NAOS Ex-50 Opportunities Co. Ltd. · ASX:NAC
NAOS Ex-50 Opportunities — NAOS Private Opportunities Fund (NPOF) — Pitch Deck (September 2021)
28 slides from NAOS Ex-50 Opportunities's pitch deck, September 2021
Slide 1: NAOS Private Opportunities Fund (NPOF)
NAOS Private Opportunities Fund (NPOF) PRESENTED BY NAOS ASSET MANAGEMENT
Slide 2: Important Information
Important Information This material has been prepared by NAOS Asset Management Limited (ABN 23 107 624 126, AFSL 273529) (NAOS) as investment manager and trustee of the NAOS Private Opportunities Fund (Fund). The Fund is a unit trust open to eligible wholesale and sophisticated investors only. This
Slide 3: Our Mission
Our Mission Our purpose is to empower exceptional private businesses through our ability to invest patient capital and provide them with access to our extensive network of trusted advisors and partners to assist in maximising long term value for all shareholders. CONVICTION. LONG TERM. ALIGNED | Cop
Slide 4: Investment Team
Investment Team Sebastian Evans Robert Miller Brendan York Jared Tilley Nelson DeMestre Chief Investment Officer Portfolio Manager Portfolio Manager Senior Investment Analyst Associate Analyst CONVICTION. LONG TERM. ALIGNED | Copyright 2021 NAOS Asset Management Limited 4
Slide 5: External Investment Advisory Board Members
External Investment Advisory Board Members Michelle Cox Jim Bindon Felice Testini Jean-Edouard van Praet Significant executive experience Significant experience and a deep Significant experience within the Significant experience in venture within the tourism, hospitality and network within the manuf
Slide 6: NAOS Directors and Team
NAOS Directors and Team OUR DIRECTORS SEBASTIAN EVANS WARWICK EVANS MARK BENNETT Managing Director, NAOS Chairman, NAOS Asset TREVOR CARROLL Director, NAOS Asset Asset Management Limited Management Limited & Independent Chairman NSC Management Limited & Director NCC, NSC & NAC Director NCC, NSC & NA
Slide 7: Fund Objectives
Fund Objectives 01. Provide a unique exposure to quality private companies with long term growth potential. 02. Have a long-term investment focus. 03. Invest alongside aligned founder led businesses. 04. Invest in business that have significant exposure to industries with long-term structural growth
Slide 8: Using the NAOS philosophy & experience to broaden exposure to our investors
Using the NAOS philosophy & experience to broaden exposure to our investors • NAOS has deep experience in small-cap and micro- cap investing • The characteristics of these markets and private investing are similar: • Inherently lower levels of liquidity; • An ability to support with growth capital;
Slide 9: Fund Evolution
Fund Evolution NAOS Asset Management is a specialist fund manager providing genuine, concentrated exposure to Australian emerging industrial companies. NCC NAC NSC NAOS NAOS NAOS NAOS Emerging Ex-50 Small Cap Private NAOS Asset Opportunities Opportunities Opportunities Opportunities Management Ltd C
Slide 10: NAOS Record of Successful Investing in Emerging Companies
NAOS Record of Successful Investing in Emerging Companies PROVEN INVESTMENT MANAGER WITH A STRONG LONG TERM AVERAGE PORTFOLIO MARKET CAPITALISATION TRACK RECORD (AVERAGE SIZE OF INVESTMENT COMPANY) NCC +13.44% p.a.* NCC - $129 million (10 Investments) +5.86% p.a. outperformance over 8 years and 5 mo
Slide 11: Why Private Businesses?
Why Private Businesses? • Quality of the businesses compared to listed peers • Number of investment opportunities • Aligned management & founders • Lower levels of investor participation • Trend towards businesses staying private for longer • Reduced information asymmetry • Ability to structure inve
Slide 12: The Private Company Opportunity
The Private Company Opportunity LARGE NUMBER OF PRIVATE BUSINESSES COMPARED TO LACK OF FUNDING FOR LISTED COMPANIES PRIVATE FOR LONGER GREATER OPPORTUNITIES PRIVATE COMPANIES The number of private Businesses are staying The opportunity set of There is a clear lack businesses opportunities private fo
Slide 13: Why Do Private Companies Require External Capital?
Why Do Private Companies Require External Capital? STAGED RETIREMENT/SUCCESSION There are a significant amount of private businesses that are owned by founders born in the baby boomer period and have few succession options/plans. This can often lead to management buyouts. ORGANIC GROWTH Private busi
Slide 14: Targeted Investments
Targeted Investments PRIVATE/UNLISTED BUSINESSES Not expecting an initial public offering or exit within 24 months. PRE-INITIAL PUBLIC OFFERING (IPO) Funding required with IPO expected within 24 months. IPOs Funding required at the IPO stage. CONVICTION. LONG TERM. ALIGNED | Copyright 2021 NAOS Asse
Slide 15: Where We Will Invest
Where We Will Invest Concept Start Up Growth Public Sales Ri sk Seed Start-up Capital Venture Capital Proven Start-ups Expansion Capital Pre-IPOs IPOs Private Equity CONVICTION. LONG TERM. ALIGNED | Copyright 2021 NAOS Asset Management Limited 15
Slide 16: Key Investment Considerations
Key Investment Considerations Industry and People, culture and Capital management Company MOAT ESG & impact structural tailwinds alignment & quality of earnings considerations Has the company Is the business heavily Are the key executives/ What is the company’s built up a sustainable Does the invest
Slide 17: Investment Exit Strategies
Investment Exit Strategies MANAGEMENT BUYOUT TRADE SALE MERGER Existing management team buys out The business is marketed for sale and The business merges with a external equity holders. sold in its entirety. complementary business and everyone’s respective ownership level decreases or is bought out
Slide 18: Excluded Investments
Excluded Investments Investments may be excluded due to one of the following characteristics (but not limited to): • Revenue <$5 million. • Little shareholder alignment. • Poor industry dynamics/structure. • Revenue is directly (or indirectly) related to sales within industries that do not meet out
Slide 19: NAOS Competitive Advantage
NAOS Competitive Advantage Patient capital with no requirements for exits or listings: • Unlike most private investment funds, NPOF is structured as patient capital with no requirements for exits or listings within a short-term timeframe after investing. Increased lead generation via Investment Advi
Slide 20: Why would Business Owners Partner with NAOS?
Why would Business Owners Partner with NAOS? • History of owning large minority positions in businesses for a long period of time • No majority control requirement • Understanding of capital markets and ongoing funding options • In-house experience around financial, operational and legal tasks • Acc
Slide 21: Superior Idea Generation
Superior Idea Generation • Direct to idea (NAOS proprietary business database) • Investment Advisory Board • Brokers/ advisors/ intermediaries • NAOS network of existing investments & their industry networks • External leads via website/ direct contact CONVICTION. LONG TERM. ALIGNED | Copyright 2021
Slide 22: Investment Structure Flexibility to Minimise Capital Risk
Investment Structure Flexibility to Minimise Capital Risk As opposed to publicly traded investments, private investments are not necessarily made via an ordinary equity structure. Other investment structures may include: Convertible notes Preference shares Ordinary equity An equity or debt like inst
Slide 23: Fund Characteristics
Fund Characteristics Structure: Unlisted wholesale unit trust Investor Type: Sophisticated or wholesale investors only Minimum Investment: $100,000 Expected Term: 5 Years Capital Call: 100% Upfront Liquidity: The Fund is subject to a lockup for the Term. All redemptions before the end of Term are at
Slide 24: Reasons to Consider Investing in the Fund
Reasons to Consider Investing in the Fund $$ $2m 5 YEARS SMALL FUND SIZE ALIGNMENT TERM Small dollar investments can have a NAOS (Investment Manager) & its The Fund will aim to return all funds to significant effect on overall investment related parties will invest >$2 million. investors within 5 ye
Slide 25: Co-Investment Opportunities
Co-Investment Opportunities • Investments may be sourced which could require a greater amount of capital than the NAOS Private Opportunities (NPOF) can provide. • In this event, a co-investment opportunity may arise where investors in the NPOF will be offered a co- investment opportunity to increase
Slide 26: Timeline
Timeline FUNDRAISING FUNDRAISING FUND OPENS CLOSES LAUNCHES Tuesday – 5th October Friday – 29th October Monday – 1st November CONVICTION. LONG TERM. ALIGNED | Copyright 2021 NAOS Asset Management Limited 26
Slide 27: NAOS Asset Management 1% Pledge
NAOS Asset Management 1% Pledge As a company, we commit to Pledge 1% of revenue, time and intellect to movements and missions that matter. 1% REVENUE 1% TIME 1% INTELLECT Each year NAOS donates 1% of its annual Our people have an incredible range of skills NAOS sees the value in supporting young rev
Slide 28: Investor awareness and communication
Investor awareness and communication CEO Insights, NAOS Monthly Investment The news and media Quarterly Webinars Newsletter, subscribe Report & NTA email section of our website via our website naos. updates, subscribe via is updated regularly com.au/subscribe our website naos. naos.com.au com.au/sub
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