A Comprehensive Analytics Platform for Private Markets Investors

Transcription

1 A Comprehensive Analytics Platform for Private Markets Investors SM

2 Cobalt is a smarter business intelligence platform built specifically for the private markets. The private markets asset class is progressively complex with an increased focus toward manager selection and portfolio construction. How is your team formulating a data strategy to handle these new challenges? Cobalt is a smarter business intelligence platform built specifically for the private markets. We provide a modern and flexible analytics interface that includes end-toend portfolio monitoring, due diligence analytics, personalized reports and dashboards, automated benchmarking and comprehensive, accurate, and timely market data. Cobalt provides a single analytical interface to help your team conduct smarter diligence, tactically build portfolios, and drive investment returns. We help you discover insights that Excel and simple data sources cannot provide. We do this by integrating your data into Cobalt, where it is analyzed and benchmarked against our leading sources of market data. This provides unmatched insight and helps you integrate powerful analysis into your diligence reports and portfolio reviews. In short, we automate the most challenging calculation and reporting tasks LPs face, so that you can spend your time making decisions.

3 % % 1 years 3 year 5 year Since Inception Private Market Benchmark Russell 3000 Index Russell 2000 Health Sector 22.50% % 15.00% 12.50% Jan '13 Jul '13 Jan '14 Jul '14 Jan '15 Jul '15 Russell 2000 Health Sector Russell 3000 Index x 0.75x Peer Range Peer Median Jan '13 Jul '13 Jan '14 Jul '14 Jan '15 Jul '15 Peer Range Peer Median Portfolio Intelligence Sample Features Control a 360 degree view of performance and risk exposures > > Summarize or dive deep into key metrics and compare them to industry benchmarks > > Group and filter on custom characteristics to conduct ad-hoc analysis Guide your organization through commitment planning decisions > > Optimize a plan to maintain or achieve a desired exposure to the asset class > > Understand how your portfolio may react to various market cycles PUBLIC MARKET EQUIVALENT BENCHMARKING 6 VALUE GROWTH Horizon Returns PME Benchmark 5 PME Trend PEER J-CURVE BENCHMARKING IRR J-Curve 7 Make the case for private markets investing Over the last year, 's total value has grown more quickly than both the public markets and its private market peer set. Since inception, has under performed the Russell 2000 Health Sector benchmark by 123 bps. Note: The Private Market Benchmark is a portfolio of 40 North America buyout funds from the 2008 vintage year. Since 2013, 's performance has tracked the Russell 2000 Health Sector Index closely. Both First Choice Partners Fund IV and the health sector index have out performed the general market represented by the Russell 3000 Index. The IRR j-curve analysis compares 's IRR progression to its close peers. The IRR j- curve highlights a manager's ability to mitigate the impact of fees and gauges the ability to build a portfolio that creates value and generates momentum. The grey shaded area represents the first and third quartile break points of the IRR performance of the private market peer set. 's IRR has generally performed in the top two quartiles of the peer set throughout its life and is currently top quartile. TVPI Progression > > Compare your private markets investments to public market benchmarks > > Access your opportunity cost for investing in private markets 2018 Bison POWERED BY Momentum analysis provides further insight into side-by-side comparisons by illustrating how the fund's performance has changed over time in relation to its close peers. The grey shaded area represents the first and third quartile break points Bison POWERED BY 2018 Bison POWERED BY

4 $ M $ M $ M $50.00 M 0.50x 0.00x $ % -10 ACWI IMI 12.50x 10.00x 7.50x 5.00x 2.50x 0.00x University Campus Corner Plumberama Global Entry Multiple Acecorporation Inc. Current Multiple STATISTIC ENTRY CURRENT Max 11.69x 10.89x Average 9.48x 9.36x Min 7.27x 6.69x Injection Roundplanet % Acecorporation Inc. Injection Plumberama Global Percentages University Campus Corner % of Invested % of Total Value < 1x 1x - 2x Roundplanet Diligence Intelligence Sample Features Dig deep to understand the exact factors that are driving value in your portfolio > > Automate quantitative deal attribution reports > > Evaluate the value drivers down to a specific sector, geography, or deal team, or other custom tags Strengthen investment conviction > > Understand how a manager has created value across deals > > Put into context the impact a company has on your portfolio OPERATIONAL PERFORMANCE 10 Growth by Company FUND OVERVIEW Deal Details Invested by Company Holding Period by Company 5 EV/EBITDA by Company RISK ANALYSIS Total Value Curve 13 Efficiently screen investment opportunities TVPI by Company Drillcorpor PME Alpha by Company The total value curve illustrates what proportion each company represents as a % of the fund s total value. A 45 degree straight line would indicate the fund s total value is evenly distributed across the portfolio companies. A line that is bowed downwards indicates that total value is concentrated in fewer deals. Dispersion of Returns > > Efficiently screen and diligence general partners and funds on a single interface The charts on this page help you understand the high level story about your portfolio. The dispersion of returns illustrates the amount of capital that is invested in each of the four TVPI multiple ranges. The fund s loss ratio is 32.26%, which is represented by the amount of capital valued below 1.0x. The fund s total loss ratio is 9.09%, which is equal to the amount of invested capital that is currently written off. > > Compare your investments to a predetermined or custom peer set to make better-informed decisions

5 Fund A 2.25x 0.75x Fund B 0.50x 0.00x Fund C Q1 Q2 Q3 Q4 0.75x 0.50x 0.25x Fund D IRR TVPI DPI RVPI American Securities Partners V Ares Corporate Opportunitie Avista Capital Partners II HGGC Fund I Wind Point Partners VII Leeds Equity Partners V Lovell Minnick Equity Partner Crestview Partners II Banc Fund VIII Riverside Capital Appreciatio Lee Equity Partners Fund Carpenter Community Bancfu Corinthian Equity Fund Harren Investors II ABRY Partners VI SPC Partners IV Levine Leichtman Capital Part Avista Capital Partners II Ares Corporate Opportunitie Centerview Capital Evergreen Pacific Partners II Leeds Equity Partners V Yucaipa American Alliance Fu Carpenter Community Bancfu GenNx360 Capital Partners Corinthian Equity Fund Lovell Minnick Equity Partner Insight Equity II x 3.00x 4.00x SPC Partners IV American Securities Partners V Evergreen Pacific Partners II Insight Equity II ABRY Partners VI Wind Point Partners VII Banc Fund VIII Carpenter Community Bancfu Lovell Minnick Equity Partner Riverside Capital Appreciatio Vance Street Capital Lee Equity Partners Fund GenNx360 Capital Partners Harren Investors II 0.00x 3.00x 4.00x Insight Equity II Brazos Equity Fund III Relativity Fund HGGC Fund I Centerview Capital Leeds Equity Partners V Riverside Capital Appreciation Fund V Avista Capital Partners II Crestview Partners II Ares Corporate Opportunities Fund III American Securities Partners V Evergreen Pacific Partners II Yucaipa American Alliance Fund II 2.25x GenNx360 Capital Partners Jan '13 Jul '13 Jan '14 Jul '14 Jan '15 Jul '15 Peer Range Peer Median Market Intelligence Sample Features Identify your next investment opportunity > > Screen opportunities with a comprehensive list of funds coming to market > > Search and filter through general partner track records Evaluate portfolio construction decisions > > Understand historical risk and return behavior by strategy, focus and geography > > Isolate market cycles, and research upside and downside potential PEER TRACKING Side By Side Comparison 5 BENCHMARKING IRR Bison Benchmark IRR TVPI DPI RVPI COUNT UPPER FENCE 28.89% 2.05x 1.67x 1.46x DPI 9 10 PEER TRACKING TVPI Momentum Analysis Over the past year, FUND_NAME's TVPI momentum has been +4.9%, the 18th highest among its close peer set. The two funds with the highest momentum were Clayton, Dubilier & Rice Fund VIII (+58%) and HgCapital 6 (+39%). TVPI momentum measures the velocity of each fund's net multiple over a period of time. TVPI Progression Keep a close eye on current trends > > Follow liquidity patterns across different market segments Q % 1.67x 0.95x 0.94x Q % 1.53x 0.64x 0.83x Q3 9.08% 1.42x 0.48x 0.57x LOWER FENCE -2.81% 1.04x 0.19x 0.32x FIRST CHOICE PARTNERS FUND IV 19.19% 2.01x 1.04x 0.98x The benchmarking peer set selected includes Global, North America, and Europe- Western buyout funds from the 2008 vintage year. Against the composite, is located in the first quartile. Based on the fund's characteristics, the data set has been narrowed down to Global, North America, and Europe - Western buyout funds between $2.0 billion and $5.0 billion. Among this peer set of 21 funds, Fund III's TVPI ranks 15th, DPI ranks 8th, and IRR ranks 13th. > > Compare quarterly movements in industry valuations Momentum analysis provides further insight into side-by-side comparisons by illustrating how the fund's performance has changed over time in relation to its close peers. The grey shaded area represents the first and third quartile break points.

6 Discover Insights to Drive Decision Making > > Think tactically about portfolio construction, cash flow forecasting and scenario analysis > > Strengthen conviction and streamline decision making with advanced company level analytics > > Educate stakeholders on market trends with timely and unbiased private markets data Cobalt for Limited Partners is a cloud-based enterprise solution for private markets investors. Cobalt s services are provided on an annual subscription basis. With a Cobalt subscription, clients gain unlimited access to Cobalt s analytics tools for assessing portfolio performance and diligencing general partner track records, as well as Cobalt s robust database of limited partner-sourced fund returns and investor profiles. Follow Us!