Financial Times/Harris Poll Shows Familiarity of the Concept of Private Equity is Low Among Adults in Five EU Countries and in the U.S.

LONDON and ROCHESTER, N.Y. – April 23, 2007 – Results from the latest Financial Times/Harris Poll, conducted among adults in five European countries and in the United States, indicate that only very small percentages of the population in each country are familiar with the concept of ‘private equity’. Familiarity with private equity ranges from 16 percent in Italy to only seven percent in Germany. Majorities in almost all of the countries surveyed, with the exception of Italy (49%) state they are ‘not at all familiar’ with private equity.

The study found that, among those who are familiar with private equity, attitudes about private equity are fairly consistent, though more positive in Spain. For example, a majority in Spain feel that the industry creates more jobs than it destroys (51% versus 20%). Conversely, the perception in France (37%) and Germany (40%) is that the private equity industry is perceived as destroying more jobs than it creates.

On one point there is a near consensus among the countries, with the exception of the US: at least eight out of every 10 adults familiar with private equity in each country agree that there should be greater transparency from the private equity industry sector relating to performance and the companies owned. In the U.S., however, a smaller proportion of those familiar say there should be greater transparency, with just over one in five saying ‘no’ and another one in five are ‘not sure’.

Lack of public knowledge of private equity is underlined by the fact that the bulk of adults are unable to name any private equity firms when asked unprompted. Italian (9%) and French (17%) adults who are aware of private equity are less likely to be able to name a company, whilst German (36%) and British (32%) adults are more likely to be able to do so. 24 percent of Germans say they cannot name a firm— which is the lowest proportion saying that among the six countries surveyed.

Substantial majorities of those familiar with private equity in Spain (68%) and in France (66%) feel debt financing as a method of obtaining additional funds to finance operations poses a ‘moderate’ or ‘major’ risk to the wider community in their countries. This contrasts with adults in Great Britain (44%) and the U.S. (45%) who feel that this presents a ‘small’ or ‘no’ risk to the wider community.

On the subject of pensions there are big differences among the countries. Majorities of those aware of private equity in three countries say they have a pension: fully 70 percent of adults in Great Britain, 56 percent in Germany and 51 percent in Spain have or believe they have a pension, whilst majorities of adults in the other three countries, France (57%), the U.S. (57%) and Italy (68%), say they do not have a pension. Of those who have a pension, apart from adults in Spain (48%) who state that their fund invests in private equity, most people with pensions are either unsure as to whether their funds invest in private equity or not, or they believe they do not.

Q1600_1 "We are now going to ask you a few questions about the private equity industry. How familiar are you with private equity?"

Base: All adults in five EU countries and the U.S.

Note: Percentages may not add up exactly to 100% due to rounding.

*Less Than 0.5%

Q1605_1 "Given what you know about private equity, do you see the involvement of private equity having a positive or negative impact on your country?"

Base: Adults in five EU countries and the U.S. familiar with private equity

Note: Percentages may not add up exactly to 100% due to rounding.

*Less Than 0.5%

Q1610_1 "Do you think private equity creates more jobs or destroys more jobs in your country?"

Base: Adults in five EU countries and the U.S. familiar with private equity

Note: Percentages may not add up exactly to 100% due to rounding.

*Less Than 0.5%

Q1615_1 "Is private equity doing enough to address concerns about it?"

Base: Adults familiar with private equity who answered ‘negative’ from Q1605 or Q1610

Note: Percentages may not add up exactly to 100% due to rounding.

Low base sizes: Results in this table should only be viewed directionally.

Q1620_1 "Which of the following words do you think apply to the private equity industry?"

Base: Adults in five EU countries and the U.S. familiar with private equity

Note: Multiple-response question

Q1625_1 "Should the private equity sector be made to be more transparent about its performance and that of the companies it owns?"

Base: Adults in five EU countries and the U.S. familiar with private equity

Note: Percentages may not add up exactly to 100% due to rounding.

Q1626_1 "Can you name any private equity firms?"

Base: Adults in five EU countries and the U.S. familiar with private equity

Note: Percentages may not add up exactly to 100% due to rounding.

Q1635_1 "Private equity firms sometimes finance their operations by borrowing money and going into debt.

To what extent do you think this presents a risk to the wider community of your country?"

Base: Adults in five EU countries and the U.S. familiar with private equity

Note: Percentages may not add up exactly to 100% due to rounding.

Q1640_1 "Do you have a pension?"

Base: Adults in five EU countries and the U.S. familiar with private equity

Note: Percentages may not add up exactly to 100% due to rounding.

Q1645_1 "Do you know if your pension fund invests in private equity?"

Base: Adults in five EU countries and the U.S. familiar with private equity who have a pension

Note: Percentages may not add up exactly to 100% due to rounding.

This FT/Harris Poll was conducted online by Harris Interactive among a total of 6,587 adults (aged 16 and over) within France, Germany, Great Britain, Spain, the United States, and adults (aged 18 and over) in Italy between 28^th March and 12^th April 2007. Figures for age, sex, education, region and Internet usage were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was used to adjust for respondents’ propensity to be online. Both unweighted and weighted bases are shown, and the results/percentages represented are weighted.

Unweighted bases for the survey are: Total 6,587; France 1,114; Germany 1,123; Great Britain 1,146; Italy 1,068, Spain 1,075 and the United States (1,061).

Weighted bases for the survey are: Total 6,548; France 1,110; Germany 1,094; Great Britain 1,155; Italy 1,068, Spain 1,061 and the United States 1,060.

All surveys are subject to several sources of error. These include: sampling error (because only a sample of a population is interviewed); measurement error due to question wording and/or question order, deliberately or unintentionally inaccurate responses, non-response (including refusals), interviewer effects (when live interviewers are used) and weighting. With one exception (sampling error) the magnitude of the errors that result cannot be estimated. There is, therefore, no way to calculate a finite "margin of error" for any survey and the use of these words should be avoided.

With pure probability samples, with 100 percent response rates, it is possible to calculate the probability that the sampling error (but not other sources of error) is not greater than some number. With a pure probability sample of 6,587, one could say with a ninety-five percent probability that the overall results would have a sampling error of +/-1.5 percentage points. For individual countries, sampling error would be +/-3.5 percentage points. However that does not take other sources of error into account. This online survey is not based on a probability sample and therefore no theoretical sampling error can be calculated.

About Harris Interactive
Harris Interactive is the 12th largest and fastest-growing market research firm in the world. The company provides innovative research, insights and strategic advice to help its clients make more confident decisions which lead to measurable and enduring improvements in performance. Harris Interactive is widely known for The Harris Poll, one of the longest running, independent opinion polls and for pioneering online market research methods. The company has built what it believes to be the world’s largest panel of survey respondents, the Harris Poll Online. Harris Interactive serves clients worldwide through its United States, Europe and Asia offices, its wholly-owned subsidiaries Novatris in France and MediaTransfer AG in Germany, and through a global network of independent market research firms. More information about Harris Interactive may be obtained at www.harrisinteractive.com.

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Nancy Wong

585-214-7316

nwong@harrisinteractive.com