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Creating Value Through Transformation
2 0 X X
2
growthintegrity
transformational
agile
operationalproactivecontrarian
creativepat
ien
t
thes
is-d
rive
n
tran
spar
en
t
pru
de
nt
experienced results driven
value-orientation
forw
ard
loo
kin
g successfultenacious
trustedhonesty
XYZ
B U S I N E S S B U I L D E R S F O R X X Y E A R S
3
Control, Middle Market Investors | Strategically-Focused, Active Owners
C R E AT I N G V A L U E T H R O U G H T R A N S F O R M AT I O N
XYZ
XYZ by the Numbers
4
C O N S I S T E N T R E T U R N S A C R O S S T H R E E M A R K E T C Y C L E S
R E S U LT SI N V E S T M E N T S
XX institutional
funds
$XXinvested
XX +add-on
acquisitions
XX platform acquisitions
$XX in realizations
XX x Gross MOIC
(XX x Net MOIC)
XX % Gross IRR(XX % Net IRR )
INVESTMENT PARTNERS
• Highly-seasoned, home-grown team
- 100% promoted internally
• Average tenure at XYZ of XX years
• Each partner responsible for a specific industry vertical
• Successful GP ownership transition completed in XXXX
- Firm managed by a XX-person Executive Committee
XXX
5
O N E S T R AT E G Y | O N E T E A M | O N E O F F I C E
XYZ Senior Team: Well-Positioned for the Future
OPERATING PARTNERS
• Hands-on business builders
• Former CEOs and CFOs
• Full-time members of the firm and participants in the carry pool
• XX investment professionals
• XX firm employees
• XX% GP commitment in Fund XX• Proactive sourcing of new platform
investments and add-on acquisitions
BUSINESSDEVELOPMENT
• XX financing transactions since XXXX
- $XXB placed directly by XYZ
CAPITALMARKETS
$ $ $
XXX XXX XXXXXXXXX XXX XXX XXX
6
• Strengthen management talent
• Execute add-on acquisitions
• Drive organic growth
• Implement synergies and cost savings
• World-class management teams
• Market-leading companies with differentiated capabilities
• Strategic position drives valuation at exit
• Deep expertise within core industries
• Thesis-driven approach
• Disciplined value orientation
• Capital structure optimization
INVESTMENT TRANSFORMATIONAL GROWTH SIGNIFICANTLY IMPROVED BUSINESS
Disciplined Investment Strategy: Creating Value Through Transformation
Deep Expertise Across Three Core Industries
7
S e c t o r 2 S e c t o r 3S e c t o r 1
Macro Themes
Favorable Long-Term Trends → Strong Demand Growth with Limited Cyclicality
Meaningful Segments of the Economy → Broad, Diverse Opportunity Sets
Fragmented Industries → Opportunity to Consolidate + Add Value
Low Capital Intensity → Cash Flow Generation
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Rigorous Approach to Deal Generation
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INVESTMENT PARTNERS
BUSINESS DEVELOPMENT
OPERATING PARTNERS
• Deep industry expertise
• Extensive primary research drives highly specific investment themes; never following the crowd
• Form partnerships with senior executives to pursue build-ups
• Systematic approach to managing complex network of intermediary relationships
- Over XX advisors, investment bankers, attorneys and accountants across XX
- Over XX in-bound deal introductions annually
• Attend M&A conferences with key industry relationships
• Target acquisitions aligned with investment themes
• Fully-integrated team works closely with investment partners as part of the diligence process
• Over XX years of combined experience, having served as CEOs and CFOs at large, multi-national corporations
STRESSED BALANCE SHEET
Identifying Businesses Facing Distinct Challenges
9
C H A L L E N G E S U N D E R TA K E N
STRATEGIC COMBINATIONS
CORPORATECARVE-OUTS
BUILD-UPS
LEADERSHIPTRANSITION
OPERATIONALUNDER-
PERFORMANCE
$XX EBITDA
$ XX equity investment
XX deals per fund
T A R G E T C O M P A N Y 1
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Companies
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Companies
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Companies
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Companies
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Companies
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Companies
FUND A FUND B FUND C FUND D INDUSTRYAVERAGE
Investment Strategy Drives Attractive Purchase Prices
10
T H E B E N E F I T O F O U R V A L U E O R I E N TA T I O N
Downside protectionacross cycles
Opportunity for multiple expansion as a result of transformational growth
E N T E R P R I S E V A L U E / E B I T D A M U LT I P L E S
In-house Capital Markets Execution
11
• Proprietary financing documents with terms uncommon in the middle market
• Provides maximum operational flexibility; eliminating lenders from Boardroom discussions
• XYZ structures diverse lending groups, adding new lenders in every deal
• Increases the ‘pool’ of lenders to fund growth
• Diminishes leadership of any single lender
• Privately place over XX% of debt transactions in-house
• $XX of debt capital raised across XXtransactions
• Below market financing costs
FLEXIBILITY & SAFETY
DIVERSIFICATION
LOW COST
O U T C O M ES T R A T E G Y
T R A N S F O R M I N G D E B T F R O M A L I A B I L I T Y T O A N A S S E T
Bespoke Process
Focus on Detail
Relationships, Not Dependencies
Repeatable Model
Continuous Improvement
Active Liability Management
C O R E T E N E T S
Proactive Approach to Talent Management
12
• Implement organizational design consistent with portfolio company’s goals
• Design equity incentive structures (short and long-term) to align closely with our LPs
• Assess leadership talent through a data-driven approach
• Proactively identify talent gaps and recruit best-in-class executives
• Expand management skills / experience to match lifecycle of an investment
• Execute succession planning
C O N N E C T I N G T A L E N T T O
V A L U E
Percentage of Executives Upgraded During XYZ Ownership1
CEO CFOExecutive
Team
Executing XYZ’s Operational Excellence Playbook
13
DRIVE ORGANIC GROWTH
• Commercial best practices
• Strategic pricing
• Cross-sell opportunities
• New sales channels, geographies
• Additional services
EXECUTE & INTEGRATE ACQUISITIONS
• Governance and reporting framework to realize cost synergies
• Employee messaging and retention
• Eliminate any disruption to the core business
• Revenue synergies
IMPLEMENT COST SAVINGS
• Incorporate SG&A efficiencies
• Institute functional best practices
• Enhance employee productivity
• Simplify organizational structure across the company
1ST LINE OF DEFENSE
2nd LINE OF DEFENSE
Defending Our Companies
15
3rd LINE OF DEFENSE
T H O U G H T F U L A N D A C T I V E R O L E T O P R O T E C T I N G O U R C O M P A N I E S D U R I N G T O U G H T I M E S
XYZ Companies
Firm Evolution
17
3 0 - Y E A R H I S T O R Y . . . E N H A N C E D O V E R T H E L A S T T H R E E F U N D S
20XX
30-YEAR HISTORY • Xxx
FUNCTIONAL EXPERTISE
• Xxx
INVESTMENT EXPERTISE
• Xxx
I N V E S T M E N T A P P R O A C H
DISCIPLINED INVESTMENT STRATEGY
LESSONS LEARNED
OPERATING PARTNERS
CAPITAL MARKETS
BUSINESS DEVELOP
DEPTH OF SECTOR KNOWLEDGE
LEVEL OF TRANSFORMATION
STRATEGIC SOURCING
TODAY
BRAND RECOGNITION
16
Fund Performance Across Investment CyclesAs of December XX, 20XX
16
FUNDS A-D(20XX-20XX)
FUND E(20XX)
FUND F(20XX)
FUND G(20XX)
FUND SIZE
Fund A (20XX): $XXFund B (20XX): $XXFund C (20XX): $XXFund D (20XX): $XX
$XX $XX $XX
TOTAL VALUE $XX $XX $XX $XX
MULTIPLE (MOIC)
Gross XX XX XX XX
Net XX XX XX XX
RETURNS(IRR)
Gross XX XX XX XX
Net XX XX XX XX
DISTRIBUTIONS(DPI)
Gross XX XX XX XX
Net XX XX XX XX
• XX Gross MOIC, XX Net MOIC
• XX Gross IRR, XX Net IRR
• Fully Committed, XX of Total Value returned to LPs
• XX Gross MOIC, XX Net MOIC
• XX Gross IRR, XX Net IRR
• Fully Committed, XX of Total Value returned to LPs
17
Fund F (20XX)Fund E (20XX)
Fund V and Fund VI PerformanceAs of December XX, 20XX
Invested Capital Total Value
Realized Proceeds Unrealized Value
Invested Capital Total Value
Recent Investment ActivityAll Fund G investments to date ($M)
18
InvestmentDate
EquityInvested
Equity Committed
PurchaseMultiple
Company Overview
20XX XX XX XX
20XX XX XX XX
20XX XX XX XX
20XX XX XX XX
20XX XX XX XX
20XX XX XX XX
20XX XX XX XX
TOTAL XX XX XX
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19
EquityInvested
Company OverviewDistribution
DateDistribution
AmountDistribution Type
XX 20XX XX
XX 20XX XX
XX 20XX XX
XX 20XX XX
XX 20XX XX
XX 20XX XX
TOTAL XX XX
Recent Distribution ActivityNotable distributions across the portfolio since 20XX
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Beyond Fund Investments: Partnering with LPs
20
F O R T H R I G H T, T R A N S P A R E N T C O M M U N I C A T I O N S
A L I G N E DI N C E N T I V E S
XX GP Commitment
(Fund G)
C O - I N V E S T M E N TE Q U I T Y
~$XXin Co-investment
Opportunities AcrossFunds E - F
D I R E C T D E B TI N V E S T M E N T S
$XXof Debt Placed Directly by XYZ
APPENDIX
Organizational Chart
22
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XXX
<Insert Function> <Insert Function>
<Insert Designation>
<Insert Designation>
XXX XXXXXX XXX XXX XXXXXX
<Insert Designation>
XXX
XXX
XXX
<Insert Designation>
XXX XXX
XXX
XXX XXX
<Insert Function>
XXX
XXX XXX XXX
XXX
XXX
XXX
XXX
XXX
XXXXXX
<Insert Function>
XYZ
Stable Investment Team Leadership
Sen
ior
Inve
stm
en
t Te
am
Tenure (years)
<<Insert Company Name>> E
<<Insert Company Name>> F
13
12
14
30
23
8
6
‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18
XXX<Insert Designation>
XXX<Insert Designation>
XX G
Te n u r e d S e n i o r Te a m w i t h C o n s i s t e n t D e a l A t t r i b u t i o n
Fun
ctio
nal
Ex
pe
rtis
e
Fund Term
24
XXX<Insert Designation>
XXX<Insert Designation>
XXX<Insert Designation>
XXX<Insert Designation>
XXX<Insert Designation>
Track Record: Fund F and G
24
As of December 31, 20XX, unless otherwise noted
Vintage: 20xx
Fund F PortfolioInitial
InvestmentCapital Invested
(Net of Recycling)Distributions
to Date Distributed to Paid-InBook Value
Total Value
Gross MOIC
Gross IRR
XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX XX XX
Fund F Total XX XX XX XX XX XX XX
Net MOIC XX
Net IRR XX
Net DPI XX
Vintage: 20xx
Fund G PortfolioInitial
InvestmentCapital
Invested Capital CommittedDistributions
to DateDistributedto Paid-In
Book Value
Total Value
Gross MOIC
Gross IRR
XX XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX XX XX XX
Fund G Total XX XX XX XX XX XX XX XX XX
XX XX XX XX
XX XX XX XX
Fund G Total To Date XX XX
Net MOIC XX
Net IRR XX
Net DPI XX
Track Record: Fund E
25
Vintage: 20xx
Fund E Portfolio Initial InvestmentCapital Invested
(Net of Recycling)Distributions
to DateDistributedto Paid-In
Book Value
Total Value
Gross MOIC
Gross IRR
XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX XX XX
Fund E Total XX XX XX XX XX XX XX
Net MOIC XX
Net IRR XX
Net DPI XX
As of December 31, 20XX, unless otherwise noted