Pollen Street Group Limited · LSE:POLN
Pollen Street — FY2024 Earnings Presentation
34 slides from Pollen Street's earnings presentation, Mar 25, 2025
Slide 1: Pollen Street Group Limited 2024 Full Year Results
POLLEN STREET GROUP LIMITED 2024 Full Year Results 25 March 2025 Pivotal Year of Growth PRIVATE AND CONFIDENTIAL 2024 results presentation | POLLEN STREET © POLLEN STREET 2024
Slide 2: Agenda
AGENDA 1. KEY HIGHLIGHTS Lindsey Crispin 2. OUR PRODUCTS, MARKETS McMurray Goldsmith AND CLIENTS CEO CFO 3. FINANCIAL PERFORMANCE 4. CAPITAL ALLOCATION AND OUTLOOK 2024 Interim results presentation | POLLEN STREET 2024 results presentation | POLLEN STREET 2
Slide 3: Key Highlights
01. KEY HIGHLIGHTS 2024 results presentation | POLLEN STREET
Slide 4: Key Highlights of 2024
KEY HIGHLIGHTS OF 2024 Growing Fund Manager earnings and consistent Balance Sheet returns Private Equity V surpassed target of €1 billion 29% GROWTH 25% increase in Credit AuM in the year with £0.5bn dry powder at the year- IN AUM TO end will become fee-paying when deployed £5.4bn Strong fundraising
Slide 5: Strong and Consistent AuM Growth
STRONG AND CONSISTENT AUM GROWTH AuM growth in line with guidance and on track to deliver medium-term target TOTAL AUM (£ bn) TOTAL FP AUM (£ bn) Medium Term Medium Term Guidance Guidance £10bn 75 – 80% of 5.8 Total AuM of 5.4 £10 bn 2.1 4.3 1.9 4.0 4.2 1.5 1.6 3.4 1.4 3.7 3.5 1.4 2.6 2.8 2.6 2.0 20
Slide 6: Highlights in 2024
HIGHLIGHTS IN 2024 Robust year of fundraising and strategic deployment across investment strategies PRIVATE EQUITY PRIVATE CREDIT Private Equity V has surpassed the target of Successful 2024 fundraising: over £500 €1 billion million raised for Credit IV and new UK Separate Managed Account Continued
Slide 7: Fund Management Drives Step-Up in Revenue
FUND MANAGEMENT DRIVES STEP-UP IN REVENUE Revenue growth driven by recurring management fees TOTAL REVENUE (£M) REVENUE SPLIT (£M) 98.6 24% 32% 79.3 31.8 2024 38% 30.2 11.3 2023 62% 68% 14.8 55.5 34.3 2023 2024 Management Fees Performance Fees Income on Net Investment Asset Asset Manager Investment
Slide 8: Strong Growth in Fund Management EBITDA
STRONG GROWTH IN FUND MANAGEMENT EBITDA Delivering strong performance FUND MANAGEMENT EBITDA (£M) INCOME ON INVESTMENT ASSETS (£M) +72% +5% 31.8 25.7 30.2 14.9 2023 2024 2023 2024 Return on Net 8.8% 9.6% Investment Assets (%) ASSET MANAGER INVESTMENT COMPANY Substantial FP AuM growth: £4.0 billion a
Slide 9: Our Products, Markets and Clients
02. OUR PRODUCTS, MARKETS AND CLIENTS 2024 results presentation | POLLEN STREET
Slide 10: Core Strategies
CORE STRATEGIES Flagship strategies driven by market opportunity and track record We invest behind the structural changes which we expect to shape the future of the industry, with specialist knowledge and best practices in a complex and changing environment PRIVATE CREDIT PRIVATE EQUITY Senior Asset
Slide 11: Private Equity: Market Opportunity
PRIVATE EQUITY: MARKET OPPORTUNITY Midmarket Strength and Sector Growth Driving Private Equity Opportunities GLOBAL PRIVATE EQUITY FUNDRAISING GLOBAL PRIVATE EQUITY DEAL VALUE BY FUND SIZE AND CLOSE YEAR ($1 bn) BY SECTOR All Private Equity Deals 2019 – 2024 2023 – 2024 CAGR % CAGR % Financial Servi
Slide 12: Private Credit: Market Opportunity
PRIVATE CREDIT: MARKET OPPORTUNITY Private Credit Growth with Asset-Based Lending acting as a Diversifier to Direct Lending GLOBAL PRIVATE CREDIT AUM TO ASSET-BASED LENDING ($TN) GROW TO $3 TRILLION BY 2028 ($TN)1 1.43 3.0 3.0 1.28 1.13 2.5 1.01 2.0 2.0 0.90 0.78 1.5 1.0 0.5 0.0 2014 2015 2016 2017
Slide 13: Diversified and Scalable Client Base
DIVERSIFIED AND SCALABLE CLIENT BASE Nurturing strong long-term relationships in deep international markets LP - GEOGRAPHY LP - TYPE 3% 16% 11% 5% 29% 29% 30% 44% 38% 2024 26% 2023 2024 2023 49% 29% 16% 33% 27% 16% Europe UK North America Middle East and Asia Asset/Wealth Managers Insurers Pension P
Slide 14: Financial Performance
03. FINANCIAL PERFORMANCE 2024 results presentation | POLLEN STREET
Slide 15: Business Model
BUSINESS MODEL Clear revenue model NET INVESTMENT INCOME - INCOME GENERATED BY THE BALANCE SHEET £31.8m MANAGEMENT PERFORMANCE FEES - £55.5m FEES - £11.3m Recurring contractual Strong performance management fees track record PE – Committed basis ~2% Private Equity – 20%, Private Credit - Invested Cr
Slide 16: Highly Attractive Financial Profile
HIGHLY ATTRACTIVE FINANCIAL PROFILE INCOME STATEMENT 2024 (£m) 2023 (£m) YoY Growth Income on Net Investment Assets 31.8 30.2 5% Fund Management Income 66.8 49.2 36% Fund Management Administration (41.1) (34.3) 20% Costs Fund Management EBITDA 25.7 14.9 72% EBITDA 57.5 45.1 27% Profit After Tax 49.6
Slide 17: Evolving Revenue Mix
EVOLVING REVENUE MIX Revenue growth driven by recurring FRE, substantial embedded future performance fees not yet accrued TOTAL REVENUE (£M) 50% 32% 43% 38% Management Fees Shift in Revenue Mix: 12% Management Fees rising to 56% of 13% 19% Performance Fees total revenue in 2024, up from 43% 56% in 2
Slide 18: Asset Manager Focus – Growing Revenue
ASSET MANAGER FOCUS – GROWING REVENUE Strengthening earnings quality as Asset Manager scales ASSET MANAGER FUND MANAGEMENT REVENUE (£M) FM EBITDA Margin 23% 30% 39% Substantial AuM growth: Total AuM Medium Term Guidance – 50% increased to £5.4 billion as of 31 December 2024, up 29% from £4.2 billion
Slide 19: Asset Manager Growth
ASSET MANAGER GROWTH Operational leverage driving significant margin expansion 25% FEE PAYING AUM 4.0 3.4 25% CAGR in Fee-Paying AuM driven by active fundraising and 2.5 deployment 2.0 2021 2022 2023 2024 25% 66.8 FUND MANAGEMENT INCOME 49.2 Increased 36% yoy to £66.8 million in 2024 (2023: £49.2 mi
Slide 20: Investment Company
INVESTMENT COMPANY Consistent and Reliable Investment company returns INVESTMENT COMPANY RETURNS (£M) BALANCE SHEET COMPOSITION (%) 8.0% 8.8% 9.6% 6% 600 18.0 11% 16.0 26% 500 30.2 31.8 14.0 400 28.3 12.0 10.0 300 94% 89% 74% 8.0 200 6.0 355 344 330 4.0 100 2.0 0 - 2022 2023 2024 2022 2023 2024 Aver
Slide 21: Balance Sheet – Investment Company
BALANCE SHEET – INVESTMENT COMPANY High quality asset base with resilient and attractive returns INVESTMENT ASSETS (£M) TERM DEBT (£M) 46 10 50 47 83 2024 2023 - £533m 2023 2024 - £504m 374 475 191 Pollen PE Funds Pollen Credit Funds Other Credit Assets Drawn Undrawn BALANCE SHEET STRENGTH AND RESIL
Slide 22: Capital Allocation and Outlook
04. CAPITAL ALLOCATION AND OUTLOOK 2024 results presentation | POLLEN STREET
Slide 23: Capital Allocation and Shareholder Value Creation
CAPITAL ALLOCATION AND SHAREHOLDER VALUE CREATION Optimising Capital: Driving Growth, Returns, and Strategic Flexibility CONTINUE TO OPTIMISE EXCESS CAPITAL ON THE BALANCE SHEET £ ORGANIC ORDINARY INORGANIC ADDITIONAL GROWTH DIVIDEND STRATEGY SHAREHOLDER RETURNS Invest in funds to Support the Flexib
Slide 24: Outlook
OUTLOOK Key priorities for 2025 OUR FOCUS REMAINS ON DELIVERING EXCEPTIONAL VALUE TO OUR INVESTORS AND SHAREHOLDERS COMPLETE FUNDRAISING COMPLETE FUNDRAISING OF PRIVATE EQUITY OF CREDIT FUND IV FUND V EXPAND MAINTAIN PROGRESSIVE FEE-PAYING AUM DIVIDEND POLICY While strategically deploying surplus ca
Slide 25: Q&A
Q&A Accelerating progress in financial services 2024 results presentation | POLLEN STREET
Slide 26: Contact Details
CONTACT DETAILS WWW.POLLENSTREETGROUP.COM Lindsey McMurray CEO lindsey.mcmurray@pollencap.com Crispin Goldsmith CFO crispin.goldsmith@pollencap.com Shweta Chugh IR shweta.chugh@pollencap.com 2024 results presentation | POLLEN STREET 26
Slide 27: Appendix
APPENDIX 2024 results presentation | POLLEN STREET
Slide 28: Private Equity Revenue Model
PRIVATE EQUITY REVENUE MODEL FUND OVERVIEW AND REVENUE MODEL ILLUSTRATIVE MANAGEMENT FEE MECHANISM Fee Charging AUM Invested Capital PROFORMA AUM £3.0bn Undrawn committed capital (b) Management Fee % (a) (c) FEE RATES c.2% MANAGEMENT FEE MODEL Committed CARRIED INTEREST 20% COMBINED GROUP CARRY2 25%
Slide 29: Private Credit Revenue Model
PRIVATE CREDIT REVENUE MODEL FUND OVERVIEW AND REVENUE MODEL ILLUSTRATIVE MANAGEMENT FEE MECHANISM PROFORMA AUM £1.7bn Fee Charging AUM Invested Capital Undrawn committed capital Management Fee % FEE (a) (b) RATES c.1% (c) MANAGEMENT FEE MODEL Invested CARRIED INTEREST 10% COMBINED GROUP CARRY2 25%
Slide 30: Private Equity Portfolio Companies
PRIVATE EQUITY PORTFOLIO COMPANIES Constantly driving growth and change 2024 results presentation | POLLEN STREET 30
Slide 31: Glossary 1/2
GLOSSARY 1/2 ITEM DEFINITION Asset-Based Lending Collateralised financing where loans are secured by a company’s assets with credit limits determined by the assets’ liquidation value. The business segment of the Group that is responsible for managing third-party AuM and the Investment Company’s asse
Slide 32: Glossary 2/2
GLOSSARY 2/2 ITEM DEFINITION Group Pollen Street Group Limited and its subsidiaries. IFRS International Financial Reporting Standards as adopted by the United Kingdom. The discount rate that makes the net present value of all cash flows from a particular investment equal to zero, effectively indicat
Slide 33: Disclaimer 1/2
DISCLAIMER 1/2 THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY FOR USE AT AN INVESTOR PRESENTATION AND IS PROVIDED FOR INFORMATION ONLY. THIS PRESENTATION DOES NOT CONTAIN ALL OF THE INFORMATION THAT COULD BE MATERIAL TO AN INVESTOR. This investo
Slide 34: Disclaimer 2/2
DISCLAIMER 2/2 NOTES TO INVESTMENT PERFORMANCE – CREDIT NOTES TO INVESTMENT PERFORMANCE – EQUITY “Invested” refers to the total funds invested, including transaction fees, in an investment "Invested" or "Cost" refers to the total equity invested, including transaction fees and by Pollen Street or it