28 January 2014 Brokers. Asset Managers & Exchanges Alternative Asset Manager Initiation Business n ix differences across the fir ins Figure 5 (repeated from page 6) shows the business mix differences across the five Alts by reported business segment as well as revenue type. Figures 6 and 7 show the aggregated totals for these five firms graphically for the combined annual periods of 2012-2014E. The key takeaway is that private equity (at over 40% of economic income) stills forms the foundation of the business mix for these firms (aside from OAK). This also explains the high proportion of revenue from carried interest and incentive fees (at nearly half), which is the primary revenue model for private equity (i.e. the Alts receive roughly 20% of the portfolio investment gains after achieving hurdle rates around 8% annually, in most cases). [Figure 5: Alternative Manager Business Mi>. APO Business Line Private Equity 72% 27% 62% 42% 0% Credit 27% 14% 0% 0% 93% Real Estate 0% 46% 0% 0% 0% Capital Markets 0% 0% 0% 51% 0% Public Market Strategies 0% 0% 18% 7% 7% Alternatives Advisory 0% 12% 11% 0% 0% Real Assets 0% 0% 9% 0% 0% Business Advisory 0% 2% 0% 0% 0% Repotted Segment and Heyenue Type BX CG KKR Pretax Economic Income Mix (2012.14E) OAK Average Revenue Type Revenue Mix by Type (2012.14E) Average Fees 34% 42% 46% 31% 48% 40% Carried Interest & hcentives 61% 48% 52% 41% 43% 49% Principal & other income 5% 9% 2% 28% 9% 11% Sourct Conran. none and brad. Sn [Figure 6: Aggregate income mix by reported segment • Private Equity • Credit • Real Estate • Capital Matkets • Public Market Strategies • Alternatives Advisory at Real Assets • Civilness Advisory Nat he 20,244£ Sane anpre repeal aid Dewed. £W Page 10 (Figure 7: Aggregate revenue mix by characteristic Nat For 2012.14W Caron __J i top2 dr4Ortaelst Eant Deutsche Bank Securities Inc. CONFIDENTIAL — PURSUAN