ALTAMIR_REGISTRATION_DOCUMENT_2017

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SUPPLEMENTARY INFORMATION

Glossary

ENTERPRISE VALUE The value of a company (enterprise value or EV) corresponds to the market value of the industrial and commercial facilities. It is equal to the sum of the market value of shareholders equity (market capitalisation if the company is listed) and the market value of net borrowings.

ESG Environment, Social and Governance

EVERGREEN An evergreen structure is an investment companywith an unlimited duration, as opposed to private equity funds (FPCI) that generally have a 10-year life.

EXIT Sale of an investment to a company with strategic goals or to a financial investor, or via an IPO.

FAIR VALUE Fair value is an accounting standard for valuing assets and liabilities based on an appraisal of their market value.

FOLLOW-ON INVESTMENT An additional investment in an existing portfolio company.

FPCI FUND FPCI (fonds professionnel de capital investissement), or private equity fund, is the new name for the former FCPR (fonds commun de placement à risque). An FPCI is an investment fund but not a legal entity. It is managed by a management company, authorised by the French financial market authority (AMF), that acts, represents and makes commitments on behalf and for the account of the FPCI. At least 50% of its assets must be composed of unlisted shares. FRANCE INVEST (EX-AFIC–ASSOCIATION FRANÇAISE DES INVESTISSEURS POUR LA CROISSANCE) Professional association established in 1984 that includes nearly all of the capital investment companies in France. Its mission is to promote and develop private equity investment by federating all the players in the marketplace (www.franceinvest.eu). FUND OF FUNDS Private equity fundwhose primary activity is investing in other private equity funds. In this way, investors in funds of funds can increase their level of diversification. GAIN/LOSS ON SALE A capital gain or loss on sale is the positive or negative difference between the amount received from the sale of a security and its acquisition price. GROWTH CAPITAL Growth capital is a segment of private equity (like acquisition/LBO transactions) aimed at financing companies that have achieved a significant size and are profitable. The equity investment, usually aminority interest, is intended to finance the growth of the company. HURDLE RATE Minimum rate of return granted to private equity fund investors, below which no carried interest is paid to the private equity fund managers. In Altamir’s case, under its investment policy implemented in 2011, the hurdle rate is 8% for investments made via the Apax funds as well as for co-investments made alongside these funds.

INTERNAL RATE OF RETURN (IRR) Measures the annualised rate of return on invested capital. It is used to evaluate the performance of private equity transactions.

INTERNATIONAL PRIVATE EQUITY AND VENTURE CAPITAL VALUATION GUIDELINES (IPEV) Recommendations outlining best practices for valuing a portfolio of private equity investments.

INVEST EUROPE (EX-EVCA–EUROPEAN PRIVATE EQUITY & VENTURE CAPITAL ASSOCIATION) European professional association of investors in private equity, venture capital and infrastructure (www.investeurope.eu).

182 REGISTRATION DOCUMENT

• ALTAMIR 2017

www.altamir.fr