EFTA01128007.pdf

I_ _I L---I _a i . ._a t_ 1 Exhibit C CONCLUSION OF EQUITY INTEREST AS OF APRIL 16. 2007 Applicable Lack of Aggregate Marketable Marketability Aggregate Fair Partners Pro Pro Rail Fair % Extorting Asset Value of faulty Discount Market Value Rata Interest Market Value Contribution 10% 50 30.35% SO 0.0% Atwoo Man gement I P. SO 33.066.801 ID% $2,761,920 30.35% 5838213 0.1% ApAlo Management IV. LP. 30.35% $3,100,119 0.3% 512,017.131 15% 310214,562 Apao Management V. L.P. 5162,230131 30.35% 549.136.845 49% Aped!n Man towne a VI. LP. $190.058,978 15% 15% 5864,743.465 23.90% 3206.673,686 203% Apo& linestmcr1Management. L.P. 31.017245253 15% 554618.550 26.90% 514,746.190 1.5% Apollo Value Management. LP. 164.492.412 15% $236.165,320 44.00% 5104.220241 10.41% -, ApolloSW Management. L.P. 5278.665.082 20% 569.786.902 4400% $4.106.23A-"- 4.4% LP' $124.732627 /1•71. Via- ..,....1:2--Velearriort 20% $35235,897 44,00% 515.503,790 13% $44.044,669 ASV MIS hlanagernent LP. 20% $25253.546 44.00% 34.1444486--S— 1.1% 531.566.933 20% $372175.033 44.00% 6163.757.015 16.3% tsai fr 4 . Ape& Europe Management, LP. $465.2111.791 20% 5273.952611 44,00% $120,539,149 12.1)% Apo& Alternative ASsets, LP. 5342,440,764 $2.574.452.830 $2.138.037.927 swAlarr 729% 80613181 Li F' IC,?Fa %roodFunds/Goodst 30.35% 592.940.669 92% $382.716.941 20% $30822%553 Apollo Management VI LP. 24.64% 511220.427 8.1% 5439.504,477 25% 5329.628.358 Apollo Advisees NA1, LP. $24,649.115 44.00% 610.845.611 1.1% $30.111.394 20% Apollo EPI Management. LP. 44.00% 59,766562 1.0% $27.032,732 20% 522242,185 Apolth EPF Masco, LP. 599.742.286 44.03% $42886.605 4.4% New Fund Management. LPs $124.677.655 20% 595.566,772 20% 576.435.018 44.03% 333.640208 3 3% New Fund Adasors, LIPs 3272,320.082 221% Sotrotaf St 101.152.171 $859,946,513 53.675,604,601 #,996961,440 $rho 953,638 1000% Total Assets co -1 41f 94 Liabilities 6 Equity so SO $0 TOUT LiabiPties $3,675.604,801 52298564.440 $1.035,953.658 Total Equity $3.675,604,801 3/096$4.440 51,005,953456 Total Liabilities and Equity Awegale Is Market Value 11,998,964.440 51,005,053.658 Pro Rata. Farr Market Value of Pannefs Interest $1.005.953.655 Pro Rata. Fair Market Value of Partneds Interest 33.57% Concluded Equity Interest et Partner in AMHLP 5.0% ($50297.683) Less' Investment Company Disoourt $956855975 Wearily Metaelable Vass 10.0% (595,565598) less tack ol Mariretalardy (Amount 5860,090376 Feu Market Varna 0133.05% Interest in AMILP $860.100.000 Fair Market Value of 33,57% Interest in ASHIP. Rounded It was anticipated that inn caw fee neon. ouneney pad to the respective Apollo Management company woad bepn so o• paid to the Paolo Advisee enlitY EFTA01128007  EXHIBIT A-1 APOLLO MANAGEMENT. LP DISCOUNTED FUTURE EARNINGS AS OF APRIL 16, 2007 HISTORY PROJECT PROJECT 2006 2007 2008 Adjusted Invested Capital $341,80a 000 $119.600,000 SO Management Fees $6,034,471 $0 SO Operating Expense Ratio Estimate 68.6% 0.0% 0.0% Operating Expenses ($4,137,805) $0 $0 Operating Income $1,896.666 $0 SO Margin: Adjustment Adjusted Pre-Tax Income $1,896,666 $0 $0 Tax Rate 42% 42% 42% Tax $796,600 SO $0 Net Income $1,100.066 SO $0 Days 259 624 Present Value Factors 11% 1.0000 0.9286 0.8366 Present Value SO $0 Sum of Present Values SO Pass-through premium 15% $0 Aggregate Marketable Value of Invested Capital $0 Less: Outstanding Debt SO Aggregate Marketable Value of Partners' Capital $0 Partners Pro Rata Percentage 30.35% SO Discount for Lack of Marketability 10% $0 Pro Rata, Fair Market Value of Partners Capital $0 Pro Rata, Fair Market Value of Partner's Capital, rounded $0 EFTA01128008  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' 31 .043,700,000 $649,128,201 $0 $0 $0 Management Fees' Operating Expense Ratio Estimate $6.142,871 $3,164,500 $0 $0 Operating Expenses' 51.7% 32.0% 0.0% 0.0% Pre-Tax Income ($3.176,672) ($1,012,209) $0 $0 $2.966.199 $2.152,291 $0 $0 Adjustments Adjusted Pre-Tax Income $o $0 $0 so Tax Rate $2,966,199 $2,152,291 $0 $0 Tax 42% 42% 42% 42% Net Income $1,245,804 $903,962 $0 $0 $1,720,395 $1,248,329 $0 $0 Horizon Value (Gordon Growth Model)' Days Present Value Factors 259 624 989 1,354 Present Value 0.9346 0.8496 0.7724 0.7022 $1.607.891 $1,060,632 $0 $0 Discount Rate: 10% Sum of Present Values Pass-through premium $2,668,522 Aggregate Marketable Value of Invested Capital 15% $400,278 Less: Outstanding Debt $3,068,801 Aggregate Marketable Value of Partners' Capital $0 $3,068,801 Partners Pro Rata Percentage 30.35% $931,381 Discount for Lack of Marketability Pro Rata, Fair Market Value of Partner's Capital 10% ($93,138) $838,243 Pro Rata. Fair Market Value of Partner's Capital, rounded $840,000 'Based on proiodrons ptreeded by manogemeni EFTA01128009  L.3(1111111 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 $1.694,200.000 $984.976,667 $593,497.619 $150,000,000 $0 Management Fees* 513.348.875 $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) (53.638.995) ($2,400,520) ($1,516,158) ($272.8301 Pre-Tax Income $6,445,752 $7,737,711 $4,252,782 $2,103.516 $570.920 Adjustments 50 $0 $0 $0 50 Adjusted Pre-Tax Income $6,445,752 57.737.711 54,252,782 $2,103,516 $570,920 Tax Rate 42% 42% 42% 42% 42% Tax $2.707.216 $3.249.839 $1.786.168 $883,477 $239.787 Net Income $3,738,536 54.487 872 52,466,614 $1,220,040 $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 $3,873,081 $1,952.948 $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 'Based on proiucbons prowled by ninnortneni EFTA01128010  EXHIBIT A-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 Adjusted Invested CaPlat' 31.601,000,000 36602600,000 $9.051250,000 $6,479,508.333 $5,951.797.917 $1,200,000,000 Management Fees' 3120,175,978 $62,470,081 361.080.872 350.332530 $22,943,613 TramSactron And Mormoring Fees' 3367,282600 3144000,000 $0 $0 $0 Broken Deal Fees' (334,534,581) ($17,481,288) $0 $0 $0 LP Rebate' ($219.468,245) (586.032,724) $0 30 $0 Net Transaction and MoMonne Fees $103,279,174 $40.485,988 30 $0 30 Total Management Fees and Net Transaction and Monitoring Fees 3223,455,152 5102,956.069 $61,660,872 350.332.530 322,943,613 Operating Expense Ftabo Estimate 27.8% 32.0% 36.1% 41.9% 32.3% Operating Expenses' ($62146.700) (319.981.910) (322247,321) ($21,082.575) (37,418,900) Pre•Tax Income $161,308.372 382.974,158 339,413.552 $29.249955 $15,524,713 Adjustments $0 $0 $0 so $0 Adjusted Pre•Tax Income $161,308,372 382974,158 539,413,552 329.249.955 $15,524,713 Tax Rate 42% 42% 42% 42% 42% Less: Tax 367,749,516 $34,849,147 510,553.092 312,284,901 36,520,393 Net Income 593.558656 5,41125,012 522.859,860 $16,964,974 $9,004,334 on Value (Gordon Growth Model)' Days 259 624 989 1,354 1,719 Present Value Factors 1.0000 0.9407 0.8630 0 7018 0.7284 0.6664 Present Value 588.009,078 541.532390 318.099.357 512.322.995 36.000,510 Discount Rate: 9% Sum Of Present Values $165,964,329 Pass-through premium 15% 524694,649 Aggregate Marketable Value of Invested Capital $190,858,978 Less Outstandtng Debt $0 Aggregate Marketable Value of Partners' Gewalt 5190,050.978 Partner's Pro Rata Percentage 30 35% 357,925.700 Discount for Lack of Marketability 15% N8688,855) Pro Rata, Fair Market Value of Partners Capital $49,236,845 Pro Rata, Fair Market Value of Partner's Capital $49,200,0001 1,0444/ on projecloor4 pranfoat mantramf EFTA01128011  EXHIBIT A-5 DISCOUNTED FUTURE EARNINGS AS OF APRIL 16. 2007 HISTORY PROJECT PROJECT PROJECT PROJECT PROJECT 2006 2007 2008 200$ 2010 2011 HORIZON $2.600,000.000 $3.450.000.000 $4,300,000,000 $5,150,000,000 $6,000,000,000 Assets Under Management (June 30) $2.175,000.000 53.025,000000 $3.875.000,000 $•.725,000,000 $5,575,000.000 $6.425.000.000 Assets Under Management (December 31) Leverage 33.0% 51,954,887.218 $2.593,984,962 $3,233,082,707 $3,872,180.451 $4,511,278,195 Urieveraged AS5a5 Under Management (June 30) $52,000,000 569.000,000 588,000,000 $103,000,000 $120,000,000 Management Fees 2.0% 12.0% $312,000,000 $414,000,000 $518,000,000 $816,000,000 $720.000.000 Yield on asset ($4,000.000) ($5,000,000) ($1,000.000) ($2.000,000) ($3,000,000) Other expense GSA ($68,282,707) ($81,780,451) ($95,278,195) 8.4% ($41,287,218) ($54,784.962) Cost of debt $43,542,558 $57,643.006 $71,743,459 $85,843,910 $99,944,361 $99,944,361 Gross carry 20.0% $52,000,000 289.000500 $813,003,000 $103,000,000 5120,000,000 $120,000,000 Management Fees $188,843,910 $219.944.361 $219,944,381 $95,542,558 $126,643,000 $157,743,459 Total Fees 45% 45% 45% 45% 45% 45% ($42.994,150) ($50989,353) ($70,984,556) ($84,979,759) (198,974,962) ($98,974,962) Less: ~fame Expenses $86,758.902 $103.864.150 $120,969,398 $120,969,398 $52.548.406 569.653,654 Pre-Tax Income Adyustment 286.759502 $103.864.150 $120,969,398 $120,969,398 $52,548,406 $69,653,654 A4usted Pre-Tax Income 42% 42% 42% 42% 42% 42% Tax Rate (43,622,943) (50,807,147) (50,807,147) (22,070,331) (29.254.535) (38,438,739) Tax $50.320.163 380.241,207 $70.162.251 570,162,251 $30,478,075 $40,399,119 Net Income $1,032.387,409 Horizon Value (Gordon Growth Modeg' OMMunt Rate' 10.0% Long-Tenn Growth Rate: 3.0% 259 624 989 1,354 1.719 1.719 Days 0 8496 0 7724 0.7022 0.8383 0.6383 Present Value Factors 0 9346 $28,484.969 $34.324,753 $38,867,345 $42.300,336 544,787,929 $659.022,380 Present Value 2007 Multiples Sum of Present Values MVICiOp Inc $847,787.711 % of AUM MV1Cilitev Aggregate Fogy Markeh3de Mriolity Interest $52.548.406 20.0% $169,557,542 52.600.000.000 595,542.556 Pass-through prenum 106 194 $1,017,345,263 39.13% Aggregate Marketable Value of Invested Capital Less: Outstanding Debt $0 Aggregate Marketable Value of Partners Capital $1.017,345,263 Partners Pro Rate Percentage 23.90% $243,145.515 Discount for lack of Marketability 15% 436.471,8271 Pro Rata. Far Market Value of Partners Capital $206,873.888 Pm Rata, Fair Market Value of Partnors Capital $206,700,000 • Gordon Growth MOdel (Horizon Net Income x (l+growth rate) / (capitalization rale + exIM SA] EFTA01128012  L AMU. I 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 5663,000.000 $732.615.000 3809.539.575 $894.541.230 $456.000,000 5600,000.000 Class A Assets (VIF) $12.143,094 313.418.118 $13.414119 39.000.000 $9.945.000 610.989.225 1.5% Management Fees 45% 45% 45% 45% 45% 45% (36.038,153) Operating Expense Ratio Estimate ($4,475.250) ($4.945.151) ($5.484.392) ($6.038.153) ($4,050,000) $7.379,965 Operating Expanses $6.044.074 36,678.701 67.379.965 $4.950.000 55.469.760 Pre-Tax Income $0 $0 SO 30 SO 30 $6,878,701 $7.379,965 57379.966 Adjustments $4250.006 35,469.750 $6,044,074 42% 42% 42% Adjusted Pre-Tax Income 42% 42% 42% (62.805.055) (33.099,585) (43.099.565) Tax Rate (32.079,000) ($2.297.295) (62.5313.511) $3.505563 63.873.647 64.280280 $4280,380 Tax $2,671,000 33,172,455 Net Income 362,982.731 Hotszest Value (Gordon Growth Model)* 989 1,354 1,719 1.719 259 624 0.7724 0.7022 0.6363 0.6363 Days 0.9346 0.8494 52,707,700 52.720.008 $2.732.372 640204.897 Present Value Factors 62.683.252 $2.695.448 Present Value 10% Discount Rs*: 3% LOageterel growth rate $53.745677 2007 Multiples Sum of Present Values % of A.UM MVIC/Rev MV1C/Op Inc 20% $10.748.735 Pass-thiu Premium $600,000,000 69.000.000 $4.950,000 1,14.492,412 Aggregate Marketable Value of Invested Capital so 10.75% 7.2 13.0 Less Outstanding Debt 664.492412 Aggregate Marketable Value of Partners' Capital 26.90% $17.348459 Partners Pro Rata Percentage 15% (62.602.269) Discount for Lock 01 Maiketabdity 314.746,190 WO Rata. Fair Market Value N Partners Capital rounded $14.700,000 Pro Rate, Fair Market Value of Partner's Capital. Bandon ateedteempotevepotana EFTA01128013  DISCOUNTED FUTURE EARNINGS AS OF APRIL 16, 2007 HISTORY PROJECT PROJECT PROJECT PROJECT PROJECT 2006 2007 20011 2009 2010 2011 HORIZON Assets Under Managemenl - SVF• $600,000.000 51.003.000.000 $I 037.000.000 $l.1$7.385000 52.099.960.425 $2.451.383.770 Assets Under Management - SOMA• $400.000 000 5400.000.000 $00.000.000 $100.0020.000 51.000001000 51.200.000.000 Managemeni Foot-SVI— 10% $19625.000 529.640.000 534.682700 540,544.459 547,354,713 Managernem Fees. SOMA 16% 547.354.713 53.400.000 57.600.000 510000.000 513,300.000 515,800030 Total Managernere Fees $15900,030 $23.025.000 537,240900 $45.482.700 553,644.459 $63.154,713 $63,154,713 Operaunp Expense Rater Estimate' 45% 45% 45% 45% 45% Opesating Expenses 45% (510.361.250) ($10758000) (520,467.215) (524.230.006) (528.419021) Pro-Tax Income (528.419.621) 512.663.750 $20.462.000 $25,015415 $29,614.452 534.735.092 534.735.002 Adjustrnem Adjusted Pre.Tat Income $0 50 so 50 so se 512.663.750 120.482,000 525.015.485 529.614.452 $34.735992 Tax Rale 534.735.092 42% 42% 42% 42% 42% Tax 42% ($5.318.775) (56.602.440) (510.500.504) (512.430070) (514.558339) NCI Income (514.580739) 57144.975 511.879.560 514.508961 517.176.382 520.146,353 520.146.353 tionzon Value (Gordon Crowe/M(4W 5296.439.200 Days 0 259 624 969 1.354 1.719 Preset VNue Facors 1.71