POHUTUKAWA I, II & V ANNUAL MEETING Investment Manager - - PowerPoint PPT Presentation

POHUTUKAWA I, II & V ANNUAL MEETING Investment Manager Presentation

22 May 2018

Ross George Managing Director Direct Capital

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Investment Manager Presentation | 22 May 2018 | Confidential

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Investment Manager Presentation | 22 May 2018 | Confidential

FUNDS MANAGED BY DIRECT CAPITAL

Direct Capital manages three Private Equity funds

POHUTUKAWA II & DIRECT CAPITAL IV POHUTUKAWA I & DIRECT CAPITAL III POHUTUKAWA V & DIRECT CAPITAL V ■ Total fund size: $325m ■ Pohutukawa II size: $82.5m ■ Current investments: ■ Total fund size: $130m ■ Pohutukawa I size: $53m ■ Current investments: ■ Total fund size: $375m ■ Pohutukawa V size: $50m ■ Current investments: + New investment

• pportunities under

negotiation

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Investment Manager Presentation | 22 May 2018 | Confidential

50 100 150 200 250 300 350 400 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 NZ$m Pohutakawa V (incl. DCV)

NZ MID-MARKET PRIVATE EQUITY INVESTMENT ACTIVITY

Source: NZVCA

Pohutukawa and DC V represented 41% of NZ mid-market PE investment in 2017

PORTFOLIO REVIEW: POHUTUKAWA I

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Investment Manager Presentation | 22 May 2018 | Confidential

53 97 0.1 NZ$m

POHUTUKAWA I

■ TVPI (Total Value to Paid In Capital): 1.8x ■ Net IRR: 13% p.a. for 14 years AS AT 31 MARCH 2018

Fund Performance

Calls Distributions Unrealised NAV

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Investment Manager Presentation | 22 May 2018 | Confidential

POHUTUKAWA I: STRATEX

Niche Packaging Manufacturer

Pohutukawa I Total Direct Capital Investment Shareholding Investment Shareholding $4.6m 32.8% $11.1m 83.2%

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Investment Manager Presentation | 22 May 2018 | Confidential

POHUTUKAWA I: FISHPOND

Online Retail

Pohutukawa I Total Direct Capital Investment Shareholding Investment Shareholding $0.8m 4.5% $2.0m 11.3%

PORTFOLIO REVIEW: POHUTUKAWA I

PORTFOLIO REVIEW: POHUTUKAWA II

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Investment Manager Presentation | 22 May 2018 | Confidential

Calls Distributions Unrealised NAV 51 72 22 NZ$m

POHUTUKAWA II

■ TVPI (Total Value to Paid In Capital): 1.8x ■ Net IRR: 16% p.a. for 9 years AS AT 31 MARCH 2018

Fund Performance

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Investment Manager Presentation | 22 May 2018 | Confidential

Bayleys 19% Cavalier Woolscourers 17% George H Investments 20% PF Olsen 14% Hiway Group 30%

POHUTUKAWA II

Portfolio Composition by Investment Cost

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Investment Manager Presentation | 22 May 2018 | Confidential

POHUTUKAWA II: PF OLSEN

Forestry Management

Pohutukawa II Total Direct Capital Investment Shareholding Investment Shareholding $2.5m 9.5% $10.8m 40.0%

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Investment Manager Presentation | 22 May 2018 | Confidential

POHUTUKAWA II: BAYLEYS

Real Estate Services

Pohutukawa II Total Direct Capital Investment Shareholding Investment Shareholding $3.6m 7.4% $15.0m 31.0%

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Investment Manager Presentation | 22 May 2018 | Confidential

POHUTUKAWA II: HIWAY STABILISERS

Ground Stabilisation and Geotechnical Services

Pohutukawa II Total Direct Capital Investment Shareholding Investment Shareholding $5.7m 14.3% $24.0m 60.0%

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Investment Manager Presentation | 22 May 2018 | Confidential

POHUTUKAWA II: CAVALIER WOOLSCOURERS

Wool Scouring

Pohutukawa II Total Direct Capital Investment Shareholding Investment Shareholding $3.3m 3.3% $14.0m 13.8%

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Investment Manager Presentation | 22 May 2018 | Confidential

POHUTUKAWA II: GEORGE H INVESTMENTS

Residual Industrial Park Properties

Pohutukawa II Total Direct Capital Investment Shareholding Investment Shareholding De-merger 9.3% De-merger 81.6%

PORTFOLIO REVIEW: POHUTUKAWA V

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Investment Manager Presentation | 22 May 2018 | Confidential

AS Colour 28% Complectus (Perpetual Guardian) 50% Marvel Packers 22%

POHUTUKAWA V

Portfolio Composition by Investment Cost

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Investment Manager Presentation | 22 May 2018 | Confidential

POHUTUKAWA V: PERPETUAL GUARDIAN

Trustee and Estate Services and FMA Supervisory Services

Pohutukawa V Total Direct Capital Investment Shareholding Investment Shareholding $7.3m 5.7%* $64.0m 50.0%*

* Once option to convert loan executed

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Investment Manager Presentation | 22 May 2018 | Confidential

POHUTUKAWA V: MARVEL PACKERS

Fresh From Field French Fries

Pohutukawa V Total Direct Capital Investment Shareholding Investment Shareholding $3.3m 6.2% $33.5m 58.3%

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Investment Manager Presentation | 22 May 2018 | Confidential

POHUTUKAWA V: AS COLOUR

Premium Blank Apparel to the International Printwear Sector

Pohutukawa V Total Direct Capital Investment Shareholding Investment Shareholding $4.1m 3.1% $38.0m 28.5%

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Investment Manager Presentation | 22 May 2018 | Confidential