Spice Private Equity — Investor Presentation (2019)
32 slides from Spice Private Equity's investor presentation, 2019
Slide 1: Institutional Presentation 2019
Institutional Presentation 2019
Slide 2: Index
Index Spice Private Equity 2018 highlights Investment Portfolio
Slide 3: Spice Private Equity: Snapshot
Spice Private Equity: Snapshot Global Investment Listed on SIX Swiss Active Managers Company Exchange (SPCE) USD 202 USD 124 39% million in NAV¹ million in mkt cap¹ Discount to NAV2 Source: Source: Spice Private Equity Ltd. (“Spice”, “Spice PE” or “Company”). 3 Notes: (1) As of December 31, 2018, (2
Slide 4: Unique advantages to SPCE shareholders
Unique advantages to SPCE shareholders Sharing in the value creation of high potential businesses during Private equity exposure with transformational periods public market liquidity No long-term lock-up or minimum investment required Solid and stable shareholder GP Investments as the lead sharehold
Slide 5: Strategy
Strategy Primary objective: Generate superior returns to shareholders through capital growth Grow NAV / share Operate efficiently Return capital to shareholders Core investment strategy Pursue long term direct Support companies with global Operate as relevant shareholders private equity investments
Slide 6: Board of Directors and Investor Relations
Board of Directors Investor Relations Christopher Brotchie Fersen Lambranho Alvaro L. Da Silva Neto Christopher Wright David Emery Rodrigo Boscolo Chairman of the Board Vice-Chairman of the Board Member of the Board Member of the Board Member of the Board Investor Relations Switzerland UK United Sta
Slide 7: NAV composition: Remarkable organizational transformation
NAV composition: Remarkable organizational transformation Legacy portfolio sold New strategy execution + Cash & Receivables Leon Restaurants Rimini Street FoodFirst The Craftory 23% 28% 17% 19% 81% 86% 60% 53% 19% 14% Jun-17 Dec-17 Jun-18 Dec-18 Cash Receivables Legacy Portfolio Direct Investments S
Slide 8: Spice Portfolio: Top underlying assets by fair value
Spice Portfolio: Top 5 underlying assets by fair value to represent +90% of total NAV SIZE INVESTMENT FAIR VALUE¹ COMPANY NAME LOCATION SECTOR RANK DATE (USD MILLION) FoodFirst Global Restaurants 1 US-based owner and operator of 2 Italian restaurant North America Consumer May-18 60 brands 2 The Craf
Slide 9: Differentiated approach to value creation
Differentiated approach to value creation… 1. Active management via significant governance and focus on operational & growth levers 4. Permanent capital perspective 2. Emphasis on complex transactions supporting the compounded growth of where we can unlock substantial value through companies with re
Slide 10: Executed by a leader in private equity and alternative investments
… executed by a leader in private equity and alternative investments USD 1.1 billion in proprietary 56 private equity deals across capital invested 16 sectors 1. Active management 4. Permanent capital 2. Emphasis on complex perspective transactions 3. Expertise across wide USD 5 billion raised from
Slide 11: GP Investments' partners have had extraordinary success as active managers
GP Investments’ partners have had extraordinary success as active managers Companies¹ IRR3 1,339% 47% 47% 26% 23% 19% Cash on 34.1x 3.2x 9.7x 4.0x 2.2x 2.3x Cash3 In all of these investments, GP Investments appointed a partner to run the business as CEO: Appointed CEOs2 Octavio Carlos Antonio Alexan
Slide 12: Index
Index Spice Private Equity 2018 highlights Investment Portfolio
Slide 13: 1H18 highlights and New Dividend Policy
1H18 highlights New Dividend Proposed 3-year program with minimum target pay-outs Policy of USD 5.0m, 5.5m and 6.0m in 2019, 2020 and 2021 Operating Total expenses reduced to USD 6.2m in 2018, from USD Efficiency 8.7m in 2017 New Investment 2017: Leon Restaurants & Rimini Street Portfolio 2018: The
Slide 14: New Investment Portfolio
New Investment Portfolio Spice direct investments 2017 USD 55m successfully USD 24m invested deployed in Leon & Rimini under new strategy USD 31m invested 2018 USD 120m invested in FFGR & USD 60m invested The Craftory, with substantial governance USD 60m committed Source: Spice. 14
Slide 15: Looking ahead: Focus on new portfolio and selective investment approach
Looking ahead: Focus on new portfolio & selective, disciplined investment approach Challenging market backdrop: intense competition & high asset valuations Supportive debt markets, high volumes of PE capital and active corporate buyers 1 2 3 Strong balance Continuous Capable and sheet; positive earl
Slide 16: Index
Index Spice Private Equity 2018 highlights Investment Portfolio
Slide 17: Building a world class portfolio
Building a world class portfolio Global Tech Scalable Turnaround Disruptive leader innovator growth opportunity CPG holdco Investment date Apr-15 Oct-17 Aug-17 May-18 May-18 Source: Spice. 17
Slide 18: RHI Magnesita is the largest asset in our Legacy Portfolio
RHI Magnesita is the largest asset in our Legacy Portfolio, and it is managed directly by GP Investments. The investment is an successful example of value creation through a transformational merger The company is the global leader in the refractory solutions market and operates in a unique verticall
Slide 19: RHI Magnesita: Global footprint
RHI Magnesita: Global footprint RHI Magnesita’s revenue breakdown and global facilities Europe 28% North America 22% South America 20% Production facilities APAC 17% Raw material sites MEA-CIS 13% Source: Spice and company reports. 19
Slide 20: Rimini Street acquired in 2017 through SPAC combination
Rimini Street (“Rimini”), a leading independent provider of enterprise software support, was acquired in 2017 through a complex transaction involving the combination of GPIAC (GP Investments Acquisition Corp.), a Special Purpose Acquisition Company (SPAC), and Rimini The SPAC was listed before the m
Slide 21: Rimini Street: An attractive opportunity
Rimini Street: An attractive opportunity Global presence and leadership position Growth Ambitions North America represents ~75% of revenues, Main support services demonstrating further internationalization potential Balance sheet restructuring opportunity Expertise Alignment Successful track record
Slide 22: Spice acquired a minority stake in LEON Restaurants
In 2017, Spice acquired a significant minority stake in LEON Restaurants for approximately GBP 25 million LEON is a UK-based natural fast food chain. The menu includes the flavors, variety and natural healthiness of Mediterranean cooking, at reasonable prices 53 restaurants 700+ employees 20,000+ pe
Slide 23: LEON: A perfect match
LEON: A perfect match LEON sought an investor to support the company’s Growth global growth plans ambitions Product overview US expansion opportunity. Long term vision Spice became the largest shareholder in LEON, Operational holding 2 board seats improvements Partnership with CEO & Co-founder John
Slide 24: Spice took Bravo Brio Restaurant Group private
In 2018, Spice took Bravo Brio Restaurant Group (“BBRG”) private, becoming the majority shareholder. The investment presents a turnaround opportunity at an attractive entry valuation BBRG is a leading US-based owner and operator of two distinct Italian restaurant brands, BRAVO! Cucina Italiana and B
Slide 25: FFGR: Clear opportunity to leverage our operational expertise
FFGR: Clear opportunity to leverage our operational expertise FFGR needed capital restructuring and an operational Special turnaround, allowing for an attractive entry valuation situation Brands for Spice FFGR had been underperforming its peers due to Operational operational and strategic issues, ma
Slide 26: FFGR: Ownership Breakdown
FFGR: Ownership Breakdown Shareholders Ownership Spice Private Equity 58% As controlling shareholder, Spice has the Co-investors 31% necessary influence to lead the turnaround Brad Blum 11% Total 100% Source: Spice. 26 Note: assumes Brad fully exercises his investment option. Ownership figures do no
Slide 27: Spice committed to invest in The Craftory
In 2018, Spice committed to invest in a next generation holding company, The Craftory, alongside accredited investors with unique expertise in the space The Craftory was created with the objective of acquiring a portfolio of controlling interests in challenger brands within the Consumer Packaged Goo
Slide 28: The Craftory: Backing challenger brands
The Craftory: Backing challenger brands Disruptive brands are emerging as a global trend and revolutionizing the entire consumer products category The Craftory came about as strategy to explore the unlimited growth potential of this trend Source: Spice. 28
Slide 29: The Craftory: What, how, why?
The Craftory: What, how, why? What is An investment house as revolutionary as the challengers they The Craftory? back. The anti-corporate and anti-VC model Levelling the playing field with ~USD 300m capital to deploy How will The Craftory ensure success? Hands-on strategic and creative - experts in
Slide 30: Where we go from here
Where we go from here This is just the beginning… 1. 2. 3. New direct investments Being almost fully invested, Growing our capital base represent ~80% of total NAV our next steps are: should help increase: We still have tremendous To drive value in our Share liquidity growth potential underlying ass
Slide 31: Contacts
Contacts Spice Private Equity Ltd Spice Private Equity (Bermuda) Ltd Industriestrasse 13c Clarendon House CH-6302 Zug 2 Church Street Phone +41 41 710 70 60 Hamilton, HM 11 Fax +41 41 710 70 64 Bermuda info@spice-private-equity.com www.spice-private-equity.com Investor Relations Rodrigo Boscolo inve
Slide 32: Disclaimer
Disclaimer This document is intended exclusively for the purpose of information. This document is neither an advice on investment nor a recommendation or invitation for purchasing, holding or selling any securities. This document has been prepared based on sources of information considered to be rel