LBPE Investor Presentation 13-Mar-2009

8/14/2019 LBPE Investor Presentation 13-Mar-2009

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Lehman Brothers Private Equity Partners

LBPE Investor Presentation

13 March 2009


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Table of Contents

I. Investment Manager Update

II. Financial Performance Update

III. Market Performance

IV. Financial Position & Corporate Developments

V. Value Proposition

_____________________________________________________________

Appendices

A. Additional Portfolio Information

B. Credit Facility Covenant Tests


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Investment Manager Update


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LBPE Investment Manager Update

A new, independent investment management company, Neuberger Berman Group, LLC, will be created comprising

businesses that manage approximately $150 billion of assets

LBPEs Investment Manager, NB Alternatives (formerly called the Private Fund Investments Group), is a part of this

transaction, and the investment team is intact

The Board of Directors expects this transaction to significantly benefit LBPE by providing the Investment Manager with

a strong platform from which to continue managing the Companys high quality private equity portfolio

LBPE will continue to be managed by the same experienced management team

LBPEs Investment Manager remains committed to the goal of creating long term value for our shareholders

Management will control Neuberger Berman with 51% ownership of common equity and majority control of the board

of directors

The management buyout of Neuberger Berman and the fixed income and alternativeasset management businesses of Lehman Brothers Investment Management Division isscheduled to close on 30 April 2009

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Private Equity Fund of Funds

Co-investments

Secondaries

Hedge Funds Fund of Funds

Alternative Investment Solutions

Capital Analytics

NB Alternatives

Overview of Neuberger Berman

Neuberger Berman

Equity

U.S. Equity

International/Global Equity

Quantitative

Fixed Income

Cash & Short Duration

Tax-exempt

Investment Grade

Non-Investment Grade

Specialty

Traditional Non-TraditionalHedge Funds

Equity

Fixed Income

Quantitative

Commodities

$150 billion in total assets under management

Debt-free capital structure

Approximately 1,600 employees globally (U.S., Europe and Asia)

Majority owned by senior management

Research-driven approach to portfolio management combined with industry leading, sophisticated risk management

Independent, global investment management firm

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Approximately $11 billion of commitments managed

Approximately 185 professionals

Over 20 years as private equity investor

Global presence with offices in U.S., Europe and Asia

Serving over 150 institutional investors

NB Alternatives Private Equity

NB Alternatives Private Equity

Premier private equity funds of funds

Competitive Advantages

Team

Track Record

Tactical Asset Allocation

Portfolio Construction

Access, Diligence and Selection

Secondaries and Co-investments

Reporting and Investor Services

Flagship and Custom Funds

Fund of Funds Secondary Investments Co-investments

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NB Alternatives Private Equity Team

Led by Fund of Funds Investment Committee with

over 200 years of collective private equity

experience

Experienced team of senior professionals with

diverse backgrounds

Investment management

Direct private equity investing Corporate finance

Venture-backed companies

Legal, tax and structuring

Investment Team~ 50 Professionals

Investor Services~ 135 Professionals

CPAs, accountants, analysts, computer programmers

and other professionals Extensive proprietary private equity systems and

database

Sophisticated investor servicing capabilities

Fund accounting and reporting

Consolidated performance analysis

Risk management services

Transaction management

Fund of Funds Secondary Investments Co-investments

Focused on three disciplines

Large, diverse and experienced team

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Financial Performance Update


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LBPE Financial Performance Update

Cash and available credit facility exceed unfunded private equity commitments by $52 million

Private equity investment level increased to 107% at 28 February 2009

Funded capital calls and co-investments of approximately $187 million in 2008 and $7 million in

YTD 2009

Received distributions of approximately $46 million in 2008 and $3 million in YTD 2009

$137 million outstanding under the 7-year $250 million credit facility

Portfolio Highlights

___________________________Note: As of 28 February 2009. Past performance is not indicative of future results.

($ in millions, except per share values) 28 February 2009

(Unaudited Monthly)

31 December 2008

(Current Estimate)

31 December 2007

(Audited)

Fund Investments $357.3 $359.0 $326.4

Direct Co-investments $88.0 $89.8 $94.2

Total Private Equity Investments $445.4 $448.7 $420.6Private Equity Investment Level 107% 104% 75%

Cash and Cash Equivalents $114.1 $139.2 $145.3

Credit Facility ($137.0) ($151.9) -

Net Other Assets (Liabilities), including Minority Interest ($5.0) ($6.1) ($3.5)

Net Asset Value $417.5 $429.9 $562.5

Net Asset Value per Share $8.13 $8.19 $10.37

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$10.4

$4.1

$10.2$8.3

$1.7$2.7

$1.1 $1.8

$2.7

$5.1

$18.8

$14.8

$5.9 $4.3

$1.0$1.8

$0.9

$1.3

$0.3

$1.5

$0.2 $0.7

$1.6$0.2

$0

$5

$10

$15

$20

$25

$30

Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09

($ in millions)

Buyout Special Situations Growth / Venture

Capital Deployment Since 30 June 2008

Capital Deployment Since 30 June 2008

Over half of the capital invested since the middle of 2008 was directed to specialsituations / distressed funds

Total

Drawdowns

Buyout $38.5

Special Situations $52.6

Growth / Venture $6.5

Total $97.6

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Fund Investments

through 31-Dec-2008

57%

Private Co-

investments through

31-Dec-2008

20%

Fund and Co-

investments through

30-Sept-2008

3%

Credit Related Funds

and Public Securities

as of 28-Feb-200920%

Since the end of 2008, LBPEs Investment Manager has actively solicited valuationupdates from underlying sponsors in order to provide the latest estimates of fair value

LBPEs Valuation Process

___________________________Note: As of 28 February 2009.

28-Feb-2009 Preliminary Valuations by Date of Information

When issued, LBPEs audited financial statements for 2008 will include the additional valuation information received

subsequent to the end of the year

The annual report and audited financial statements for the year ended 31 December 2008 will be issued in April 2009

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LBPE Performance

LBPEs net asset value per share has decreased by 22% in the fourteen months since theend of 2007

___________________________Note: As of 28 February 2009. Past performance is not indicative of future results.

$8.13$0.01$0.10

($1.43)

($1.06)($0.29)

$0.27

$0.16$10.37

$7.00

$7.50

$8.00

$8.50

$9.00

$9.50

$10.00

$10.50

$11.00

$11.50

$12.00

Net Asse tValue Per

Share 31

December

2007

PrivateEquity Net

Realized

Gains

(Losses)

NetUnrealized

Change in

Privately

Held PE

Investments

NetUnrealized

Change in

Credit

Related &

Public PE

Investments

Interest andDividends,

including

Mezzanine

ForeignExchange

Adjustments

OperatingExpenses &

Other

AccretiveShare

Repurchases

Net Asse tValue Per

Share 28

February

2009

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LBPE Portfolio Performance by Asset Class

___________________________

Note: As of 28 February 2009. Past performance is not indicative of future results. TVPI represents the total value to paid-in multiple. Lehman Crossroads Fund XVII is a fund of funds portfolio diversified acrossall four asset classes.

1.09x 1.09x

1.01x 1.03x

1.23x

0.74x

1.03x

0.69x

1.14x

0.94x

0.0x

0.2x

0.4x

0.6x

0.8x

1.0x

1.2x

1.4x

Large-cap

Buyout

Mid-cap

Buyout

Special

Situations

Growth /

Venture

Fund XVII

TVPI

31-Dec-07 Audited 28-Feb-09 Monthly

Performance by Asset Class Large-cap buyout:

Lower public market comparables, higher degrees of

leverage and weakening operating performance led

to reduced valuations at the end of 2008

Mid-cap buyout:

Valuations declined across much of the portfolio but

to a lesser degree than large-cap buyout

Lower valuations were offset by unrealized gains in

the value of certain mid-cap buyout co-investments

Special situations:

Unrealized losses principally related to mark-to-

market adjustments on debt securities purchased by

trading and restructuring funds

Growth equity / venture capital:

Positive returns were driven by strong operating

performance at two of the larger companies in the

portfolio

From 31 December 2007 through 28 February 2009, the total value to paid-in multiple ofLBPEs portfolio decreased from 1.09x to 0.83x in aggregate

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LBPE Special Situations Portfolio Performance

___________________________Note: As of 28 February 2009. Past performance is not indicative of future results. TVPI represents the total value to paid-in multiple.

1.00x1.05x

0.92x

1.00x

0.60x

0.85x

0.77x0.81x

0.0x

0.2x

0.4x

0.6x

0.8x

1.0x

1.2x

Trading Restructuring Operational

Turnaround

Other (Fund

XVIII &

Mezzanine)

TVPI

31-Dec-07 Audited 28-Feb-2009 Monthly

Special Situations Performance by Strategy The special situations portfolio is in the early stages of

the J-curve with a majority of the capital deployed in

2008

It is not unusual for distressed portfolios to have initial

negative returns as managers build their investment

positions

If managers are making appropriate credit selections,

we would expect the distressed portfolios to appreciate

rapidly when markets begin to stabilize

By investing primarily in debt securities, the distressed

portfolios should provide downside protection

LBPEs special situations trading strategy portfolio was

negatively affected by the performance of the sole fund

utilizing material leverage at the fund level

From 31 December 2007 through 28 February 2009, the total value to paid-in multiple ofLBPEs special situations portfolio decreased from 1.01x to 0.69x

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The decline in valuations over the past fourteen months was spread across multiplevintages within the investment portfolio

LBPE Portfolio Performance by Vintage Year

___________________________

Note: As of 28 February 2009. Past performance is not indicative of future results. Lehman Crossroads Fund XVII is a fund of funds portfolio diversified principally across 2004, 2005 and 2006 vintages. LehmanCrossroads Fund XVIII is a fund of funds portfolio diversified principally across 2006, 2007 and 2008 vintages.

0.80x

1.49x

1.12x

1.34x 1.37x

1.02x 1.05x 1.04x 1.00x

1.23x

0.99x

0.59x

1.43x

0.66x

0.82x

1.14x

0.81x

0.86x

0.75x0.82x

0.94x

0.85x

0.0x

0.2x

0.4x

0.6x

0.8x

1.0x

1.2x

1.4x

1.6x

1.8x

2000 &

Earlier

2001 2002 2003 2004 2005 2006 2007 2008 Fund XVII Fund

XVIII

TVPI

31-Dec-07 Audited 28-Feb-09 Preliminary

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LBPE Co-investment Performance

___________________________

Note: As of 28 February 2009. Past performance is not indicative of future results. For co-investments that were transferred to LBPE in the IPO process, performance is calculated from the date of transfer basedon LBPEs purchase price.

From 31 December 2007 through 28 February 2009, the multiple on LBPEs co-investment portfolio decreased from 1.08x to 0.98x. To date, our mid-cap buyout co-investments (67% of the co-investment portfolio value) have performed relatively wellwith a 1.25x multiple

Multiple Range # Co-investments

28-Feb-2009

Fair Value ($mm)

Total Value to

Paid-in Capital % of Fair Value

< 0.5x 3 $3.7 0.24x 4.2%

0.5x - 1.0x 8 31.5 0.69x 35.8%

Held at Cost 2 1.0 1.00x 1.1%

1.0x - 2.0x 5 20.6 1.21x 23.3%

2.0x + 2 31.3 2.24x 35.6%

Total Co-investments 20 $88.0 0.98x 100.0%

Asset Class # Co-investments

28-Feb-2009

Fair Value ($mm)

Total Value to

Paid-in Capital % of Fair Value

Large-cap Buyout 5 $18.4 0.52x 20.8%Mid-cap Buyout 13 60.4 1.25x 68.6%

Other Co-investments 2 9.3 0.89x 10.6%

Total Co-investments 20 $88.0 0.98x 100.0%

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Market Performance


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LBPE Share Price and NAV per Share

LBPEs NAV per share was $8.13 at 28 February 2009

LTM Share Price Performance and Net Asset Value Per Share

___________________________Source: NYSE Euronext. Past performance is not indicative of future results.

$1.00

$2.00

$3.00$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

$10.00

$11.00

$12.00

Price

0

200

400

Volume (000's)

Daily Trading Volume Net Asset Value per Share Price per Share

$8.13

$1.69(79.2%

Discount)

12-Mar-08 30-June-08 31-Dec-0830-Sept-08 12-Mar-09

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Private Equity Discount to NAV per Share

We believe that LBPE shares are significantly undervalued. After subtracting thebalance of our net cash, public equity securities and credit related fund investments atfair value, our shares are currently trading at an implied discount of 91% to the fair valueof our other privately-held investments

___________________________Note: Net cash balance equals cash and cash equivalents minus total liabilities.

Investors have the opportunity to benefit from both NAV appreciation and

reduction of the NAV discount

Net Asset Value per Share $8.13

Minus: Net Cash, Public Equity Securities and

Credit Related Fund Investments Per Share ($1.08)

Private Investments per Share $7.05

Closing Share Price (12-March-09) $1.69

Minus: Net Cash, Public Equity Securities and

Credit Related Fund Investments Per Share ($1.08)

Market Value of Private Investments per Share $0.61

Private Investments Premium (Discount) to Private Equity NAV (91.3%)

Summary of Net Asset Value Per Share 28 February 2009

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Financial Position & Corporate Developments


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LBPE Financial Position

As of 28 February 2009, LBPEs private equity exposure and capital position consisted of the following:

Total private equity exposure of $621.0 million, including unfunded private equity commitments of $175.6 million

Total capital resources of $227.5 million, including cash and cash equivalents plus the undrawn credit facility

Excess capital resources over unfunded commitments of $51.8 million

Over-commitment level of 49%

LBPE has over 100% of unfunded commitments backstopped by cash and the undrawncredit facility


($ in millions) 28 February 2009

Net Asset Value $417.5

Total Private Equity Investments $445.4

Private Equity Investment Level 107%

Unfunded Private Equity Commitments $175.6

Total Private Equity Exposure $621.0

Over-commitment Level 49%

Cash and Cash Equivalents $114.1

Undrawn Credit Facility $113.3

Total Capital Resources $227.5

Excess Capital Resources Over Unfunded Commitments $51.8

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LBPE Credit Facility

LBPE continues to have access to its favorable credit facility

LBPE has a revolving credit facility with The Bank of Scotland for up to $250 million with a term expiring in August

2014

Borrowings under the credit facility bear interest at LIBOR plus 1.35% per annum

The key financial covenant is a maximum debt to value ratio of 50%

As of 28 February 2009, LBPE has $137 million of debt outstanding under the credit facility

During February 2009, LBPE paid down $15 million of principal on the credit facility

LBPE has $114 million of cash and cash equivalents as of 28 February 2009

Approximately $89 million is held in a JPMorgan money market fund that participates in the U.S. Treasury's

Temporary Guarantee Program for Money Market Funds

Approximately $25 million is held in U.S. Treasury bills

Less than $0.4 million is held in brokerage accounts


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LBPE Name Change NB Private Equity Partners Limited

NB Private Equity Partners Limited will reflect the name of our Investment Manager, NB Alternatives Advisers LLC

NBPE has been selected as the new ticker symbol for the Company

Our shares will continue to trade under the ticker LBPE until the ticker symbol change becomes effective

We will issue a press release notifying the public when the name and ticker symbol changes are finalized and when

our shares will begin trading under NBPE

The new Web site address will be www.nbprivateequitypartners.com

The Companys name and ticker symbol changes are expected to be completed in approximately two weeks

We believe the name change will symbolize the break from Lehman Brothers and alleviate confusion regarding any

connection to Lehman Brothers

We are pleased to announce that the Board of Directors approved the selection of NBPrivate Equity Partners Limited as the new name of the Company

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New Web Site for NB Private Equity Partners

We expect to launch a new Web site at www.nbprivateequitypartners.com

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New Lock-up Agreement

A Lehman Brothers affiliate currently owns approximately 14.5 million shares of LBPE which were purchased in the

initial public offering in July 2007 and are subject to a lock-up agreement due to expire on 18 July 2010

Under the terms of the new agreement, these shares will continue to be locked-up until 18 July 2010

After the lock-up period expires, the Investment Manager agreed, for a period of 18 months, to use all reasonable

efforts to assist the Lehman Brothers in selling its shares in up to three marketed secondary transactions

LBPE believes that this agreement will assist in the orderly disposition of the shares held by the Lehman Brothers estate

On 13 March 2009, LBPE announced a new lock-up agreement with the Lehman Brothersestate

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LBPE Liquidity Enhancement Program

Since the inception of the program, LBPE has repurchased nearly 2.9 million shares, or 5.3% of the total issued Class

A ordinary shares

During the month of February, LBPE repurchased 458,312 shares at a weighted average repurchase price of $2.34

per share

Share repurchases through 28 February 2009 have been accretive to NAV per share by approximately $0.27

In January 2009, LBPE announced an amendment to the liquidity enhancement agreement that increased the

maximum number of shares which may be repurchased to 7.5% of the total Class A ordinary shares in issue

The amended agreement will be in force until 15 April 2009 subject to extension at the election of LBPE

LBPE initiated a liquidity enhancement program in July 2008

___________________________

Note: As of 28 February 2009.

Liquidity Enhancement Program Activity

Month # of Shares Repurchased

Weighted Average Repurchase

Price per Share

July 2008 56,349 $7.93

August 2008 164,617 $7.82

September 2008 174,458 $6.74

October 2008 216,493 $4.72

November 2008 218,956 $2.41

December 2008 881,264 $1.51

January 2009 723,829 $2.60

February 2009 458,312 $2.34

Total 2,894,278 $3.02

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Recent Corporate Actions

Maintained a conservative capital structure with $52 million of excess capital resources as of February

Initiated re-branding of the Company to NB Private Equity Partners Limited NBPE

Reached a new lock-up agreement with the Lehman Brothers estate

Extended the liquidity enhancement agreement to improve trading liquidity in the stock and make

accretive share repurchases at depressed prices

Delivered high quality investor reporting

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Value Proposition


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LBPE Value Proposition

Experienced Investment Manager with a strong long-term track record

High quality private equity portfolio

Top-tier managers with proven success

Robust allocation to special situations / distressed

High quality co-investment program with proprietary access

High quality and transparent reporting

Conservative capital structure

Cash and the available credit facility exceed unfunded private equity commitments by $52 million

$114 million of cash and cash equivalents and $113 million undrawn on our credit facility

We continue to believe that LBPE offers a compelling investment opportunity

___________________________


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Additional Portfolio Information


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LBPE Vintage Year Diversification

31% of LBPEs vintage year 2007 portfolio, and 90% of the 2008 portfolio, is dedicated tospecial situations / distressed investments

___________________________

Note: As of 28 February 2009. Certain figures may not total due to rounding.

($ in millions) Vintage Year


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Europe

20%

Asia / Rest of

World

4%

North America

76%

LBPE Portfolio Diversification

Geography

Private Equity Asset Class

Industry

Diversification based on the fair value of private equity investments at 28 Feb. 2009:

1

Vintage Year

Buyout Funds50%

Buyout Co-

invest 19%

Secondary

Purchas es 2% Growth /

Venture 5%

Special Sit Co-

invest 2%

Special Sit

Funds 22%

2007

33%2008

11%

2000 &

Earlier

1%2009

0%

2004

2%2003

2%

2001

4%

2005

13%

20022%

2006

32%

Energy /

Utilities

23% Industrials

10%

Comm. /

Media

5%

Consumer /

Retail8%

Financial

Services

10%

Technology /

IT

8%

Healthcare

8%

Business

Services

6%

Transport.

2%

Diversified /Undisclosed /

Other

20%

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Europe

24%

Asia / Rest of

World

4%

North America

72%

LBPE Portfolio Diversification

Geography

Private Equity Asset Class

Industry

Diversification based on total private equity exposure at 28 February 2009:1

Vintage Year

Consumer /Retail

9%

Energy /

Utilities

21%

Business

Services

6%

Financial

Services

11%

Industrials

12%

Technology /

IT

8%Healthcare

8%Comm. /

Media

7%

Transport.

3%

Diversified /

Undisclosed /

Other15%

Buyout Funds

53%

Special S itFunds

21%

Special Sit Co-

invest

1%Growth /

Venture

8%

Secondary

Purchases

2%

Buyout Co-

invest

15%

2007

35%

2006

31%

2001

3%

2003

2% 2002

2%

2009

1%

2004

2%

2005

12%

2000 &

Earlier

1%

2008

11%

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Private Equity Investment Portfolio

The following is a list of our private equity investments as of 28 February 2009

Fund Investments Asset Class Fund Investments Asset Class

AIG Highstar Capital II Buyout Sankaty Credit Opportunities III Special Situations

American Capital Equity II Buyout Summit Partners Europe Private Equity Fund Growth Equity

Apollo Investment Fund V Buyout Sun Capital Partners V Special Situations

Aquiline Financial Services Fund Buyout Terra Firma Capital Partners III Buyout

ArcLight Energy Partners Fund IV Buyout Thomas H. Lee Equity Fund VI Buyout

Avista Capital Partners Buyout Trident IV Buyout

Bertram Growth Capital I Growth Equity Warburg Pincus Private Equity VIII Buyout

Carlyle Europe Partners II Buyout Wayzata Opportunities Fund II Special Situations

Centerbridge Credit Partners Special Situations Welsh, Carson, Anderson & Stowe X Buyout

Clayton, Dubilier & Rice Fund VII Buyout

Clessidra Capital Partners Buyout

Corsair III Financial Services Capital Partners Buyout Direct Co-investments Asset Class

CVI Global Value Fund Special Situations Avaya, Inc. Buyout

Doughty Hanson & Co IV Buyout Dresser Holdings, Inc. Buyout

First Reserve Fund XI Buyout Edgen Murray Corporation Buyout

Investitori Associati III Buyout Energy Future Holdings Corp. (f/k/a TXU Corp.) Buyout

J.C. Flowers II Buyout First Data Corporation Buyout

KKR 2006 Fund Buyout Firth Rixson, plc (Equity) Buyout

KKR Millennium Fund Buyout Firth Rixson, plc (Mezzanine) Special Situations

Lehman Crossroads Fund XVII Diversified Freescale Semiconductor, Inc. Buyout

Lehman Crossroads Fund XVIII Large-cap Buyout Buyout GazTransport & Technigaz S.A.S. Buyout

Lehman Crossroads Fund XVIII Mid-cap Buyout Buyout Group Ark Insurance Holdings Limited Buyout

Lehman Crossroads Fund XVIII Special Situations Special Situations Kyobo Life Insurance Co., Ltd. Buyout

Lehman Crossroads Fund XVIII Venture Capital Venture / Growth Linn Energy, LLC Buyout

Lightyear Fund II Buyout MaRI Holdings Limited Buyout

Madison Dearborn Capital Partners V Buyout Press Ganey Associates, Inc. Buyout

OCM Opportunities Fund VIIb Special Situations Sabre Holdings Corporation Buyout

OCM Principal Opportunities Fund IV Buyout Seventh Generation, Inc. Growth Equity

Platinum Equity Capital Partners II Special Situations TPF Genco Holdings, LLC Buyout

Prospect Harbor Credit Partners Special Situations Unin Radio Buyout

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Largest Underlying Investments

At 28 February 2009, the estimated fair value of our twenty largest portfolio company investmentswas approximately $132 million, representing 30% of total private equity investments. No singlecompany accounted for more than 5.0% of the total private equity portfolio. Listed below are thetwenty largest portfolio company investments in alphabetical order

Approximately $19 million of our private equity portfolio was comprised of companies with publicly-traded securities as of 28 February 2009, representing 4% of total private equity investments

___________________________** Indicates exposure to both equity and debt securities.

Note: As of 28 February 2009, our ten largest portfolio company investments totaled approximately $97 million in fair value, representing 22% of the total private equity portfolio.

Company Name Company Status Company Name Company Status

Affinion Group Holdings Inc Privately-Held Linn Energy, LLC Publicly-Traded

Avaya, Inc. Privately-Held Nielsen Company Privately-Held

California Highwind Power Privately-Held Nycomed Holdings A/S Privately-Held

Dresser Holdings, Inc. Privately-Held Power Holdings Inc. Privately-Held

Edgen Murray Corporation Privately-Held Sabre Holdings Corporation Privately-Held

Energy Future Holdings (f/k/a TXU Corp.) ** Privately-Held ServiceMaster Company Privately-Held

First Data Corporation ** Privately-Held Terra-Gen Power, LLC Privately-Held

Firth Rixson, plc ** Privately-Held TPF Genco Holdings, LLC Privately-Held

Group Ark Insurance Holdings Limited Privately-Held U.S. Foodservice Inc Privately-Held

HD Supply Company ** Privately-Held Unity Media Privately-Held

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Credit Facility Covenant Tests


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LBPE Credit Facility Covenants

The key financial covenant for LBPEs credit facility is a maximum debt to value ratio of50.0%

___________________________


Defined as Restricted Total Exposure divided by the aggregate of shareholders equity and the

total amount of the credit facility

Restricted Total Exposure is defined as the value of private equity investments (less any

restricted value) plus unfunded private equity commitments

If the total asset ratio is greater than 25.0% and the commitment ratio is greater than 130.0%, then

LBPE is restricted from making new private equity investments

At 28 February 2009, the commitment ratio was 92.4%

Defined as total debt and current liabilities divided by Secured Assets

Secured Assets are defined as the value of secured private equity investments plus cash and

cash equivalents

The secured asset ratio is not to exceed 80.0%

At 28 February 2009, the secured asset ratio was 35.7%

Defined as total debt and current liabilities divided by Restricted NAV

Restricted NAV is defined as the value of private equity investments (less any restricted

value) plus cash and cash equivalents

The total asset ratio is not to exceed 50.0%

At 28 February 2009, the total asset ratio was 26.0%

Secured Asset Ratio

Commitment Ratio

Total Asset Ratio(Debt to Value)

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Endnotes

1. The diversification analysis by asset class and investment type is based on the net asset value of underlying fund investments and co-investments

(including unfunded commitments on a total private equity exposure basis). The diversification analysis by vintage year, geography and industry

is based on the diversification of underlying portfolio company investments at fair value as estimated by the Investment Manager. The vintage

year diversification also includes an allocation of net cash flows and valuation adjustments made since financial statements were last received from

the investment sponsor. Determinations regarding asset class, geography and industry, as well as the allocation of unfunded commitments on a

total private equity exposure basis, also represent the Investment Managers estimates. Accordingly, the actual diversification of our investment

portfolio and the diversification of our investment portfolio on an ongoing basis may vary from the foregoing information.

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Documents

LBPE Investor Presentation 13-Mar-2009