Blackstone Inc. · NYSE:BX
Blackstone — Non-Deal Roadshow (February 2014)
11 slides from Blackstone's roadshow presentation, February 2014
Slide 1: Blackstone Webcast: Investment Themes for 2014
Blackstone Webcast: Investment Themes for 2014 Joe Baratta Global Head of Private Equity Tel: US +1 888 756 8443 or International +1 646 313 6590 Email: BlackstoneInvestorRelations@blackstone.com Inquiries: http://ir.blackstone.com/contactus.cfm
Slide 2: Frothy Credit Markets
Frothy Credit Markets High Yield / Leverage Loan New Issuance (1) High Yield – Yield to Worst / Default Rate (2) ($ in billions) 13.0% $1,740 12.0% 11.0% $1,200 $1,113 10.0% HY YTW 20‐Yr Avg. 9.9% $920 1,311 9.0% Loan Index Yield 20‐Yr Avg. 8.6% $745 $732 HY YTW 10‐Yr Avg. 8.6% 8.0% Loan Index Yield
Slide 3: Aggregate Value of PE-Backed Buyout Deals
Aggregate Value of PE‐Backed Buyout Deals (US$ in billions) ________________________________________________ Source: Mergermarket, January 2014. Blackstone 3
Slide 4: U.S. LBO Valuation Trends
U.S. LBO Valuation Trends 10.2x 4Q’13 Though valuations are not at all-time highs, assets appear expensive in relation to growth prospects ________________________________________________ Note: Please see “Important Disclosure Information” for information regarding the views expressed herein. Source
Slide 5: 2013 LBOs Greater than $1 billion
2013 LBOs Greater than $1 billion Deals by Sector Deals by Type Other 10% P2P Energy TMT 6% 23% 26% Carve-Out 30% Chemicals 6% Financial Services 8% Industrials Retail 20% 9% Consumer Secondary 15% 47% ________________________________________________ Source: Citigroup Global Markets Inc., S&P LCD, C
Slide 6: Common Themes in Our Deals
Common Themes in Our Deals Energy / FIG companies created with little Strong Value goodwill Orientation Traditional LBOs at 8x EBITDA Half of capital invested in buy and build / Well Defined growth equity platforms Post-Acquisition Value Creation Strategy 3-year post-closing average EBITDA C
Slide 7: How We Are Investing in the Current Environment
How We Are Investing in the Current Environment Sectors / geographies in which the requirement for capital exceeds its supply: • Global Power Development • Energy Transportation Infrastructure • U.S. / Europe Consumer Finance ________________________________________________ Note: Please see “Impor
Slide 8: How We Are Investing in the Current Environment (Cont'd)
How We Are Investing in the Current Environment (Cont’d) Cyclical opportunities: • U.S. Power Generation • Mining Services ________________________________________________ Note: Please see “Important Disclosure Information” for information regarding the views expressed herein. Blackstone 8
Slide 9: How We Are Investing in the Current Environment (Cont'd)
How We Are Investing in the Current Environment (Cont’d) Transformational Growth Capital: • Company specific growth opportunities • Management intervention • Geographic expansion ________________________________________________ Note: Please see “Important Disclosure Information” for information re
Slide 10: How We Are Investing in the Current Environment (Cont'd)
How We Are Investing in the Current Environment (Cont’d) Sectors in which we can operate as strategic acquirers and/or have differentiated sector expertise: • Food • Facilities Management • Consumer / Leisure • Healthcare Services ________________________________________________ Note: Please see “
Slide 11: Important Disclosure Information
Important Disclosure Information This presentation and any related documents are for informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any security or instrument in or to participate in any trading strategy with any Blackstone Fund. Blackstone