Hmc Capital Limited · ASX:HMC
Hmc Capital — Investor Day (April 2025)
57 slides from Hmc Capital's investor day presentation, Apr 3, 2025
Slide 1: Investor Day 2025 Presentation ASX Release
ASX RELEASE 3 April 2025 INVESTOR DAY 2025 PRESENTATION HMC Capital (ASX: HMC) provides the attached presentation which will be delivered today at the HMC Capital Investor Day 2025. This announcement is authorised for release by the Board. For further information, please contact: INVESTORS Andrew Do
Slide 2: HMC Capital Investor Day 2025
HMC Capital Investor Day 2025 3 APRIL 2025 1 HMC Capital | Investor Day
Slide 3: Agenda
Agenda Schedule of events 8:30am 9:15am 9:30am 10:15am 11:00am 11:30am Registration Introduction by Digital Real Estate Morning tea Private Equity Opens HMC Chairman, Infrastructure Panel Presentation Chris Saxon Panel 12:15pm 12:45pm 1:30pm 2:15pm 3:00pm 3:15pm CEO Interview Lunch Energy Transition
Slide 4: Introduction
Introduction by Chris Saxon 3
Slide 5: Acknowledgement of Country
Acknowledgement of Country HMC Capital acknowledges the Traditional Custodians of Country throughout Australia and celebrates their diverse culture and connections to land, sea and community. We pay our respect to their Elders past and present and extend that respect to all Aboriginal and Torres Str
Slide 6: Overview of HMC Capital & CEO Update
Overview of HMC Capital & CEO Update 5
Slide 7: What is HMC Capital today?
What is HMC Capital today? HMC has established 5 high-quality and scalable platforms with deep operational capability ▪ An emerging alternative asset manager with five scalable verticals exposed to high-conviction global megatrends ▪ While our ambition is to grow AUM from $19bn today to $50bn+ over
Slide 8: Why Alternatives?
Why Alternatives? Large and growing addressable market opportunity provides significant growth runway Global Alternative AUM – USD Trillions1 Allocation to Alternatives2 Why Alternatives? Institutional Investors 30.0 Individual Investors 50%+ ✓ Excess returns Track record of superior risk-adjusted r
Slide 9: Why HMC Capital?
Why HMC Capital? High ROE and scalable business model underpinned by market leading deal-making capability Pre-tax EPS track record (cents) HMC Point of Difference? Our transition to a high ROE alternative Founder led business asset manager has driven with strong shareholder significant growth in 9.
Slide 10: HMC Capital Leadership Team
HMC Capital Leadership Team David Di Pilla Matt Lancaster Victoria Hardie Sid Sharma Will McMicking Group Managing Director & Chair of Private Credit Head of Private Equity Head of Real Estate Group CFO CEO Angela Karl Robert Vanderzeil Chris Maher Sandra Francis Andrew Selim Head of Energy Transiti
Slide 11: Investment Strategy
Investment Strategy Targeted and long-term investment approach focused on high conviction megatrends Ageing Population Decarbonisation Digitalisation Deglobalisation Growing and ageing populations, evolving Investment opportunity of a generation Technological advancement driving Structural trend dri
Slide 12: Digital Infrastructure
Digital Infrastructure 11
Slide 13: Digital Infrastructure Panel
Digital Infrastructure Panel Moderator Panellists Simon Mitchell Chris Maher Bryan Marsh Dan Golding DigiCo Infrastructure REIT HMC Capital DigiCo Infrastructure REIT ASG Consulting Chief Financial Officer Managing Director, Managing Director, CTO & Partner Head of Digital Infrastructure North Ameri
Slide 14: AI and Cloud DC Demand Drivers
AI and Cloud DC Demand Drivers Perspectives from ASG – North American data centre consultant Global Data Centre Demand – AI vs Conventional CYE (GW)1 ▪ Media veers from irrational exuberance to tales of woe 2019-2027F – This is a normal tech media cycle - important to ignore the noise CAGR 19-24 24-
Slide 15: AI Training and Inference
AI Training and Inference Perspectives from ASG – North American data centre consultant TRAINING INFERENCE Deep Learning Framework Trained Model Learning a new capability Applying this capability to from existing data new data ▪ Two Primary AI Deployment modalities – Training and Inference – Trainin
Slide 16: Inference and Cloud Adjacencies
Inference and Cloud Adjacencies Perspectives from ASG – North American data centre consultant US data centre market growth by hotspot ▪ Location matters intensely with inference (thus AI 2024 Live IT Capacity revenue) as well as with Cloud (Cloud AZs are geo- defined) ▪ The top markets for data cent
Slide 17: ASG Insights
ASG Insights The Age of Fake Datacenters Part 1 – https://www.linkedin.com/pulse/age-fake-datacenters-daniel-golding-dw0je Part 2 – https://www.linkedin.com/pulse/age-fake-data-centers-part-2-faster-faker-daniel-golding- ngxqe Part 3 – https://www.linkedin.com/pulse/age-fake-datacenters-part-3-custo
Slide 18: Digital Infrastructure Portfolio Highlights
Digital Infrastructure Portfolio Highlights DigiCo’s portfolio has strong fundamentals and is constructed to capitalise on structural tailwinds U.S. OPERATING ASSETS AUSTRALIA CO-LOCATION ASSETS U.S. DEVELOPMENT ASSETS (Target weighting ~40-50%) (Target weighting ~40-50%) (Target weighting ~10-20%)
Slide 19: Capital Partnering Strategy
Capital Partnering Strategy Opportunity to accelerate growth across the DigiCo platform through the introduction of capital partners Target levered 8 – 12% 12 – 15% 15 – 30%+ project IRR1 DigiCo ownership 50 – 75% 50 – 75% ~50% U.S. Operating Assets Australian Colocation Assets U.S. Development Asse
Slide 20: SYD1 Update
SYD1 Update SYD1 has been revitalised as Sydney metro's premier site and cornerstone of our national co-location platform Sydney Market ▪ Limited available capacity across the low latency Sydney Metro market ▪ Sydney market power constraints driving favourable supply-demand dynamics ▪ Demand signals
Slide 21: DigiCo USA portfolio
DigiCo USA portfolio DigiCo has a portfolio of stabilised and development assets in the world’s largest data centre market United States portfolio Planned IT Installed IT Market Asset Type capacity capacity Dallas DAL1 Enterprise 4.5 MW 4.5 MW Kansas City KCM1 Enterprise 7.5 MW 7.5 MW Chicago CHI1 H
Slide 22: Real Estate
HM Copital t = 4 i Beit ~ sel eats
Slide 23: Real Estate Panel
Real Estate Panel Moderator Panellists Nicholas Harris Sid Sharma Pat Burton Fiona Mackenzie HMC Capital HMC Capital Funds SA Coles Chairman, Institutional Capital Managing Director, Real Estate Director, Property General Manager, Property 22 HMC Capital | Investor Day
Slide 24: Why Australian Retail?
Why Australian Retail? Structural tailwinds for the Australian Retail Sector Retail property has lagged the consumer Differentiated Australian Landscape Resilience of Daily Needs ▪ COVID-19 accelerated demand for omni-channel ▪ Major supermarket anchors support resilient ▪ Australian consumer retail
Slide 25: Retail Real Estate Mandates
Retail Real Estate Mandates Bespoke strategies customised for investors Last Mile Logistics HomeCo Daily Needs REIT HMC Unlisted Greenfields Fund HMC Urban Retail Fund Series I (LML1) (HDN) (HUG) (HURF) Series II (HARP) Listed / unlisted Listed Unlisted Unlisted Unlisted Capital ASX Institutional In
Slide 26: Private Equity
Private Equity 25
Slide 27: Private Equity Panel
Private Equity Panel Moderator Panellists Brett Clegg Victoria Hardie David Di Pilla Sodali & Co HMC Capital HMC Capital Chairman APAC Head of Private Equity Managing Director & CEO 26 HMC Capital | Investor Day
Slide 28: Private Equity: HMCCP Fund I Highlights
Private Equity HMCCP Fund I was ranked as the top performing Australian equities fund in CY2024 by Morningstar HMC Capital Partners Fund 1 Highlights HMCCP Fund I Returns Since Inception (NAV/unit)1,2 • Established in Aug-22, HMC Capital Partners Fund I (HMCCP Fund I) was HMC’s first foray into priv
Slide 29: Inaugural HMCCP Fund I distribution declared
Inaugural HMCCP Fund I distribution declared HMC to receive ~$150m interim distribution HMCCP Fund I Interim Distribution HMCCP Fund I Interim Distribution ▪ Following realisation of HMCCP Fund I’s seed investment in Sigma Healthcare and partial ~$300m selldown of its investment in Ingenia Communiti
Slide 30: HMC Capital Private Equity competitive edge
HMC Capital Private Equity competitive edge Ability to execute large, complex transactions and a highly active management approach Selected case studies Strategic Network of Highly Credentialed >5x MOIC for initial People consortium investors1 M&A, Strategy and Capital Markets Capability Proven Oper
Slide 31: Our Private Equity Investment Philosophy
Our Private Equity Investment Philosophy Seeking to add value through all phases of the investment lifecycle M&A value add at Active Management Exit acquisition ▪ Complex situations that ▪ Hands-on approach ▪ Sell discipline may deter other buyers ▪ Value unlock via M&A, ▪ Seek to exceed targeted ▪
Slide 32: Review of HMCCP Fund I strategy and structure
Review of HMCCP Fund I strategy and structure We have refined the strategy and structure of Fund II to maximise potential returns for investors ▪ HMCCP Fund I has demonstrated our ability to deliver outsized and uncorrelated returns ▪ Looking ahead, we believe the strong investment performance is re
Slide 33: Introducing HMC Capital Partners Fund II
Introducing HMC Capital Partners Fund II HMCCP Fund II will target a more concentrated portfolio of high conviction investments spanning listed & unlisted assets HMCCP Fund II HMCCP Fund I HMCCP Fund II ▪ Future investments focused on unlisted private equity and our highest Open ended Closed convict
Slide 34: HMCCP Fund II differentiated offering
HMCCP Fund II differentiated offering Enhanced strategy with broader opportunity set which plays to HMC’s unique capability ✓ Track record of generating outsized and uncorrelated returns from high conviction investments ✓ Unique skillset, experience and capability to improve the financial and operat
Slide 35: Energy Transition
Energy Transition 34
Slide 36: Energy Transition Panel
Energy Transition Panel Moderator Panellists Damon Kitney Angela Karl Adam Baxter Gerard Dover Weijie Mak The Australian HMC Capital HMC Capital StorEnergy, Founder Aurora Energy Market Advisors Journalist Managing Director, Managing Director, CEO HMC Energy Head of Australia Head of Energy Transiti
Slide 37: Why Australian Energy Transition?
Why Australian Energy Transition? Australia has a strong global comparative advantage for the energy transition with its significant excess renewable energy resources and leading position in critical mineral reserves – plus the size of the prize is enormous – ~$1-5 trillion investment required by 20
Slide 38: Why Australian Energy Transition?
Why Australian Energy Transition? Australia has a strong global comparative advantage for the energy transition with its significant excess renewable energy resources and leading position in critical mineral reserves – plus the size of the prize is enormous – ~$1-5 trillion investment required by 20
Slide 39: Why Australian Energy Transition?
Why Australian Energy Transition? Australia has a strong global comparative advantage for the energy transition with its significant excess renewable energy resources and leading position in critical mineral reserves – plus the size of the prize is enormous – ~$1-5 trillion investment required by 20
Slide 40: HMC's differentiated product offering
HMC’s differentiated product offering HMC has a differential product and high-quality seed asset portfolio acquired at attractive prices and positioned to benefit from market fundamentals ✓ Dedicated team with deep energy and investment expertise The only dedicated Australian ✓ High quality seed ass
Slide 41: Substantial opportunity driven by U.S. policy changes
Substantial opportunity driven by U.S. policy changes A potential trade war with US’s trading counterparties and a retreat from US energy transition commitments could see a flight to safety and investments in Australia’s energy transition A rapid retreat from energy transition and climate commitment
Slide 42: Private Credit
HM Copia! Private Credit
Slide 43: Private Credit Panel
Private Credit Panel Moderator Panellists Damon Kitney Matt Lancaster Craig Schloeffel The Australian HMC Capital Payton Capital Journalist Chair, Private Credit Head of Payton Capital Platform and Investor Services 42 HMC Capital | Investor Day
Slide 44: Global asset managers are taking advantage
Global asset managers are taking advantage Strong AUM growth is being driven by the retreat of traditional lending groups Global Private Credit AUM (USD trillion)1 Alternative Asset Managers - Credit % total AUM 2 Global Private Credit AUM is expected to almost double by 2030 Private Credit AUM has
Slide 45: Why Australian Private Credit?
Why Australian Private Credit? Attractive risk-return profile for private credit bolstered by characteristics unique to the Australian market Private credit is under-represented in Australian lending1 Legal Environment Non-bank Penetration2 16% Bank Lending Corporate 14% Private Credit • Highly cred
Slide 46: The US market experience
The US market experience Private credit now plays an increasingly important role and has a large addressable market Fund Finance Supply Chain Finance Corporate Loans Equipment Finance Inventory Finance ~$1.5 Middle Market PRIVATE Auto Loans Residential Mortgages ~$40 TRILLION THEN NOW TRILLION ADDRE
Slide 47: Why Australian Private Credit?
Why Australian Private Credit? Attractive risk-return profile for private credit bolstered by characteristics unique to the Australian market ✓ Demonstrated economic growth and resilience underpinned by a political environment with government stability and rule of law ✓ Lender-friendly market with a
Slide 48: Australian Corporate & Asset-based Private Credit Landscape
Australian Corporate & Asset-based Private Credit Landscape Current A$120bn+ market expected to continue to grow with large and extensive opportunities for active capital Corporate Lending Asset-based Lending Corporate / HoldCo level lending secured against a business and its Lending against diversi
Slide 49: Australia's Housing Shortage
Australia’s Housing Shortage Forecast housing supply unlikely to meet strong underlying demand and Federal government targets Chronic Residential Undersupply Australia is facing a significant housing undersupply, with residential construction failing to keep pace with the growing demand, particularl
Slide 50: Political Session
HM Copia! Political Session
Slide 51: Political Panel
Political Panel Moderator Panellists Joe Aston The Hon. Kelly O’Dwyer The Hon. Mark Arbib The Hon. Julia Gillard AC Rampart News Founder Former Senior Cabinet Former Federal Government Former Prime Minister of & AFR columnist Minister & HMC Capital Minister & DigiCo Director Australia & Chair of HMC
Slide 52: Additional Information
HM Copia! Additional Information
Slide 53: Further Information
Further Information Investors and Analysts Media Andrew Dodds John Frey HMC Capital Corporate communications Corporate Finance and HMC Capital Investor Relations Manager +61 423 810 851 +61 411 361 361 andrew.dodds@hmccapital.com.au john@brightoncomms.com.au Authorised for release by the Board of HM
Slide 54: Disclaimer
Disclaimer This presentation (Presentation) is dated 3 April 2025 and has been prepared by HMC Capital Limited ACN 138 990 593 (HMC) and, to the extent this Presentation relates to HMC Capital Partners Fund 1, that information is provided by HMC Capital Limited as a corporate authorised representati
Slide 55: Disclaimer
Disclaimer Investment risk An investment in HMC shares is subject to known and unknown risks, some of which are beyond the control of HMC and its directors. HMC does not guarantee any particular rate of return or the performance of HMC nor does it guarantee any particular tax treatment. Financial in
Slide 56: Disclaimer
Disclaimer Forward-looking statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Actual results, performance or achievements may differ materially from those expressed or implied in such statements and any projections and a
Slide 57: HM Copia!
HM Copia!