Strategic Equity Capital plc · LSE:SEC
Strategic Equity Capital — Investor Presentation (April 2021)
19 slides from Strategic Equity Capital's investor presentation, April 2021
Slide 1: Strategic Equity Capital plc Introduction presentation
Strategic Equity Capital plc (SEC.LN) Introduction presentation April 2021
Slide 2: Important Information
IMPORTANT INFORMATION ▪ The value of the fund and the income from it is not guaranteed and may fall as well as rise. As your capital is at risk you may get back less than you originally invested ▪ Past performance is not a reliable indicator of future performance ▪ Funds investing in smaller compani
Slide 3: Strategic Equity Capital plc (SEC)
STRATEGIC EQUITY CAPITAL PLC (SEC) Application of private equity techniques to public small companies ▪ Differentiated strategy with highly-concentrated portfolio, deep research focus and engaged approach ▪ Genuine small cap - a structurally overlooked part of the market ▪ Long term investment horiz
Slide 4: Our Team
OUR TEAM Investment team led by Ken Wotton Resource platform Ken Wotton Portfolio Data talent analytics Managing Director, Public Equity ▪ Over 20 years’ experience in public and private equity Powerful Deal ▪ Lead fund Manager for LF Gresham House UK Micro Cap network execution Fund and LF Gresham
Slide 5: Introducing Strategic Public Equity
INTRODUCING STRATEGIC PUBLIC EQUITY An alternative investment strategy that applies private equity investment processes to public companies Highly engaged strategy driving strategic, operational or Influential minority stakes management initiatives Focus on intrinsically undervalued, Targeting ineff
Slide 6: Process Modelled on Private Equity
PROCESS MODELLED ON PRIVATE EQUITY Four stage investment process, with multiple touchpoints and Investment Committee input Idea generation Gresham House Investor Advisers network Community Team discussion Investment Committee Due Equity Management Sourcing diligence value plan and exit Preliminary I
Slide 7: Focus on Long Term Drivers of Value
FOCUS ON LONG TERM DRIVERS OF VALUE Identifying multiple drivers of returns gives a stronger likelihood of achieving target investment returns Precedent transactions, Rating historic rating through cycle, quality analysis, LBO/PE Assessment of ‘Fair Value’ today and in Through this target a future 1
Slide 8: Outputs of Investment Process
OUTPUTS OF INVESTMENT PROCESS Applying a private equity approach to public markets What do we look at? Market characteristics Avoid Increasing value-add of engagement Structural growth, sizeable and attractive niches, rational competitive dynamics ▪ Speculative growth Quality matrix Strategic value
Slide 9: Engagement Strategy
ENGAGEMENT STRATEGY Concentrated portfolio enables a deep understanding of the High engagement with Objective is to drive company and its potential management and Boards enhanced returns for to communicate our views shareholders on company strategy, capital allocation, remuneration structures and IR
Slide 10: ESG Focus: Public Equity
04 Shareholder Responsibilities ESG FOCUS: PUBLIC EQUITY As long-term investors with a focus on ESG implementation small and micro-cap companies in the UK equity market, we are active stock 01 Initial assessment 04 Holding period pickers applying a private equity Investment one pager Shareholder res
Slide 11: ESG in Action: Inspired Energy
ESG IN ACTION Case study Changing the way businesses purchase and use energy The business We invested in the company when it first listed in Inspired Energy plc is a leading UK 2011 but worked with the management team before this point on areas such as Board 2011 corporate energy services and compos
Slide 12: Ergomed Portfolio Realisation Case Study
ERGOMED PORTFOLIO REALISATION CASE STUDY Background Investment thesis ▪ Ergomed is a specialist pharmaceuticals company. It has two services businesses; Clinical Research Services and Pharmacovigilance (drug safety On a SoTP basis, the two services business are monitoring). It also has a products di
Slide 13: IFG Group Takeover Case Study
IFG GROUP TAKEOVER CASE STUDY Background Investment thesis ▪ On 25 March 2019, a recommended cash offer was made by Epiris Funds at Severe dislocation to SoTP valuation based on 193p, a 46% premium to the closing share price, a trailing PE valuation of precedent M&A and peer analysis Rating 21.4x. S
Slide 14: Oxford Metrics Group Portfolio Realisation Case Study
OXFORD METRICS GROUP PORTFOLIO REALISATION CASE STUDY Background Investment thesis ▪ Oxford Metrics plc (ticker: OMG-LN) focuses on developing and commercialising image processing and location data technologies Underappreciated IP and quality of earnings. Rating Headline valuation and financials mis
Slide 15: Top Holdings - Investment Theses
TOP 10 HOLDINGS1 - INVESTMENT THESES Company and Company and Investment thesis Investment thesis % of NAV % of NAV ▪ A niche market leader in the UK teleradiology sector which is ▪ International provider of B2B data and training in the acyclical and is growing rapidly driven by increasing healthcare
Slide 16: Highly Concentrated & Unconstrained Portfolio
HIGHLY CONCENTRATED & UNCONSTRAINED PORTFOLIO Sector exposure by value Value by market cap band Property £50m-£100m 6.8% 2.0% Industrial Healthcare >£500m 6.0% 26.2% £100m-£200m 20.8% 20.4% Net cash Net cash 2.6% 2.6% Financials Consumer 4.8% 3.7% Software 15.2% £300m-£500m 20.2% Business £200m-£300
Slide 17: Specialists in Alternatives
SPECIALISTS IN ALTERNATIVES Gresham House is a London Stock Exchange-quoted specialist alternative asset management group (GHE.LN), providing funds, direct investments and tailored investment solutions, including co-investment. → Specialists in five areas of alternative investment → Growing organica
Slide 18: Investment Committee
INVESTMENT COMMITTEE Anthony Dalwood Graham Bird Investment Committee Chairman ▪ Over 26 years’ experience in public and ▪ Started Gresham House Asset Management in 2015 private equity fund management and advisory ▪ CEO of Gresham House plc ▪ CFO at Escape Hunt ▪ 25 years’ experience in public and p
Slide 19: Disclaimer
DISCLAIMER This presentation (the Presentation) is issued by Gresham House Asset Prospective investors are reminded that the actual performance realised will depend Management Ltd (GHAM), Investment Manager for Strategic Equity Capital plc on numerous factors and circumstances some of which will be
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