Tetragon Financial Group Limited · EURONEXT:TFG
Tetragon Financial — H1 2024 Earnings Presentation
23 slides from Tetragon Financial's earnings presentation, Aug 1, 2024
Slide 1: Tetragon Financial Group 2024 Half-Yearly Investor Call
Tetragon Financial Group 2024 Half-Yearly Investor Call 1 August 2024 THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO PURCHASE ANY SECURITY OF TETRAGON. THIS INFORMATION IS CURRENT ONLY AS OF 30 JUNE 2024, UNLESS OTHERWISE STATED. TETRAGON UND
Slide 2: Contents
Contents Key Performance Metrics 3 NAV Progression 6 Net Asset Composition Summary 9 Investment Performance 10 Future Investment Expectations 18 Q&A 19 2024 Half-Yearly Report Investor Presentation | 2
Slide 3: Key Performance Metrics: NAV Per Share Total Return
Key Performance Metrics: NAV Per Share Total Return 14.0% 9.5% 4.7% 1.0% 1.7% 1.9% (1.9%) 0.0% (3.5%) 2020 2021 2022 2023 2024 H1 FY (i) Please refer to Endnotes on page 20 for certain relevant definitions. Source: Tetragon. 2024 Half-Yearly Report Investor Presentation | 3
Slide 4: Key Performance Metrics: Return on Equity (RoE)
Key Performance Metrics: Return on Equity (RoE)(i) ♦ Target RoE: 10-15% ♦ Average RoE: 11.0% 17.3% 7.6% 5.5% 1.3% (0.8%) 2020 2021 2022 2023 2024 (i) Please refer to Endnotes on page 20 for certain relevant definitions. Source: Tetragon. 2024 Half-Yearly Report Investor Presentation | 4
Slide 5: Key Performance Metrics: Dividends Per Share (DPS)
Key Performance Metrics: Dividends Per Share (DPS) $0.44 $0.44 $0.40 $0.41 $0.22 2020 2021 2022 2023 2024 H1 FY Source: Tetragon. 2024 Half-Yearly Report Investor Presentation | 5
Slide 6: Year-on-Year NAV Progression
Year-on-Year NAV Progression(i) 33.00 32.00 0.82 (0.26) (0.14) 0.57 31.00 (0.22) (0.40) 30.00 31.50 31.13 29.00 28.00 NAV at 31 Investment Operating Interest Dividends Other share Share NAV at 30 June December 2023 income and expenses, expense dilution repurchase 2024 losses management and incentive
Slide 7: Tetragon NAV Per Share Total Return and Share Price
Tetragon NAV Per Share Total Return and Share Price Since April 2007 IPO to 30 June 2024 450% 440% 350% 250% 217% 187% 150% 147% 107% 50% Dec-07 Aug-08 Dec-09 Aug-10 Dec-11 Aug-12 Dec-13 Aug-14 Dec-15 Aug-16 Dec-17 Aug-18 Dec-19 Aug-20 Dec-21 Aug-22 Dec-23 Apr-07 Apr-09 Apr-11 Apr-13 Apr-15 Apr-17 A
Slide 8: 2024 H1 Snapshot
2024 H1 Snapshot Net Asset Value Ownership(i) $2.8 billion 40.3% Principal and Employee 30 June 2024 Ownership at 30 June 2024 NAV Per Share Total Return(ii) 6.6% 7.5% 9.1% 10.3% 440% One Year to 30 June 2024 Five Years Annualised Ten Years Annualised Since IPO Annualised Since IPO Inv
Slide 9: Net Asset Composition Summary
Net Asset Composition Summary Net Asset Breakdown at 31 December 2023 Net Asset Breakdown at 30 June 2024 Other Other Legal assets equities and Legal assets equities and credit credit Private 1% 1% Private equity and equity and venture 7% Private equity in 7% venture Private equity in capital asset
Slide 10: Net Asset Breakdown Summary
Net Asset Breakdown Summary In millions of U.S. dollars NAV at Disposals/ Gains/ NAV at Asset Classes Additions(i) 31 Dec 2023 Receipts(i) Losses 30 June 2024 Private equity in asset management 1,345.4 16.6 (33.8) 91.7 1,419.9 companies Event-driven equities, convertible bonds and 572.5 7.0 (0.2) (2
Slide 11: Private equity in asset management companies
Private equity in asset management companies In millions of U.S. dollars NAV at Disposals/ Gains/ NAV at % of Asset Classes Additions(i) 31 Dec 2023 Receipts(i) Losses 30 June 2024 investments Equitix 737.6 - (19.8) 76.7 794.5 24.9% BGO 270.5 - (9.0) 25.5 287.0 9.0% LCM 258.
Slide 12: Event-driven equities, convertible bonds and other hedge funds
Event-driven equities, convertible bonds and other hedge funds In millions of U.S. dollars NAV at Disposals/ Gains/ NAV at % of Asset Classes Additions(i) 31 Dec 2023 Receipts(i) Losses 30 June 2024 investments Westbourne River Event Fund - Low Net 302.5 - - (11.9) 290.6 9.1% Westbourne
Slide 13: Bank loans
Bank loans In millions of U.S. dollars NAV at Disposals/ Gains/ NAV at % of Asset Classes Additions(i) 31 Dec 2023 Receipts(i) Losses 30 June 2024 investments U.S. CLOs 133.2 4.1 (18.4) (10.5) 108.4 3.4% Tetragon Credit Partners funds 111.0 - (24.1) (1.2) 85.7 2.7% (i) Any
Slide 14: Real estate
Real estate In millions of U.S. dollars NAV at Disposals/ Gains/ NAV at % of Asset Classes Additions(i) 31 Dec 2023 Receipts(i) Losses 30 June 2024 investments BGO Europe funds & co-investments 41.3 9.9 (1.4) (0.3) 49.5 1.6% BGO U.S. funds & co-investments 46.1 0.8 (0.8) (9.8)
Slide 15: Private equity and venture capital
Private equity and venture capital In millions of U.S. dollars NAV at Disposals/ Gains/ NAV at % of Asset Classes Additions(i) 31 Dec 2023 Receipts(i) Losses 30 June 2024 investments Hawke's Point funds & co-investments 116.7 0.3 (4.5) 29.4 141.9 4.5% Banyan Square funds 127.0 23.
Slide 16: Legal Assets
Legal Assets In millions of U.S. dollars NAV at Disposals/ Gains/ NAV at % of Asset Classes Additions(i) 31 Dec 2023 Receipts(i) Losses 30 June 2024 investments Contingency Capital funds 37.5 6.1 - 2.2 45.8 1.4% (i) Any gains or losses on foreign exchange hedging instruments attributab
Slide 17: Other equities & credit; cash
Other equities & credit; cash In millions of U.S. dollars NAV at Disposals/ Gains/ NAV at % of Asset Classes Additions(i) 31 Dec 2023 Receipts(i) Losses 30 June 2024 investments Other equities & credit(ii) Other equities 196.5 135.3 (57.5) (35.3) 239.0 7.5% Other credit 15.7 - (19
Slide 18: Future Investment Expectations
Future Investment Expectations(i) TFG Asset Management Continue funding commitments Event-driven equities = Stable allocation Convertible bonds = Stable allocation Other hedge funds = Stable allocation Bank loans = Stable allocation; will invest via Tetragon Credit Partners vehicles; older funds c
Slide 19: Q&A
Q&A Contact us anytime: [email protected] 2024 Half-Yearly Report Investor Presentation | 19
Slide 20: Endnotes
Endnotes Page 3 Page 4 Certain definitions: Tetragon uses the following metrics, among others, to understand the Average RoE is calculated from Tetragon’s IPO in 2007. Tetragon seeks to progress and performance of the business: deliver 10-15% RoE per annum to shareholders. Over longer time horizons,
Slide 21: Endnotes
Endnotes Page 7 (i) NAV Per Share Total Return as of 30 June 2024 since Tetragon’s initial public (iv) Cumulative return determined on a quarterly compounding basis using the offering in April 2007. actual Tetragon quarterly incentive fee SOFR based hurdle rate. In the period from IPO to June 2008 t
Slide 22: Endnotes
Endnotes Page 8 (i) Shareholdings at 30 June 2024 of the principals of Tetragon’s investment manager and employees of TFG Asset Management, including all deferred compensation arrangements (other than with respect to shares that are subject to performance criteria). Please refer to page 55 of the 20
Slide 23: Legal Disclaimer
Legal Disclaimer This document has been prepared by Tetragon Financial Group Limited, referred to in this report as Tetragon. References to “we” are to Tetragon Financial Management LP, Tetragon’s investment manager. Tetragon is a closed-ended investment company that invests in a broad range of asse
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