Aventus Capital Inc. · TSXV:AVTS
Aventus Capital — The Westaim — Merger or Acquisition (October 2024)
18 slides from Aventus Capital's merger presentation, October 2024
Slide 1: Westaim and CC Capital Strategic Partnership
Westaim and CC Capital Strategic Partnership October 2024
Slide 2: Disclaimer
Disclaimer This presentation contains proprietary information and may not be reproduced or otherwise disseminated in whole or in part ei ther directly or indirectly without the prior written consent of each of The Westaim Corporation (“Westaim” or the “Corporation” or the “Company” or “we” or “our”)
Slide 3: Transformational Partnership to Create Highly-Compelling Integrated Insurance and Alternative Asset Management Company
Transformational Partnership to Create Highly-Compelling Integrated Insurance and Alternative Asset Management Company New Westaim Operating Company ▪ Legacy as a strong investor in ▪ Strong track record of investing in ▪ Integrated insurance and alternative asset management financial services, incl
Slide 4: Transaction Overview
Transaction Overview Westaim and CC Capital have entered into a strategic partnership to transform Westaim from a holding company into a global alternative credit asset manager with an integrated insurance platform ◼ CC Capital to invest $250mm of primary capital into Westaim at CAD $4.75 per share
Slide 5: The New Westaim: Global Alternative Asset Manager Propelled by an Integrated Insurance Platform
The New Westaim: Global Alternative Asset Manager Propelled by an Integrated Insurance Platform Pro Forma Structure Synergistic Flywheel Driving Growth Across Platform ✓ Insurance strategies to drive synergistic flywheel model, generating significant asset leverage for Arena $250mm Primary – Ceres L
Slide 6: The New Westaim: Highly Differentiated Operating Company With a Flywheel Engine
The New Westaim: Highly Differentiated Operating Company With a Flywheel Engine Synergistic Flywheel Model ◼ Compelling annuity products and a differentiated, cloud-native technology platform unlock strong distribution partnerships, leading to increased origination volumes for Ceres Life and assets
Slide 7: Driving Significant Value for Westaim Shareholders
Driving Significant Value for Westaim Shareholders Creates a differentiated business underpinned by an asset generation flywheel through the combination of a highly scalable, cloud- 1 native insurance platform with a high-quality asset manager Anchor investment and strategic partnership with CC Capi
Slide 8: Partnership with CC Capital Supports Westaim's Strategic Objectives
Partnership with CC Capital Supports Westaim’s Strategic Objectives P Expected To Enhance Westaim’s Business Model To Further Support Long-Term Sustainable Performance Through Significant Capital Sourced In The Attractive U.S. Life and Annuity Market P Integrated Insurance Platform Expected To Facil
Slide 9: Highly Experienced Team Thoughtfully Assembled to Drive Execution
Highly Experienced Team Thoughtfully Assembled to Drive Execution CC Capital has assembled a highly experienced team to lead Ceres Life, with the goal of building a best-in-class technology infrastructure and driving significant near-term distribution to enable the sales ramp ◼ Previously served as
Slide 10: CC Capital Case Study: Fidelity & Guaranty Life
CC Capital Case Study: Fidelity & Guaranty Life Investment Overview ▪ F&G is a leading provider of FIA, MYGA, and indexed universal life products with 700,000 customers and a network of 37,000 licensed independent agents ▪ CF Corp (a $1.2 billion SPAC raised by CC Capital and Bill Foley) acquired F&
Slide 11: Insurance Business Strongly Positioned
Insurance Business Strongly Positioned Attractive Addressable U.S. Annuities Market Organic Inorganic Modern Technology / Best-in-Class Underwriting Excellence Meaningful Reinsurance Opportunities Infrastructure to Drive Efficiencies Distribution Strategy ✓ Cloud-native and universal API driven ✓ Co
Slide 12: A Large Addressable Annuity Market
A Large Addressable Annuity Market Industry Backdrop Total Annuity Sales ($bn) ▪ Large Fixed Annuities, Retirement and Pensions insurance industry (~$15 trillion+ in the U.S.) Meaningful correlation between population of individuals 65+ and 75.8 ▪ Increased need for retirement products following the
Slide 13: Westaim and Arena's Highly Accomplished Existing Management Team
Westaim and Arena’s Highly Accomplished Existing Management Team Westaim’s existing management team’s extensive experience in investment management and insurance coupled with the Arena team’s significant experience across credit capabilities seamlessly complements the team CC Capital has assembled ◼
Slide 14: Strong Capabilities Position Arena to Capture Transformation Opportunity
Strong Capabilities Position Arena to Capture Transformation Opportunity Arena operates at institutional quality and scale, which is expected to allow Ceres Life to leverage the capabilities of a multi-strategy manager that would likely be difficult for a similarly small insurance company to replica
Slide 15: Potential for Improved Westaim Valuation Framework
Potential for Improved Westaim Valuation Framework Existing Westaim The New Westaim Illustrative SOTP Valuation Ranges (1) Westaim has historically traded at a discount to NAV and has been valued on a sum-of-the-parts framework based on its ~22x ~35x balance sheet investments Fee Related Earnings (A
Slide 16: Appendix
AWESTAIM Appendix
Slide 17: Key Deal Terms Summary
Key Deal Terms Summary CC Capital Investment in > ~36% common ownership at CAD $4.75(1) per share for a total of USD $250mm Westaim > Up to USD $100mm used to buy out existing Westaim shareholders at CAD $5.00(2) to $5.25(3) per share post-transaction closing > Westaim’s Board will be fixed at 11 se
Slide 18: Q&A
4.WESTAIM Q&A