March 2016 R24.8bn INVESTED IN Infrastructure R20.8bn INVESTED IN PRIVATE EQUITY R12.4 bn INVESTED IN IMPACT FUNDS
ALTERNATIVE INVESTMENTS 01 When you invest with Africa s largest alternative asset manager, you invest IN in Africa s future.
02 Why us? R57.9bn ASSETS UNDER MANAGEMENT INVESTING BEYOND Old Mutual Alternative Investments is the largest private alternative investment manager in Africa with R57,9bn assets under management and a combined focus on positive returns and positive impacts. We deliver innovative thinking in private equity, infrastructure, mezzanine debt and a range of impact funds. Our alternative approach to investing, together with our unique skillset, means we can deliver superior investment returns that make a real difference in the world. Our goal is to generate higher returns than traditional asset classes, which consequentially provides diversification benefits for our clients. Extensive experience, expertise and networks enable us to uncover attractive deals, streamline project execution and ensure sustainability. All of our investment activities have the advantage of the Old Mutual group s joint operating platform, distribution capabilities, comparative learning and specialist focus in Africa. R48.7bn INVESTED IN ALTERNATIVE ASSETS ACROSS AFRICA 194 DIRECT INVESTMENTS DELIVERING POSITIVE OUTCOMES FOR OUR INVESTORS AND INVESTEES, OUR COMMUNITIES, for our environment AND THE FUTURE * All figures and statistics are attributed to Old Mutual Alternative Investments at 31 December 2015.
04 THE TEAM ALTERNATIVE INVESTMENTS 05 SPECIALISTS WITH VISION Our team of leading individuals is driven by high-performance and delivering on their mandates both in terms of investment returns and sustainable positive impacts. Within our unique team, we have diverse professional capabilities that enable us to conclude complex investments, requiring bespoke agreements and ongoing active management. We form strong partnerships with government departments, financial institutions and industry experts to improve the success of each investment opportunity. Our team is fundamental to our success. Our hands-on approach to developing innovative and creative solutions that meet the needs of the communities ultimately results in superior returns for our investors. OUR FOCUS AND COMMITMENT We invest alongside our clients with our team members having committed in excess of R100 million to funds we manage. 82 investment professionals 124 EMPLOYEES No less than 27 CA s + 16 CFA 12 Charterholders 50% WOMEN A TEAM WITH MBA s Masters 20 degrees 1338 YEARS+ COLLECTIVE EXPERIENCE SPANNING CIVIL ENGINEERS, PROPERTY SPECIALISTS & LAWYERS In pursuing superior returns, we identify attractive investment opportunities overlooked by others who baulk at high barriers to entry, out-of-favour industries or mispricing. Yet, our entrepreneurial approach and on-the-ground experience in housing, infrastructure, sustainable energy, education and private equity heightens our ability to select and deliver on our investment goal. In turn, our investments stimulate and form the basis for economic growth.
06 THE AFRICAN CONTEXT ALTERNATIVE INVESTMENTS 07 GATEWAY TO AFRICA Africa is an emerging market characterised by potential and opportunity a continent touted as the cornerstone of global growth. R11.9 bn R12.0 bn R1.0 bn For investors, the most compelling reason to invest in African infrastructure is that it answers a region s fundamental needs. High GDP growth rates, an increasing middle class and rising urban populations, ensure ever-increasing demands on infrastructure. Infrastructural investment represents massive opportunity and promotes secondary industry growth. For instance, it has been estimated that improving infrastructure to the level of middle-income countries would add 3-4% to the annual GDP growth rates of Kenya and Nigeria. We leverage our existing capabilities in housing, infrastructure development, sustainable energy, education and private equity, to deliver on our investments across the continent. As one of Africa s largest financial services providers, Old Mutual has an on-the-ground presence rooted in over 169 years of active networking on the continent, giving us a substantial advantage in finding attractive deal flow and navigating the complexities of investing in Africa. In additional to having operated in South Africa since 1845, Old Mutual has been active in various other African countries, some for over 100 years. Old Mutual has operations in Botswana, Ghana, Kenya, Malawi, Namibia, Nigeria, Swaziland and Zimbabwe.
08 CAPABILITIES OVERVIEW ALTERNATIVE INVESTMENTS 09 ALTERNATIVE INVESTMENTS A group of unconventional investment offerings that achieve returns that matter across: 01 Infrastructure Transport, renewable energy, power generation and communication infrastructure development in Africa. Delivering positive impacts through a progressive development agenda and a solid bottom line. 02 Private Equity Direct investments in inspired entrepreneurial opportunities in SA. Delivering returns that work both ways for investors and investees. 03 WE ARE COMMITTED TO ACHIEVING PERFORMANCE OBJECTIVES through OUR NON-OBVIOUS APPROACH TO SEEKING UNEXPECTED INVESTMENT opportunities Impact Funds Projects that fill gaps in the social development landscape such as in schooling and housing. Delivering immediate results and long-term returns.
10 CAPABILITIES IN-DEPTH INFRASTRUCTURE 11 01 INFRASTRUCTURE We are the largest equity investor in infrastructure on the African continent with the longest track record. Our multi-disciplined and experienced infrastructure team specialises in originating, structuring, developing and managing infrastructure assets and transactions. Our investments span a wide range of sectors and services like renewable energy (solar, wind and hydro-generation), thermal energy (gas-fired generation) and economic infrastructure (pipelines, roads and railways). Through long-term partnerships with governments, financial institutions and industry-leading operators, we maximise infrastructure development opportunities by adding value through strategic, commercial, operational and financial expertise, while making a tangible contribution to African economies and communities. Public private partnerships (PPP) facilitate worldclass infrastructure enabling governments to implement large-scale construction projects, while enhancing competition, efficiency and service delivery across key industry sectors. With offices in South Africa, Nigeria and Kenya, we are involved in deals across the African continent through the IDEAS Fund and the five infrastructure funds managed by African Infrastructure Investment Managers (AIIM). INFRASTRUCTURE IN Action THE COOKHOUSE WIND FARM EASTERN CAPE SOUTH AFRICA + + 138.6MW generation capacity + + 138,000 low-income homes or 57,000 medium-income houses powered per annum + + 384 000 tonnes of carbon offset annually, equivalent to taking 78,000 cars off the road The first project on the SA government s Renewable Energy Independent Power Producer Programme (REIPPPP) to connect to Eskom s transmission network. HARNESSING OPPORTUNITIES IN SOUTHERN AFRICA BY PARTNERING GOVERNMENTS TO MEET INFRASTRUCTURAL DEVELOPMENT NEEDS. CENPOWER KPONE IPP TEMA GHANA + + 350MW combined cycle multi fuel Independent Power Plant (IPP) + + first licensed independent power plant in Ghana + + critical base-load component in meeting the growing electricity demand, accounting for +/- 10% of Ghana s installed capacity One of the largest IPPs in sub-saharan Africa in the last 10 years, the Cenpower Kpone IPP will be amongst Ghana s most fuel-efficient thermal power stations.
12 CAPABILITIES IN-DEPTH PRIVATE EQUITY 13 02 In PRIVATE EQUITY South Africa, we have successfully invested over R7.9 billion in 29 direct investments and returned in excess of R15.4 billion to investors since 2004. In our Direct Investments business, we have invested in many of the top private equity deals (by value) in South Africa, including Pepkor, Life Healthcare, Actom, Idwala, Tourvest, Libstar, Shanduka and Primedia. We also manage a range of South African, African and Internationally focussed Fund of Funds. Our Fund of Funds range invest in underlying private equity funds managed by reputable, independent private equity managers with proven track records, unique investment strategies and broad experience. These portfolios are diversified across a wide range of industries, geographies, investment vintages and manager styles. Our broad geographic, asset class and sectorial investment skills has made us one of the leading private equity managers in South Africa. PRIVATE EQUITY IN Action Life Healthcare + + 2005 2010 Investment period + + Operating margin up 3,7% + + R3billion expansion of operations + + 3X operating income to R2.1billion + + R3.1billion return for investors A leading private hospital operator in South Africa and one of the largest private hospital operations outside the United States. Pepkor We only TARGET investments with potential to deliver superior long-term returns. + + 2004 2011 Investment period + + Outlets increased from 1600 to 2800 + + Over 30 000 people employed + + More than 5X return on investment A South African-based investment company with retail interests in 11 African countries, Australia and Eastern Europe.
14 CAPABILITIES IN-DEPTH IMPACT FUNDS 15 03 IMPACT FUNDS We manage in excess of R12bn across a range of funds that provide investors with commercially acceptable returns while addressing the gaps in social infrastructure, primarily in affordable housing and quality education. Housing Impact Fund South Africa Financing affordable homes for sale/rent and providing housing loans and rental accommodation for families and students, aiming to fill the gap between government-provided housing and those with access to home loans. FSC Fund Investing in a range of opportunities and innovations at the low-income level, including housing, micro-finance, black SMME finance and transformational infrastructure in underdeveloped areas that meet the terms of the Financial Sector Charter (FSC). Schools and Education Investment Impact Fund South Africa Focusing on independent, low-fee paying schools by financing infrastructure and education-related requirements with the objective to deliver quality education and commercially acceptable returns. IMPACT FUNDS IN Action Karino Lifestyle Estate Mpumalanga South AFRICA + + South African Housing Foundation s Affordable Housing Project of the Year 2014 + + 1780 housing opportunities + + Property values increased 64% in three years An awarded, well-established and highly sought-after low-cost security estate in Nelspruit. Meridian Private Schools + + 7 Low-fee independent schools INVESTMENT IN AFFORDABLE HOUSING, BLACK-OWNED SMMEs AND QUALITY EDUCATION FOR ECONOMIC DEVELOPMENT AND JOB CREATION + + 5/9 SA provinces + + 9799 Learners and counting A joint venture with Curro, a JSE listed private schooling company, to satisfy the mandate to invest in affordable independent schooling in South Africa.
16 SUSTAINABILITY INVESTING IN THE FUTURE old mutual ALTERNATIVE INVESTMENTS We focus on growing our investors wealth while providing them with the opportunity to contribute towards creating a more prosperous and sustainable future for all. Paul Boynton Infrastructure We believe sustainable investments have a greater positive impact on the world around them. Jurie Swart Private Equity We partner with smart entrepreneurs and management teams looking to take their businesses to the next level. Jacci Myburgh international private equity Our Fund of Funds range invest in underlying private equity funds managed by reputable, independent private equity managers with proven track records, unique investment strategies and broad experience. James Regout Impact Funds Our mission is to have a positive impact on the communities in which we invest. Christine Clover
OLD MUTUAL ALTERNATIVE INVESTMENTS Statutory Information The following entities are licensed Financial Services Providers (FSPs), within Old Mutual Alternative Investment Holdings (Pty) Ltd, approved by the Registrar of Financial Services Providers (www.fsb.co.za) to provide advisory and/or intermediary services in terms of the Financial Advisory and Intermediary Services Act 37 of 2002. Old Mutual Alternative Investments Holdings (Pty) Ltd is a wholly owned subsidiary of Old Mutual Investment Group Holdings (Pty) Limited and is a member of the Old Mutual Investment Group. Old Mutual Alternative Investments (Pty) Ltd (Registration Number 2013/113833/07), FSP No: 45255. African Infrastructure Investment Managers (Pty) Ltd (Registration Number 2005/028675/07), FSP No: 4307. Contractual rights and obligations of investors in these funds are subject to contract. Unlisted investments have short-term to long-term liquidity risks and there are no guarantees on the investment capital nor performance. The value of the investment may fluctuate as the values of the underlying investments change. Market fluctuations and changes in rates of exchange or taxation may have an effect on the value, price or income of investments. Since the performance of financial markets fluctuates, an investor may not get back the full amount invested. Past performance is not necessarily a guide to future investment performance. Disclosure: Old Mutual Investment Group is a member of the Old Mutual group. Accordingly, Old Mutual and Nedbank are related entities. We outsource investment administration of our local funds to Curo Fund Services, 50% of which is owned by the Old Mutual Investment Group. All inter-group transactions are done on an arms lengths basis. Personal trading by staff is restricted to ensure that there is no conflict of interest. All directors and those staff who are likely to have access to price sensitive and unpublished information in relation to the Old Mutual group are further restricted in their dealings in Old Mutual shares. All employees of the Old Mutual Investment Group are remunerated with salaries and standard incentives. Unless disclosed to the client, no commission or incentives are paid by the Old Mutual Investment Group to any persons other than its representatives. Disclaimer: The contents of this document and, to the extent applicable, the comments by presenters do not constitute advice as defined in FAIS. Although due care has been taken in compiling this document, Old Mutual Alternative Investments does not warrant the accuracy of the information contained herein and therefore does not accept any liability in respect of any loss you may suffer as a result of your reliance thereon. The processes, policies and business practices described may change from time to time and Old Mutual Alternative Investments specifically excludes any obligation to communicate such changes to the recipient of this document. This document is not an advertisement and it is not intended for general public distribution. The recipient is advised to assess the information with the assistance of an advisor if necessary, with regard to its compatibility with his/her own circumstances in view of any legal, regulatory, tax and other implications. The information herein does not constitute an offer to sell or a solicitation of an offer to buy any securities. This document is expressly not intended for persons who, due to their nationality or place of residence, are not permitted access to such information under applicable law. Old Mutual Investment Group has comprehensive crime and professional indemnity insurance which is part of the Old Mutual group cover. For more detail and information on how to contact us as well as on how to access information please visit www.oldmutualalternatives.com or call us on 021 509 5022. DOUG THOMSON Head of Investor Relations +27 21 509 3442 (telephone) +27 82 901 4823 (cell) Mutual Park Jan Smuts Drive Pinelands Cape Town South Africa www.oldmutualalternatives.com +27 21 509 5022 Old Mutual Alternative Investments (Pty) Ltd is a licensed financial services provider, FSP No 45255, approved by the Registrar of Financial Services Providers (www.fsb.co.za) to provide advisory and/or intermediary services in terms of the Financial Advisory and Intermediary Services Act 37, 2002. Old Mutual Alternative Investments (Pty) Ltd is a wholly owned subsidiary of Old Mutual Investment Group Holdings (Pty) Limited and is a member of the Old Mutual Investment Group. Contractual rights and obligations of investors are set out in the relevant investor agreements and or mandates. Unlisted investments have short term to long term liquidity risks and there are no guarantees on the investment capital nor on performance. Market fluctuations and changes in exchange rates as well as taxation may have an effect on the value, price, or income of investments and capital contributions. Since financial markets fluctuate, an investor may not recover the full amount invested. Past performance is not necessarily a guide to future investment performance.