Tetragon Financial Group Limited · EURONEXT:TFG

Tetragon Financial — H1 2023 Earnings Presentation

28 slides from Tetragon Financial's earnings presentation, Aug 1, 2023

  1. Slide 1: 2023 Half-Yearly Investor Call

    Tetragon Financial Group Limited 2022 Annual Report Investor Call Tetragon Financial Group Limited 2023 Half-Yearly Investor Call 1 August 2023 THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO PURCHASE ANY SECURITY OF TETRAGON. THIS INFORMATION I

  2. Slide 2: Contents

    Contents Key Performance Metrics 3 NAV Progression 6 Net Asset Composition Summary 9 Investment Performance 10 Future Investment Expectations 18 Q&A 19 2023 Half-Yearly Report Investor Presentation | 2

  3. Slide 3: Key Performance Metrics: NAV Per Share Total Return

    Key Performance Metrics: NAV Per Share Total Return 14.1% 13.6% 9.5% 8.1% 1.0% 1.7% 0.0% (1.9%) (3.5%) 2019 2020 2021 2022 2023 (i) Please refer to Endnotes on page 24 for certain relevant definitions. Source: Tetragon. 2023 Half-Yearly Report Investor Presentation | 3

  4. Slide 4: Key Performance Metrics: Return on Equity (RoE)

    Key Performance Metrics: Return on Equity (RoE)(i) ♦ Target RoE: 10-15% ♦ Average RoE: ​11.4% 17.3% 13.4% 7.6% 1.7% (0.8%) 2019 2020 2021 2022 2023 (i) Please refer to Endnotes on page 24 for certain relevant definitions. Source: Tetragon 2023 Half-Yearly Report Investor Presentation | 4

  5. Slide 5: Key Performance Metrics: Dividends Per Share (DPS)

    Key Performance Metrics: Dividends Per Share (DPS) $0.74 $0.44 $0.40 $0.41 $0.22 2019 2020 2021 2022 2023 H1 FY Source: Tetragon. 2023 Half-Yearly Report Investor Presentation | 5

  6. Slide 6: Year-on-Year NAV Progression

    Year-on-Year NAV Progression(i) 32.00 31.00 0.88 (0.26) 30.00 (0.13) (0.22) (0.47) 0.48 29.00 28.00 29.69 29.97 27.00 26.00 NAV at 31 Investment Operating Interest Dividends Other share Share NAV at 30 December income and expenses, expense dilution repurchase June 2023 2022 losses management and inc

  7. Slide 7: Tetragon NAV Per Share Total Return and Share Price

    Tetragon NAV Per Share Total Return and Share Price Since April 2007 IPO to 30 June 2023 406% 400% 300% 200% 165% 163% 119% 100% 91% 0% Apr-07 Feb-08 May-09 Oct-09 Mar-10 Apr-12 Feb-13 May-14 Oct-14 Mar-15 Apr-17 Feb-18 May-19 Oct-19 Mar-20 Sep-07 Jul-08 Dec-08 Apr-22 Aug-10 Jan-11 Jun-11 Nov-11 Sep

  8. Slide 8: H1 2023 Snapshot

    H1 2023 Snapshot Net Asset Value Ownership(i) $2.8 billion 37.5% Principal and Employee Ownership 30 June 2023 at 30 June 2023 NAV Per Share Total Return(ii) ​6.4% ​9.0% 10.1% 10.5% ​406% One year to 30 June 2023 Five Years Annualised Ten Years Annualised Since IPO Annualised Since IPO Investment Re

  9. Slide 9: Net Asset Composition Summary

    Net Asset Composition Summary Net Asset Breakdown at 31 December 2022 Net Asset Breakdown at 30 June 2023 Other equities Other equities Legal assets and credit Legal assets and credit Private equity 1% Private equity 1% and venture capital and venture 6% capital 7% Private equity in Private equity i

  10. Slide 10: Net Asset Breakdown Summary

    Net Asset Breakdown Summary In millions of U.S. dollars NAV at Disposals/ Gains/ NAV at Asset Classes Additions(i) 31 Dec 2022 Receipts(i) Losses 30 Jun 2023 Private equity in asset management companies 1,343.3 44.8 (35.5) 30.2 1,382.8 Event-driven equities, convertible bonds and other hedge 548.9 2

  11. Slide 11: Private equity in asset management companies

    Private equity in asset management companies In millions of U.S. dollars NAV at Disposals/ Gains/ NAV at Asset Classes Additions(i) % of NAV 31 Dec 202​2 Receipts(i) Losses 30 Jun 2023 Private equity in asset management companies Equitix ​683.2​ 23.2 (9.1) 53.2 750.5 24.8% BentallGreenOak 283.0 3.3

  12. Slide 12: Event-driven equities, convertible bonds and other hedge funds

    Event-driven equities, convertible bonds and other hedge funds In millions of U.S. dollars NAV at Disposals/ Gains/ NAV at Asset Classes Additions(i) % of NAV 31 Dec 202​2 Receipts(i) Losses 30 Jun 2023 Event-driven equities Polygon European Equity Opportunity 287.8 20.0 - (13.4) 294.4 9.7% Fund Abs

  13. Slide 13: Bank loans

    Bank loans In millions of U.S. dollars NAV at Disposals/ Gains/ NAV at Asset Classes Additions(i) % of NAV 31 Dec 202​2 Receipts(i) Losses 30 Jun 2023 Bank loans U.S. CLOs (LCM) 159.7 - (18.0) 6.3 148.0 4.9% Tetragon Credit Partners funds 132.7 5.5 (12.8) (4.6) 120.8 4.0% U.S. CLOs (non-LCM) 11.7 -

  14. Slide 14: Real estate

    Real estate In millions of U.S. dollars NAV at Disposals/ Gains/ NAV at Asset Classes Additions(i) % of NAV 31 Dec 2022 Receipts(i) Losses 30 Jun 2023 Real estate BentallGreenOak Europe funds & co-investments 35.3 3.2 - - 38.5 1.3% BentallGreenOak U.S. funds & co-investments 49.2 ​1.8​ (1.2) (4.3) 4

  15. Slide 15: Private equity and venture capital

    Private equity and venture capital In millions of U.S. dollars NAV at Disposals/ Gains/ NAV at Asset Classes Additions(i) % of NAV 31 Dec 2022 Receipts(i) Losses 30 Jun 2023 Private equity and venture capital Hawke's Point funds & co-investments ​59.1 6.5 - 14.0 79.6 2.6% Banyan Square funds 123.6 5

  16. Slide 16: Legal Assets

    Legal Assets In millions of U.S. dollars NAV at Disposals/ Gains/ NAV at Asset Classes Additions(i) % of NAV 31 Dec 2022 Receipts(i) Losses 30 Jun 2023 Legal Assets Contingency Capital funds 19.3 2.5 - 1.7 23.5 0.8% (i) Any gains or losses on foreign exchange hedging instruments attributable to a pa

  17. Slide 17: Other equities & credit; cash

    Other equities & credit; cash In millions of U.S. dollars NAV at Disposals/ Gains/ NAV at Asset Classes Additions(i) % of NAV 31 Dec 2022 Receipts(i) Losses 30 Jun 2023 Other equities & credit(ii) Other equities ​165.7 ​21.3 (27.3) 29.0 188.7 6.2% Other credit 15.9 0.1 - (0.0) 16.0 0.5% Cash Net cas

  18. Slide 18: Future Investment Expectations

    Future Investment Expectations(i) TFG Asset Management  Continue funding commitments Event-driven equities = Stable allocation Convertible bonds = Stable allocation Other hedge funds = Stable allocation Bank loans = Stable allocation; will invest via Tetragon Credit Partners vehicles; older funds c

  19. Slide 19: Q&A

    Q&A Contact us anytime: ir@tetragoninv.com 2023 Half-Yearly Report Investor Presentation | 19

  20. Slide 20: Share Repurchases & Dividend Distributions

    Share Repurchases & Dividend Distributions $1,636.4 $1,592.8 $1,450.6 $1,487.4 $816.5 $835.0 $741.5 $778.3 $776.3 $801.4 $709.1 $709.1 Inception - 2020 2021 2022 2023 Cumulative Share Repurchases ($MM) Cumulative Dividends Paid ($MM) ♦ Q2 2023 DPS gave annualised dividend yield of 4.5% ♦ Since IPO,

  21. Slide 21: Net Asset Composition Summary at June 2023

    Net Asset Composition Summary at 30 June 2023 By Asset Class By Investment Legal assets Other equities and credit Direct Private equity 1% LP external and venture 9% capital 7% Private equity in asset 7% 14% management companies GP 46% 46% 5% Real estate 9% 38% Bank loans 18% LP internal Event-drive

  22. Slide 22: TFG Asset Management – AUM

    TFG Asset Management – AUM(i) 31 December 2018 – 30 June 2023 ($billions) $41.2 $41.8 $37.1 $30.1 $27.4 2019 2020 2021 2022 2023 LCM GreenOak BentallGreenOak Polygon Acasta Equitix Tetragon Credit Partners TCICM (i) Includes the AUM of LCM, BentallGreenOak, Polygon, Acasta Partners, Equitix, Hawke’s

  23. Slide 23: TFG Asset Management Pro Forma Statement of Operations

    TFG Asset Management Pro Forma Statement of Operations(i) Tetragon Financial Group TFG Asset Management Pro Forma Statement of Operations 2023 ($millions) 2022 ($millions) 2021 ($millions) Management fee income ​89.9​ ​80.6 ​64.8 Performance and success fees(ii) ​10.8 ​20.7 ​23.6 Other fee income ​1

  24. Slide 24: Endnotes

    Endnotes Page 3 Page 4 Certain definitions: Tetragon uses the following metrics, among others, to understand the Average RoE is calculated from Tetragon’s IPO in 2007. Tetragon seeks to progress and performance of the business: deliver 10-15% RoE per annum to shareholders. Tetragon’s returns will mo

  25. Slide 25: Endnotes

    Endnotes Page 7 (i) NAV Per Share Total Return as of 30 June 2023 since Tetragon’s initial public offering in April 2007. (ii) Total shareholder return to 30 June 2023, defined as share price appreciation including dividends reinvested since Tetragon’s initial public offering in April 2007; sourced

  26. Slide 26: Endnotes

    Endnotes Page 8 (i) Shareholdings at 30 June 2023 of the principals of Tetragon’s investment (iv) The dividend yield represents the past four quarterly dividends divided by the manager and employees of TFG Asset Management, including all deferred TFG NA share price at 30 June 2023. The latest declar

  27. Slide 27: Endnotes

    Endnotes Page 21 Assumptions for "By Exposure": (1) (i) Exposure represents the net asset value of the private equity position in the relevant asset management company and the investments in funds/accounts managed by that asset management company. (ii) Exposure represents the net asset value of inve

  28. Slide 28: Legal Disclaimer

    Legal Disclaimer This document has been prepared by Tetragon Financial Group Limited, referred to in this report as Tetragon. References to “we” are to Tetragon Financial Management LP, Tetragon’s investment manager. Tetragon is a closed-ended investment company that invests in a broad range of asse

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