Duke Capital Limited · LSE:DUKE
Duke Capital — Investor Presentation (March 2025)
17 slides from Duke Capital's investor presentation, March 2025
Slide 1: Introduction to Duke Capital
Introduction to Duke Capital March 2025 AIM: DUKE
Slide 2: Disclaimer
DISCLAIMER These presentation slides and the accompanying verbal presentation (the “Presentation Materials”), have been prepared by Duke Capital Limited (the “Company”). They do not constitute or form part of any offer or any solicitation for any commitment by the Company in relation to any potentia
Slide 3: Introduction to Duke Capital
INTRODUCTION TO DUKE CAPITAL Hybrid capital combines the best features of private credit and private equity Duke’s capital appeals to business owners who need capital but want to retain control PRIVATE PRIVATE CREDIT EQUITY DUKE CAPITAL Senior, mezzanine or junior vs Senior secured loan Minority equ
Slide 4: Clear Investment Strategy
CLEAR INVESTMENT STRATEGY Duke’s funding solution is used by owner-operators to drive growth and increase shareholder value Use of Proceeds MANAGEMENT BUY & BUILD SHAREHOLDER DEBT REFINANCING BUYOUTS STRATEGIES RESTRUCTURINGS What Duke looks for Business characteristics • Investment size of £5 – 30
Slide 5: The Components of Duke's Product
THE COMPONENTS OF DUKE’S PRODUCT Duke offers a unique ‘Corporate Mortgage’ while also aligning our returns with the success of the business • Senior secured instrument • 1.5% - 2.0% variable preference • 12.0% fixed rate yield, with no share refinancing risk • Annual adjustment to Duke’s yield • Pri
Slide 6: The Rise of Private Credit and Direct Lending
THE RISE OF PRIVATE CREDIT AND DIRECT LENDING Private credit is a fast-growing area of the alternative lending market, with direct lending representing the biggest part of the asset class 2014 Market Size 2023 Market Size 2027E Market Size US$100bn US$650bn US$1.15tn US$0.4tn1 US$1.4tn2 US$2.3tn2 20
Slide 7: Target Market vs. Other Institutional Forms of Capital
TARGET MARKET VS. OTHER INSTITUTIONAL FORMS OF CAPITAL The Lower Mid-Market comprises of companies with less access to institutional capital than other segments No investment Duke’s point of entry Duke’s point of exit / refinance Venture Capital Lower Middle-Market Middle Market • Visionary leadersh
Slide 8: Investment Process
INVESTMENT PROCESS Duke has partnered with top tier management consulting firms to expedite due diligence and aims to complete transactions within two to three months Start Weeks 1 to 6 Weeks 7 to 10 Weeks 11 to 12 Sign non- Completion Due Definitive binding of Diligence Documents term sheet Transac
Slide 9: Successful Exit Strategy Proven
SUCCESSFUL EXIT STRATEGY PROVEN Exits form part of Duke’s funding model and validates the flexible form of capital June 2017 – • The lending relationship began in 2017 through Duke’s subsidiary, Capital Step for €500k to fund the December 2020 Company’s acquisition of ATS • Duke financed 6 different
Slide 10: Duke's Investors: Top Global Funds with Significant Public Ownership
DUKE’S INVESTORS: TOP GLOBAL FUNDS WITH SIGNIFICANT PUBLIC OWNERSHIP Since listing on the LSE in 2017, a range of blue-chip institutional investors have invested in Duke $9.5 trn $2.6 trn $1.0 trn $1.0 trn AUM AUM AUM AUM $750 bn $500 bn $300 bn $70 bn AUM AUM AUM AUM Fairfax Financial Holdings Limi
Slide 11: Meet Our Partners
Meet Our Partners
Slide 12: Our Partners
OUR PARTNERS Duke has proven experience investing across a range of sectors, geographies and transaction types March 2024 July 2023 November 2022 December 2021 December 2021 Invested capital: £14.5m Invested capital: US$11.5m Invested capital: £12.1m Invested capital: £19.4m Invested capital: US$21.
Slide 13: Partner: Tristone Healthcare
PARTNER: TRISTONE HEALTHCARE Duke works closely with Tristone to assess and fund new M&A opportunities as part of their buy and build strategy Initial obligation Initial Investment Current Exposure Transaction type £10.5m £19.4m Debt Refinancing & Buy & Build (incl. principal) 13.5% Company overview
Slide 14: Partner: New Path Fire and Security
PARTNER: NEW PATH FIRE AND SECURITY Since our relationship began in 2022, Duke’s capital has been used to fund further M&A for the Group Initial obligation Initial Investment Current Exposure Transaction type £5.5m £12.1m Debt Refinancing & Buy & Build (incl. principal) 13.5% Company overview • New
Slide 15: Partner: Glasshouse
PARTNER: GLASSHOUSE The MBO of Glasshouse comprised a $11.5m investment plus a minority equity investment representing a 9.9% ownership stake Initial obligation Initial Investment Current Exposure Transaction type $11.5m $11.5m MBO (incl. principal) 13.5% Company overview • Founded in 2002 in Texas,
Slide 16: Our Team
OUR TEAM The Duke team has 100+ years of combined experience NEIL JOHNSON – CEO CHARLIE CANNON- HUGO EVANS – CFO ALEX HIBBARD – PRINCIPAL, BROOKES – CIO INVESTMENTS • Extensive experience in • 30+ years of experience in • London-based Chief • 10 years of private equity senior finance roles mid-marke
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