Elanor Investors Group · ASX:ENN
Elanor Investors — Merger or Acquisition (April 2023)
11 slides from Elanor Investors's merger presentation, Apr 6, 2023
Slide 1: Acquisition of Challenger Real Estate and strategic partnership with Challenger Group
Elanor Investors Group Acquisition of Challenger Real Estate and strategic partnership with Challenger Group ASX: ENN 6 April 2023
Slide 2: Transaction summary
Transaction overview Transaction summary Acquisition of Challenger’s $3.4bn Australian real estate funds management business; formation of strategic partnership with Challenger Group • Elanor Investors Group (ASX:ENN) (“Elanor”) and Challenger Limited (ASX:CGF) (“Challenger”) have entered into agree
Slide 3: Strategic rationale
Transaction overview Strategic rationale Strengthened recurring Partnership positions Elanor for Material earnings accretion Step-change in ENN size and scale management fees continued strong growth ✓ Financially compelling with the ✓ Significant growth in base ✓ Significant step-change in size and
Slide 4: Step-change in AUM to $6.4bn
Transaction overview Step-change in AUM to $6.4bn AUM will double to $6.4bn across Elanor’s multi sector real estate platform Elanor post Transaction $6.4bn1 AUM Office Retail Hotels, Tourism & Leisure Healthcare Industrial $2.6bn $2.4bn $0.8bn $0.3bn $0.3bn $0.5bn $2.1bn $2.4bn $0.8bn $0.3bn $0.3bn
Slide 5: Step-change in AUM to $6.4bn (continued)
Transaction overview Step-change in AUM to $6.4bn (continued) Funds management platform AUM growth ($bn) Comparable ASX listed real estate peers AUM ($bn)1 3.4 6.4 73.0 21.5 >2x 3.0 7.5 6.4 5.8 1.1 3.0 ENN 2018 ENN Today CRE acquisition ENN Post ENN Pre #1 ENN Post #2 #3 #4 1. Compared with select A
Slide 6: Pro-forma AUM by capital source
Transaction overview Pro-forma AUM by capital source The transaction delivers a significant increase in institutional AUM ENN investor base by capital source Pre Post Listed Listed 8% 17% Retail / HNW Retail / HNW 59% 27% AUM AUM $3.0bn $6.4bn1 Institutional 24% Institutional 65% 1. $6.4bn AUM inclu
Slide 7: Benefits of the strategic partnership
Transaction overview Benefits of the strategic partnership Elanor and Fidante’s exclusive real estate distribution agreement combines a leading real estate platform with a “best in class” capital raising capability • Leader in the origination of high investment quality real estate opportunities • Ma
Slide 8: Fidante is a capital raising powerhouse
Partnership with Fidante Fidante is a capital raising powerhouse Fidante’s extensive capital raising platform will allow Elanor to target a significantly larger universe of investors Overview FUM ($bn)1 • Combination of complementary capital raising platforms 105.8 Elanor’s current capital raising c
Slide 9: Elanor represents an attractive value proposition
Value proposition Elanor represents an attractive value proposition FY22 pro-forma funds management EBITDA ($m) $1.48 Current price 10 25 15 2 FY22 ENN standalone Incremental EBITDA Pro-forma annualised FY22 $1.081 FY22 annualised funds management EBITDA multiple (recurring)3,4,5 Pro-forma NTA (post
Slide 10: Transaction highlights
Transaction highlights Transaction highlights Financially compelling transaction delivering material earnings accretion Strengthened recurring funds management fees increasing base management fees by 60%. Pro-forma base management fees will represent ~75% of total funds management fees1 Step-change
Slide 11: Disclaimer
Appendix Disclaimer This presentation has been authorised for release by the Elanor Investors Group Board of Directors. This presentation has been prepared by Elanor Investors Limited (ACN 169 308 187) and Elanor Funds Management Limited (ACN 125 903 031, AFSL 398196), as responsible entity of Elano
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