Dear Shareholders,

After an extremely challenging year in 2009 for the entire private equity industry, the environment was more buoyant in 2010, thanks to the recovery of the European economies, the revival of the debt market and a sharp upswing in mergers and acquisitions. But the recovery remains fragile, given macroeconomic uncertainties and the sluggish stock markets. Thus, although total buyout transactions in Europe more than doubled in 2010, to €62 billion versus €29 billion in 2009, it remains far off the records of 2006 and 2007 and still less than half of the €113 billion recorded in 2004.

Against this backdrop, and as expected, Altamir Amboise saw a strong rebound in its activity, in terms of both disposals and investments.

The Company realised a record €117.3 million in divestments, with seven full disposals (Centerbeam, Faceo, Galapagos, Odyssey, Orexo, U10 and Vedici), two partial disposals (Cegid, Arkadin) and two significant refinancings (Vizada, Prosodie). The net gain generated, plus related revenues, amounted to €26.6 million in the statutory accounts, in addition to the capital gain realised by the FCPR Ahau 30, for a total of nearly €65 million.

Altamir Amboise invested and committed €63 million primarily in two new companies, THOM Europe (joint acquisition of Histoire d'Or and Marc Orian) and Buy Way Personal Finance (formerly Cetelem Belgium), as well as to support portfolio companies in their development and with their financing needs. Following these new investments, the Apax France VII Fund is almost fully invested and future investments in 2011 will be through the Apax France VIII Fund.

The 29 companies comprising the portfolio at the year-end are once again on the path to growth. All sectors returned to positive territory, with double-digit growth in four of our sectors: Technology, Telecom, Media and Healthcare.

Ultimately, this translated into an increase in NAV per share of 5.1%, which resulted from an average increase in EBITDA of 14% for our key companies (compared to 15% for the non-financial companies of the CAC 40), a decline in the average net debt of our companies of 15%, and a one-point drop in the portfolio’s average valuation multiple.

Altamir Amboise ended the year with a healthy financial position: the Ahau 30 facility has been fully repaid and the company has net cash of €30.6 million, in addition to €22 million in available credit lines.

Barring a major political or economic event, 2011 is shaping up to be a good year. The rebound in private equity seen in 2010 should continue at a faster pace. The investment and divestment activity of Altamir Amboise should remain at a robust level, with two to three new investments and a significant volume of exits. Our NAV should increase significantly in 2011 as a result of planned disposals, the important work done to create value in our portfolio companies and buoyant stock markets.

NAV: Net Asset Value
EBITDA: Earnings before interest, taxes depreciation and amortisation