With your support, in 2011, Advantage Partners celebrates 19 years since its establishment and 14 years of private equity operations. During this period, funds served by Advantage Partners have invested in 32 separate companies, the highest among Japanese private equity firms.

The global economy is headed towards recovery following the recent unprecedented financial crisis, in part due to growth in Asian and other emerging economies and to monetary and fiscal support from governments around the world. Likewise, M&A activity, both volume and transaction size, continues to recover and increase around the globe. Funds served by Advantage Partners have also been successful in sourcing new opportunities, completing investments in four separate companies during the past year. Advantage Partners continues its focus on executing successful investments that promote and enhance the competitiveness of Japanese companies.

Advantage Partners also continues its ongoing support of existing portfolio companies to increase enterprise value and deliver a high-quality product to end customers through a variety of approaches including improved cash flow management and revenue enhancement initiatives, including expansion in Asia. Advantage Partners is focused on creating companies that are able to maintain their competitiveness and sustain long-term growth beyond the firm's involvement. During the past year, one portfolio company was acquired by its strategic partner, while another successfully executed an initial public offering.

Advantage Partners has pioneered the buyout industry in Japan after establishing the first buyout fund in Japan in 1997, contributing to the growth and expansion of the market since its onset, and creating increased value for fund investors and other stakeholders.

We are committed to continuing to generate strong results for all of our partners and appreciate your ongoing support of these efforts.