Company Profile Focus on Perspectives
EXPERTISE Solutions for a Changing World The management of institutional assets in the new market environment following the financial crisis requires new approaches to new problems. What previously could be considered safe investment choices for the traditional institutional investor (i.e. sovereign debt, covered bonds and bank debentures) are now confronted by an array of challenging factors, not least an enduring low-yield environment compounded by weakness throughout the banking system and the vulnerability of sovereign credits to rating down grades. A stuttering real economy impeded by a dearth of traditional bank financing is matched in the financial world by the growing pressure of regulatory responses, particularly the imposition of tighter constraints on capital. Faced with such uncertainties, investors are compelled to explore less familiar but more yield -promising asset classes, particularly real assets such as infrastructure, renewables and real estate and, in the financial investment world, absolute return strategies, hedge funds and high-yield-bonds. However, with the search for yield in these alternative investments comes new complexity requiring, in many cases, very different aspects of know-how, booking infrastructure and investment methodologies. Prime Capital offers a unique combination of services covering all aspects of alternative investments, stemming from its many years of expertise in asset management, structuring and risk management. Its offering encompasses its capabilities as a provider of manager access platforms, fund solutions and securitisations. Our wide-ranging infrastructure and modern technology mean that we can serve as a comprehensive service and platform provider. We always aim to establish a solid and trust-based relationship with our clients, for whom we understand the key importance of sustainability alongside flexibility. Setting new standards From our perspective, it is not possible to use standard solutions to accomplish the individual objectives and wishes of our clients. However, intelligent, customised and workable solutions can set new standards. Page 2
COMPANY Independence Starts in our Thought Processes Prime Capital is an independent financial services and asset management firm. We offer professional investment support services for institutional clients with a particular focus on alternative investments. The company, which was founded in 2006, currently employs more than 50 people in Frankfurt, London and Luxembourg. We are regulated by BaFin in Germany and the FCA in the UK. In addition, Prime AIFM GmbH, a fully owned subsidiary, has obtained from BaFin the license to manage alternative investment funds (AIFMD). Our clients can access investment management and risk monitoring platforms in Luxembourg, Germany and various offshore jurisdictions. The offering comprises individual manager access solutions, private managed accounts, cost-efficient securitisation transactions and one-off customised structures. As of today, Prime Capital manages, advises or consolidates and monitors alternative investments of approx. EUR 5.1 billion (as of September 30, 2015) on various platforms. Key attributes: Independence Prime Capital is owned by its senior management and employees Specialist services for institutional clients, in particular insurance companies, pension funds, banks, corporates, investment managers and family offices Asset Management specialised in alternative investments with proven expertise in infrastructure investments including renewable energy, hedge funds and Private Debt Platform operator for alternative investments with a modern risk management focus running various operating and regulated entities Expertise in regulatory, tax and accounting topics (Solvency II/ VAG, Basel III, Dodd-Frank, AIFMD, IFRS) We offer our clients added value by providing transparency, asset control and cost minimisation which in addition to the asset class-specific risk management contributes to excellent performance Page 3
MANAGEMENT-TEAM Competent Partners for your Strategy All the members of our Management Board have proven expertise in the field of blue-chip companies and have extensive management experience. Specialising in a variety of key areas with respect to the management and ongoing monitoring of alternative investments, they complement each other w ith their respective expertise. Management Board Wolfgang Stolz (CEO) John Staddon Dr. Werner Goricki (CIO) Dr. Thomas Keller (CFO) Andreas Kalusche Rajan Puri (COO) Marketing & Development Structuring & Legal Asset Management Risk Management & Treasury Client Solutions & Public Relations Operations Wolfgang Stolz Vorstand, Chief Executive Officer Founding Member of Prime Capital AG 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 Pioneer and expert in alternative investments and derivatives with strong intl. network John Staddon Vorstand Joined Prime Capital in 2007 as Head of Structuring and Legal of Prime Capital AG 7 years at UBS as Derivatives and Structured Products Counsel and then as Head of an Equity Derivative Corporates Group 5 years capital markets lawyer at Freshfields Structuring specialist with 15+ years experience in securitisation, alternative investments and complex platform solutions Dr. Werner Goricki Vorstand, Chief Investment Officer Joined Prime Capital AG in 2007 Specialist for alternative investments since 2000 Set-up of Prime Renewables GmbH, responsible for investments in Europe Lately, 7 years Partner at Feri AG as Partner Prior positions at Rabobank, Raiffeisen Zentralbank and Chrysler Corp. University of Graz, University of Amsterdam Dr. Thomas Keller Vorstand, Chief Financial Officer Joined Prime Capital AG in March 2010 Set-up of Prime Renewables GmbH, responsible for investments and risk management in Europe Lately, Head Group-Treasury at Deka Bank 17 years at L-Bank and Landesbank Baden-Württemberg, responsible for Risk- and Financial Controlling, Capital Markets Investments and Structured Investments Master in business administration and energy technology, especially renewable energies Page 4
Andreas Kalusche, Vorstand Rajan Puri, Chief Operation Officer Since August 2014 at Prime Capital Responsible for Client Solutions/ Coverage, Project Coordination and Communications/ Public Relations Last 14 years JPMorgan in Frankfurt and London). Lately, as Client executive for financial institutions (banks, insurers) 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 University of Hannover and ESC Rouen Joined Prime Capital in 2007 as Senior member of Structuring and Securitization team, with emphasis upon risk and execution Prior to joining Prime Capital, 6 years as structuring specialist in private banking & brokerage group (now Pali Capital and Euram Bank) 6 years as trader & risk manager of equity and hedge fund derivatives book at SBC/UBS. Formerly responsible for financial control of European equity derivatives business 5 years as accountant and auditor with Coopers & Lybrand (now PWC) specializing in financial sector BUSINESS MODEL Accessing Know-how Prime Capital covers all areas necessary for the management and operations of alternative investments with its two business units and various supporting entities. Our business units are located in the financial centres of Frankfurt, London and Luxembourg and are connected to our numerous platforms and operating entities in Germany, Luxembourg and offshore. Asset Management Discretionary and Advisory Alternative Investment Funds/ Hedge Funds Infrastructure/ Renewable Energy Private Debt Platform Management Design and Implementation of Platform Solutions Risk Management, Monitoring and Regulatory Reporting Transaction Management Legal Entities and Systems Bank-independent Fund and Securitisation Platforms Necessary Regulatory Licenses and Approvals Efficient Processes and IT-Systems Compatible to Client Needs Page 5
Most important supporting entities: PCAM Issuance S.A.: Bank-independent, bankruptcy-remote securitisation company in Luxembourg - so far, more than 35 issues with an issue volume of approx. EUR 2.6 billion Prime Capital Access S.A.: Luxembourg SICAV-SIF platform efficient and transparent booking platform for alternative investments Prime Capital (Cayman) Limited and Prime Capital SPC: Investment management and segregated portfolio companies Prime Renewables GmbH: Operational company since June 2012 for investing into renewable energy Prime AIFM GmbH is a manager of alternative investment funds (AIFMD) since end of January 2014 ASSET MANAGEMENT Manager Selection and Direct Investments One of Prime Capital's key areas of activity lies in independent asset management and advisory services for alternative investments. Our particular focus is on infrastructure, renewable energy and hedge fund strategies. The investment team is dedicated to clear values. We accept responsibility, draw up pioneering solutions and act in our customers' interests, always operating to the highest performance standards. What we like to stress is the modular concept of our services each client can pick and choose which parts of the value chain they wish to outsource. Our investment team can look back on many years of experience and proven success. It receives support from an extensive infrastructure and tried-and-tested risk management processes. (as well as 2013, 2012 and 2011) (as well as 2014, 2012 and 2011) Our extensive expertise provides a solid basis for the following alternative investments, for which we can provide separate short profiles: Infrastructure Renewable Energy Private Debt Hedge Funds Absolute Return Managed Futures Page 6
In a nutshell: A successful, stable investment team with many years of experience Expertise in manager selection and the implementation of systematic investment strategies with liquid instruments Consistent top-quartile performance of the Blue Chip Basket flagship portfolio since its 2007 issue Members of our asset management team have a track record in global manager selection of over 20 years and vast experience in infrastructure transactions Detailed investment analysis with separate operational due diligence Proactive monitoring, constant quantitative and qualitative analysis Discretionary portfolios and advisory solutions as part of cost-cutting outsourcing PLATFORM MANAGEMENT Client Requirements Provide the Genesis for our Solutions Prime Capital offers an extensive infrastructure and associated specialist services for institutional clients. Our consolidation and booking platforms offer our customers a secure, transparent and con trolled environment monitored by Prime Capital for the entire portfolio. In addition, we also provide services in the areas of structuring, risk measurement, analysis and management, as well as reporting. We offer our clients both platform solutions and bespoke solutions. Our platforms include a bankindependent, bankruptcy-remote securitisation company, PCAM Issuance S.A., Luxembourg, and our onshore fund platform via SICAV, Prime Capital Access S.A., Luxembourg. In addition, on our manager access platforms exposure to hedge funds (fund of funds, single manager funds or managed accounts) as well as alternative investments (Private Debt, Infrastructure, etc.) may be consolidated, which places all the various constituents of the portfolio into a common modular structure that is then subjected to consistent and mutually compatible reporting and risk monitoring. We offer efficient solutions for our clients in the following areas, for which we can provide separate short profiles: Securitisations Managed Accounts Risk Management Manager-Access-Platforms Fund-Solutions Reporting Summary of the advantages: Prime Capital offers professional customers many years of experience and expertise in the structuring and implementation of complex investment structures We offer bespoke solutions that address all applicable supervisory, accounting and tax aspects Strong risk culture with comprehensive infrastructure for risk measurement, aggregation, monitoring and reporting as a basic cornerstone of efficient risk management Experience in treasury, cash, FX, collateral and counterparty as well as risk management Page 7
This document is issued and approved by Prime Capital AG, 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 of data: Prime Capital AG as of 4 January 2016 Prime Capital AG 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 7490 Fax +44 203 178 7494 21, rue Philippe II 2340 Luxembourg Luxembourg Phone +352 278 610 84 Fax +352 278 612 95 www.primecapital-ag.com Page 8