From: jeffrey E. <[email protected]> Sent: Monday, November 10, 2014 10:18 PM To: Eileen Alexanderson Subject: Re: KUE timber? On Mon, Nov 10, 2014 at 5:12 PM, Eileen Alexanderson < <mailto > wrote: Teleconference of KUE partner meeting finished=a little while ago. The attached, which I sent last week, is a good summar= of the situation. From today's meeting: -deal in hand for the sale of the Intl operation in =ingapore for net proceeds of $108.2mi1 was announced at the meeting. Also =UE has a signed term sheet, with a exclusivity period only until Dec=8th, for the sale of the Canadian Intl School which would net $248mi1. Combined $357mi1 net proceeds after d=bt repayment is a bit below guidance I had been given of $400mi1 and a bit=will be held back in an escrow account. Guidance was for a late Dec or Jan=distribution of proceeds which would be roughly $5mil to us. -Propco — mindset toward monetizing but sounded like there is no firm shape for a deal yet i.e. whether they wi=l sell to a REIT or form a new RE company and lever. Property portfolio is=a bit of flux reflecting disposition of centers closed by Opco over the past several years. KUE would like LPs to have opt=on of two ways out — cash or equity in survivor. As I indicated in the note, for extension to Oct 201=, Intl and Propco must be monetized by Oct 2015. -Opco — core early childhood care centers are growing again — EBITDA est for 2014 is $118mi=, up from $89mi1 in 2013. Plan shows goal of $142mi1 in 2015 and $162mi1 i= 2016. Co suggested valuation at 10x EV/EBITDA seems appropriate given fact that public comp, Bright Horizons, trades at 15x EV/EBITDA but =s supported by 14% ebitda margin compared to Opco at 9.3% currently and fu=ure forecast of 10%. Eileen Alexander=on Elysium Management<=> 445 Park Avenue<=u> Suite 1401 New York NY 10022 Phone: <a EFTA_R1_01779258 EFTA02594998

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