Investec Plc · LSE:INVP
Investec — Q1 2023 Earnings Presentation
17 slides from Investec's earnings presentation, February 2023
Slide 1: Fund, Trust and Corporate Services Q1 2023 Sector Update
Fund, Trust and Corporate Services Q1 2023 Sector Update Investec
Slide 2: Introduction
Introduction • In our latest update, we reflect on the key market dynamics that impacted 2022 as well as those that will shape the year ahead Edward Thomas Dan Oldham • Last year saw high volumes of M&A, with marquee transactions such as Head of Services Associate Director, Sanne / Apex, Waystone /
Slide 3: A look back at 2022
A look back at 2022 3 Investec
Slide 4: 2022 was a strong year for M&A
2022 was a strong year for M&A With over 65 transactions in 2022, M&A continued at pace despite emerging macro-economic headwinds. The US and Europe saw the highest number of deals US UK Ireland Other EMEA 13 14 5 13 transactions, including: transactions, including: transactions, including: transact
Slide 5: Challenges faced in 2022
Challenges faced in 2022 Last year saw a number of market headwinds, largely driven by the economic backdrop Heightened Inflationary Talent retention The denominator Fewer new fund regulatory pressures effect launches scrutiny • Regulatory scrutiny • Inflationary • The sector has • Market volatility
Slide 6: Outlook for 2023
Outlook for 2023 6 Investec
Slide 7: Outlook for 2023
Outlook for 2023 Significant growth opportunity remains, underpinned by market fundamentals, but players need to focus on operating model efficiency and selective M&A Growth in alternative asset AuM is expected to slow down slightly, although Annualised growth rate of Private the medium and long ter
Slide 8: Outlook for 2023 (continued)
Outlook for 2023 (continued) Significant growth opportunity remains, underpinned by market fundamentals, but players need to focus on operating model efficiency and selective M&A Heightened regulatory complexity, increased costs and the related squeeze on Of alternative investment managers margins,
Slide 9: LPs remain positive on the outlook for alternatives
LPs remain positive on the outlook for alternatives Investec hosted a panel discussion with LPs during the 2022 SuperInvestor conference in Amsterdam. The panel shared their thoughts on key trends 1 2 3 The “Denominator Effect” is impacting Illiquid investment strategies are still Direct lending and
Slide 10: How the listed players are performing
How the listed players are performing 10 Investec
Slide 11: How the listed players are performing
How the listed players are performing A dwindling number of European listed players, creating opportunity for new IPO candidates to benefit from the strong institutional demand for the sector EV / NTM EBITDA 1st January 2020 to 31st January 2023 25.0x Acquired by Apex 20.0x 15.0x 10.0x Acquired by C
Slide 12: How the listed players are performing
How the listed players are performing Strong underlying marketTrading growth dynamics and highlights across all three service lines Outlook 2023 earnings valuation • 2022 was a successful year for JTC, • The Group’s EBITDA will be at the top end delivering double-digit net organic revenue of expecta
Slide 13: How the listed players are performing
How the listed players are performing Strong underlying market growth dynamics across Final results andall three service lines offer 2023 earnings valuation • Acquisition of Intertrust by US based CSC closed on 14 November 2022 12.7x • Delisting occurred on 23 December 2022 • The acquisition more th
Slide 14: Our credentials in the space
Our credentials in the space 14 Investec
Slide 15: Dedicated to the Fund & Trust Administration sector
Dedicated to the Fund & Trust Administration sector Highly knowledgeable and relevant sector experience Investec has a deep understanding and commitment to the sector across its entire banking platform Advised PE Merger of Ocorian Disposal of Microgen Provider of debt Acquisition We have significant
Slide 16: A full-service bank for the sector
A full-service bank for the sector Our offering spans corporate banking & lending, growth & leveraged finance and M&A advisory Head of Services M&A, London Trust & Corporates, Jersey +44 (0)20 7597 5109 +44 (0)15 3451 2667 edward.thomas@investec.co.uk edward.thomas@investec.co.uk Edward Thomas Mark
Slide 17: accompanies it) (together, “this document”) is for general information only and is the property
This document and any attachments (including any e-mail that This document does not take into account the specific investment accompanies it) (together, “this document”) is for general information objectives, financial circumstances or particular needs of any recipient only and is the property of In