EFTA01127853.pdf

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L..- I t I _A • I • I A • _ Exhibit C CONCLUSION OF EQUITY INTEREST AS OF APRIL 16, 2007 Assets Applicable Lack of Marketability Aggregate Fair Partnees Pro Pro Remise % E slimed Asset Aggregate Marketable Discount Market Value Rata Interest Market Value Contnbution Value of Equity SO 10% SO 30.35% SO 0.0% /410110 lAsnapernont. L.P. 30.35% 5838.243 01% 33.068.801 10% 52.761,920 Apollo laanagemenl N. L.P. 30.35% 53.100.119 0.3% 512.017.131 15% 510214.562 Apollo Management V. L.P. 5162230.131 30.35% 549.236245 4.9% 51901159.971 15% Apollo Manngement N. L.P. 23.90% 5206.673,898 203% 51.017,345253 15% 5864241485 Apollo Ineestrrent litinagornen1, L.P. 554518.550 26.90% 313743190 1.5% 561.002.412 15% AFOlo Value mannoornent. LP. $236.855320 44.00% $104220.741 10.4% 5278.665.062 15% APolea SVF ManagereenL LP. 599.786.902 44.00% 543.908237-j " 4.4% ....¢...epetterSOF717125.ors. LP' $124.731627 20% re* 'rid 533235,887 44.00% $15.503.790 1.5% 544.044159 20% Apollo ASIA Managerreml.1.9. 44.00% 11.3.144408--S— 1.1% $31366.933 20% 525233346 A s A t ici___.apalmantrIllvlsON. L.P.' 44.00% $161757.015 16.3% ^ 5463218.791 20% 5372.175.033 Itite/ I l• a ..."-- Apdb Etron MsmgwOont. L.P. 44.00% $120,539,149 12.0% 5342440.764 20% 1273.952211 Apollo Niemen Assets, LP. 575.622571 729% 52.5711.452,620 S2130037927 S1010101 L7 til cif.) Planned FundsCooth 30.35% $92,940.669 92% 1382.706,941 20% 5300220.553 Apollo ttenegerneig VII LP. 24.64% 1751220.427 8.1% 439.504477 25% 5329.628358 Apollo Advisorg VII. LP. 524.649315 44,00% $10245211 1,1% $30,111.391 20% Apollo EPF Management. LP. 44.03% 59.786.562 1.0% 527202.732 20% $22242.185 Apollo EPF AdeisorS. LP. 44.00% 543.886.605 4.4% 5124.672855 20% $99,74224 New F.td Management* LEI $73453016 44.00% $33,40208 13% 593568.772 20% New Field MAWS. L.PR 5272.320,062 27.1% $1,101,152,171 5058.946.513 St.0101M $2996.914,440 65$ 1000% Total Assets $3375204201 LiabilllieS & Equity fi vipri 50 SO Total Liabilities 53,675,604,801 52.996 984 440 51.035.953 658 Total Equity 53,679604,801 52.996.984.440 $1.006,953.66$ Total Uatillilits and Equity 52.996 984.4.0 Aggregate Fax Maikel Value $1.035,051 650 Pro Rota, Fair market Value of P.vtriers Intim& 11,001551618 Pro Rata. Fair Market Value of Partnees Interest 33.57% Concluded Equity Interest of Partner In AMHLP 5 Cr• (550.297 683) Less. Investment Cotrpany Discatr4 5955,655975 worm: Manteca:le Woo 100% (595.665598) Less. Lodi Of mathotabity OncOtril 5860,090,378 Far Martel Vatm of 33.05% interest in ANNIP 5860,100000 Fair Martel Value of 3167% Interest in AMHLP. Rowided lr was entiopeoact nut ow carry re• income currentlypaid to Pie ftriPteen? Apo& Menapemen. man would began to be paid to the Apollo Advisor 00tity EFTA01127854  EXHIBIT A-1 APOLLO MANAGEMENT, LP DISCOUNTED FUTURE EARNINGS AS OF APRIL 16, 2007 HISTORY PROJECT PROJECT 2006 2007 2008 Adjusted Invested Capital $341,800,000 5119.600.000 SO Management Fees $6,034,471 $0 SO Operating Expense Ratio Estimate 68.6% 0.0% 0.0% Operating Expenses ($4,137,805) SO SO Operating Income $1,896,666 $0 $0 Margin: Adjustment Adjusted Pre-Tax Income $1,896,666 $0 SO Tax Rate 42% 42% 42% Tax $796,600 $0 SO Net Income 51,100,066 $0 SO Days 259 624 Present Value Factors 11% 1.0000 0.9286 0.8366 Present Value $0 SO Sum of Present Values s0 Pass-through premium 15% so Aggregate Marketable Value of Invested Capital so Less: Outstanding Debt s0 Aggregate Marketable Value of Partners' Capital so Partner's Pro Rata Percentage 30.35% so Discount for Lack of Marketability 10% so Pro Rata, Fair Market Value of Partner's Capital so Pro Rata, Fair Market Value of Partner's Capital, rounded $0 EFTA01127855  EXHIBIT A-2 APOLLO MANAGEMENT IV, LP DISCOUNTED FUTURE EARNINGS AS OF APRIL 16, 2007 HISTORY PROJECT PROJECT PROJECT PROJECT 2006 2007 2008 2009 2010 Adjusted Invested Capital' $1,043,700,000 $649,128.201 $0 $0 $0 Management Fees' $8,142,871 $3,164,500 $0 $0 Operating Expense Ratio Estimate 51.7% 32.0% 0.0% 0.0% Operating Expenses' ($3,176,672) ($1.012,209) $0 $0 Pre-Tax Income $2,966,199 $2,152,291 $0 $0 Adjustments $0 $0 $0 $0 Adjusted Pre-Tax Income $2,966,199 $2,152,291 $0 $0 Tax Rate 42% 42% 42% 42% Tax $1.245,804 $903,962 $0 $0 Net Income $1,720,395 $1,248,329 $0 $0 Horizon Value (Gordon Growth Model)' Days 259 624 989 1,354 Present Value Factors 0.9346 0.8496 0.7724 0.7022 Present Value $1.607.891 $1.060.632 $0 $0 Discount Rate: 10% Sum of Present Values $2,668,522 Pass-through premium 15% $400,278 Aggregate Marketable Value of Invested Capital $3.068,801 Less: Outstanding Debt $0 Aggregate Marketable Value of Partners' Capital $3.068,801 Partner's Pro Rata Percentage 30.35% $931,381 Discount for Lack of Marketability 10% ($93,138) Pro Rata, Fair Market Value of Partners Capital $838,243 Pro Rata, Fair Market Value of Partner's Capital, rounded $840,000 'Bated Oie Projections provided by menerment EFTA01127856  EXHIBIT A-3 APOLLO MANAGEMENT V, LP DISCOUNTED FUTURE EARNINGS AS OF APRIL 16, 2007 HISTORY PROJECT PROJECT PROJECT PROJECT PROJECT 2006 2007 2008 2009 2010 2011 Adjusted Invested Capital' 51,808,400,000 $1.694200.000 $984,976,667 $593,497,619 $150,000,000 $0 Management Fees' $13.348,875 $11,376,706 $6,653,302 $3.619,674 $843,750 Operating Expense Ratio Estimate 51.7% 32.0% 36.1% 41.9% 32.3% Operating Expenses' ($6.903.123) ($3.638.995) ($2.400.520) (61,516.158) ($272,830) Pre-Tax Income 56,445.752 $7,737,711 $4,252,782 $2,103.516 $570,920 Adjustments $0 $0 SO $0 $0 Adjusted Pre-Tax Income $6,445,752 $7,737,711 $4,252,782 $2.103,516 $570,920 Tax Rate 42% 42% 42% 42% 42% Tax $2.707.216 53.249,839 $1,786,168 5883,477 $239,787 Net Income $3,738,536 $4,487,872 $2,466,614 51.220,040 $331,134 Days 259 624 989 1,354 1,719 Present Value Factors 0.9407 0.8630 0.7918 0.7264 0.6664 Present Value $3,516,771 53,873,081 51,952,948 $886,211 $220,668 Discount Rate: 9% Sum of Present Values $10,449,679 Pass-through premium 15% $1.567.452 Aggregate Marketable Value of Invested Capital $12,017,131 Less! Outstanding Debt $0 Aggregate Marketable Value of Partners Capital $12.017,131 Partners Pro Rata Percentage 30.35% $3,647.199 Discount for Lack of Marketability 15% $547.080 Pro Rata, Fair Market Value of Partner's Capital $3,100,119 Pro Rata, Fair Market Value of Partner's Capital, rounded $3,100,000 Vend on ponotOons prove*:by management EFTA01127857  EXHIBIT B-4 APOLLO MANAGEMENT VI, LP DISCOUNTED FUTURE EARNINGS AS OF APRIL 16, 2007 HISTORY PROJECT PROJECT PROJECT PROJECT PROJECT 2006 2007 2008 2009 2010 2011 Adsusted Invested CaPitEll' $1601.000.000 $6,802,600,000 39.061,250,000 $8.479.508,333 $5.951.797,917 $1,200,000,000 Management Fees' 3120,175,978 $62,470,081 381,860,872 550.332.330 $22,943,613 Transacocn And Monitonng Fees' $357,252,000 3144,000,000 36 30 SO Broken Deal Fees' ($34,534,581) ($17,481,288) $0 SO SO LP Rebate' ($219,468,245) ($88.032,724) SO $0 SO Net Transaction and Mon4oring Fees 3103,279,174 340.485,988 30 SO 50 Total Management Fees and Net Transaction and Moneorirg Fees $223,456,152 $102,956.069 $61,660,872 $50.332.530 $22.943,613 Operating Expense Ratio Estimate 27.8% 32.0% 38.1% 41.9% 32.3% Operating Expenses' ($62,146,750) 019,981,910) (522.247,321) ($21,082,575) ($7.418.900) Pre-Tax Income $161,308,372 $82,974,158 339.413,552 329.249,955 $15.524,713 Adiustments $0 $0 $0 $0 SO Adiusted Pre-Tax Income $181,308,372 $82,974,158 $39,413,652 $29,249.955 $15,524,713 Tax Rate 42% 42% 42% 42% 42% Less: Tax 367.749.516 334,845147 316,553,692 $12.284.981 $8,520,380 Net Income $93,558,856 $48,125,012 $22,859,860 $16,964,974 $9,004,334 HOCIZOB Value (Gorckn Growth Model)* Darr 259 624 989 1.354 7,719 Present Value Factors 1.0000 0.9407 0.8630 0.7918 0.7264 0.6664 Present Value $88.009,078 $41,532,390 $18.099.357 $12.322.995 56.000.510 Discount Rate 9% Sum of Present Values $165,964,329 Pass-through premiwn 15% 524.894.649 Aggregate Marketable Value of Invested Capital $190,8,38.978 LOSS Outstanding Debt SO Aggregate Marketable Value of Padners Capital 5190,858,978 Partner's Pro Rata Percentage 30 35% $57.925,700 Drsoount for Lack of Marketabfirty 15% ($8,688,855) Pro Rata. Fair Market Value of Panne's Capital $49236,845 Pro Rata, Felt Market Value of Partner's Capital $49,200,000 Sued on goings.% peavaxI fry 01.14394470if EFTA01127858  E XHIBIT A-s DISCOUNTED FUTURE EARNINGS AS OF APRIL 16, 2007 HISTORY PROJECT PROJECT PROJECT PROJECT PROJECT 2006 2007 2008 2009 2010 2011 HOWLON Assets Under Management (June 30) 52800800,000 53,450.000,000 34.300.000.000 35,150,000,000 56.000.000.000 Assets Under Management (December 31) S2.178000,000 33,025,000,000 $3,875.000.000 34.725.000,000 55,575,000,000 36,425,000.030 Leverage 33.0% Unleveraged Assets Under Management (June 30) $1,954,887,218 32,593 984,982 S3,233882.707 53,872,180.451 34,511,278,195 Management Fees 2.0% 552,000,000 569.000.000 586.000,000 5103,000,000 $120.000,000 Yield on assets 12.0% $312,000,000 3414,900,000 5516.000,000 $618,000,000 5720.000,000 Other expense GSA ($1,000.000)i (52.000.000) ($3,000,000) (54.000.000) (45,000,000) Cost of debt 6.4% ($41,287,218) (1/54.784.952) (3613.282,707) (381,780,451) (395,278,195) Gross carry 20.0% 343,542,556 357,643,008 S71.743,459 385,843,910 399.944,361 399.944.361 Management Fees 352,000,000 389,000,000 586,000,000 $103,000,000 3120800,000 5120,000,000 Total Fees 395,542,656 $126.643.008 3157.743.459 3188843,910 3219,944,361 3219,944,361 45% 45% 45% 45% 45% 45% Less. Operating Expenses (342,994,150) (S56,989,353) (570.984,5561 (384,979,759) (3985174.9621 (6138.974,962) Pre-Tax Income 352,548,406 569,653,654 $86.758,902 $103884,150 5120.969,398 S120.969.398 Adjustment Adjusted Pre-Tax Income $52,548,406 369,653,654 586,758,902 $103.864,150 $120.969,398 3120.969.398 Tax Rate 42% 42% 42% 42% 42% 42% Tax (22,070,331) (29,254,535) (36,438.739) (43.622,943) (50.807,147) (50.807.147) Net Income 330,478,075 $40,399.119 350.320,163 580.241.207 370.162.251 370,162,251 Horizon Value (Gordon Growth Model)' 31,032.387,409 Discount Rate: 10.0% Long-Term Growth Rale 3.0% Days 259 624 989 1,354 1,719 1,719 PreSOnt Value Factors 0.9346 0.8496 0.7724 0.7022 0.6383 0.8383 Present Value $28,484,959 $34,324,753 $38.867.345 $42,300,336 344,787,929 3859,022.380 Sum of Present Values 2007 Multiples Aggregate Fully Marketable Minority Interest 5847,787,711 % of AUM MVICiRev MVIC./Op Inc Pass-through premium 20.0% $169,557,542 $2,600800,000 395.542,556 $52,548,406 Aggregate Marketable Value of Invested Capital $1.017,345,263 39.13% 10.8 19.4 Less: Outstanding Debt $0 Aggregate Marketable Value or Partners' Capital $1,017.345.253 Partner's Pro Rats Percenlage 23.93'4. 5243,145,515 Discount for Lack of Manualabdsty 15% (S30,471,827) Pro Rata, Ear Market Value of Partners Capital $208,673,688 Pro Rata, Fair Market Value of Partners Capital 3206,700,000 Gordon Growth Model ((baron Net Incisme x (1•grow4h rate)! (Capitalization rate • eta risk)] EFTA01127859  tAlusll Ay APOLLO VIF MANAGEMENT. LP DISCOUNTED FUTURE EARNINGS AS OF APRIL 16, 2007 PROJECT PROJECT PROJECT PROJECT HISTORY PROJECT HORIZON 2008 2009 2010 2011 2006 2007 Assets Under Management 3732.615.000 3809,539.575 3894,541130 5456.000.000 5600.000,000 3663.000000 Class A Assets MF) 510,989.225 312.143.004 510418.110 313.418,118 39.000,000 39.940000 1.5% Management Fees 45% 45% 45% 45% 45% 45% ($5064,392) (36.038.153) (36.038,153) Operating Expense Raba Estimate 154,050,000) ($4,475,250) (54.945,151) 36.044.074 16,678.701 57.370966 37.379.965 Operating Expenses 34.950,000 55.469,750 Pre-Tax Income $0 so so so so so 38.044,074 56,670701 17,379.965 17,379,965 Adjustments 35.469.750 42% 42% 42% 42% Adorned Pre-Tax Income 42% 42% (33.099.585) (32.538.511) 512.805.055) (53,099.565) Tax Rate (12.079.000) (32.297,295) 33.873.647 34,280180 34.280.380 Tax 52071,000 53,172,455 53.505.563 Net Income $62.982,731 Maroon Value (Gordon Growth Model)• 1.719 624 989 1.354 1.719 259 06383 0.7724 0.7022 0.6383 Days 0.9348 0.8496 32207,700 32,720,008 52,732,372 340.204,897 Present Value Factors 52.883.252 52.695.448 Present Virtue 10% Discount Rate. 3% Long-term growth rate 353243171 2007 Multiples Stint of Present Values %of AUM MVIC/Rev MVIC/Op Inc 20% 310 48135 Pass-thru Premium 3600.000,000 39,000.000 14,950 000 $64.492.412 Aggregate Marketable Value of Invested Capital 50 10.75% 7./ 13.0 Less Outstandrg Deaf 304.492.412 Aggregale Marketable Value of Partners' Capcal 26.90% 317,348.459 Partners Pro Rata Percentage 15% (32,602 269) Discount Ice Lack o4 Marketability 314246.190 Pro Rata. Fair Market Value of Parthers Capital rounded 314,700.000 Pro Rata, Faft Market Value of Partners Capital. /wee on tioneseerrnt rowboat EFTA01127860  DISCOUNTED FUTURE EARNINGS AS OF APRIL 16, 2007 HISTORY PROJECT PROJECT PROJECT PROJECT PROJECT 2006 2007 200$ 2009 2010 2011 HORIZON ASSeIS Under Management - SVP 5600.000,000 $1.000.000.000 Si .532060000 51.797285000 52.009.940.425 $2,451,383,770 Anon Under Klarreeddral - SOMA. 1400,000.000 3400.000.000 5600.000.000 5800.000,000 $1.000.003.000 51.200.070000 Management FitesiSVFn 2.0% $10623.000 529.640.000 $34,662700 $40,546459 547.351,713 Management Fees . SOMA 1.6% $47,354.713 53.400.000 $70013000 510,600000 $13,3