Sector focus ~ Financial and Business Services We invest across the breadth of financial and business services. In the financial sector our interests include payment and card processing, banking and specialty finance, insurance and securities services. We focus on asset-light and outsourced business services that include corporate administration and public sector services.

Market trends

US and European regulatory changes continue to impact the structure of the financial services sector, specifically the payments and securities and capital markets sub-sectors. In Europe, the implementation of Basel III is expected to lead to more outsourcing and further restructuring of banks including disposals.

The adoption of new pricing schemes and alternative payment methods, as well as growth and consolidation, will continue to change the payments landscape.

Demutualization of market infrastructure providers is on the agenda in emerging markets. Insurance offers opportunities for international expansion and consolidation.

In business services, continued pressure on corporate budgets, slow economic recovery and the increasing burden of regulatory compliance will continue to benefit outsourced service providers with scale and expertise.

Complex carve-outs

Non-core divisions can make attractive and profitable carve-out investments. Payment processing has been a productive market for carve-out transactions in recent years, as banks have been forced to generate capital to meet new regulatory requirements or repay state aid. However, turning a collection of assets into an independent business is a complex process that requires persistence and an appetite for problem solving. Advent’s experience in carving out complex payment processing assets includes Monext, Fifth Third Processing Solutions and WorldPay. With the assistance of two operating partners, we transformed assets acquired from Experian France into Monext, a market leader in electronic payments. At Fifth Third Processing Solutions, our joint venture with Fifth Third Bancorp, the separation of IT systems being led by operating partner Clyde Thomas is over 60% complete, putting it well on the path to independence.

We will be leveraging our considerable experience of carve-outs in the financial sector to provide the best platform for growth for WorldPay, the global payment card services business acquired from Royal Bank of Scotland in late 2010.

www.worldpay.com
www.ftpsllc.com
www.monext.fr

1	1 Subject to closing.
2	Significant investment retained following IPO in 2009 and block trade in 2011.
3	Partial exit.
3	Subject to closing.