Cion Investment Corporation · NYSE:CION
Cion Investment — Investor Presentation (June 2021)
20 slides from Cion Investment's investor presentation, Jun 21, 2021
Slide 1: CION Investment Corporation Overview & Listing Preparations
CION Investment Corporation Overview & Listing Preparations
Slide 2: Disclosures
Disclosures 2 This presentation has been prepared by CĪON Investment Corporation (the “Company” or “CION”) and may be used for information purposes only . This presentation shall not constitute an offer to sell or the solicitation of any offer to buy any securities . Any such offering of securities
Slide 3: Executive Team & Today's Presenter
• 17 years of investing experience • Co - Founder, CION Investment Group, LLC • Co - CEO, CION Investment Corp. • Co - CEO, CION Ares Diversified Credit Fund Mark Gatto Co - Chief Executive Officer • Attorney, private practice in NJ • B.A., Montclair State University; J.D. and M.B.A, Seton Hall Univ
Slide 4: Listing Details
Following receipt of approval for the proposals described in the Proxy Statement, subject to market conditions and final Board of Directors approvals Anticipated Timing 1.50% management fee on average gross assets, 1.00% on average gross assets will apply to any amount of assets attributable to leve
Slide 5: Table of Contents
Table of Contents • CION Overview & Fund - to - Date Performance • Why a Direct Listing Makes Sense in Today’s Market • Why CION is Positioned for Success as a Listed BDC • Listing Process Overview • CION vs. Previously Non - Traded BDCs • Market Opportunity & BDC Sector Conditions • CION’s Competit
Slide 6: CION Overview & Fund-to-Date Performance
CION Overview & Fund - to - Date Performance • Rigorous in - house underwriting is an effective “filter” for top - quality origination • Top - tier institutional relationships, including PE firms, asset managers and investment banks • 2,500+ transactions reviewed since inception, providing deep expe
Slide 7: Why a Direct Listing Makes Sense in Today's Market
Why a Direct Listing Makes Sense in Today’s Market A direct listing of CION provides compelling benefits to existing shareholders 7 • Listing on NYSE provides for immediately enhanced liquidity and path to full liquidity for shareholders 1 Shareholder Liquidity & Optionality 1 • Ability to diversify
Slide 8: Why CION is Positioned for Success as a Listed BDC
Differentiated Origination Channel • Focus on sourcing capabilities and credit expertise • Multiple sourcing channels • Proprietary directly originated loans • 18 person team at CION Investment Group , with 11 experienced credit and direct lending professionals • Best in - class back - office and op
Slide 9: CION vs. Listed BDC Peers – A Deep Dive
CION vs. Listed BDC Peers – A Deep Dive 9 CION maintains a clear strategic focus on senior secured loans to U.S. middle market companies with one of the lowest current leverage levels among Listed BDC peers 1 SENIOR SECURED DEBT MIX (% OF TOTAL PORTFOLIO, FAIR VALUE) 2 TOTAL LEVERAGE (DEBT / EQUITY)
Slide 10: Attractive Relative Dividend Yield Upon Listing
11.3% 10.0% 9.3% 9.2% 9.2% 8.8% 8.7% 8.6% 8.4% 8.2% 8.1% 8.1% 8.1% 8.0% 7.8% 7.7% 7.3% 7.2% 8.5 % BDC 2 BDC 3 BDC 14 BDC 16 BDC 11 BDC 5 BDC 13 BDC 4 BDC 10 BDC 8 BDC 7 BDC 17 BDC 6 BDC 1 BDC 15 BDC 9 BDC 12 Attractive Relative Dividend Yield Upon Listing Even with leverage lower than nearly all lis
Slide 11: Potential Increased Leverage Capacity
$1,622 $188 $1,810 $228 $2,038 Current Debt-to-Equity (0.79x) 1.00x Debt-to-Equity Senior Secured Peer BDC Target Debt-to-Equity (1.25x) Current maximum regulatory leverage Potential Increased Leverage Capacity 11 Following a listing, CION intends to seek shareholder approval to reduce its asset cov
Slide 12: Listing Preparation Process & Key Next Steps
Definitive Proxy Statement (May 13, 2021) Proxy Solicitation Process Commenced Annual Shareholder Meeting (July 8, 2021) 1 Communicate Benefits of Listing and Secure Vote CION Listing and Trading Begins Listing Process Preparation Listing Preparation Process & Key Next Steps Note: Future outcomes ma
Slide 13: CION vs. Previously Non-Traded BDCs
CION vs. Previously Non - Traded BDCs Assets Under Management First Lien Senior Secured Floating Rate Energy (Oil or Gas) CION Investment Corporation $1.7B 81.8% 91.9% 85.1% 2.69% FS KKR Capital Corp. II (NYSE: FSKR) Listing Date: 6/17/20 $8.1B 68.5% 79.8% 71.5% 1 2.84% Corporate Capital Trust (NYSE
Slide 14: U.S. Private Debt Market Growth Opportunity
U.S. Private Debt Market Growth Opportunity 14 Source: Preqin, S&P LCD. (1) Includes North American focused Private Equity and Direct Lending funds. Trends in U.S. middle - market direct lending, including the strong demand for debt capital driven by private equity dry powder and specialized lending
Slide 15: BDC Market Strength & Growth Trajectory
Source: Company Filings, FactSet, Raymond James, SNL Financial. Note: Market data as of June 3, 2021. Financial data as of March 31, 2021. (1) Scaled, Senior Secured Lending Peers include all externally - managed BDCs with greater than $500mm of market capitalization and 7 5%+ of total portfolio is
Slide 16: Long-Term Track Record
LONG - TERM TRACK RECORD 8+ years of producing consistent risk - adjusted returns for our investors, while mitigating down - side risk through volatile markets • 71.27% CUMULATIVE PERFORMANCE SINCE INCEPTION ON NET CAPITAL RAISED 1 ESTABLISHED ORIGINATION PLATFORM Extensive origination platform with
Slide 17: CION's Track Record Managing First & Second Lien Loans
Cumulative Annualized Loss Rate: 0.12 % 3 Total Number of Investments: 720 2 Total Invested Capital: $5.0B 1 First Lien Total Number of Investments: 144 2 Cumulative Annualized Loss Rate: - 0.01% 3 Total Invested Capital: $1.2B 1 Second Lien 17 CION’s Track Record Managing First & Second Lien Loans
Slide 18: Portfolio Highlights – Focused on Directly Originated Senior Debt
81.8% 10.1% 6.8% 0.9% 0.4% CION PORTFOLIO BREAKDOWN (% of Fair Value) Senior Secured First Lien Debt: 81.8% Senior Secured Second Lien Debt: 10.1% Equity: 6.8% Collateralized Securities & Structured Products: Equity: 0.9% Unsecured Debt: 0.4% 122 Portfolio Companies 92% Senior Secured Debt Investmen
Slide 19: CION's Portfolio: Diverse with Minimal Exposure to Cyclical Industries
CION INDUSTRY BREAKDOWN (% of Fair Value) 1 Healthcare & Pharmaceuticals – 18.7% Services: Business – 13.8% Chemicals, Plastic & Rubber – 8.1% Media: Advertising, Printing & Publishing - 7.1% Services: Consumer – 6.4% Beverage, Food & Tobacco - 5.4% Capital Equipment - 4.3% Banking, Finance, Insuran
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