The Carlyle Group Inc. · NASDAQ:CG
The Carlyle — Carlyle Tactical Private Credit Fund — Investor Presentation (February 2022)
38 slides from The Carlyle's investor presentation, February 2022
Slide 1: Carlyle Tactical Private Credit (CTAC)
CARLYLE Carlyle Tactical Private Credit (“CeTAC”) February 2022
Slide 2: Notice to Recipients
Notice to Recipients This presentation (“Presentation”) prepared by Carlyle Global Credit Investment Management L.L.C. (together with its affiliates, “Carlyle”), is provided for information purposes only and is not an offer to sell or solicitation of an offer to buy interests in any fund or investme
Slide 3: Notice to Recipients (Cont.)
Notice to Recipients (Cont.) Investors should consult with their financial advisor about the suitability of this fundin their portfolio. Important Risk Information. An investment in the Fund entails a high degree of risk and no assurance can be given that the Fund's investment objective will be achi
Slide 4: Key Takeaways
Key Takeaways Private Credit is a multi-trillion-dollar market! that seeks to offer a premium yield compared to the liquid market C-TAC leverages Carlyle’s global platform to invest dynamically across the entire universe of private credit Our fund structure aligns incentives and allows us to seek to
Slide 5: CTAC Overview
CeTAC Overview The Carlyle Tactical Private Credit Fund seeks to produce current income and provide investors with access to the private credit markets. The Fund seeks to opportunistically allocate its assets across a wide range of credit strategies within The Carlyle Group’s $66B! Global Credit Pla
Slide 6: Contents
Contents SECTION OI Why Private Credit? SECTION 02 Carlyle Group Overview SECTION 03 Carlyle Tactical Private Credit Fund SECTION 04 Investment Strategy Snapshots SECTION 05 Appendix: Additional Information
Slide 7: Why Private Credit?
SECTION Ol Why Private Credit?
Slide 8: What is Private Credit?
What is Private Credit? Private credit is investing in directly originated loans to businesses that cannot or do not want to access public markets for their capital needs Key Attributes v Proprietary Deal Flow v Complex Transactions v Directly Originated v Sponsored & Non-Sponsored Lending v Special
Slide 9: 7% 6% 5% 4% 3% 2% 1% 0% 0 5 20 0 6 20
7% 6% 5% 4% 3% 2% 1% 0% 20 0 0 20 01 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 2014 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 2020
Slide 10: Private Credit Offers Potential Solutions for Investors Seeking Yield
..Private Credit Offers Potential Solutions for Investors Seeking Yield a. YIELD RISK-FREE RATE BROADLY SYNDICATED DIRECTLY ORIGINATED, NON-SPONSOR LOWER MIDDLE SECOND LIEN, (T-BILLS) LOANS UPPER MIDDLE MARKET BORROWERS MARKET SUBORDINATED DEBT CREDIT RISK Leveraged Loans DirectLending Opportunistic
Slide 11: Carlyle Group Overview
SECTION 02 Carlyle Group Overview
Slide 12: Carlyle Firm Overview
Carlyle Firm Overview! Firm Overview Private Equity $161 bn AUM Founded: 1987 AUM: $293 bn Global Credit $66 bn AUM? Employees: 1,800+ Investment Professionals: 700+2 . . $66 bn AUM Offices / Countries: 26/18 The Carlyle Edge v Reach: “One Carlyle” Global Network 20.0 &e e v Expertise: Deep Industry
Slide 13: Credit Business Support and Cross-Platform Resources
• • • • • • • • • • • • • • • • • • • • Credit Business Support and Cross-Platform Resources
Slide 14: Experienced Credit Senior Leadership Team
Experienced Credit Senior Leadership Team Carlyle Global Credit 175+ investment professionals! Mark Jenkins, Head of Global Credit Justin Plouffe, Deputy CIO of Global Credit Linda Pace, Vice Chair of Global Credit 3l+ years experience 20+ years experience 36+ years experience Liquid Credit Illiquid
Slide 15: The Carlyle Edge: Potential Sources of Competitive Strengths
The Carlyle Edge: Potential Sources of Competitive Strengths Breadth of Ability to deliver comprehensive and creative solutions to Investing capabilities C biliti b across the capital apabilities orrowers structure Scale of Capital Carlyle believes it has certainty of execution which few $66 bn of C
Slide 16: Carlyle Tactical Private Credit Fund
SECTION 03 Carlyle Tactical Private Credit Fund
Slide 17: CTAC Overview
C*TAC Overview * C-TAC seeks to produce income & provide high net C-TAC Portfolio Managers worth individuals (“HNWI”) access to the private credit markets by allocating capital across the credit spectrum + C-TAC will invest directly in deals originated by the Global Credit platform, and will tactica
Slide 18: Asset Allocation Across the Entire Credit Platform
Asset Allocation Across the Entire Credit Platform Top-Down Strategy Allocation Global Credit Investment Content Opportunistic Credit Direct Lending Leveraged Loans CLO Investment Aviation Finance Infrastructure Distressed Debt Real Estate Bottom-Up Credit Selection Credit Business Support and Cross
Slide 19: Portfolio Construction
Portfolio Construction Opportunistic Credit | Direct Lending 30-40% 30-40% Current Allocations! Opportunities that arise due to market Loans and subordinated debt to dislocation or special situations sponsor backed middle market companies Structured Credit Liquid Credit I5-20% I5-20% Debt and equity
Slide 20: Tactical Allocation
Tactical Allocation CTAC has been able to shift its portfolio based on where CGC is finding the best risk-adjusted returns 10% 0% eS 2 £ 2 2 Po PP PD PD DP PD PD < 4 Cc se SF x eS e se y? SK of Liquid Credit mStructuredCredit mDirectLending mOpportunisticCredit ™Real Assets Distressed Credit Note: I
Slide 21: Key Portfolio Stats
Key Portfolio Stats 7.33% / 713% ss Annualized / LTM Distribution Rate (I)! $ 368 88° Floating Rate Current Number of Investments ~$1,235. Total Assets under Management? u Ist Lien Senior Secured = 2nd Lien Senior Secured O CLO Tranche = Unsecured rw = Preferred / Equity Other Assets / Receivables =
Slide 22: Key Portfolio Stats (cont.)
Key Portfolio Stats (cont.) TOP TEN INDUSTRIES! (As 4 ¢ OF ASSETS) ANNUALIZED DISTRIBUTION RATE? $0.30 10% 9 $0.25 9.04% 2% 8.65% 8.543,8:74% 0.20 s s, 8.51% 8.04% 8.1 8% ] 711% 7.11% $0.15 7% | | 7.33% 0 7.486% 7% $0.10 XS 6% $0.05 = Health Care Providers & Services * Software Professional Services
Slide 23: Net Monthly Total Return By Share Class
Net Monthly Total Return By Share Class! share Class J veor_ | son] Feb | Mor Ape | Moy Jun] tug | sent oct | Nov | Dec | ID | 2021 ea 137% 061% 1 18% 0.95% 056% 067% 0883 049E— HSE 0781128 [2020 dees (0.96%) (14.83%) (155%) 524% 5.05% 145% 13% 128% 079% 324% 192% 213% [209 eens 103% 061% 4%, O6l% 2
Slide 24: Key Fund Terms
Key Fund Terms Structure The Fund is structured as a registered continuously-offered closed-end interval fund Subscriptions Daily / $10,000 minimum Repurchases! The Fund will offer quarterly minimum 5% repurchases of the Fund NAV Distributions Quarterly Management Fee? 1.00% charged on managed asset
Slide 25: Investment Strategy Snapshots
SECTION 04 Investment Strategy Snapshots
Slide 26: Loans & Structured Credit - $32.7 Billion AUM
Loans & Structured Credit (“L&SC”) - $32.7 Billion AUM Segment Overview Key Investment Highlights ▪ ▪ ▪ ▪ ▪ ▪ ▪
Slide 27: Direct Lending - $6.3 Billion AUM
Direct Lending - $6.3 Billion AUM Segment Overview Key Investment Highlights ▪ ▪ ▪ ▪ ▪
Slide 28: Opportunistic Credit - $6.5 Billion AUM
Opportunistic Credit - $6.5 Billion AUM Segment Overview Key Investment Highlights ▪ ▪ ▪ ▪ ▪ ▪
Slide 29: Distressed & Special Situations - $2.8 Billion AUM
Distressed & Special Situations - $2.8 Billion AUM Segment Overview Key Investment Highlights ▪ ▪ ▪ − − ▪ ▪ ▪ ▪
Slide 30: Carlyle Aviation Partners - $8.3 Billion AUM
Carlyle Aviation Partners - $8.3 Billion AUM1 Segment Overview Key Investment Highlights ▪ ▪ ▪ • • • ▪ ▪
Slide 31: Carlyle Infrastructure Debt - $1.7 Billion AUM
Carlyle Infrastructure Debt - $1.7 Billion AUM Segment Overview Key Investment Highlights ▪ ▪ ▪ Required Infrastructure Spending is Expected to Increase ▪ ▪
Slide 32: Appendix: Additional Information
SECTION 05 Appendix: Additional Information
Slide 33: Subscriptions & Repurchases
Subscriptions & Repurchases Daily Subscriptions Daily Published NAV Quarterly Repurchases (offer at least 5% of Fund shares) Repurchase offer mailed to shareholders quarterly (~8 weeks prior to quarter end) Repurchase deadline is |4 days before last business day of quarter If more shares tendered th
Slide 34: Liquidity Management
Liquidity Management New Capital & Reinvestment cP Amortization of Loans Ge Structured Credit CP Convert Loans to Cash Ge
Slide 35: Strong Shareholder Alignment
Strong Shareholder Alignment Oversight Asset Allocation Independent Fund Board Investing alongside Carlyle’s flagship funds & Carlyle Tactical Registered Fund Private@nedin Seed Capital Registered with SEC Fund $IOOM total seed 1933 & 1940 Act | capital $50M invested by Hurdle Rate Carlyle’s balance
Slide 36: Hypothetical Annual Incentive Fee
Hypothetical Annual Incentive Fee Net investment income (“NII”) is interest income, dividend income and any other income accrued, minus the Fund’s operating expenses ° 6.00% Income 7.2728% Income 0% Income (Hurdle) (Catch-Up) Shareholder receives Shareholder 82.5% of NIlis paid 100% of NIl receives
Slide 37: Interval Fund Characteristics
Interval Fund Characteristics Open-End Mutual Fund Interval Fund Business Development ("OEMF") (non listed CEF) Tender Fund Company 1940 Act Fund Yes Yes Yes Yes Fund Shares Continuously offered Continuously offered Continuously offered IPO for traded BDCs Trade on Exchange No No No Traded BDCs - Ye
Slide 38: Additional Disclosures
Additional Disclosures The mention of specific currencies, securities, issuers or sectors does not constitute a recommendation on behalf the Fund or Carlyle. Prior to November 4, 2019, the Fund’s name was the OFI Carlyle Private Credit Fund. At an in-person meeting of the Board held on September 23,
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