Monthly Investor Presentation www.conversus.com July 2011 - PowerPoint PPT Presentation

Monthly Investor Presentation www.conversus.com July 2011

Conversus Capital = Immediate Access to Top Tier Private Equity History History Distinctive Features • $1.8 billion equity offering in July 2007 • Offers immediate access to a top-tier, diversified and seasoned private equity portfolio • Listed on NYSE Euronext Amsterdam under ticker “CCAP” and trades in US$ • Quarterly cash distribution policy results in annual yield of 2.0% on NAV per unit and 2.5% on unit price 2 • Managed by Conversus Asset Management, LLC (CAM) • Efficient capital structure with strong liquidity position • Sponsored by Bank of America Merrill Lynch (BAC) and Oak Hill Investment Management (OHIM) 1 • Maintains strong alignment of interests between investors and management and management Company Facts 3 Estimated NAV per Unit $29.83 Unit Price Unit Price $23 90 $23.90 Market Capitalization $1,544 million Investment NAV $1,780 million Unfunded Commitments $494 million INVESTMENT MANAGEMENT Units Outstanding 64.6 million 1 At initial public offering, BAC made $200 million investment and OHIM made $25 million investment; OHIM will reinvest at least 25% of its performance fee Net Cash Balance $159 million until it has invested an additional $25 million 2 Estimated annual yield is calculated using last quarterly distribution paid. Actual amount and timing of distributions is subject to Conversus Board discretion, and Conversus cannot provide assurance that it will in fact make distributions as intended Credit Facility 4 $325 million 3 All data and statistics in this presentation are as of 31 July 2011 unless otherwise noted 4 Maximum borrowings of $325 million until the end of 2013 and $200 million from January 2014 through December 2014 2

Conversus Capital’s Strengths Governance & Structure Portfolio Diversity • 118 Fund Families Alignment g • Independent CFO and Board p • 206 Funds 206 Funds • Performance-driven compensation of Interests • 1,830 Portfolio Companies for investment manager • Substantial investment by sponsors and management Quality y • 87% are 2007 or older vintage funds 1 g • Of 2007 or older funds: • 36% are 1 st quartile 2 Balance • Net cash balance of $159 million • 84% are 1 st or 2 nd quartile 2 Sheet • $253 million net positive portfolio cash flow YTD Liquidity • $425 million in public securities, held primarily within underlying funds Maturity • Committed credit facility with Citi • Weighted Average Life • Portfolio Company Level: 5.2 years • Fund Level: 8.2 years 1 Excludes all funds purchased in secondary transactions 2 Thompson Reuters Venture Economics benchmarking data is as of latest available date (31 March 2011) 3

Estimated NAV per Unit and Common Unit Performance $30.08$29.83 $28 84 $28.84 $28 73 $28.73 NAV NAV per Unit U it U it P i Unit Price $30 $27.95 $27.69 $27.64 $27.71 20% $25.32 $24.99 Discount • NAV per unit increased 8% $24.16 $23.79 $23.50 $25 YTD to $29.83 $21.56 $20.85 $20.77 $20.33 • As of 31 July, CCAP units were trading at a 20% t di t 20% $20 discount to NAV per unit • NAV is net of distributions $15 paid totaling $0.65 per unit • Including distributions to unit holders, NAV per unit it h ld NAV it $10 has increased 22% since the IPO through 31 July 2011 $5 IPO at $25.00 per Unit Announced Tender Offer for $50 million Announced Realization Strategy Implemented Cash Distribution Policy and Declared Quarterly Distribution Implemented Fee Reduction Repurchased 0.6 million Units in a Block Transaction Repurchased 2 million Units in a Block Transaction and Completed Tender Offer and Repurchased 1.6 million Units Re-launched Liquidity Enhancement Program Completed Tender Offer and Repurchased 3.5 million Units Announced Tender Offer, Updated Investment Strategy , p gy and Amended Services Agreement 4

Average Daily Trading Turnover $6,000 $1,250 $5,045 $3,988 • • Chart reflects units traded on the regular order book of Chart reflects units traded on the regular order book of $2,145 $1,681 r ($ in thousands) Euronext, off market volume and unit repurchases $1,323 • Chart includes 8.9 million units repurchased since IPO $1,000 ly Trading Turnover $750 Avg. Dai $500 $250 $- IPO 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Euronext - Independent Volume Off Market - Independent Unit Repurchases 5

Portfolio Maturity and Cash Flow Mature Portfolio Portfolio Cash Flow 5.2 year average life at portfolio 18% 17% company level $200 $203 16% Distributions 16% $180 15% Primary Calls Direct Co-investments 14% $160 $165 $163 $140 12% nt NAV lions) 10% $129 $120 Drives Drives 10% 10% % of Investmen ($ in mil 8% $100 8% $99 7% $91 6% $80 6% $68 $60 4% 4% 4% $61 4% 3% 3% 3% $52 $5 $49 $40 2% $34 $34 $33 $32 $31 $20 $20 0% $13 $- < 2000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Cash Flows – 3 Month Moving Avg. • Net portfolio cash flow of $253 million YTD with $362 million of distributions, $104 million of calls and $5 Distributions million for a direct co-investment Capital Calls $69 $68 $67 $70 $57 $55 $60 $54 • Net portfolio cash flow of $354 million in 2010 with $522 $52 $50 $48 $45 $50 $44 million of distributions and $168 million of calls $42 ($ in millions) $40 $33 • Distributions are expected to exceed capital calls in 2011 $30 $20 by a significant margin and the net positive inflows for $22 $20 $17 $18 $16 $17 $18 $16 $10 $10 $15 $15 $13 $13 th the year will likely exceed the level seen in 2010 ill lik l d th l l i 2010 $13 $13 $10 $10 $0 July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July 2010 2011 6

Returns of Capital to Unit Holders ($ in millions) $300 • Conversus has completed two tender offers in 2011: $272 $185 Total • $75 million tender closed in Feb and $250 $50 fully subscribed at $21.25 per unit $50 $50 Pending • $50 million tender closed in May and undersubscribed with $36 million undersubscribed with $36 million repurchased at $23.00 per unit $200 • Conversus completed a block repurchase of 0.6 million units at $23.00 per unit, or $125 $14 million in June $150 • • In total Conversus has completed unit In total, Conversus has completed unit $ $175 repurchases of $175 million since the IPO which have been accretive to NAV per $222 $100 unit by $1.25 Actual $10 • Conversus announced a third tender offer $30 on 18 July for $50 million in a modified y $40 $40 $3 $3 Dutch auction with a price range of $23.50 $50 $12 to $25.00 which is scheduled to close 15 August $28 $47 $14 $5 • In conjunction with a quarterly distribution $9 $ ‐ policy, a distribution of $0.15 per unit was 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 T Total l declared in 2Q11 and paid on 29 July Q Distributions to Unit holders Unit Repurchases Open Tender Offer 7

Tender Offer Overview Tender Offer Details 1 Tender Offer Overview Goals: (i) create an accretive effect on remaining Open Date 18 July 2011 units, (ii) decrease trading discount and (iii) provide short-term liquidity for investors Close Date 15 August 2011 B Base Price per Unit P i U it $23.50 $23 50 Structure: Modified Dutch Auction Max Price per Unit $25.00 Common Unit Tender Agent: RBS Max Payment $50 million M Max # Units # U it 2 128 2.128 million illi RDU T RDU Tender Agent: BNY Mellon d A t BNY M ll • On 18 July, Conversus announced its third tender offer, bringing the total amount of capital returned to unit holders to over $200 million in the last twelve months, if the tender is fully subscribed • C Conversus sponsors, BAC and OHIM, as well as the management teams and Directors for Conversus and C O f C CAM, who in aggregate own 15% of outstanding units, will not participate in the Tender Offer • During the Tender Offer period, repurchases of units under Conversus’ Liquidity Enhancement Agreement with RBS have been suspended 1 Tender Offer documents can be accessed on Conversus’ website (www.conversus.com) 8