REVOLUTION PRIVATE CREDIT INCOME Trust · ASX:REV
REVOLUTION PRIVATE CREDIT INCOME Trust — Revolution Asset Management — Conference Presentation (May 2020)
15 slides from REVOLUTION PRIVATE CREDIT INCOME Trust's conference presentation, May 7, 2020
Slide 1: Australian and New Zealand Private Debt update and outlook in challenging markets
Australian and New Zealand Private Debt update and outlook in challenging markets 7 May 2020
Slide 2: Important Information
Important Information This presentation has been prepared by the Investment Manager, Revolution Asset Management Pty Ltd ACN 623 140 607 AFSL 507353 (‘RAM’). Channel Capital Pty Ltd ACN 162 591 568 AR No. 001274413 (‘Channel’) is RAM’s non-investment services provider. Channel Investment Management
Slide 3: Revolution Asset Management
Revolution Asset Management 100% Investment Team Ownership Institutional focused boutique incubator and responsible entity 16 Operations, Compliance, IT and RE Services* Average 19 years experience 8 Distribution, Marketing and Client Services* Bob Sahota Simon Petris David Saija Chief Investment Se
Slide 4: Agenda
Agenda Revolution’s Investment Current Portfolio Outlook key focus philosophy and key opportunities in positioning, sectoral focus dislocated markets valuations and performance 4
Slide 5: Revolution's key focus in AU & NZ Private Debt
Revolution’s key focus in AU & NZ Private Debt Strategy tested through multiple market cycles (over 15 years) Investment Objective: Highly Levered Cash Rate plus 4% to 5% p.a. Unsecured (gross of fees & expenses) Venture and High Volatility Construction Debt Model Portfolio: Distressed, Special
Slide 6: Investment philosophy and key sectoral focus
Investment • Capital preservation philosophy and • Income key sectoral focus • Security • Covenants • High credit discipline – avoided pro-cyclical industries – retail, hospitality, tourism, mining, property development/construction, fintechs • Focus on defensive industries – healthcare, consumer st
Slide 7: Market opportunities due to COVID-19
Market opportunities due to COVID-19 10% 8% 7.5% 6.5% 6% 5% 5% 4.5% 4% 1% to 1.5% shift in yield Source: Revolution Asset Management. 7
Slide 8: Current opportunities – Leveraged Buyout Loan (LBO)
Current opportunities – Leveraged Buyout Loan (LBO) • Australia’s leading provider of telco services (principally roll out of the Key information NBN and maintenance of existing telco infrastructure) and infrastructure services. A$1,021m or its Syndicated size equivalent • Revolution purchased a par
Slide 9: Current opportunities – Asset Backed Security (ABS)
Current opportunities – Asset Backed Security (ABS) Key information • March 2020, purchased a junior AAA, RMBS from one of the largest non-bank originators in Australia. Syndicated size A$1b deal in 2018 Current credit rating AAA/Aaa (S&P/Moody’s) • Seller was a high profile offshore fund, needed li
Slide 10: Portfolio positioning
Portfolio positioning Revolution Private Debt Fund I – 31 March 2020 Portfolio Regional Exposure Internal Credit Rating Asset Allocation Breakdown Breakdown Commercial AA A Property NZ 3% 6% BBB 7% 22% 5% B ABS 43% 46% LBO 47% BB 43% AU 78% *As at 31 March 2020. Past performance is not indicative of
Slide 11: Performance
Performance Revolution Private Debt Fund I – 31 March 2020 Fund I Portfolio Statistics Net Internal Rate of Return IRR (after Since 5.80% Fund I fees)^ 1 month 3 months 6 months 1 year Inception Performance (%)* Yield to maturity^^ 5.62% (p.a.) All in credit spread over BBSW^^^ 520bps Fund (before f
Slide 12: Portfolio positioning
Portfolio positioning Revolution Private Debt Fund II – 31 March 2020 Portfolio Regional Exposure Internal Credit Asset Allocation Breakdown Rating Breakdown NZ AAA ABS 12% 9% AA 20% 1% A 12% BBB 3% B 58% BB 17% LBO 80% AU 88% *As at 31 March 2020. Past performance is not indicative of future perfor
Slide 13: Performance
Performance Revolution Private Debt Fund II – 31 March 2020 Fund II Portfolio Statistics Net Internal Rate of Return IRR (after fees)^ N/A Fund II Since 1 month 3 months Yield to maturity^^ 5.45% Performance (%)* Inception (p.a.) All in credit spread over BBSW^^^ 506bps Fund (before fees) 0.44% 1.00
Slide 14: Outlook
Outlook • Patient capital provides attractive opportunities in dislocated markets • Traditional fixed income has little relative income • Ability to generate higher returns with less risk • Credit discipline with key focus on income and capital preservation • High returns in a low rate environment w
Slide 15: Contact Information
Contact Information Institutional & Family Office Client Services Andrew King Magda Dantas Head of Distribution Client Services Manager T: +61 2 8669 3912 T: +61 7 3009 7629 M: +61 499 783 701 Freecall: 1800 940 599 andrew.king@channelcapital.com.au magda.dantas@channelcapital.com.au Investor and Ad
Revolution Asset Management — Conference Presentation (May 2020) on 6ix