Pollen Street Group Limited · LSE:POLN
Pollen Street — H1 2024 Earnings Presentation
35 slides from Pollen Street's earnings presentation, Sep 4, 2024
Slide 1: Pollen Street Group Limited Interim 2024 Investor Presentation
POLLEN STREET GROUP LIMITED Interim 2024 Investor Presentation 4 September 2024 PRIVATE AND CONFIDENTIAL 2024 Interim results presentation | POLLEN STREET © POLLEN STREET 2024
Slide 2: Agenda
AGENDA 1. Key Highlights 2. Strategic Vision and AUM Evolution Lindsey Lucy 3. Financial performance McMurray Tilley CEO CFO 4. Core Investment Strategies 5. Outlook +44 20 3728 6746 +44 20 3728 6767 lindsey.mcmurray@pollencap.com lucy.tilley@pollencap.com 2024 Interim results presentation | POLLEN
Slide 3: 1. Key Highlights
1. KEY HIGHLIGHTS 2024 Interim results presentation | POLLEN STREET
Slide 4: Key Highlights
KEY HIGHLIGHTS Building on 2023 Momentum: Strong H1 Performance and Ongoing Progress Fundraising Total AUM increased to £4.5 bn as of 30 June 2024 (H1 2023: £4.5bn £4.8bn £3.4 bn), with AUM rising to £4.8 bn as of 31 July 2024, 42% increase over H1 2023 Raised £0.6bn in Credit funds in the first hal
Slide 5: 2. Strategic Vision and AUM Evolution
2. STRATEGIC VISION AND AUM EVOLUTION 2024 Interim results presentation | POLLEN STREET
Slide 6: Our Investment Case
OUR INVESTMENT CASE Pollen Street offers a strong and differentiated business model in structurally growing market 2024 Interim results presentation | POLLEN STREET 6
Slide 7: Pollen Street Strategy
POLLEN STREET STRATEGY Driving Growth, Managing Risk and Delivering Value STRATEGIC PURPOSE EXECUTION STRATEGY Build on Leveraging Maintaining Targeted Expanding the Scalable Industry Investment Investments Networks Investment Expertise Track Record Platform SUCCESS INDICATORS Investor Base Investme
Slide 8: Our Platform Continues to Scale
OUR PLATFORM CONTINUES TO SCALE Continued fundraising across strategies 3.4 3.4 2.5 1.3 1.2 2.1 1.5 1.4 1.0 0.7 2.2 2.1 1.1 1.1 0.8 H1 21 H1 22 H1 23 H1 24 31-Jul-24 4.8 4.5 3.4 1.8 3.2 1.8 2.2 1.4 1.6 0.7 3.0 2.7 1.5 1.8 1.8 H1 21 H1 22 H1 23 H1 24 31-Jul-24 PRIVATE EQUITY PRIVATE CREDIT 2024 Inter
Slide 9: Strong AUM Growth
STRONG AUM GROWTH Consistent growth in line with guidance with strong performance in AuM Supported by core fundraising activities £10bn ~30% AuM CAGR since 2019 Target Total AuM 2024 Interim results presentation | POLLEN STREET 9
Slide 10: 3. Financial Performance
3. FINANCIAL PERFORMANCE 2024 Interim results presentation | POLLEN STREET
Slide 11: Financial Performance
FINANCIAL PERFORMANCE Demonstrable progress against our medium-term objectives Fund Management Income 26.8 21.7 23% Fund Management Administration Costs1 (18.8) (16.5) 14% Fund Management EBITDA 8.0 5.2 54% Income on Net Investment Assets 15.8 15.4 3% Group EBITDA 23.8 20.6 16% Profit After Tax 23.6
Slide 12: High Quality Revenue Streams
HIGH QUALITY REVENUE STREAMS Driving revenue growth through recurring and high-quality revenue streams Steady and predictable 15% income based on assets under management Management (AUM), increasing 44% 50% 42.6 Fees contribution to the overall 37.1 revenue. Typically, 1-2% of AUM annually 15.8 15.4
Slide 13: Investment Company Performance
INVESTMENT COMPANY PERFORMANCE Leveraging Balance Sheet Strength - Accelerating Third-Party AUM Growth SUSTAINABLE AND RESILIENT Reflecting strong performance and financial resilience 600 7.8% 9.1% 9.7% 18.0 16.0 500 15.4 15.8 GROWTH ENABLER 14.0 The strength of our Balance Sheet acts 400 13.7 12.0
Slide 14: Investment Company
INVESTMENT COMPANY Balance Sheet strength – Transition to accelerate value creation Balance Sheet Transition 4% 12% 11% 23% 65% 84% DIRECT HOLDINGS POLLEN CREDIT FUNDS POLLEN PRIVATE EQUITY FUNDS Transitioning from direct investments to Pollen Street Credit and Private Equity funds while maintaining
Slide 15: Debt Facilities
DEBT FACILITIES Optimizing Debt Efficiency: Strategic Refinancing and Financial Management Refinanced main debt facility for greater efficiency at lower cost 7 The facility also provides 38 flexibility to support the 85 transition to fund investing MAIN DEBT FACILITY (DRAWN) MAIN DEBT FACILITY (UNDR
Slide 16: 3. Core Investment Strategies
3. CORE INVESTMENT STRATEGIES 2024 Interim results presentation | POLLEN STREET
Slide 17: Dedicated to Investing with Mega Trends Globally
DEDICATED TO INVESTING WITH MEGA TRENDS GLOBALLY Dedicated to building and supporting leading businesses to drive change in financial and business services Operational Efficiency: Implementation Consolidation Product unbundling Revolutionizing middle of high-quality opportunities leading to growth a
Slide 18: Private Equity
PRIVATE EQUITY 2024 Interim results presentation | POLLEN STREET
Slide 19: Sector Led Origination Themes
SECTOR LED ORIGINATION THEMES Target markets identified through research led analysis of key thematics Middle and back-office Empower businesses to maximise Manufacturing excellent products transformation their potential as high-quality to deliver a compelling customer middle-market businesses propo
Slide 20: Private Equity – Maintaining Deployment Trajectory
PRIVATE EQUITY – MAINTAINING DEPLOYMENT TRAJECTORY Building tech enabled, customer centric data-driven organisations to create fast growing market leaders 2 Portfolio company acquisition1 19 Bolt on deals1 WEALTH + ASSET MANAGEMENT INSURANCE Niiio Markerstudy Founder-led business Positioned as a mar
Slide 21: Private Credit
PRIVATE CREDIT 2024 Interim results presentation | POLLEN STREET
Slide 22: Private Credit Strategy
PRIVATE CREDIT STRATEGY Strong risk adjusted returns with downside protection LARGE & DIVERSIFIED TANGIBLE ASSET PORTFOLIOS CONSISTENT CASHFLOW ROBUST ASSET VALUE LOANS / CONTRACTUAL RECEIVABLES / HARD LEASES CASHFLOWS ASSETS SME REAL GOVERNMENT ENERGY ASSET FUND FINANCE / CONSUMER LEADING ESTATE BA
Slide 23: Private Credit – Case Studies
PRIVATE CREDIT – CASE STUDIES Loans to borrowers directly secured on assets that generate contractual and predictable cash flow Pollen Street provides €75m of Pollen Street provides £105m Pollen Street provides £40m senior financing to French of senior financing secured on of senior financing secure
Slide 24: Outlook
OUTLOOK 2024 Interim results presentation | POLLEN STREET
Slide 25: Outlook
OUTLOOK Driving Strategic Growth: Fundraising, Deployment, and Value Creation in 2024 Continue fundraising for Credit Fund IV and Private Equity Fund V STRATEGIC Deploy Credit funds raised earlier in the year during H2 2024 PRIORITIES FOR 2024 Exceed £4bn of FP AUM by the end of 2024 Reiterate finan
Slide 26: Q&A
Q&A Accelerating progress in financial services 2024 Interim results presentation | POLLEN STREET
Slide 27: Contact Details
CONTACT DETAILS WWW.POLLENCAP.COM Lindsey McMurray CEO +44 20 3728 6746 lindsey.mcmurray@pollencap.com Lucy Tilley CFO +44 20 3922 0156 lucy.tilley@pollencap.com Shweta Chugh IR +44 20 3965 5081 shweta.chugh@pollencap.com 2024 Interim results presentation | POLLEN STREET 27
Slide 28: Appendix
APPENDIX 2024 Interim results presentation | POLLEN STREET
Slide 29: Private Equity Revenue Model
PRIVATE EQUITY REVENUE MODEL Fund Overview and Revenue Model Illustrative Management Fee Mechanism Fee Charging AUM Invested Capital Proforma AuM £3.0 billion Undrawn committed capital (b) Management Fee % (a) (c) Fee Rates c.2% Management Fee Committed Model Carried Interest 20% Combined Group 25%
Slide 30: Private Credit Revenue Model
PRIVATE CREDIT REVENUE MODEL Fund Overview and Revenue Model Illustrative Management Fee Mechanism Proforma AuM £1.7bn Fee Charging AUM Invested Capital Undrawn committed capital Management Fee % (a) (b) Fee Rates c.1% (c) Management Fee Invested Model Carried Interest 10% Combined Group 25% Carry2
Slide 31: Private Equity Portfolio Companies
PRIVATE EQUITY PORTFOLIO COMPANIES Constantly driving growth and change 2024 Interim results presentation | POLLEN STREET 31
Slide 32: Glossary 1/2
GLOSSARY 1/2 Alternative Investment Fund An Alternative Investment Fund Manager, as defined in the Investment Fund Managers Regulations 2013 (as amended by the Alternative Investment Manager (“AIFM”) Fund Managers (Amendment etc.) (EU Exit) Regulations 2019). Pollen Street Capital Limited undertakes
Slide 33: Glossary 2/2
GLOSSARY 2/2 Group Pollen Street Group Limited and its subsidiaries. Investment Asset The Group’s portfolio of Credit Assets and Equity Assets. Investment Company The business segment of the Group that holds the Investment Asset portfolio and the debt facilities. The activities of this segment predo
Slide 34: Disclaimer 1/2
DISCLAIMER 1/2 2024 Interim results presentation | POLLEN STREET 34
Slide 35: Disclaimer 2/2
DISCLAIMER 2/2 “Track record” excludes run off legacy deals from Pollen Street Secured Lending plc which were "Invested" or "Cost" refers to the total equity invested, including transaction fees and hedging costs, made prior to PSC managing the vehicle. In addition it excludes the run off consumer o