Crown Capital Partners, Inc. · TSXV:CRWN
Crown Capital Partners — Shareholder Meeting (May 2016)
18 slides from Crown Capital Partners's shareholder meeting presentation, May 11, 2016
Slide 1: Crown Capital Partners Annual Meeting of Shareholders
CROWN CAPITAL PARTNERS INC. TSX: CRN ANNUAL MEETING OF SHAREHOLDERS May 11, 2016
Slide 2: Meeting Agenda
Meeting Agenda • Approve financial statements • Appointment of auditors • Election of directors • Other business • Management presentation • Q&A 2
Slide 3: Forward looking statements
Forward looking statements This presentation contains certain “forward looking statements” and certain “forward looking information” as defined under applicable Canadian securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “
Slide 4: Mid-market funding gap
mid-market funding gap 6,000 Canadian companies public / chartered private bank equity 31% debt Canada’s GDP 4
Slide 5: Providing capital to successful companies
Providing capital to successful companies 15+ year track 34 transactions $414 millions in loans record to date 5
Slide 6: How we choose investments
How we choose investments Successful Companies Market allows 2 3 of Premium Pricing Asset Rich Great companies, great pricing drives our model 6
Slide 7: Our simple strategy
Our simple strategy Double impact on Loan to Value Cash flow = Enterprise value Debt levels = Equity upside Greatly limits default risk 7
Slide 8: Established track record of success
Established track record of success 16 14 14 Number of investments 12 10 Consistently achieving 8 7 strong returns 6 5 4 3 2 2 Low volatility 0 <0% 0-10% 10-20% 20-30% >30% Range of IRR 8
Slide 9: Strong execution since IPO
Strong execution since IPO Closed fourth special 2 1st $0.11 special situations long-term per share situations debt fund, transactions transaction quarterly dividend Crown Capital declared Fund IV, LP Petrowest PenEquity Realty Corp: TSX: PRW: $25 million $15 million Distinct Infrastructure Group TS
Slide 10: Proven team delivering results
Proven team delivering results Senior Management Board of Directors George Fowlie Chairman of the Board Chris Johnson CFA Brent Hughes CFA Former Deputy Chairman & Head of Investment President & CEO Banking, Westwind Partners Responsible for directing Crown Capital’s EVP, Chief Compliance Former Par
Slide 11: Private credit market: Underfunded asset class
Private credit market: Underfunded asset class commercial private infrastructure real estate credit 1980’s 1990’s today Inefficient markets create Untapped asset class high yield opportunities with consistent returns 11
Slide 12: Special situations: Accelerating deal flow
Special situations: Accelerating deal flow Well-known, reliable market 500M Optimized deal structure from experience of four funds 3-6 $15 M $ transactions average Broadened origination capabilities per annum targeted deal size portfolio Opportunity to launch focused funds Proven ability to underwri
Slide 13: Long-term financing: Strong, stable portfolio of attractive returns
Long-term financing: Strong, stable portfolio of attractive returns previous loans 12% 12% 12% new loans 12% 12% 12% 2- 4 transactions per annum 12% 12% 12% 12% 12% 12% $20M average 12% 12% 12% 12% 12% deal size 12% 12% 12% 12% 12% 12% 12% $500M 12% 12% 12% 12% 12% 12% 12% 12% 12% targeted portfolio
Slide 14: Solid asset base with capital available to deploy
Solid asset base with capital available to deploy In C$ millions Face Value Interest Rate $162 mm CRH $22.5 12.0% $32.5 Corrosion $4.0 n.a. Incremental investment $32.5 mm NCI Petrowest Distinct $15.0 2- 4 $20.0transactions 11.0% 10.0% commitment in Crown IV LP. (1) PenEquity $25.0 per annumn.a. Inv
Slide 15: How we make money
How we make money Interest Bonus features Fees IR>14% Additional Interest Deal fees Phantom IR 12-14% Warrants Equity No Kicker IR 10-12% Base management fees IR<10% Gifted Equity Performance fees Targeted % of total revenue 80% 10% 10% Cash flow diversification 15
Slide 16: Q1 2016 financial highlights
Q1 2016 financial highlights $5.1mm $2.4mm $2.7mm $1.6mm $0.17 Total revenue Interest revenue Adjusted EBIT Comprehensive Income per basic income share $10.56 total equity per share (basic) 16
Slide 17: Summary
Summary • Favourable conditions in Canada’s mid-market • Strong and growing transaction pipeline • Multiple growth catalysts this year New transactions Additional fundraising for Fund IV New debt facility Well positioned to drive shareholder value 17
Slide 18: Crown Capital Partners Annual Meeting of Shareholders
CROWN CAPITAL PARTNERS INC. TSX: CRN ANNUAL MEETING OF SHAREHOLDERS May 11, 2016
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