Company Profile
Executive Summary Diversified Business across 5 Segments Founded in 2006 as asset manager and financial services firm: Total Assets of ca. EUR 10 billion Company owned by management with more than 80 employees in Frankfurt, London and Luxembourg Absolute Return Real Assets Private Debt Asset Mgt Outsourcing Long-dated expertise in all absolute return strategies Hedge Fund Solutions multimanager mandates with focus on credit, quantitative strategies, and multi-strategy Liquid Alternatives systematic macro UCITS fund and overlay strategies Design and implementation of robust quantitative strategies Customized mandates across various renewable energy technologies and jurisdictions Successful build-up and exit of fund vehicle Prime Renewables GmbH Joint efforts with leading component manufacturers and project developers Broad background of team, expansion into other infrastructure segments Leading institutional aviation debt financier Set-up of Commercial Real Estate debt funds Funding for aviation debt fund currently ongoing Expansion into other debt segments, e.g. infrastructure and Corporate Lending Beneficiary of bank disintermediation mega-trend; shift towards loan securitization Outsourcing partner of highly regulated investors for complete asset management solutions Unique combination of multiasset portfolio management, legal infrastructure, regulatory know-how and risk management capabilities Full scope regulatory services, including capital charge optimization (e.g. Solvency II), overall regulatory setup and reporting to authorities Access Solutions Leading platform and risk management provider for Alternative Investments with BaFin, FCA and CSSF licenses Combination of investment content and platform solutions creates robust client relationships AIFM license since 2014, in Luxembourg since 2016 Various regulated and non-regulated investment vehicles in Germany, Luxembourg, and Cayman Islands Page 3
Assets (in EUR m) Number of employees/ mandates Business development Dynamik und Kapitalzusagen in allen Geschäftsbereichen führen zu zunehmenden AuM-Wachstum 12.000 10.000 8.000 6.000 4.000 2.000 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q2 Manager Access Platform Assets (cumulated) Clients 1) Assets under Management includes Advisory and Asset Management mandates, which typically include access solutions, while Manager Access Platform solely includes platform mandates Assets under Management Employees 90 80 70 60 50 40 30 20 10 0 2006: Company founded by Wolfgang Stolz 2007: First large Hedge Fund mandate and launch of PCAM Blue Chip Asset Management mainly in Hedge Funds (Advisory/ Discretionary), but Alternative Investments from the beginning 2009: Establishment of platform and securitization vehicles 2011: First Mandate in Renewable Energies 2012: Extension of Asset Management with Private Debt, Credit Opportunity Funds and Direct Lending 2014: Licensing of Prime AIFM; increasing demand for transparency and control, in combination with increased regulatory and tax requirements, leading to expanded activities 2015: Establishment of Luxemburg Branch / Launch of Gateway Target Beta UCITS Fund Increasing profitability in each year since incorporation / High reinvestment ratio and constant extension of resources 2016: Prime AIFM Lux. S.A. receives AIFM license from CSSF 2017: Launch of Asset Management Outsourcing activities have lead to AuM of above EUR 10.4bn (as of December 2017) Page 4
Prime Capital Introduction Management Wolfgang Stolz, Vorstand, CEO Founding Member of 13 years at UBS, Member of the Board of UBS Investment Bank in London and Frankfurt Responsible for the establishment of platforms for Derivatives and Alternative Investments in Europe Portfolio of approx. USD 40bn 10 years at Deutsche Bank and JPMorgan Dr. Werner Goricki, Vorstand, CIO Joined Prime Capital in 2007 18 years of industry experience, managing alternative investment portfolios for institutional investors since 2000 Prior positions include Rabobank and Feri, where he built up and managed the hedge fund group Managing Director of Prime AIFM GmbH Andreas Kalusche, Vorstand Joined Prime Capital in 2014 Responsible for Client Solutions and Public Relations 14 years JPMorgan in Frankfurt and London. Lately, as Client Executive for financial institutions (banks, insurance companies) in Germany, Austria and Switzerland 7 years at HSBC Trinkaus, different positions in Bond and Derivative divisions in Düsseldorf and London; assistant to a board member Page 6
Absolute Return Absolute Return Team Short Profile Highly experienced investment team with one of the industry s best long term track records Asset Management with long-dated expertise in all Absolute Return strategies Seasoned team of investment professionals with 10 year track record at Prime Capital Integrated risk & investment analytics Operator of customized management platforms with regulatory compliant risk management Flagship products with outstanding track record Modular and flexible service offering Hedge Fund Solutions Liquid Alternatives Customized Mandates, with strategy focus on multistrategy, quantitative strategies and credit Flagship Fund: PCAM Blue Chip Ltd Design and implementation of robust quantitative strategies in liquid format Flagship Fund: Gateway Target Beta UCITS Fund Page 7
Absolute Return Liquid Alternatives Flagship Fund: Gateway Target Beta UCITS Fund Strategy Description The Gateway Target Beta UCITS Fund seeks to generate attractive long-term risk adjusted returns by harvesting multiple beta and alpha return sources in a range of liquid global financial derivatives. The investment strategy draws on certain positive aspects of established asset allocation approaches like risk parity, global tactical asset allocation and hedge fund investing, while avoiding some of their potential drawbacks. Return Characteristics Money Market + 5% p.a. Risk Characteristics Volatility averaging 6% p.a. with a positive equity beta in the 0.2-0.4 range Stable Risk Profile Maintain a volatility below 10% p.a. by adjusting positions as market risk levels changes Fund Characteristics UCITS with daily liquidity Page 8
Absolute Return Absolute Return Team: Awards Recent European and global awards received (and over 3 years ) (and over 3 & 1 years ) (and over 3 years ) (and over 3 years ) Page 9
Real Assets Infrastructure Investment European Track Record Strong Investment Experience in renewable energy across Europe since 2012 Recent investment activity Investment experience by geography Portfolio of German wind farms with a total capacity of 136MW and enterprise value of c. EUR 300m Portfolio of French wind farms with a total capacity of 43.5MW and enterprise value of c. EUR 55m Wind farms and hydro plants in the UK and the Nordics with a total capacity of 380MW and enterprise value of c. EUR 360m Successfully structured and closed largest Norwegian onshore wind project with a private PPA Successful refinancing activities for a portfolio of French wind farms 41% 2% 3% 2% Enterprise Value 6% 1% 12% 34% Germany France Sweden UK Finland Norway Italy Successful divesture of a diversified renewables portfolio consisting of a portfolio of onshore wind and PV projects across Europe 54% 24% Capacity 11% 6% 1% 2% Page 10
Private Debt Private Debt Team Short Profile Adaptive approach to make various sub-markets accessible Long-standing track record in portfolio management, risk management and reporting for private debt asset classes Very experienced overview and access to global private debt managers (e. g. corporate direct lending, leveraged loans) Access to leading European and global banks in various sub-markets (e.g. aircraft financing, infrastructure financing) Team with profound experience in working with banks through Bank Sourcing approach and successful cooperation with external partners Investments through Funds Bank Sourcing as the central sourcing approach Direct Lending in various sub-asset classes More than 10 years of experience in detailed investment due diligence and operational due diligence of credit funds; first credit fund Investment in 2007 Provides specific access to global credit opportunities Prime Capital - pioneer in establishment of Bank Sourcing as an innovative investment model in the private debt market Through bank sourcing the investor benefits from the comparative advantages of the bank Withdrawal of banks represents a direct lending opportunity for investors Direct lending in Aviation Debt and Commercial Real Estate Debt Current expansion of further asset classes, e.g. leveraged loans, mortgage loans and SME financing Page 11
Infrastructure Equity Private Debt Management Prime Capital Expertise in Private Markets Commercial-Real-Estate Senior & Junior Loans Commercial-Real-Estate Senior & Junior Loans Commercial-Real-Estate Senior & Junior Loans Commercial-Real-Estate Whole Loans Infrastructure / Renewables 2017 1 st Investment Q3 2018 1 st Investment Q4 2018 1 st Investment Q4 2018 2016 EUR 100m (30m deployed) USD 200m Target capital (soft close) USD 100 m Target capital USD 300m EUR 500m (296m deployed) Investor (Belgian insurance company) Investor (German Pension fund) Multi Investor Fund Investor (German Pension fund) Investor (German insurance company) Corporate Mid-market Robus German Credit Opportunities Corporates Mid-market Robus Recovery Fund Corporates Mid-market Robus Private Debt Fund Corporates Mid-market Robus Recovery Fund II Infrastructure / Renewables 2016 2012 undisclosed Multi Investor Fund Aviation Senior & Junior Loans 2014/15 2015 undisclosed Multi Investor Fund Aviation Senior Loans 2016 Q1 2018 undisclosed Multi Investor Fund Prime Capital Aviation Debt Fund 2017 Q3 2018 undisclosed Multi Investor Fund Private Debt EUR 100m (78m deployed) Investor (German pension fund) Infrastructure / Renewables 2017 USD 700m (480m deployed) Investor (German insurance company) USD 400m (290m deployed) Investor (German pension fund) Target capital USD 300m (35m deployed / 115m committed) Multi Investor Fund AuM EUR 145m Investors (German pension fund + financial institution) Infrastructure Infrastructure Infrastructure Senior Loans 2016 Senior Loans Q3 2018 Mezzanine Loans Q3 2018 EUR 500m (70m deployed) Open EUR 200m Investor (German insurance company) Investor (German insurance company) Investor (German pension fund) Page 12 Planned
Access Solutions Access Solution Platform Offers a Variety of Implementation Paths Robust investment framework with multiple regulated & unregulated booking entities Regulated Unregulated Active/ Operational Prime Capital AG Prime AIFM GmbH Prime AIFM Lux S.A. Principal business entity Regulated by BaFin as financial services institution Satellite branches subject to local supervision Regulated by BaFin as Alternative Investment Fund Manager (AIFM) in Germany Regulated by CSSF as Alternative Investment Fund Manager (AIFM) in Luxembourg Prime Capital (Cayman) Limited Prime Inventory GmbH Transaction OpCos Investment management company in Cayman Islands Operating entity used for inventory trade financing Transaction specific operating or hive down companies Prime Capital Access S.A. Luxembourg SICAV SIF fund platform, founded in 2013, CSSF regulated Passive/ Pass Through Prime Capital Debt SCS PCAM Issuance S.A. Luxembourg platform for closed funds, founded in 2015, CSSF regulated Luxembourg securitisation company, founded in 2008, CSSF regulated PCAM Issuance III / IV S.A. Unregulated Luxembourg securitisation company Prime Capital SPC CMA regulated segregated portfolio company Prime Capital Master SPC Unregulated Cayman Islands segregated portfolio company Page 13 * Company Management Act
Bockenheimer Landstrasse 51-53 60325 Frankfurt am Main Germany Phone +49 69 9686 984 0 Fax +49 69 9686 984 61 2 Eaton Gate London SW1W 9BJ United Kingdom Phone +44 203 178 7493 Fax +44 203 178 7494 21, rue Philippe II 2340 Luxemburg Luxemburg Phone +352 278 610 84 Fax +352 278 612 95 www.primecapital-ag.com / www.primeaifm.com This document is issued and approved by, Frankfurt. This information is intended solely for the use of the person to whom it is given and may not be reproduced or given to any other person. It is not an offer or solicitation to subscribe for shares in any fund and is by way of information only. Please note that the price of shares and the income from any fund may go down as well as up and may be affected by the changes in rates of exchange. Past performance is not indicative of future performance. An investor may not get back the amount invested. Source: Page 14