GRESHAM HOUSE STRATEGIC PLC NOVEMBER 2019 GRESHAM HOUSE ASSET MANAGEMENT LTD
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CONTENTS WHAT IS STRATEGIC PUBLIC EQUITY? 4 INVESTMENT TEAM & INVESTMENT COMMITTEE 5 GRESHAM HOUSE STRATEGIC PLC 6 PROCESS 7-8 PHILOSPHY 9 PERFORMANCE 10 WHY INVEST NOW? 11 - 12 MARKET OPPORTUNITY 13 - 14 GRESHAM HOUSE STRATEGIC PLC - TOP 10 PORTFOLIO HOLDINGS 15 CASE STUDIES 16 - 18 CONCLUSION 19 APPENDIX 20 - 25 | PAGE 3
WHAT IS STRATEGIC PUBLIC EQUITY? An alternative investment strategy that applies private equity investment processes to public companies. Highly engaged strategy driving strategic, operational or Influential minority stakes management initiatives Focus on intrinsically Targeting inefficient areas undervalued, cash generative of public markets companies …“value approach” Thorough diligence to identify Flexible mandate, up to 30% can be invested in unquoted value creation catalysts | PAGE 4
INVESTMENT TEAM & INVESTMENT COMMITTEE Investment team Tony Dalwood Graham Bird Fund Manager Fund Manager Investment Committee (Chairman) Investment Committee Over 25 years’ experience in Public and Private Started Gresham House Asset Management in 2015. CEO of Gresham House plc. Over 23 years’ Equity industry and advisory. experience in Public and Private Equity. Previously at SVGIM. Previously at SVG Advisers and SVGIM. Joined Gresham House in 2015. Richard Staveley Laurence Hulse Investment Manager Fund Manager 20 years’ experience in Public Equity. Over 4 years’ investment experience. Previously at Majedie Asset Management, River & Previously at Rothschild as an intern in the M&A Mercantile Asset Management (Founder) and team. Societe Generale Asset Management. Joined Gresham House in 2015. Investment Committee Tom Teichman Bruce Carnegie-Brown Rupert Robinson Investment Committee Investment Committee Investment Committee 30 years’ experience in VC’ Over 30 years’ experience Over 25 years’ experience and Banking. in Private Equity. in Private Wealth and Asset Management. Currently at Lloyd’s Banking Co-Founder of The Garage. Group. Previously at Schroders Previously CEO of Gresham Private Bank. House Strategic (formerly Previously at Banco Spark Ventures). Santander, Aon UK Ltd, and Catlin Group Ltd. | PAGE 5
GRESHAM HOUSE STRATEGIC PLC Specialist equity fund targeting 2xMM (15% IRR) over medium term, through investment in inefficient areas of UK smaller companies markets. ▪ Proven team with long track record 1 ▪ Differentiated strategy with a concentrated and engaged approach ▪ Deep specialist public and private small-cap expertise across our investment team ▪ Over-looked opportunity set, significant hidden value ▪ Very attractive current investment environment 1. See the “ STRATEGIC PUBLIC EQUITY - TRACK RECORD” slide | PAGE 6
PROCESS (i) - QUALIFYING OPPORTUNITIES High proportion of deal opportunities are ‘created’ by the manager as a result of strong relationships. ‘Smart entry point’ ▪ Self-originated or influenced transactional entry point ‘Circle of confidence’ ▪ Typically an equity issue (primary) or ‘block trade’ (secondary) ▪ e.g. Northbridge Clearly identified investment thesis ▪ Valuation vs PE transactions and peer group/historic ▪ Capital structure and Profit growth analysis Engagement and influence ▪ Regular management and Board dialogue, pre and post agreed plan ▪ e.g. Pressure Technologies Catalysts and exit identified ▪ Catalysts that can be supported by a strategic investor ▪ Agreed with management teams pre-deal ▪ e.g. IMI Mobile | PAGE 7
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