Navigator Global Investments Ltd · ASX:NGI
Navigator Global Investments — H1 FY2023 Earnings Presentation
33 slides from Navigator Global Investments's earnings presentation, Feb 23, 2023
Slide 1: 2023 Interim Results
2023 Interim Results 23 February 2023 Authorised by: Board of Navigator Global Investments Limited
Slide 2: Agenda
Agenda 1. Introduction 2. Review of Lighthouse 3. Review of NGI Strategic 4. Financial Results 5. Q&A 2
Slide 3: Introduction
Introduction Sean McGould, CEO 3
Slide 4: Navigator H1 FY2023 Highlights
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Navigator H1 FY2023 Highlights Strong relative investment performance across Lighthouse and NGI Strategic, with our primary strategies producing gains in CY2022 and at high water marks Continued AUM
Slide 5: Company Overview
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Company Overview $66 billion total firm level AUM across 11 partner firms 1 Navigator Global Investments is a unique ASX-listed asset management company, exclusively focused on the $24 billion total
Slide 6: Our Focus
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Our Focus Navigator partners with alternative investment managers with the potential for long term growth and sustained profitability. Our capital is primarily used to support our partners’ continued
Slide 7: Our Advantage
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Our Advantage Alternative investments Navigator’s strategy is designed to mitigate Positive long term secular growth outlook many of the risks inherent in the asset management business Continued adop
Slide 8: Resilient and Improving AUM Trends
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Resilient and Improving AUM Trends AUM evolution (Ownership-adjusted firm level AUM $ billions) $24.2 $21.5 Longreach Alternatives Marble & Invictus $14.7 $13.4 $13.2 NGI Strategic Portfolio Lighthou
Slide 9: Strong Recent Investment Performance
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Strong Recent Investment Performance 1 year 3 year 5 year (2022) Highlights Lighthouse Diversified Fund Limited 3.66% 4.96% 3.68% Lighthouse Positive investment performance Lighthouse Global Long/S
Slide 10: Review of Lighthouse
Review of Lighthouse Sean McGould, CEO 10
Slide 11: Lighthouse Investment Partners $14.8 billion
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Lighthouse Investment Partners Diversified and evolving platform Hedge Funds $14.8 billion $4.9 billion AUM1,3 Global Footprint Palm Beach Gardens Total assets1 North New York Rock Chicago 26 London
Slide 12: Lighthouse – Stable & Diversified AUM
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Lighthouse – Stable & Diversified AUM Composition of AUM as at 31 December 2022 ($ billions) Pensions 14% Sovereign 12% Wealth Funds $14.8 $14.4 $14.2 $13.9 HNW $11.8 Investor 10% Endowments / Type F
Slide 13: Lighthouse – Net Flows to Hedge Funds
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Lighthouse – Net Flows to Hedge Funds Net flow trends Quarterly Net Inflows ($ billions) Hedge Funds $0.30 $0.32 $0.35 $0.22 $0.22 $0.23 $0.10 $0.11 $0.02 $0.04 Sept 2020 Dec 2020 Mar 2021 Jun 2021 S
Slide 14: Review of NGI Strategic
Review of NGI Strategic Ross Zachary, MD Strategic Corporate Development 14
Slide 15: NGI Strategic – Highly Diversified AUM
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. NGI Strategic – Highly Diversified AUM Firm level AUM by business Firm level AUM by asset class $ 51.1 Public and billion Private Credit 42% Commodities 11% Private 4% Real Estate Capital Solutions L
Slide 16: NGI Strategic – AUM Trends
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. NGI Strategic – AUM Trends Growing high quality AUM through a challenging market Assets Under Management ($ billions)1 Ownership-adjusted AUM ($ billions)1 Growth driven by both portfolio level growt
Slide 17: NGI Strategic – Investment Performance
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. NGI Strategic – Investment Performance Strong performance further positions these businesses for future growth NGI Strategic Portfolio Composite Returns CY2020 CY2021 CY2022 3 year 5 year Strong in
Slide 18: NGI Strategic – Profit Distributions
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. NGI Strategic – Profit Distributions High quality and diversified earnings stream with embedded growth, included within the preferred minimum distribution amount on the NGI Strategic Portfolio Total
Slide 19: Financial Results
Financial Results Amber Stoney, CFO 19
Slide 20: Navigator H1 FY2023 Key Results
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Navigator H1 FY2023 Key Results H2 FY2023 Adjusted EBITDA1 of $21.2 million, a 1% decrease on prior comparative period Base Earnings2 on track with FY2023 expectations of $36.5-37.5m against a challe
Slide 21: Navigator Group Results
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Navigator Group Results Adjusted EBITDA1 of $21.2 million, down 1% on pcp $ millions 31 December 2022 31 December 2021 Change to pcp Management fees revenue 37.0 37.2 ▼<1% Performance fee revenue 6.1
Slide 22: Navigator Group Results – Reconciliation of Statutory EBITDA to Adjusted EBITDA
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Navigator Group Results Reconciliation of Statutory EBITDA to Adjusted EBITDA $ millions 31 December 2022 31 December 2021 Change to pcp Gains and losses associated with financial assets and liabilit
Slide 23: Key Revenue Items
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Key Revenue Items Management fees $37.0 million (▼ <1% pcp) Earned from Lighthouse operating business, Average management fee rate %pa Management fees ($ millions) management fee revenue showed a 2%
Slide 24: Net Operating Expenses
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Net Operating Expenses $ millions 31 December 31 December Change to pcp 2022 2021 Employee expenses 25.6 24.9 ▲ 3% Professional & consulting 1.9 1.7 ▲ 12% Information technology 1.6 1.1 ▲ 46% Distrib
Slide 25: Base Earnings
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Base Adjusted EBITDA Base Adjusted EBITDA represents earnings in relation management fees and the Preferred Minimum Distribution Amount (PMDA) from the NGI Strategic Portfolio, and excludes upside fr
Slide 26: Funding Commitments
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Funding Commitments Deferred consideration in recent acquisitions used to align interests with management and provide growth capital when needed by the businesses Overview of NGI’s commitments Fundin
Slide 27: 2026 Redemption Payment Liability
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. 2026 Redemption Payment Liability Due to strong performance, purchase price of Dyal’s retained profit sharing owed in 2026 has the potential to hit $200m cap The long-term liability of $137 million o
Slide 28: Q&A
Q&A 28
Slide 29: Performance notes
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Performance notes Performance may vary among different share classes or series within a Fund. Past performance is not indicative of future results. This document has been prepared by Navigator Global
Slide 30: Disclaimer
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Disclaimer This presentation has been prepared by Navigator Global Investments Limited (NGI) and provides information regarding NGI and its activities current as at 23 February 2023. It is in summary
Slide 31: Appendices
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Slide 32: Investment in H1 – Invictus Capital Partners
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Investment in H1 – Invictus Capital Partners Leading US real estate credit focused alternative asset manager first established in 2008, with deep institutional client relationships and ability to inv
Slide 33: Navigator Group Results Annual result
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Navigator Group Results Annual result Statutory EBITDA up 67% on pcp 31 December 2022 31 December 2021 Change to pcp $ millions $ millions Management fees revenue 37.0 37.2 ▼ 1% Performance fee reven
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