2011 showed us another year of uneven economic conditions globally. Good markets
early in the
year quickly became overheated. A renewed credit crisis, high volatility, and economic softness
hit the latter half of the year marking a turbulent landscape for private equity. Throughout the
year, we relied heavily on the dynamic partnership of our team, our operating partners, and our
management teams to guide Advent’s portfolio companies and to achieve our collective goals.
True to our primary aim, we remained focused on enhancing our portfolio companies. We supported
management teams in making the right strategic and tactical choices to strengthen and accelerate
portfolio company growth with help from our own Portfolio Support Group and a diverse range of
talented operating partners and industry advisers. As a result, across the portfolio, revenues
grew by 14% and average earnings growth increased by 13%. 2011 was also a very busy year for
portfolio development with the completion of important add-on acquisitions for Vantiv, Party
City/Amscan, MEDIAN Kliniken, ABC Supply, SkillSoft and Kroton which have hopefully paved the
way for value creation in the years ahead.
Over a period when it has been exceptionally hard to find, structure and execute deals that meet
our demanding criteria, we have announced our investment in 16 companies across 13 countries.
Investment discipline was the order of the day, as high prices in some markets would not have
allowed us to make a substantive difference in the value of the company. Many of the investments
were the culmination of lengthy sub-sector analysis and relationships built over many
The volatility of exit markets proved another challenge. Using our creativity, contacts and
global coverage, 13 companies moved on to the next stage of their development between January
2011 and March 2012.
We remain vigilant in monitoring both the portfolio and ourselves to ensure that we are able to
take advantage of viable opportunities. Processes that were strong have been reinforced. Our
team, coordinated and dedicated, has worked harder and smarter to build on each other’s
capabilities. We have maintained a strategic discipline while adapting our tactics to the
economic cycle. We continue to invest heavily in our own organization and capabilities to
underpin future success.
Despite the challenging economic situation, 2011 showed us once more that matching creativity
discipline leads to rewarding opportunities.
We would like to thank the management teams, investors, operating partners and our own team for
their exceptional integrity and commitment that have enabled us to perform successfully in these
unpredictable times. Advent continues to grow in its knowledge and experiences and our
active partnership with our portfolio companies is stronger than ever.
The Advent Partners, March 2012