RESULTS Investing in a Portfolio of Late Stage, High Growth Technology Companies For the period ending 30 June 2016 March 2017 Bailador Technology Investments Limited (ASX:BTI) Bailador Technology Investments Limited (ASX:BTI) Approved for release 19 August 2016
Bailador provides investors with unique exposure to a portfolio of private expansion-stage information technology companies with global addressable markets and extensive downside protection. 2
Investment Portfolio & Summary Approach Valuation Appendix I: Straker Translations Profile Appendix II: Half Yearly Results Recap
Investment Approach
A team of specialist technology investors David Kirk Paul Wilson Michael Hayes Georgina Brown Andrea Kowalski James Johnstone Co-Founder & Co-Founder & Investment Investment Investment Investment Managing Partner Managing Partner Manager Manager Director Director • • • • Former CEO of Former Director of • • Buy-Side Equity 6 years combined Founding Director of 10 years Venture Fairfax Media, where CHAMP Private Research Analyst at experience in Mozo (online Capital and he led the acquisition Equity, and Boulevard Capital investment banking marketplace) that Investment Banking of Trade Me and previously Metlife • Management (US and enterprise won multiple Deloitte Principal at London- Stayz.com (London) Equity Hedge Fund) (SaaS) sales Fast 50 and BRW based BOOST&Co • IPO investor in Xero • • • Executive Director of Corporate Strategy Enterprise Sales Fast Starter Awards (EUR 250m), • Chairman of Trade Illyria Pty Ltd • Associate at The Executive with Strategy consulting managing Me and Kathmandu (Lachlan Murdoch) Walt Disney Rackspace and corporate investments in • Former Captain of • • Director of Yellow Company (Los Investment banking development with Germany (based in the All Blacks Pages (New Angeles) analyst with Lazard Virgin Travel and Berlin) • Rhodes scholar to • • Zealand), Rajasthan • BA (Economics) from Dual Bachelor in Virgin Financial Associate Director Oxford Royals (IPL cricket) • Harvard University Commerce and Bachelor of with UBS in London • MBChB (Otago) and Vita Group • Economics & Finance Accounting (UTS) MBA from INSEAD • MA (Oxon) • B. Bus from QUT from The University and qualified CA (D’09) • FINSEA Fellow and • of Queensland B. Comm from McGill qualified CA (Montreal, Canada) The investment team has personally invested over $11 million in BTI shares 5
BTI’s core investment approach Leverage specialist Invest in companies with technology expertise; a proven business model, engage with companies global addressable and management through market, and $5-20m of extensive due diligence revenue Put in place capital Go on the board; provide structure and contractual extensive help improving terms that provide reporting, finding people, downside protection international expansion, while giving full upside ESOP, capital raising etc. exposure 6
What does ‘Expansion Stage’ mean? Technology is de-risked compared to early- stage companies Proven revenue generation capability (typically with $5-20m of revenue in the twelve months prior to BTI’s initial investment Proven management capability – 2 to 6 years of operation and run by the founders GROWTH Global addressable market with a significant portion of revenue generated internationally, and clearly identified growth opportunity Early Stage Expansion Maturity Stage Closer to exit via trade sale or IPO than ‘start- TIME ups’ and early-stage businesses 7
BTI’s investment criteria Bailador’s access to high quality deal flow enables it to focus on investments that meet key investment criteria Proven Highly profitable Technology unit economics ü Huge Global No start-ups × Addressable Markets Globally No biotechnology Proven × competitive ü Rapid growth management businesses technology Investment ü Potential to return 3- Material capital not × Criteria 10x multiple of entry required to scale cost Significant Proven repeating revenue Business Model 8
Capital Structure Protections & Upside Principal invested is protected so long as the whole business is sold for > BTI cost, with conversion rights enabling full upside participation ‘Downside’ Example ‘Upside’ Example $50m Bailador Investment (Convertible Preference Shares) $200m Ordinary Equity $10m $10m $40m $40m $10m Investment Investment Investment Investment Entry Exit Entry Exit 9
Portfolio & Valuation
The BTI portfolio companies are substantial businesses The combined revenue of the BTI portfolio companies is over $125m Portfolio revenue growth in CY16 was 37% 11
BTI Net Asset Value (NAV) has increased consistently since IPO BTI NAV since IPO ($ million) 160 140 120 100 80 60 40 20 0 Nov-14 Nov-15 Nov-16 Mar-15 Jul-15 Sep-15 Mar-16 Jul-16 Sep-16 Jan-15 May-15 Jan-16 May-16 Cash Portfolio Investments 12 1. After all fees.
BTI provides immediate exposure to a conservatively valued high growth portfolio Value Uplift Business Description Current Valuation Commentary Capital 28 Feb 2017 Structure ($m) %* Preference World leader in hotel channel management and distribution solutions for online Revalued at Dec 2016. 12 mths since latest ✓ 40.5 801% 3 rd party transaction. accommodation bookings. www.siteminder.com Leading platform provider for publishing and broadcasting video content through the Held at cost plus accrued interest. ✓ 28.9 51% web, IPTV and mobile devices. www.viostream.com Social marketing platform aggregating User Generated Content (UGC). Value determined by 3rd party investment ✓ 11.1 49% www.stackla.com December 2016 Straker Translations is a technology leader in the huge and growing international Value determined by 3rd party investment ✓ 8.7 26% translation market. www.strakertranslations.com October 2016 Cloud based vendor management software in the rapidly growing compliance and Discretionary write down by Bailador due to ✓ 7.0 (36)% security space. www.iprolive.com delayed performance. October 2016 Independent source of advertising data analysis. Established big data model with US Held at cost. ✓ 6.4 - presence and global prospects. www.standardmediaindex.com Leading provider of cloud & desktop productivity software with over 250k end users. Held at cost ✓ 5.0 - www.docscorp.com <12 months since investment. June 2016 Rezdy is an online SaaS package for Tours & Activity providers and a B2B marketplace. Revalued at Oct 2016. 12 mths since latest ✓ 3 rd party transaction. Follow on investment 4.5 39% www.rezdy.com of $1m made in February 2017. Data platform for large scale enterprise data management. Held at cost ✓ 4.0 - www.instaclustr.com < 12 months since investment. Nov 16 End to end online loan platform and mortgage product in multi billion dollar sector. Held at cost. 4.0 - www.lendi.com.au < 12 months since investment. May 16 Cash / Other 21.3 Total NAV : NAV per share of $1.18 141.5 * Uplift % implied by current business value vs original investment cost by BTI or Bailador Trust 13
Recommend
More recommend
