Altamir - 2018 Registration document

Supplementary information

Glossary

MANAGEMENT FEES Annual fees paid to the fund manager to cover the operating and administrative costs of the fund, typically a percentage of the committed amount of the fund. 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.

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

IPO (INITIAL PUBLIC OFFERING) An IPO is a financial transaction in which a company’s shares are admitted to trading on a stock market. This public equity offering allows a company to raise capital, increase its profile, and tap the financial markets if necessary.

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

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).

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

LIMITED PARTNERSHIP (LP) A tax-transparent investment structure, mainly usedbyAnglo-Saxonmanagers, andwhichgenerally has a 10-year life. The LP ismanaged by an independent management company, the General Partner (GP). Its investors are Limited Partners (LPs) who have limited liability. They are not involved in the day-to-day management of the funds but regularly receive detailed reports on the fund’s investments. LBO (LEVERAGED BUYOUT) Acquisition of a company by equity investors and the executives of the acquired company. The financingpackage comprises a relatively large proportion of debt (leverage), which is to be repaid with future cash flows.

LTM Last 12 months. Used to describe a financial indicator specifically focused on that period.

INVESTMENT MULTIPLE Measures the performance of invested capital but unlike IRR does not include a time factor and therefore complements IRR very well in evaluating the quality of performance realised by the equity investors.

DEBT MULTIPLE Ratio of a company’s debt to its EBITDA.

VALUATION MULTIPLES Ratio of a company’s enterprise value to its EBITDA.

NAV TR (TOTAL RETURN) NAV Total Return (NAV TR) measures the performance of NAV including dividends. It is calculated assuming that the dividend paid is reinvested in the company. 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.

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ALTAMIR 2018

Registration document