Aventus Capital Inc. · TSXV:AVTS
Aventus Capital — The Westaim — Q2 2024 Earnings Presentation
27 slides from Aventus Capital's earnings presentation, Aug 13, 2024
Slide 1: Q2 2024 Investor Presentation
Q2 2024 Investor Presentation August 13, 2024
Slide 2: Disclaimer: Safe Harbour Statement
Disclaimer Safe Harbour Statement This document and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part either directly or indirectly without the prior written consent of each of The Westaim Corporation (“Westaim” or the “Corporation” or t
Slide 3: Disclaimer: Safe Harbour Statement
Disclaimer Safe Harbour Statement Supplementary financial measures concerning the Arena FINCOs and Arena (the “Arena Supplementary Financial Measures”) contained in this presentation are unaudited and have been derived from the unaudited consolidated financial statements of Arena FINCOs and Arena fo
Slide 4: Important Disclosures: Non-GAAP Measures
Important Disclosures Non-GAAP Measures Westaim Westaim reports its interim consolidated financial statements using Generally Accepted Accounting Principles (“GAAP”) and accounting policies consistent with IFRS. Westaim uses both IFRS and non-generally accepted accounting principles (“non-GAAP”) mea
Slide 5: Important Disclosures: Arena
Important Disclosures Arena With respect to the section on Arena the information therein is being provided solely in relation to the management company and the investment manager, including their funds, subsidiaries and affiliates. Returns shown are unaudited. Past performance is not indicative or a
Slide 6: Westaim at a Glance
Westaim at a Glance Westaim is a Canadian investment holding company specializing in providing long-term capital to businesses operating primarily within the global financial services industry INSTITUTIONAL SERVICES 6
Slide 7: Q2 2024 Highlights: Monetizing Skyward Specialty and focused on Arena and Arena FINCOs
Q2 2024 Highlights: Monetizing Skyward Specialty and focused on Arena and Arena FINCOs Q2 2024 net income attributable to Q2 2024 net profit was $4.9 million (3.4% Net income (100%) was $31.0 million in Q2 2024 net loss was $17.1 million Arena (100%) was $6.0 million compared net investment return)
Slide 8: Westaim Summary Q2 2024 Operating Results
Westaim Summary Q2 2024 Operating Results Three months ended Six months ended Westaim’s loss and comprehensive loss for Q2 June 30 June 30 2024 was $17.1 million ($0.13 diluted loss per (Amounts in millions of US$ except per share data) 2024 2023 2024 2023 share) compared to a profit and comprehensi
Slide 9: Westaim Summary Q2 2024 Statement of Financial Position
Westaim Summary Q2 2024 Statement of Financial Position As at June 30, 2024 March 31, 2024 December 31, 2023 Book value per fully diluted share (Amounts in millions of US$ except per share data) Assets increased $0.08 (2.1%) to $3.91 at June Cash $288.6 $115.5 $135.0 30, 2024 from $3.83 at December
Slide 10: Westaim Diluted (Loss) Earnings per Share: Three months ended June 30, 2024
Westaim Diluted (Loss) Earnings per Share (US$): Three months ended June 30, 2024 $0.02 ($0.10) $0.04 $0.03 ($0.01) ($0.11) ($0.13) Loss from Income from Income from Westaim's net Income tax Net impact of Fully diluted EPS Skyward Specialty Arena FINCOs Arena Investors holding company recovery optio
Slide 11: Westaim Book Value per Share: Three months ended June 30, 2024
Westaim Book Value per Share (US$): Three months ended June 30, 2024 $4.02 ($0.11) $0.02 ($0.10) $0.04 $0.01 - $3.91 $0.03 Fully diluted Loss from Income from Income from Westaim's net Income tax Impact of NCIB Net impact of Fully diluted BVPS Skyward Arena FINCOs Arena Investors holding company rec
Slide 12: Westaim Diluted Earnings per Share: Six months ended June 30, 2024
Westaim Diluted Earnings per Share (US$): Six months ended June 30, 2024 12
Slide 13: Westaim Book Value per Share: Six months ended June 30, 2024
Westaim Book Value per Share (US$): Six months ended June 30, 2024 $0.03 ($0.10) $0.05 $0.08 $0.02 $3.91 - $3.83 Fully diluted BVPS Income from Income from Income from Westaim's net Income tax Impact of NCIB Fully diluted BVPS December 31, 2023 Skyward Specialty Arena FINCOs Arena Investors holding
Slide 14: AIGH is a global financial institution with over 180 people
All data is as of June 30, 2024 unless otherwise specified AIGH, including its joint ventures and affiliates, is a global financial institution with over 180 people across 8 global offices and operating in over 20 countries
Slide 15: About Arena
About Arena 15 • Credit-oriented, asset backed investments, but not “traditional private credit”. ABOU T ARENA ( 1 ) • Broad Platform – capabilities across Corporate, Real Estate, Structured Finance, and Corporate Securities allow the firm to pivot to the most compelling opportunities across cycles
Slide 16: Arena Key Highlights: Differentiated Approach, Proven Performance
Arena – Key Highlights 16 • Arena is a growing global financial institution • Mandate flexibility and diversification contribute to consistency across cycles Differentiated Approach • Proprietary sourcing and global infrastructure with a focus on smaller-sized transactions • Servicing and systems th
Slide 17: Arena – Q2 2024 Quarterly Results Highlights
Arena – Q2 2024 Quarterly Results Highlights 17 Three months ended June 30 Six months ended June 30 (dollars in millions) 2024 2023 2024 2023 Arena Investors Management fees $ 7.1 $ 7.7 $ 14.4 $ 15.5 Servicing fees 3.0 2.7 5.9 5.4 Q2 2024 Results: Other income 0.8 0.3 2.0 0.6 Total recurring revenue
Slide 18: Arena – Investment vehicles
Arena – Investment vehicles (1) 18 $ 3 . 5 B A U M (2) Permanent Capital (Arena FINCOs) EXCESS CA PACI T Y OPP ORTUNI TI ES • Arena Finance $1.1B A R E N A F U L LY D I V E R S I F I E D • Arena Origination Company Open-ended Evergreen Funds New Zealand Real Estate Credit S T R AT E G Y $ 2 . 1 B •
Slide 19: Arena Investing: Performance & Deployment (drawdown funds)
Arena – Investing: Performance & Deployment 19 • The following table presents the performance data for Arena’s significant drawdown funds and accounts: As of June 30, 2024 Year of Original Capital Capital Invested Realized Unrealized Total MoIC2 IRR Primary Investment AUM ($ in millions) inception C
Slide 20: Arena Investing: Performance & Deployment (open-ended funds)
Arena – Investing: Performance & Deployment 20 • The following table presents the performance data for Arena’s significant open-ended funds and Stable Income strategies: As of June 30, 2024 Returns (%) Since Inception Year of Quarter-to-date Year-to-date Primary Investment Strategy AUM (Annualized)
Slide 21: Arena – AUM Through June 30, 2024
Arena – AUM Through June 30, 2024 21 • Arena’s AUM (including undrawn commitments) were $3.5B at June 30, 2024. From December 31, 2015, to June 30, 2024, AUM has grown at a compound annual growth rate of about 40%. AUM temporarily decreased due to the return of capital from vehicles that are in thei
Slide 22: Arena – Deal Structure Aligns Arena Management and Westaim
Arena – Deal Structure Aligns Arena Management and Westaim • Arena was founded by Dan Zwirn and Westaim in August 2015 under an arrangement designed to align Arena’s senior management interests very tightly with those of Westaim and its shareholders. The principal elements of the arrangement include
Slide 23: Arena FINCOs
fs ARENA
Slide 24: Arena FINCOs: Summary of Operating Results
Arena FINCOs: Summary of Operating Results Three months Six months Q2 2024 net profit was $4.9 million (3.4% net ended June 30 ended June 30 investment return) compared to Q2 2023 net loss of (Amounts in millions of US$ except per share data) 2024 2023 2024 2023 $3.3 million (-2.1% net investment re
Slide 25: Arena FINCOs: Summary of Net Assets
Arena FINCOs: Summary of Net Assets The combination of the secured notes As at June 30, 2024 March 31, 2024 December 31, 2023 and revolving credit facility are being (Amounts in millions of US$ except per share data) utilized for efficient treasury management and limiting cash drag Cash and cash equ
Slide 26: Arena FINCOs: Portfolio breakdown as at June 30, 2024
Arena FINCOs: Portfolio breakdown as at June 30, 2024 Equity / REO / Hard (1) Other Corporate Assets Securities Private 50.7% 20.9% Investments 23.8% Debt 49.3% Real Estate Investments Structured Finance 28.3% and Assets 27.0% Arena FINCOs held 222 positions at June 30, 2024 compared to 221 position
Slide 27: Westaim
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