So what do you think about club deals?

1. Which of the following most accurately describes your view as to why more large club deals are happening?
A. Auctions are driving prices for large assets beyond a single buyer's reach;

B. The tight financing market is obliging greater equity commitment from buyers;

C. Private equity firms are wary of taking on too much exposure to one large asset;

D. Private equity firms are forging increasingly close relationships with each other;

E. Big buyout funds are reaching into new markets where they want a local partner;

F. Other [please specify].

2. Which of one the following would you consider the most important benefit to a private equity firm participating in a club deal?
A. More valuable assets can be acquired;

B. Exposure to a particular acquisition is reduced;

C. Burden of executing the transaction is shared;

D. Can leverage others' contacts, relationships and know-how;

E. Partnering with a specialist reduces the risk of investing in a new market.

3. Which of one the following would you consider the most important drawback to a private equity firm participating in a club deal?
A. Ownership of the bid process gets confused and hence compromised;

B. Ability to influence development of acquired company is reduced;

C. Potential to maximise exit value is no longer managed just by one firm;

D. Proprietary knowledge is lost to competing private equity firms;

E. Stand alone identity and market profile of the firm is reduced;

F. Other [please specify].

4. Some limited partners are concerned that club deals compromise a fund's ability to manage its own destiny [and performance]. Do you agree?
A. Yes

B. No

C. Sometimes

5. For a limited partner which of the following would you consider the most important when considering funds that participate in club deals?

A. The funds are not going to be making controlling investments;

B. Exposure to one investment may be much higher than anticipated as more than one of your funds may be invested in the same company;

C. You should demand lower management fees as the fund is bringing less to the table;

D. You may encounter tax problems on exit if you are invested in one portfolio company via a number of funds

E. Other [please specify].

6. What's the best structure to a club deal?

A. One lead and a group of co-investors;

B. One large buyout firm and a home market specialist;

C. Any number of funds so long as they have different home markets;

D. Any permutation of private equity and strategic investors;

E. None, as club deals don't work.

7. For buyouts in excess of €1bn in enterprise value over the next 2 years, what percentage would you predict will be club deals?

A. Less than 10 per cent;

B. Between 10 and 25 per cent;

C. Between 25 and 40 per cent;

D. Between 40 and 55 per cent;

E. More than 55 per cent.

8. For mid-market buyouts [between €50m and €250m in enterprise value] over the next 2 years, what percentage would you predict will be club deals?
A. Less than 10 per cent;

B. Between 10 and 25 per cent;

C. Between 25 and 40 per cent;

D. Between 40 and 55 per cent;

E. More than 55 per cent.