RSM McGladrey and McGladrey Capital Markets would like to thank the nearly 100 private equity senior executives and professionals nationwide who provided their information and insight for our March 2009 survey. The participants shared current concerns and business practices related to the management of their portfolio companies.

The research in this report reveals a range of business practices and trends among survey participants involved in a cross section of fund sizes and types.

Faced with a difficult economy and an anemic dealmaking environment, survey respondents have shifted their focus from acquiring new platform portfolio companies to managing the performance of existing investments. Information collected provides strong evidence of active monitoring and involvement with portfolio companies. Eighty-fi ve percent of funds participating in the survey report that communication with portfolio companies has increased in the past six months—and as many are in contact with their portfolio companies on a weekly and daily basis.

The report provides an inside look at the key areas and priorities private equity executives are focused on to maximize portfolio performance. Consider the following:

• Acquiring new customers, expanding existing customers and enhancing existing products and services are the top three portfolio company growth initiatives in 2009.

• Add-on acquisitions are the most frequent management activity being considered in today’s environment. Workforce reductions, working-capital management and salary freezes are the top three activities already implemented in response to the current economy.

• More than half of the respondents identifi ed corporate strategy as the area they will focus on most to increase portfolio company performance and value.

These and other findings provide insight into how your peers are managing their portfolio investments and may serve as a way for you to examine new ideas for your own business practices.

For any questions related to the survey or other services provided by RSM McGladrey and McGladrey Capital Markets please contact Nick Araco at nick.araco@rsmi.com

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Executive Summary

2009 Managing Portfolio Investments Full Survey

Jeff Johnson Hector J. Cuellar
Executive Managing Director President
RSM McGladrey Inc. McGladrey Capital Markets LLC