Tetragon Financial Group Limited · EURONEXT:TFG
Tetragon Financial — H1 2021 Earnings Presentation
26 slides from Tetragon Financial's earnings presentation, Jul 30, 2021
Slide 1: Tetragon Financial Group Limited 2021 Half-Yearly Investor Call
Tetragon Financial Group Limited 2021 Half-Yearly Investor Call 30 July 2021 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 IS CURRENT ONLY AS OF 30 JUNE 2021, UNLESS OTHERWISE STATED. TETRAGO
Slide 2: Contents
Contents Key Performance Metrics 3 NAV Progression 6 Net Asset Composition Summary 9 Investment Performance 10 Future Investment Expectations 17 Q&A 18 2021 Half-Yearly Investor Presentation | 2
Slide 3: Key Performance Metrics: NAV Per Share Total Return
Key Performance Metrics: NAV Per Share Total Return 13.6% 9.5% 10.3% 9.0% 8.1% 4.4% 2.8% 0.0% (1.9%) 2017 2018 2019 2020 2021 H1 FY (i) Please refer to Endnotes on page 23 for certain relevant definitions. Source: Tetragon. 2021 Half-Yearly Investor Presentation | 3
Slide 4: Key Performance Metrics: Return on Equity (RoE)
Key Performance Metrics: Return on Equity (RoE) (i) ♦ Target RoE: 10-15% ♦ Average RoE: 11.8% 13.4% 12.1% 8.9% 7.6% 1.5% 2017 2018 2019 2020 2021 (i) Average RoE is calculated from Tetragon’s IPO in 2007. Tetragon seeks to deliv er 10-15% RoE per annum to shareholders. Tetragon’s returns will most l
Slide 5: Key Performance Metrics: Dividends Per Share (DPS)
Key Performance Metrics: Dividends Per Share (DPS) $0.72 $0.74 $0.70 $0.40 $0.20 2017 2018 2019 2020 2021 H1 FY Source: Tetragon. 2021 Half-Yearly Investor Presentation | 5
Slide 6: Year-on-Year NAV Progression
Year-on-Year NAV Progression(i) 28.00 27.50 (0.35) 27.00 0.79 (0.03) (0.20) 26.50 (0.40) 26.00 26.57 26.38 25.50 25.00 NAV at 31 Investment Operating Interest expense Dividends Other share NAV at 30 June December 2020 income and expenses, dilution 2021 losses management and incentive fees (i) Progre
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 2021 350% 332% 300% 250% 200% 167% 150% 135% 100% 100% 73% 50% 0% Oct-09 Oct-14 Oct-19 Feb-08 Jul-08 Feb-13 Jul-13 Feb-18 Jan-11 Jan-16 Jul-18 Apr-07 Jan-21 Apr-12 Mar-10 Apr-17 Jun-11 Mar-15 Jun-16 Mar-20 Jun-21 Aug
Slide 8: Delivering Results Since 2005
Delivering Results Since 2005(i) NAV Per Share Total Return(ii) 11.7% 8.8% 12.1% 10.9% 332% One Year To Five Years Annualised Ten Years Annualised Since IPO Annualised Since IPO 30 June 2021 Investment Returns/Return On Equity (iii) 1.5% 10-15% 11.8% Annual Average H1 2021 RoE RoE Target Since IPO D
Slide 9: Net Asset Composition Summary
Net Asset Composition Summary Net Asset Breakdown at 31 December 2020 Net Asset Breakdown at 30 June 2021 Other equities Other equities and credit and credit Private equity in asset management Private equity in companies Private equity asset management Private equity 10% and venture 8% companies and
Slide 10: Net Asset Breakdown Summary
Net Asset Breakdown Summary In millions of U.S. dollars NAV at (i) Disposals/ Gains/ NAV at Asset Classes 31 Dec 2020 Additions Receipts (i) Losses 30 Jun 2021 Private equity in asset management 833.5 9.0 (8.1) 65.2 899.6 companies Event-driven equities, convertible bonds and 568.2 43.0 (25.0) 16.3
Slide 11: Private equity in asset management companies
Private equity in asset management companies In millions of U.S. dollars NAV at (i) Disposals/ Gains/ NAV at Asset Classes 31 Dec 2020 Additions Receipts (i) Losses 30 Jun 2021 % of NAV Private equity in asset management companies Equitix 386.1 6.3 - 29.1 421.5 16.9% BentallGreenOak 195.7 1.2 (8.1)
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 (i) Disposals/ Gains/ NAV at Asset Classes 31 Dec 2020 Additions Receipts (i) Losses 30 Jun 2021 % of NAV Event-driven equities Polygon European Equity Opportunity 299.9 - (17.0) 3.7 286.6 11.5% Fund Ab
Slide 13: Bank loans
Bank loans In millions of U.S. dollars NAV at (i) Disposals/ Gains/ NAV at Asset Classes 31 Dec 2020 Additions Receipts (i) Losses 30 Jun 2021 % of NAV Bank loans U.S. CLOs (LCM) 134.8 18.6 (13.8) 13.4 153.0 6.1% Tetragon Credit Partners funds 129.7 - (19.7) 13.4 123.4 4.9% U.S. CLOs (non-LCM) 14.3
Slide 14: Real estate
Real estate In millions of U.S. dollars NAV at (i) Disposals/ Gains/ NAV at Asset Classes 31 Dec 2020 Additions Receipts (i) Losses 30 Jun 2021 % of NAV Real estate BentallGreenOak Europe funds & co-investments 38.4 7.5 (4.6) (0.3) 41.0 1.6% BentallGreenOak U.S. funds & co-investments 45.7 4.6 (0.4)
Slide 15: Private equity and venture capital
Private equity and venture capital In millions of U.S. dollars NAV at (i) Disposals/ Gains/ NAV at Asset Classes 31 Dec 2020 Additions Receipts (i) Losses 30 Jun 2021 % of NAV Private equity and venture capital Hawke's Point funds & co-investments 131.0 6.0 (1.0) (38.3) 97.7 3.9% Banyan Square funds
Slide 16: Other equities & credit; cash
Other equities & credit; cash In millions of U.S. dollars NAV at (i) Disposals/ Gains/ NAV at Asset Classes 31 Dec 2020 Additions Receipts (i) Losses 30 Jun 2021 % of NAV Other equities & credit(ii) Other equities 240.5 44.1 (50.2) (34.3) 200.1 8.0% Other credit 17.9 - (0.7) 2.8 20.0 0.8% Cash Net c
Slide 17: Future Investment Expectations
Future Investment Expectations(i) TFG Asset Management Expect to be investing in Contingency Capital Event-driven equities = Stable allocation Convertible Bonds = Stable allocation Other hedge funds Expect additional allocations in 2021 Bank loans = Stable allocation; will commit to TCI IV but o
Slide 18: Q & A
Q &A Contact us anytime: ir@tetragoninv.com 2021 Half-Yearly Investor Presentation | 18
Slide 19: Share Repurchases & Dividend Distributions
Share Repurchases & Dividend Distributions $1,451.7 $1,469.5 $1,365.0 $1,248.3 $741.5 $759.4 $705.2 $638.7 $659.9 $710.2 $710.2 $609.6 Inception - 2018 2019 2020 2021 Cumulative Share Repurchases ($MM) Cumulative Dividends Paid ($MM) ♦ Q2 2021 DPS gave annualised dividend yield of 4.2% ♦ Since IPO,
Slide 20: Net Asset Composition Summary at 30 June 2021
Net Asset Composition Summary at 30 June 2021 By Asset Class By Investment Other equities and credit Direct Private equity in Private equity asset management GP – private equity in asset management and venture 8% companies 16% companies capital GP LP external 17% 35% 6% 35% LP internal – investments
Slide 21: TFG Asset Management – AUM
TFG Asset Management – AUM (i) 31 December 2017 – 30 June 2021 ($billions) $32.8 $30.1 $28.1 $27.4 $23.0 2017 2018 2019 2020 2021 LCM GreenOak BentallGreenOak Polygon Equitix Tetragon Credit Partners TCICM (i) Includes the AUM of LCM, BentallGreenOak, Polygon, Equitix, Hawke’s Point, Tetragon Cred i
Slide 22: TFG Asset Management Pro Forma Statement of Operations
TFG Asset Management Pro Forma Statement of Operations(i) Tetragon Financial Group TFG Asset Management Pro Forma Statement of Operations H1 2021 ($millions) H1 2020 ($millions) H1 2019 ($millions) Management fee income 68.4 65.4 48.7 Performance and success fees(ii) 23.6 22.2 16.2 Other fee income
Slide 23: Endnotes
Endnotes Page 3 Page 7 (i) NAV Per Share Total Return as of 30 June 2021 since Tetragon’s initial public Certain definitions: offering in April 2007. Tetragon uses the following metrics, among others, to understand the progress and performance of the business: (ii) Total shareholder return to 30 Jun
Slide 24: Endnotes
Endnotes Page 8 (i) Tetragon commenced investing as an open-ended investment company (i) Following the modification to Tetragon's Divide nd and Capital Return in 2005, before its initial public offering in April 2007. Policy in 2020 to remove of any specific dividend target payout ratio referenced t
Slide 25: Endnotes
Endnotes Page 20 Assumptions for "By Exposure": (i) (i) Exposure represents the net asset value of (1) the private equity position in the relevant asset management company and (2) investments in funds/accounts manage d by that asset management company. (ii) Exposure represents the net asset value of
Slide 26: 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 b road range of ass
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