Deutsche Bank AG · XETR:DBK
Deutsche Bank — GSO Capital Opportunities Fund I — Investor Presentation (December 2009)
21 slides from Deutsche Bank's investor presentation, December 2009
Slide 1: GSO Capital Opportunities Fund I: Limited Partner Discussion Materials
Confidential GSO Capital Opportunities Fund I: Limited Partner Discussion Materials December 2009
Slide 2: Organization Overview
Confidential Organization Overview
Slide 3: Overview of the Blackstone Group
Overview of the Blackstone Group Blackstone Profile Executive Committee NYSE: BX The Blackstone Group ® Steve Schwarzman Bennett Goodman Share Price: $13.42(1) Tony James Jonathan Gray Tom Hill Garrett Moran Market Cap: $14.94 billion(1) Joan Solotar Arthur Newman Total AUM: $96.30 billion(2) Ken Wh
Slide 4: GSO Assets Under Management
GSO Assets Under Management GSO Capital Partners AUM $24.6bn Multi-Strategy Structured Credit Distressed Funds Mezzanine Funds Credit Hedge Products Fund $3.6bn (2) $2.7bn (2) $3.2bn (1) $15.1bn (2) Blackstone / Liquid Separately GSO Capital Distressed CLOs Managed Solutions Fund Funds Accounts TBD
Slide 5: Current Market Overview
Confidential Current Market Overview
Slide 6: Economic Overview
Economic Overview October 2009 Federal Reserve “Beige Book” report indicated signs of economic stabilization z Real GDP increased at an annual rate of 3.5% in the third quarter z All 12 regional Fed banks reported either stabilization or modest improvement in many sectors z Modest gains in the man
Slide 7: Economic Overview (Cont'd)
Economic Overview (Cont’d) Several obstacles still remain z The economic recovery is not likely to be completed until late 2010 f Unemployment was 10.2% in October, the highest rate since April 1983 z Retail sales remain soft (September 2009 sales declined 1.5% over August 2009 and were 5.7% below
Slide 8: Market Overview
Market Overview Both the equity and debt markets have rebounded sharply since March, causing many to predict a corrective pullback z Valuations may have already priced in unrealistic recovery assumptions f The current trailing P/E ratio for the S&P 500 is approximately 21.8x versus a long-term ave
Slide 9: Market Overview (Cont'd)
Market Overview (Cont’d) Credit Market Overview: z System-wide deleveraging (consumer and corporate) has driven overall economic growth rates lower f Largest issue remains bringing outstanding credit levels in line with debt servicing capability z Aging population that recently lost a significant
Slide 10: Leveraged Loan and High Yield Spreads Both Trading at Historical Highs
Leveraged Loan and High Yield Spreads Both Trading at Historical Highs Historical Leveraged Loan Spreads (Spread to Libor) (1) Historical High Yield Spreads (Spread to Treasury) (2) 1300 1900 15-Year Average = T+590 bps 1200 15-Year Average = L+ 370 1750 1100 b 10/31/09: 1600 10/31/09: 1000 L+600 bp
Slide 11: Current Market Opportunity
Confidential Current Market Opportunity
Slide 12: Market Opportunity: Supply
Market Opportunity: Supply Loan and Bond Maturities (1)(2) Amount of Defaulted Debt (3) $180 $450 $415 $160 $153 $150 $400 $140 Maturity Amount ($ in Billions) Default Volume ($ in Billions) $350 $120 $300 $268 $100 $250 $80 $200 $151 $60 $150 $49 $100 $85 $40 $29 $41 $50 $20 $10 $9 $4 $0 $0 2010 20
Slide 13: Market Opportunity: Demand
Market Opportunity: Demand New Issue Volume (Loans and Bonds) (1)(2) Hedge Fund Assets Under Management (3) $900 $2,000 $837 $1,868 $800 $761 $1,800 New Issue Volume ($ in Billions) $1,600 Hedge Fund Assets ($ in Billions) $700 $1,465 $637 $1,407 $607 $1,400 $600 $1,200 $1,105 $500 $1,000 $973 $1,00
Slide 14: Current Market Opportunity
Current Market Opportunity We are beginning to see an improvement in deal flow z Leverage levels are lower and more reasonable and the quality of borrowers has improved f As a result of less-aggressive capital structures, LBO value creation will need to be driven from operational improvements more
Slide 15: Recent Deals
Recent Deals Busch Entertainment Corp. Safway z One of the largest theme park operators in the z Leading provider of scaffolding for the United States commercial and industrial construction end z Leverage: markets in the U.S. and Canada f Senior: 2.6x z Leverage: f Through GSO Security: 3.9x f Throu
Slide 16: GSO Capital Opportunities Fund I
Confidential GSO Capital Opportunities Fund I
Slide 17: GSO COF - I Update
GSO COF - I Update GSO Capital Opportunities Fund I(1) z $2.2 billion under management (Fund Inception Date – July 2007) (Completion Date – July 2012)(2) f $2.0 billion of limited partner commitments f $200.0 million leverage facility (fully drawn) We are currently negotiating an expansion and e
Slide 18: GSO COF - I Portfolio Overview
GSO COF - I Portfolio Overview The current portfolio consists of 24 investments across a broad array of industries and a blend of senior, mezzanine, private equity and rescue financings Senior Debt Equity / (Including Single Media / Entertainment Services Preferred Tranche Debt) 5.8% 20.6% 14.8% 1
Slide 19: Fund Performance
Confidential Fund Performance
Slide 20: GSO COF - I Fund Performance
GSO COF - I Fund Performance(1) ($ in USD millions) Closing Cost Basis Total Value (as of 9/30/09) (1) Multiple Interest Net Debt / EBITDA LTM EBITDA Company Date Debt Preferred Common Total Realized (2) Unrealized (3) Total of Cost Rate (4) At Close Current At Close Current % Change Realized Invest
Slide 21: GSO COOF - I Fund Performance
GSO COOF - I Fund Performance(1) ($ in USD millions) (1) Closing Cost Basis Total Value (as of 9/30/09) Multiple Interest Net Debt / EBITDA LTM EBITDA (2) (3) (4) Company Date Debt Preferred Common Total Realized Unrealized Total of Cost Rate At Close Current At Close Current % Change Realized Inves
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