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Fundraising 1


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Fundraising 1

  1. 1. PRIVATE  PLACEMENT   (FUNDRAISING)     With  InduStreams  -­‐  June  2012
  2. 2. Summary   What   How   Why   •  Probing    the  most   relevant  investors   and/or  partners   •  Introducing  your   proposi5on  to   relevant  execu5ves   and  decision  makers   from  global  and   regional  leading   investors   •  FacilitaBng  to   secure  agreement   •  If  you  engage  us  we   wish  to  deliver  –  so   Step  1  is   understanding  your   situa5on  and  needs   •  Step  2  is  typically  an   engagement   agreement   •  Step  3  fast  track   process  to  solicit   interest  from   50-­‐100  candidates     •  We  have  big  and   diverse  investor  and   industrials  network   in  and  outside  China   •  We  have  insight  to   both  the  industry   and  investor   communi5es   allowing  us  to   facilitate  effec5vely   •  We  have  simple  and   effec5ve  processes
  3. 3. The  fundraising  opportunity…   §  Infrastructure  investments  are  rapidly  gaining  popularity  with  some  of  the  worlds   biggest  ins5tu5onal  and  private  funds   §  Some  limited  partners  seek  a  strategic  fit  to  further  leverage  their  own  posi5on   in  the  market  whilst  puHng  their  capital  to  work   §  Others  oJen  non-­‐industry  related  funds  or  private  individuals  are  simply  looking   for  investment  opportuni5es  with  high  return  poten5al  and  without  the  liability   and  resource  requirement  that  normally  follow  such  opportuni5es   §  Substan5al  private  and  government  funds  are  available  for  funds  seeking  LP’s  or   strategic  investors  inside  and  outside  of  China   §  Fundraising  is,  however,  for  most  funds  a  difficult  process  and  many  do  not   achieve  their  fundraising  goals   §  It  is  also  a  5me  consuming  process  and  one  that  is  outside  the  regular  scope  of   most  first  5me  funds  as  well  as  many  of  the  funds  with  a  longer  track  record   §  In  our  experience  a  process  that  requires  and  on  the  ground,  focused  and   dedicated  approach
  4. 4. …with  InduStreams   §  InduStreams  is  a  company  and  a  network  with  more  than  1,000  execu5ves   in  the  infrastructure  sector  with  typical  background  with  industrials  (e.g.   ports,  operators,  resource  companies  etc),  ins5tu5onal  and  private  funds   §  Towards  the  vision  of  making  the  infrastructure  markets  more  connected   InduStreams  also  facilitate  private  placement  opportuni5es  to  investors   with  appe5te  to  take  up  a  limited  partnership  role  and  in  some  cases  a   strategic  role  in  the  fund  as  well   §  The  nature  of  private  placement  makes  it  a  challenge  for  many  funds  and   poten5al  investors  to  connect  at  the  right  5me   §  Many  come  to  InduStreams  for  help  with  iden5fying  poten5al  investors  or   relevant  funds  within  the  infrastructure  space   §  In  par5cular  our  strong  base  in  China  and  Europe  has  enabled  us  to   facilitate  opportuni5es  that  might  otherwise  have  been  hampered  by  the   distance  and  cultural  differences  between  these  two  markets   §  InduStreams  is  normally  contracted  by  the  infrastructure  fund  itself  as  an   actual  placement  agent
  5. 5. Our  fundraising  process     Deal   1-­‐5    Develop   Step  0   Crea=ng  founda=on Step  3   Deal  development   Engage   Engaging  the  most  relevant   Choosing  the  relevant     investor  segments   Closing  the  deal   5-­‐10   Step  2   Step  1   Step  4   10-­‐20   Focus   100-­‐500   InformaBon   Exchange   Engagement   Agreement    ProposiBon   FormulaBon  
  6. 6. Our  fundraising  process  (explained)   As  a  first  step  it  is  important  for  us  to  understand  your  situa5on  and  the   circumstances  surrounding  your  needs  including  the  objec5ves  you  are  looking  to   achieve  (Informa5on  Exchange).     With  a  reasonable  understanding  we  can  then  with  you  work  out  and  Engagement   Agreement  and  terms  that  makes  sense  on  both  sides  and  suit  the  situa5on.     Once  and  agreement  is  in  place  we  will  together  with  you  formulate  a  proposi5on  to   poten5al  investors  or  partners  and  target  the  segments  that  fit  the  objec5ves  you   wish  to  achieve  (Selec5on).       We  then  typically  Engage  about  50-­‐100  in  order  to  create  substan5al  interest  and  a   good  selec5on  for  the  further  process.     From  there  we  chose  the  candidates  with  highest  fit  and  likelihood  to  close  actual   agreements  with  and  seek  to  facilitate  on  both  sides  (Develop)  un5l  agreement  is   reached  with  one  or  more  investors  and/or  partners  (Deal).
  7. 7. Case  sample:  Fund  raising  in  China   §  A  growing  private  sector  with  interest  in  LP  opportuni5es,  many  managed   through  trusts  which  are  now  second  biggest  fund  manager    group  in  China  (aJer   insurance)  and  may  well  become  the  biggest  over  the  next  few  years   §  Many  industrials  with  interest  to  become  strategic  investors  or  to  form  strategic   partnerships  (typically  big  SOE’s  with  interest  to  expand  beyond  the  Chinese   market  or  to  find  synergies  in  the  Chinese  market)   §  Most  Chinese  LP’s  very  cau5ous  on  foreign  inves5ng  and  many  require  other   Chinese  investors  to  invest  along  side  (e.g.  a  strategic  investor)   §  Strategic  investors  in  turn  can  take  a  long  5me  to  decide  on  foreign  investments   or  partnerships  (in  general  very  cau5ous)  and  many  such  efforts  are  fruitless   given  lack  of  ability  to  follow  up  in  China   §  Fundraising  in  China  is  a  big  opportunity  and  increasingly  so,  but  carries  with  it   challenges  that  require  extensive  China  insight  and  network
  8. 8. Our  fundraising  proposiBon     ü  Big  and  diverse  investor  and  strategic  partner  network  in   infrastructure  and  associated  industries  in  and  outside  China   and  Europe   ü  Insight  to  both  the  industry  and  investor  communi5es   allowing  us  to  convey  proposi5ons  accurately  and  with  the   right  context  of  the  poten5al  value  these  have     ü  Simple  and  effec5ve  process  to  engage  the  right  par5es  with   the  right  proposi5on  to  ensure  geHng  to  agreement  in  short   5me  period
  9. 9. Risk  free  engagement   We  talk  to  new  funds,  investors  and  industrials  every  week  and  as  policy  are   commied  to  listening  to  anyone  who  wishes  to  further  explore  the  possibility   to  invest  in  or  seek  investors  for  the  infrastructure  market  –  no  strings   aached!     Our  primary  objec5ve  is  to  provide  access  to  fundraising  and  strategic   partnership  opportuni5es  that  might  otherwise  not  be  available  to  you  and   your  company.  We  work  on  a  flexible  format  and  in  general  do  not  think  an   exclusivity  is  needed  –  leaving  you  to  leverage  our  network  whilst  benefi5ng   from  your  own  or  others.     If  such  opportuni5es  might  be  relevant  to  you  or  your  company  we  encourage   you  to  reach  out  to  any  of  our  representa5ves  or  on:
  10. 10. Disclaimer   This  presenta5on  is  issued  for  informa5on  purposes  only  and  does  not  cons5tute  an   agreement,  offer,  obliga5on  or  invita5on  to  enter  into  transac5ons  or  investment   business.       With  this  presenta5on,  INDUSTREAMS  LIMITED  does  not  act  in  any  way  as  your   advisor.  This  presenta5on  is  not  intended  as,  nor  should  it  be,  a  subs5tute  for   consul5ng  with  INDUSTREAMS  LIMITED.     Whilst  this  presenta5on  has  been  produced  from  sources  believed  to  be  reliable,  the   informa5on,  views  and  opinions  expressed  in  this  presenta5on  are  provided  as  of  the   date  of  this  presenta5on  and  remain  subject  to  verifica5on,  comple5on  and  change   without  no5ce.  No  representa5on  or  warranty  whatsoever  (whether  express  or   implied)  is  or  will  be  made  as  to,  or  in  rela5on  to,  the  accuracy,  reliability  or   completeness  of  the  informa5on  contained  herein  or  in  the  appendices  to  this   presenta5on.     INDUSTREAMS  LIMITED  will  not  be  liable  towards  you  or  any  third  party  for  any   eventual  damage  you  may  incur,  caused  by  the  informa5on  contained  in  this   presenta5on  and  its  appendices.
  12. 12. General  Infrastructure  Fund  (Example  1)       Sector  focus   Single  EU  country  focus  on  prime  infrastructure  with   exis5ng  opera5ons  and  stable  cash  flows  (gas   distribu5on,  broadband  (fiber),  airports  etc.)         Target  return   Minimum  8%  and  dividend  guarantee         Value  generaBon   Dominant  posi5on  in  infrastructure  inves5ng  in  the   country.  Superior  access  to  key  private  and   government  priva5za5on  and  acquisi5on   opportuni5es.     Typical  size  per  closing     €1+  billion    
  13. 13. Sea  Port  Fund  (Example  2)       Sector  focus   General  cargo  terminals  in  developing  countries  with   focus  on  La5n  America  and  China         Target  return   15%       Value  generaBon   Joint  venture  with  domina5ng  cargo  owner  and   shipping  line  in  the  sector  providing  large  pipeline  of   investments  and  base  volume         Typical  size  per  closing     $250  million
  14. 14. Oil  FaciliBes  Fund  (Example  3)       Sector  focus   Oil  distribu5on  facili5es  with  focus  on  growth   markets         Target  return   15-­‐20%       Value  generaBon   Strategic  partnership  with  industrial  that  has   extensive  client  network  among  which  many  are   project  or  exis5ng  facility  owners         Typical  size  per  closing   $500-­‐750  million
  15. 15. AlternaBve  Energy  Fund  (Example  4)       Sector  focus   Proven  technologies  within  alterna5ve  energy,   especially  solar  and  wind,  global  scope  with  EU  as   key  market.     Target  return     Value  generaBon       15-­‐17%  (with  leverage),  18-­‐20%  with  tax   op5miza5on.       Carve-­‐out  from  major  bank,  track  record  of   performance  on  large  scale  EU  projects         Typical  size  per  closing   Up  to  €2  billion
  16. 16. Trophy  Property  Fund  (Example  5)     Sector  focus     Historical  and  trophy  property  in  the  US,  UK,   Switzerland  and  Italy.         Target  return   8-­‐11%       Value  generaBon   Niche  market  with  focus  on  landmark  buildings  in   ultra  liquid  markets,  low  risk  strategy  with  25%  of   typical  poroolio  in  development  projects  without   “urbanis5c”  risk.         Typical  size  per  closing   $7.5  billion  poten5al  investment  volume  for  2012-­‐15