICALLY
April 15, 2015
The Honorable Orrin Hatch
Chairman
Committee on Finance
United States Senate
219 Dirksen Senate Office Building
Washington, DC 20510
The Honorable Ron Wyden
Ranking Member
Committee on Finance
United States Senate
219 Dirksen Senate Office Building
Washington, DC 20510
The Honorable Chuck Grassley
Co-Chairman
Individual Income Tax Working Group
Committee on Finance
United States Senate
135 Hart Senate Office Building Washington,
DC 20510
The Honorable Debbie Stabenow
Co-Chairman
Individual Income Tax Working Group
Committee on Finance
United States Senate
731 Hart Senate Office Building
Washington, DC 20510
The Honorable Michael Enzi
Co-Chairman
Individual Income Tax Working Group
Committee on Finance
United States Senate
379A Russell Senate Office Building
Washington, DC 20510
RE: Carried Interest is Appropriately Taxed as Capital Gains Income and Should Remain
So in Tax Reform.
Dear Chairman Hatch, Ranking Member Wyden, Senator Grassley, Senator Stabenow and
Senator Enzi:
This letter is submitted by the Private Equity Growth Capital Council (“PEGCC” or
“we”, as applicable) in response to the Finance Committee’s invitation to provide comments on
various aspects of tax policy as the Committee and its Working Groups weigh options for
comprehensive tax reform. The PEGCC is an advocacy, communications and research
organization established to develop, analyze and distribute information about the private equity
and growth capital investment industry and its contributions to the national and global economy.
Established in 2007, and formerly known as the Private Equity Council, the PEGCC is based in
“As we approach the next presidential
and congressional elections, it is
important that the Council remain
engaged, educating presidential
candidates, congressional leaders, the
media, and thought leaders about the
positive role that private equity plays
in the economy.”

13. Member Services | 12
MEMBER SERVICES
PEGCC member CFOs actively engage in a group conversation
during our 2015 CFOs Day.
James Coulter (left) Co-Founder and CEO of TPG talks with David
Smolen (right) General Counsel and CCO of GI Partners at our
2015 Annual Meeting.
Dr. Mark Zandi, Chief Economist of Moody’s Analytics, delivers the
keynote speech during our 5th Annual Member Dinner.
Zoey Armstrong (left) Director of Compliance at Bertram
Capital speaks with Frank Fumai (right) Partner at Deloitte
during our 2015 Annual Meeting.

14. 13 | Member Services
»» General Counsels Committee
»» Growth Capital Committee
»» Public Affairs Committee
»» Regulatory Committee
»» Research - Investor Relations Committee
»» Young Professionals Network (YPN) Advisory
Committee
Notable Committee highlights during 2015
included the reestablishment of the Growth
Capital Committee and the formation of an
Advisory Committee for our Young Professionals
Network in preparation for the YPN’s formal
launch in early 2016.
As the Council’s event calendar
grows in strength and content, so
does participation by our member
firms. Attendance at PEGCC member
events reached all-time highs in 2015.
By steadily developing the Council’s
membership offerings, the PEGCC
continues to increase the value of
PEGCC membership for our member
firms. Outside of our bi-weekly
Regulatory Committee calls, our
calendar of events for 2015 included 33
non-governance events and calls.
COMMITTEE ACTIVITIES
PEGCC member firm contacts enjoyed the
opportunity to engage with industry peers and
topical experts through our active Committees
calendar. In-person luncheons, telephonic
update calls, webinars, and networking events
were held by our nine Committees and these
activities sought to connect industry peers
and provide useful tools and information to
member firm executives. The PEGCC’s member
Committees include:
»» Chief Compliance Officers Working Group
»» Chief Financial Officers Committee
Attendance at PEGCC member events
reached all-time highs in 2015.
33NON-GOVERNANCE
EVENTS AND CALLS
9PEGCC
COMMITTEES

15. Member Services | 14
Speaker of the House Paul D. Ryan addresses attendees at our 2015 Annual Meeting. PEGCC Chairman Ken Mehlman is
pictured on the right.
FOUNDERS MEETING AND DINNER
The 2015 Founders Meeting and Dinner was
the first held since 2010 and was intended to
reinforce the PEGCC’s relationships with our
member firm founders and provide this group of
industry thought leaders with a forum for peer-to-
peer discussion.
Beginning with a business meeting focused on
the public and political operating environment for
private equity, the event then moved to cocktails
NON-COMMITTEE EVENTS
Non-Committee events continued to grow in
numbers and gain in popularity through 2015. We
continued the development of our Chief Financial
Officers and General Counsels Annual Meetings.
Two important highlights to note are the Founders
Meeting and Dinner and the 2015 Annual
Meeting and Member Dinner.

16. 15 | Member Services
The PEGCC looks forward to welcoming our
member base back to Washington for a pre-
election Annual Meeting in September 2016.
MEMBERSHIP GROWTH
In 2015 the PEGCC was delighted to welcome
five firms to our membership. Three private
equity members – GI Partners, Lion Capital, and
Resource Capital Funds – and two Associate
members – Goodwin Procter and O’Melveny
Myers. We look forward to working closely with
each of them in the coming years.
LOOKING AHEAD
2016 will be an exciting year for the member
services team. We plan to increase our outreach to
prospective members in the upcoming year, with
the goal of welcoming additional well-regarded
private equity, growth capital, and fund of funds
firms to the Council.
We will build on the successful initiatives launched
over the past few years and add new features to
our event line-up in 2016. New additions to our
member services will include a series of events
in San Francisco, CA on May 2-6, 2016. PE
Perspectives: San Francisco, this week of activities
will bring the PEGCC to our California-based
members and introduce our newly-hired CEO
to this private equity geographic hub. Current
event plans include an ESG Seminar, Alternative
Investment Valuation Conference, co-hosted
with KPMG, CCOs Working Group meeting,
and a formal dinner featuring Dr. Richard Haass,
President of the Council on Foreign Relations.
The event was well attended and well received,
with the full spectrum of PEGCC member
firms represented.
The Council is proud to feature our Founders
Meeting and Dinner on a biennial basis
moving forward.
2015 ANNUAL MEETING AND
MEMBER DINNER
Extremely positive feedback was provided by our
members following the 2015 Annual Meeting
and Member Dinner. Attendees enjoyed our new
venue, the Newseum, and heard from a dynamic
lineup of speakers, including now-Speaker Paul
Ryan (R-WI), Senators Cory Booker (D-NJ) and
Rob Portman (R-OH), CEO of the Institutional
Limited Partners Association (ILPA) Peter Freire,
and TPG Co-Founder James Coulter. Discussions
were varied and included industry-specific topics
such as the generational changes in private equity
and the future development of the industry,
legislative-focused topics such as tax reform and
upcoming Congressional actions, and broader
issues facing the United States including gridlock
in Washington DC and criminal justice reform.
The annual Member Dinner, held the evening
prior, returned to the Hay-Adams Hotel and
featured guest speaker, Dr. Mark Zandi. Dr.
Zandi’s remarked focused on the trends of global
economies and potential resulting impacts.

17. Member Services | 16
and YPN networking reception. We will kick-off
the week with a President’s Reception that will
feature speakers from the California private
equity community.
Additionally, the PEGCC will launch our Young
Professionals Network in early 2016. The
Network is an important initiative in that it will
engage a portion of the PE community that was
not previously served by the Council.
Overall, PEGCC members can expect a robust
offering of in-person events and calls, and the
continual support of the Council through 2016. PE Perspectives: San Francisco will allow us to further
engage California-based private equity firms.
We will build on the successful
initiatives launched over the past few
years and add new features to our
event line-up in 2016.

18. 17 | Public Affairs
PUBLIC AFFAIRS
The Case for Carried Interest
MassPRIM Tops List in Private
Equity Returns Over Past 10 Years
Snapshot:
PEGCC's
Bronwyn Bailey
on ESG
Private equity strikes back at Bush
California Yields Most
PE Investments In 2014
Back to School: PEGCC Study
Finds Energy Fundraising Surge

19. Public Affairs | 18
MOBILIZING PORTFOLIO
COMPANIES
The Public Affairs and Government Affairs
teams facilitated 74 portfolio company visits
with Members of Congress this year through
our Portfolio Company Initiative. In its fifth year,
the Initiative, a critical buttress for the Council’s
lobbying and Congressional outreach efforts,
had its most successful year yet. We surpassed
our previous high of 67 visits facilitated in 2013.
To date the Portfolio Company Initiative has
generated over 290 portfolio company visits by
Members of Congress.
Over the course of 2015, we brought numerous
portfolio company CEOs to Washington for
Capitol Hill Days. We facilitated Capitol Hill
meetings from The Blackstone Group and The
Carlyle Group portfolio company Service King,
KPS Capital Partners portfolio company Expera
Specialty Solutions, The Riverside Company
portfolio companies Censis, The Dwyer Group,
Health Safety Institute, MNX, Tate’s Bake Shop
and Uinta Brewing Company, Silver Lake portfolio
company Dell SecureWorks and TPG Capital
portfolio company ProSight Specialty Insurance.
In 2016 we look to continue the growth of the
Portfolio Company Initiative and have set an
ambitious goal of facilitating 85 portfolio company
visits with Members of Congress through Capitol
Hill days and portfolio company facility visits.
Over the course of the year, our key
legislative issues were targeted on the
Presidential campaign trail, and several
high-profile “investigative” stories took
aim at our industry. We were prepared
for these challenges, however, and not
only did we effectively respond, but
we continued to advance the industry
image and better position private
equity for years to come.
MEDIA EFFORTS
We ensured that the PEGCC was engaged in news
cycle management and focused on a research-
based approach to our media activity. Through
improved promotion of PEGCC research material
and a steady output of PEGCC op-eds and Letters
to the Editor, we received coverage in over 230
stories. Just as importantly, we worked with a
widened group of publications to expand our
circle of media influence. We also conducted the
strongest media rollout of the PEGCC’s Top States
Districts report to date, with over 50 national,
trade, and state publications covering this report.
Our additional research report media placement
was similarly enhanced: we doubled the coverage
of our quarterly research reports in comparison
to the past four years during which these reports
were published.

20. 19 | Public Affairs
VIDEO CASE STUDIES
Our most successful video case study of the
year highlights the partnership between
member firm TA Associates and THI, a leading
supplier of branded light duty truck accessories
for pickup truck bed applications. The video
features representatives from TA Associates,
THI employees, and Senator Debbie Stabenow
(D-MI). It highlights the positive impact of
private equity on this portfolio company by
featuring strengthened operations, including
new manufacturing facilities and updated
process lines, and improved growth metrics and
economic viability.
WEBSITE
We completed an eight-month, comprehensive
redesign and re-launch of our website
(www.pegcc.org). This large-scale project
included a complete update to the content
for each of our policy pages, an across-the-
board shift to a more graphical presentation
of information, more intuitive webpage
architecture and navigation, and a new design.
This project allowed us to consolidate our two
main web properties – (www.pegcc.org) and
(www.privateequityatwork.com) – into one site,
while maintaining the branded campaign feel of
our advocacy work.
$51.9334
$29.4152
$33.9178
$42.8222
$20.3125
$18.1116
$13.597
$16.7104
TEXAS
ILLINOIS
FLORIDA
NEW YORK
PENNSYLVANIA
GEORGIA
COLORADO
NEW JERSEY
$9.881VIRGINIA
$20.2121
$10.985
$16.286
$8.950
$14.176
$7.344
OHIO $8.262MARYLAND
NORTH CAROLINA
MICHIGAN
WISCONSIN
TENNESSEE
$7.854ARIZONA
$8.782WASHINGTON
OKLAHOMA
$56.4385CALIFORNIA
Financial
Services
Materials Resources
Information
Technology
Business
Services
Healthcare
Consumer
Energy
Private equity invests in a wide variety of industries.
Invests approximately $4.5T
over the last
ten years.
Includes approximately 3,847
U.S. based private equity firms,
Companies backed by U.S. private equity
firms employ
19.6M
2014 U.S. Total: $486.4B in 3,139 portfolio companies
22%
29%
15%
11%
10%
5%
8%
AND
2014 U.S.
Private Equity
Investment
Private Equity at Work
Top 20 Private Equity Investment by State
(2014 Investments)
$16.5118
MASSACHUSETTS
This study is based on data collected by BISON from over 155 U.S. public pension funds, where data were available at the time of analysis (November 2015).
Return figures from marketable securities are reported both net and gross of management fees. Return figures for private equity and other illiquid assets are
typically reported net of management fees and carry.1
Ranking is based on 10-year annualized private equity returns as of June 30, 2014.2
Asset class returns are based on pension funds that reported 10-year annualized returns as of June 30, 2014.
3
Investment allocation is based on pension funds with reporting dates that range from March 31, 2014 to Dec. 31, 2014.
2.9% - Cash/Short-Term Investments
7.0% - Other
6.9% - Real Estate
9.3% - PRIVATE EQUITY
23.4% - Fixed Income
50.5% - Public Equity (Stocks)
Pension Funds
invest 9.3%of their portfolio in private equity.3
Asset Allocation by Total Dollars Invested
on a Dollar-Weighted Basis
Pension funds’ investments in private equity outperform otherasset classes based on median 10-year annualized returns2
8.2%
12.1%
5.8%
7.1%
REAL ESTATE
PRIVATE EQUITY
FIXED INCOME (BONDS)
PUBLIC EQUITY (STOCKS)
MEDIAN
ANNUALIZED
RETURN (%)
10-YEAR
1
Teacher Retirement System of Texas2
Massachusetts Pension Reserves
Investment Trust (PRIT) Fund
3
4
Houston Firefighters' Relief
and Retirement Fund
5
San Francisco Employees'
Retirement System
Minnesota State Board of
Investment (Combined Funds)
6
Iowa Public Employees'
Retirement System
7
New York State and Local
Retirement System
8
Virginia Retirement System
9
Utah Retirement System10
Oregon Public Employees'
Retirement System
Top 10 Pension Funds by Private Equity Return1
Private Equity: Strengthening
Retirement for Millions of Americans
CARRIED INTEREST?
CARRIED INTEREST IS A PROFITS INTEREST. NOT A FEE.
Carried interest is taxed at the long-term capital gains rate because it is a profits interest
in a long-held capital asset. Changing the taxation of carried interest would upend a
long-standing, successful policy that rewards entrepreneurial risk and has helped
America prosper for more than 100 years.
A limited partner
and a general
partner create
a partnership
to invest in
capital intensive
businesses such
as manufacturing
companies.
(Limited Partner)
(General Partner)
Contributes most of
the capital.
The LP practices
PATIENT INVESTING
over 3-7 years.
Receives ALL OF ITS INVESTED
CAPITAL as well as a HURDLE
RATE OF RETURN (e.g. 8% of
profits from sale) before remaining
profits are split with the GP.
Contributes some capital but also
expertise. For managing the fund’s
investments, the GP receives a
management fee, on which IT
PAYS ORDINARY INCOME TAXES.
Manufacturing Co.
Both the LP
and the GP
contribute to
the business.
The GP GROWS and
STRENGTHENS THE BUSINESS
over 3-7 years.
The private equity
partnership decides
to sell the business
for a profit, either
through an initial
public offering (IPO)
or strategic sale.
+
Invested Capital Hurdle Rate
General
Partner
80% distributed to the LP and 20%
(carried interest) distributed to the
GP. The carried interest is SUBJECT
TO A CLAWBACK if the hurdle rate
for all fund investments is not
subsequently satisfied.
Limited Partner
HOW CARRIED INTEREST WORKS IN PRIVATE EQUITY
Remaining profits are shared
Limited
Partner
Carried interest is an equity interest in the future
profits of a fund partnership. A private equity fund
sponsor retains this interest at the start of a fund. As
a profits interest in a capital asset – an operating
business – owned for years, carried interest bears with
it the risk that the business will not generate a profit.
WHAT IS

21. Public Affairs | 20
SOCIAL MEDIA PRESENCE
Using best practices for each platform, we
achieved consistent engagement with our
social media postings and a steady increase
in our audience numbers. We now have over
3,000 Twitter followers and our Facebook
and LinkedIn posts are also consistently being
shared and “liked” by our audiences. Our social
media channels are becoming a go-to source for
reporters and stakeholders interested in the
material we produce and curate.
MEDIA STRATEGY
We have developed a media strategy that will
allow us to continue to promote our research,
while simultaneously protecting our key legislative
issues and promoting the private equity industry.
Through these efforts, the PEGCC is well
positioned with reporters, lawmakers, and the
public at large in 2016.
230NEWS STORIES
COVERING PEGCC
290TOTAL PORTFOLIO
COMPANY VISITS TO DATE
3,142TOTAL NUMBER OF
TWITTER FOLLOWERS
BY THE NUMBERS

22. 21 | Public Affairs
Left to right – Dina Dwyer, Co-Chair of The Dwyer Group; Maura Mottolese, CEO of Tate’s Bake Shop; Steve Mills, CEO of Uinta
Brewing Company; Randy Smith, CEO of Censis; Bill Clendenein, CEO of HSI; Sen. Rob Portman (R-OH); and Paul Martins, CEO
of MNX.
Left to right – Auguste Goldman, Chief People Officer at GoDaddy; Nima Kelly,
General Counsel of GoDaddy; Senator Jeff Flake (R-AZ); Scott Wagner, COO
of GoDaddy; and Kevin Pigman, Sr. Vice President of Global Customer Care of
GoDaddy.
Left to right – Bill Reminder, CEO of THI;
and Senator Debbie Stabenow (D-MI).
PORTFOLIO COMPANY VISITS AND CEO CAPITOL HILL DAYS

23. Research | 22
RESEARCH

24. 23 | Research
DID YOU KNOW?
Private equity is the best performing asset class,
net of fees. The median pension fund generated
an annualized 12.1 percent return from private
equity investments over 10 years, compared
to 8.2 percent from public equity during the
same period. Massachusetts Pension Reserves
Investment Trust was the top pension, receiving
a 17.9 percent annualized return from private
equity over the past 10 years.
The PEGCC Research department
plays a key role in shaping the
perception of the private equity
through its publications and
speaking engagements.
PEGCC PUBLICATIONS
The 11 PEGCC reports released in 2015 gained
more coverage in local, state, national, and
trade publications than any other year of our
trade association. The PEGCC’s reports lay the
foundation for advocacy of policies that encourage
private equity investment. They include:
PUBLIC PENSION FUND ANALYSIS
This PEGCC annual study shows that private
equity provides a financial benefit to public
pension funds.
“Keeping our focus on the returns
required to provide retirement and
relief benefits to Houston’s firefighters,
we use the PEGCC pension analysis
as a benchmark to help us assess
how well the private equity program
is doing and how well we could do.
The study is a unique yet practical
real-world assessment tool for us and
others in the industry.”
– Linda Calnan, Senior Investment Officer,
Houston Firefighters Retirement and
Relief Fund

25. Research | 24
QUARTERLY REPORTS
The PEGCC launched a new quarterly report in
2015, the Industry Investment Report, which
provides sector-specific information on private
equity investment. This is the third quarterly
publication from the PEGCC research team, in
addition to PEGCC Trends Report and the PEGCC
Performance Update. PEGCC also partnered with
EY for a report that forecast the top 10 private
equity trends for 2016.
TOP STATES AND DISTRICTS
Private equity is important to the economic
growth of local communities, and this report
illuminates the diverse industries and regions that
receive investment from the industry.
DID YOU KNOW?
Private equity drove over $486 billion into
the US economy last year, with $55 billion
going to California alone. New York’s 12th
Congressional District topped the list with its
companies receiving $18.2 billion in private equity
investment in 2014.
Top 10 Private Equity Trends for 2016
By the Private Equity Growth Capital Council and powered by EY
22 January 2016
“The PEGCC’s quarterly Trends Report
provides a snapshot of key private
equity industry metrics and it is a
useful reference tool for comparative
trends in our industry”
- Amy L. Coleman Redenbaugh,
Chief Financial Officer, Thoma Bravo

26. 25 | Research
“Communicating the industry’s
performance to investors is critical.
The PEGCC’s quarterly updates give
me the information I need, backed by
credible analysis.”
- Lindsey King, Investor Relations
Marketing, Crestview
EXPANDING THE PEGCC
AUDIENCE
Designed to educate the Council’s key audiences,
PEGCC’s research has become widely known
and cited.
The audience for PEGCC analysis has grown
beyond the Beltway to include private equity
professionals, fund investors, and media
observers.
Increased exposure has led to numerous speaking
invitations. The Vice President of Research
represented the PEGCC across a variety of key
stakeholder engagements: Speeches at major
conferences, lectures at top universities, and
interviews with key private equity reporters on
topics that include GP/LP relations, ESG, and
regulation. PEGCC became the go-to source for
private equity trends, updates, and insights.
The PEGCC will continue its efforts in
providing new ways of demonstrating the
private equity industry’s positive impact on the
American economy.

27. Member Firms | 26
MEMBER FIRMS
ASSOCIATE MEMBERS
ACON INVESTMENTS
ADAMS STREET PARTNERS
AMERICAN SECURITIES
APOLLO GLOBAL MANAGEMENT
ARCLIGHT CAPITAL PARTNERS
BERTRAM CAPITAL MANAGEMENT
THE BLACKSTONE GROUP
THE CARLYLE GROUP
CCMP CAPITAL ADVISORS
CLEARLAKE CAPITAL
CRESTVIEW PARTNERS
THE EDGEWATER FUNDS
GENSTAR CAPITAL
GI PARTNERS
GTCR
HARBOURVEST PARTNERS
HELLMAN FRIEDMAN
THE JORDAN COMPANY
KELSO COMPANY
KOHLBERG KRAVIS ROBERTS CO.
KPS CAPITAL PARTNERS
LION CAPITAL
MADISON DEARBORN PARTNERS
NEW MOUNTAIN CAPITAL
PANTHEON VENTURES
PROVIDENCE EQUITY PARTNERS
RESOURCE CAPITAL FUNDS
THE RIVERSIDE COMPANY
SILVER LAKE
STERLING PARTNERS
TA ASSOCIATES
THOMA BRAVO
TPG CAPITAL
VECTOR CAPITAL
VESTAR CAPITAL PARTNERS
WELSH, CARSON, ANDERSON STOWE
CLEARY GOTTLIEB
DEBEVOISE PLIMPTON
DELOITTE
EY
GOODWIN PROCTOR
KIRKLAND ELLIS
KPMG
LATHAM WATKINS
O’MELVENY MYERS
PAUL WEISS
PROSKAUER
PWC
ROPES GRAY
SIDLEY AUSTIN
SIMPSON THACHER
SULLIVAN CROMWELL
VINSON ELKINS

28. WWW.PEGCC.ORG
Private Equity Growth Capital Council
799 9th Street, NW, Suite 200
Washington, DC 20001