Onward Opportunities Ltd. · LSE:ONWD
Onward Opportunities — Investor Presentation (February 2023)
26 slides from Onward Opportunities's investor presentation, Feb 20, 2023
Slide 1: Onward Opportunities Limited
Onward Opportunities Limited A Listed Investment Company managed by Dowgate Wealth Admission to trading on AIM
Slide 2: Disclaimer
DISCLAIMER FO R IN V E S T MENT PRO FES S I ONA LS ONLY di rected at perso ns w ho are qu al i fi ed i nvesto rs w i thi n the meani ng bo u nd by t h e s e re s t r ic t ion s . ot h e rs , m ay c a u s e t h e Com p a ny ’s p e r for m a n ce to d if fe r m ate r ia lly of Reg u l ati o n ( E U) 2
Slide 3: Executive Summary
Executive Summary The Three Core >15% 2.0x IRR MM Ingredients Total Return Target Target Money Multiple Return • Structural ‘gap in the market’ caused by rising costs and regulation on both the buy and 1. An Identified Market Opportunity sell side reducing flow of information • This creates misprice
Slide 4: Past Experience - 15.2% IRR & 18.2% IRR
Past Experience - 15.2% IRR & 18.2% IRR Laurence worked on Gresham House Laurence was one of a small initial team of Strategic plc & Strategic Public Equity employees at Gresham House - taking part Fund LP from inception in AUM growth to over £7.5bn in 7 years Laurence Hulse roles & responsibilities
Slide 5: c.160 Yrs Combined Energy and Experience To Execute
c.160 Yrs Combined Energy and Experience To Execute David Poutney Tom Teichman Laurence Hulse Jay Patel Mark Chadwick Investment Committee Member Investment Committee Member Investment Director Investment Committee Member Investment Committee Member • 7 years experience in this • Track record of out
Slide 6: The Board
The Board Andrew Henton Luke Allen Susan Norman Henry Freeman Chairman Chair of Audit Committee Non-Executive Director Non-Executive Director • Chartered accountant who • Chartered accountant with over • Chartered Secretary and • Investment and corporate qualified in London and worked 30 years’ expe
Slide 7: The Market Opportunity
On ward ortu Sy OS) The Market Opportunity
Slide 8: Structural Market Opportunity
Structural Market Opportunity Market inefficiencies drive information asymmetry: ‘slow’ information vs. ‘fast’ prices Rising regulation and costs make it increasingly uneconomical for brokers to support broad small company research coverage 20 Average Number of Broker Recommendations Rising costs an
Slide 9: Structural Market Opportunity
Structural Market Opportunity Valuation & performance characteristics of smaller companies vs. large Smaller companies can deliver long term outperformance Smaller companies can offer investors access to when compared to investing in large cap companies higher growth at a lower price 20% 9.9x MSCI W
Slide 10: The Market Opportunity
The Market Opportunity 2022 has created a statistically interesting time to deploy capital into well-researched investment ideas in the UK Not only do smaller companies tend to outperform over the long-term, historically, but short periods of underperformance have 40 175 also often proved to present
Slide 11: The Investment Strategy
On ward ortu Sy OS) The Investment Strategy
Slide 12: 1) Idea Generation & Sourcing
1) Idea Generation & Sourcing TR-1 ANNOUNCEMENTS CORPORATE ADVISERS Seeking MACROECONOMICS tangibility of... QUEST ANALYSIS ... assets or business model QUANTITATIVE SCREENS ... catalysts DOWGATE TEAM RNS ANNOUNCEMENTS ... profits; cash conversion PEERS EXECUTIVE NETWORK 12
Slide 13: 2) Investment Execution
2) Investment Execution 1. Analyse • Desktop DD • Quest Analysis • Initial valuation analysis • Initial touchpoints Earnings • Team discussion Potential 2. Deep Dive 3. Communicate • Earnings analysis • Re-rating drivers & Debate • Uses of cash generation • Investment committee discussion • Catalyst
Slide 14: 3) Catalysts, Monitoring and Exit
3) Catalysts, Monitoring and Exit EXECUTIVE COACHING & CULTURAL CHANGE INDUSTRY NETWORK QUARTERLY INVESTMENT COMMITTEE MEETINGS OPERATIONAL CHANGE PROVISION & RESTRUCTURING OF CAPITAL LEADERSHIP COMPOSITION BOARD REPRESENTATION ADVISORY BOARD IR & COMMS IMPROVEMENTS CAPITAL ALLOCATION STRATEGIC INPU
Slide 15: Importance of Active Management
Importance of Active Management “The evidence supports the view that active, engaged investing creates “The chart displays a similar pattern with value for shareholders by effectively influencing the governance, capital respect to average industry-adjusted ROA structure decisions, and operating perf
Slide 16: Conclusion
nwa rd SHS Conclusion
Slide 17: Why Invest?
Why Invest? Structural market opportunity exacerbated by near term environment As a NewCo, we will be focused Proven team and process, working on deploying cash rather than on outperforming funds in the past existing investments Honed investment process Hands-on, specialist approach designed to capt
Slide 18: Summary Term Sheet
Summary Term Sheet Company Onward Opportunities Limited Listing London Stock Exchange, AIM Structure A closed-ended investment company registered in Guernsey Objective To achieve risk-adjusted returns by investing primarily in UK smaller companies where there is a material potential valuation upside
Slide 19: Discount Control
Discount Control t p rofits to e n fu m nd s t bu v e Other Drivers: In y- ba ck 1. The team has direct experience in tackling discounts - Discount s Gresham House Strategic c.30% to <5% discount to NAV control over 5 years policy at 5% discount Per fo rm 2. Clean NewCo share register reduces likely
Slide 20: Case Studies
nward Case Studies
Slide 21: The Lakes Distillery + Van Elle Holdings
The Lakes Distillery + Van Elle Holdings Illustrative Deal Sourcing Examples - The following case studies relate to historic investments made by investment funds which were under the management of Gresham House Asset Management Limited at the time of investment, when Laurence Hulse was an employee.
Slide 22: Crestchic plc
Crestchic plc Illustrative Pro-active style examples - The following case studies relate to historic investments made by investment funds which were under the management of Gresham House Asset Management Limited at the time of investment, when Laurence Hulse was an employee. The information has been
Slide 23: IMI Mobile plc
IMI Mobile plc Illustrative Pro-active style examples - The following case studies relate to historic investments made by investment funds which were under the management of Gresham House Asset Management Limited at the time of investment, when Laurence Hulse was an employee. The information has bee
Slide 24: Appendix
Appendix 24 Dowgate Wealth Ltd, registered in England number 12221221, is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Registered address: 15 Fetter Lane, London, EC4A 1BW
Slide 25: UK Investment Team
UK Investment Team Core Investment Team Laurence Hulse Mark Chadwick Ben McKeown, CFA Josh Ross-Field Jeremy Harris-st John Investment Director CEO & Investment Investment Director Investment Director Investment Manager Director Wider Investment Team Will Searle, CFA Jeremy McKeown Josh Sanford Lewi
Slide 26: Dowgate Wealth - The Portfolio Manager
Dowgate Wealth - The Portfolio Manager Entrepreneurial team of 25, building bespoke portfolios targeting index-beating, sustainable returns over the long-term, with an average industry experience of over 20 years. FCA regulated, employee-owned company founded in 2020 by ex Hargreave Hale colleagues,
Onward Opportunities — Investor Presentation (February 2023) on 6ix