Calibercos Inc. · NASDAQ:CWD
Calibercos — IPO Roadshow (November 2022)
27 slides from Calibercos's IPO roadshow presentation, Nov 25, 2022
Slide 1: Wealth Development for the Middle Market
Wealth Development for the Middle Market November 2022 ©2022 Caliber
Slide 2: Forward-looking statements
This presentation includes statements concerning CaliberCos Inc . ’s (the “Company”) expectations, beliefs, plans, objectives, goals, strategies, assumptions of future events, future financial performance, or growth and other statements that are not historical facts . These statements are "forward -
Slide 3: Caliber's Vision and Core Values
Caliber’s Vision We create strategic investments that aim to build generational wealth for our investors, community and team 3 T H E W E A L T H D E V E L O P M E N T C O M P A N Y Authenticity & Transparency | Compassion & Service | Vision & Agility Caliber’s Core Values
Slide 4: What We Do
What We Do Equity Raised** $500M+ Assets Under Management & Assets Under Development* 40% Asset Management Fee Growth (Annual CAGR) 2017 - 2021 Capital Formation Growth Rate (Annual CAGR) 2017 - 2021 30% Caliber’s Track Record of Growth 25% $2.5B+ 14 - year History of Operations Cycle Tested AUM Gro
Slide 5: Middle Market Fundraising and Capital Deployment
Middle Market Fundraising and Capital Deployment Vertically Integrated Operating Model Multiple Levers for Long - Term Enterprise Growth Differentiated Alternative Asset Management + 5 T H E W E A L T H D E V E L O P M E N T C O M P A N Y =
Slide 6: Individuals and Institutions are Looking to Diversify their Investments
Individuals and Institutions are Looking to Diversify their Investments… Caliber provides educational resources to introduce investors to alternatives Stay the Same 2% 16% 55% 26% Will Increase Will Increase Significantly Will Decrease Significantly Will Decrease 1% 0% 10% 20% 30% Proportion of Resp
Slide 7: Leading to Growing Global Demand for Alternatives
20 18 16 14 12 10 8 6 4 2 0 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20* ‘21 ‘22 ‘23 ‘24 ‘25 Assets Under Management ( $trillion) 4.1 4.6 5.6 6.6 6.9 7.4 7.8 8.8 9.5 10.8 10.7 11.8 13.0 14.2 15.6 17.2 CAGR: 9.8% …Leading to Growing Global Demand for Alternatives ● Historic wealth transfer to millenn
Slide 8: The Investor's Challenge and Caliber's Solution
The Investor’s Challenge Commitment to Customer Education Builds Caliber Community Caliber’s Solution Stability Alternative assets, such as real estate and private debt, offer historically low correlation to stocks Volatility The stock market fluctuates daily Taxes Stocks and bonds are tax inefficie
Slide 9: Multiple Sources of Funding Growth
Multiple Sources of Funding Growth 2021 2019 2016 Private Investors $20,000 $60,000 $40,000 $80,000 $100,000 $120,000 $140,000 Caliber has opportunities to grow its investor base through multiple channels $0 Institutional Investors Caliber Funds Raised by Source ($000s) RIAs Broker Dealers Funding S
Slide 10: Our Products Solve for Customer Needs
Our Products Solve for Customer Needs Caliber is consistently innovating new investment products and structures by matching customer feedback to market conditions and potential opportunities ● Opportunity Zone Funds – Growth + Tax Advantaged ● Real Estate Development Funds – Growth ● Core Plus Funds
Slide 11: A Purpose-Built, Middle Market Asset Manager
A Purpose - Built, Middle Market Asset Manager We Invest in Middle Market Assets, Geographies & Investors Investing in the Middle Market ● Regional Specialty in the Greater Southwest ● Competitive Advantage in Underserved Markets ● Multi - Asset Class & Multi - Strategy ● Institutional Structure, En
Slide 12: The Middle Market - Great Deals, High Barriers to Entry
The Middle Market - Great Deals, High Barriers to Entry Middle Market Investors Middle Market Assets Middle Market Geographies ● $5mn - $50mn ● Fragmented ● Large deal volume ● Less competition ● Strong demographics ● Historically higher cap rates* ● Financing gap (overlooked by larger firms) ● Oppo
Slide 13: Middle Market Geographies are Often Overlooked
Middle Market Geographies are Often Overlooked ● Caliber’s real estate focus has been on $20mn - $50mn projects in the Greater Southwest ● Projects are located in business - friendly states with growing populations ● Secondary cities are sometimes overlooked by institutions ● Higher cap rates than l
Slide 14: Unique Middle Market Strategy Drives Competitive Advantages
Unique Middle Market Strategy Drives Competitive Advantages Early - stage investments Capture full life - cycle returns Vertical integration Allows control of multiple stages of investments Middle market focus Less competition = more attractive entry points Multiple revenue streams Generate high fee
Slide 15: Our Differentiated Vertically Integrated Business Model
Our Differentiated Vertically Integrated Business Model… Manage Assets Through Lifecycle Fund & Asset Management Revenues Generate Distributions Share in Investor Profits Performance Fee Revenue Sell or Refinance Share in Investor Profits Disposition Fees Return Capital to Investors Reinvestment Rat
Slide 16: Caliber's Vertical Integration: Increased Control & Multiple Revenue Streams
Source: Caliber’s estimates and internal research reviewing comparable business models …Drives Revenue In - House | Increases Control Caliber’s Vertical Integration: Increased Control & Multiple Revenue Streams Traditional Asset Managers: Lower Control & Fewer Revenue Opportunities Asset Management
Slide 17: Capital Marketing Engine
Capital Marketing Engine Caliber’s database of prospective investors grows each month and provides a predictable base of incoming capital RIAs, BDs & Family Offices Caliber’s Institutional Sales group caters to a B2B capital formation model with solid growth potential New Products Caliber’s ability
Slide 18: Financials
Financials 18 T H E W E A L T H D E V E L O P M E N T C O M P A N Y
Slide 19: Robust Topline Growth Trends
Robust Topline Growth Trends 2021 (YTD thru 9/30) $0 $4,000 $8,000 $12,000 $16,000 $20,000 96% yoy Total Revenue Growth $ 000s 2022 (YTD thru 9/30) $9,543 $18,696 2021 (YTD thru 9/30) $3,000 $2,000 $1,000 $0 $7,000 $6,000 $5,000 $4,000 26% yoy Asset Management Fee Growth $ 000s 2022 (YTD thru 9/30)
Slide 20: Demonstrated Profitability Growth
Demonstrated Profitability Growth 2021 (YTD thru 9/30) $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 4.5x Growth In Adjusted EBITDA $8,000 $7,285 $ 000s 2022 (YTD thru 9/30) $1,694 1. Diluted EPS per share 2021 (YTD thru 9/30) 2022 (YTD thru 9/30) $(0.02) $ - $(0.01) $0.12 $0.10 $0.08 $0.06 $0
Slide 21: Strong Fee Growth Provides Recurring Revenue Stream
Strong Fee Growth Provides Recurring Revenue Stream Performance Fees (Carried Interest) Grow with AUM and as funds mature Transaction & Advisory Fees Predictable income based upon AUM and Managed Capital growth Asset Management Fees Recurring revenue stream Offer potential hedge in rising interest r
Slide 22: Majority of Fundraising Occurs in 2H
Majority of Fundraising Occurs in 2H Q2 16.9% 22.8% 22 T H E W E A L T H D E V E L O P M E N T C O M P A N Y Q1 Q3 20.4% Q4 (% of annual AUM raised) 15.0% 10.0% 5.0% 0.0% 20.0% 45.0% 40.0% 35.0% 30.0% 25.0% 39.8% Average Fundraising Contribution by Quarter ● 4Q typically the largest fundraising quar
Slide 23: Investment Highlights
Providing an underserved customer base access to large and growing market for alternative assets Applying established institutional private asset investment model to middle market Local relationships and expertise drive proprietary deal flow Cycle - tested team with deep industry experience. Track r
Slide 24: Appendix
Appendix 24 T H E W E A L T H D E V E L O P M E N T C O M P A N Y
Slide 25: Caliber Executive Leadership & Independent Directors
Caliber Executive Leadership & Independent Directors A cohesive, established team with a history of successful execution working together Oversees global strategy, investments, and fund management Former PwC Assurance Associate Co - Founder & Former Board Director for Qwick, Inc., a venture - funded
Slide 26: Assets Under Development definitions
Assets Under Development. We define development, redevelopment, construction, and entitlement projects that are underway or are in the planning stages as Assets Under Development (“AUD”). This category includes projects we are planning to build on undeveloped land. If all of these projects are broug
Slide 27: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation 1. CaliberCos Net loss is presented on a basis that deconsolidates our consolidated funds and eliminates noncontrolling interest and includes only those amounts attributable to CalierCos Inc. and its w holly - owned subsidiaries. 2. Legal costs represent an