Duke Capital Limited · LSE:DUKE
Duke Capital — Duke Royalty — Investor Presentation (April 2022)
19 slides from Duke Capital's investor presentation, April 2022
Slide 1: Introduction to Duke Royalty
Introduction to Duke Royalty April 2022 AIM: DUKE
Slide 2: Introduction to Royalty Financing
Introduction to Royalty Financing Private business owners receive capital while retaining control of their business and continuing strategic direction making No refinancing risk Retain control of timing for owners of any refinancing event A long term approach Flexible structure to the business relat
Slide 3: Corporate Royalties 101
Corporate Royalties 101 A long-term participating loan with similar characteristics to traditional royalties • Alternative financing with features of debt and equity, which allows company owners to keep control of their business without refinancing risk • Duke provides a lump sum of capital to a com
Slide 4: An Established Alternative Financing Solution
An Established Alternative Financing Solution Corporate royalties appeal to owners who need capital but want to retain control Debt Royalty Private Equity Term 3-7 years 25-40 years Permanent dilution Refinancing risk Significant None Pressure to exit Control Passive Passive Loss of control Covenant
Slide 5: Duke's Typical Investment Criteria
Duke’s Typical Investment Criteria A well-defined process that fits our risk-reward appetite • Cheque size of c.£5m - £20m Preferred sectors Investment fit within • Western Europe and North America Duke Portfolio • Appropriate Environmental, Social and Governance (ESG) standards Industrials Alignmen
Slide 6: Funding Solutions
Funding Solutions Key examples of how Duke’s funding solution has been used to drive growth and increase shareholder value Debt or equity MBOs Acquisition capital restructuring Allows experienced Debt refinancing or management teams to Flexible financing model shareholders exiting become majority ow
Slide 7: Royalty Financing - Preservation of Equity Upside for Owners
Royalty Financing - Preservation of Equity Upside for Owners Shareholders benefit from superior accretion in equity value over time Year 1 Years 5-7 Years 8-10 Revenue: £10m / EBITDA: £4m Revenue: £20m / EBITDA: £8m Revenue: £30m / EBITDA: £12m Multiple: 5.0x Multiple: 6.0x Multiple: 7.0x Valuation:
Slide 8: Successful Exit Strategy Proven
Successful Exit Strategy Proven Exits form part of Duke’s funding model & 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 Company’s December 2020 acquisition of ATS • Duke financed 6 different t
Slide 9: Successful Exit Strategy Proven
Successful Exit Strategy Proven Duke’s flexible capital aims to benefit business owners through various funding structures in order to grow equity value or alternatively, exit the business Duke first invested in the BHP Group in Duke invested in Xtremepush in 2018 for August 2018 as part of an MBO f
Slide 10: Duke's Typical Investment Process
Duke’s Typical 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 Phase 1 Weeks 1 to 5 Weeks 5 to 7 Weeks 8 to 10 Sign non- Completion Due Definitive binding of Diligence Documents ter
Slide 11: An Experienced Team, Including Royalty Pioneers
An Experienced Team, Including Royalty Pioneers Management and investment committee have royalty experience of 70+ years Neil Johnson – Executive Director and CEO Charlie Cannon-Brookes – Executive Jim Webster – Chairman of Investment • Pioneered UK listings for Canadian and UK Director Committee du
Slide 12: Duke's Investors: Top Global Funds have Invested in Duke
Duke’s Investors: Top Global Funds have Invested in Duke Since listing on the London Stock Exchange 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 $650 bn $500 bn $430 bn $30 bn AUM AUM AUM AUM Duke has been funded by h
Slide 13: Meet Our Royalty Partners
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Slide 14: Our Royalty Partners
Our Royalty Partners Duke has proven experience investing across range of sectors, geographies and transaction types December 2021 December 2021 July 2021 July 2021 June 2021 SPECIALIST CARE INDUSTRIALS INDUSTRIALS I.T. SERVICES HEALTHCARE Invested to date: Invested to date: Invested to date: Invest
Slide 15: Royalty Partner: Tristone Healthcare
Royalty Partner: Tristone Healthcare Transaction type Initial obligation Annual adjustment Initial Investment Term (incl. principal) (based on revenue) Debt Refinancing & £10.5m 30 years Acquisition 13.5% +/-6% Company overview • Tristone provides specialist residential and domiciliary care to i) hi
Slide 16: Royalty Partner: Atlas Signs
Royalty Partner: Atlas Signs Initial obligation Annual adjustment Initial Investment Term Transaction type (incl. principal) (based on revenue) £15.9m 30 years Debt Refinancing 12.5% +/-6% Company overview • Founded by the Adinolfe family in 1992, Atlas is a leading national sign branding company th
Slide 17: Royalty Partner: Fabrikat
Royalty Partner: Fabrikat Initial obligation Annual adjustment Initial investment Term Transaction type (incl. principal) (based on revenue) £6.2m 30 years MBO 14.0% +/-6% Company overview • 35 year history - largest independently owned manufacturer of lighting columns and guardrails in the UK; Mana
Slide 18: Support to our Royalty Partners
Support to our Royalty Partners Duke has a track record of supporting its Royalty Partners through the adversity caused by the Covid-19 Pandemic Management of cash Focus on business Grow and strengthen collections recovery existing businesses Structured forbearance Ongoing board level Provided addit
Slide 19: AWARDS 2021
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