Provident Group Firm Overview May 2009 (Case Studies)


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Summary of Provident Group capabilities including case studies and firm biographies

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Provident Group Firm Overview May 2009 (Case Studies)

  1. 1. PROVIDENT GROUP Bringing Investment Opportunities Into Focus May 2009
  2. 2. Provident Group Overview Provident Group is a boutique investment banking and advisory firm founded in 1998 by Wall Street veterans, dedicated to servicing the middle markets within the Americas and other select emerging markets through the structuring and private placement of client transactions. ► Provident Group differentiates itself by focusing on privately placed and frequently cross-border transactions. Provident focuses on serving middle market clients that require highly customized PROVIDENT solutions. Structuring and placing these types of transactions requires specific skills, a successful track record, local knowledge, GROUP and deep relationships with the relevant institutional investor community.. Asset Corporate ► Provident Group has a highly articulated global network of Management Finance relationships with institutional investors with which it places its transaction flow, consisting primarily of large macro and emerging market hedge funds, private equity funds, pension funds and Capital insurance companies. Raising Distribution ► Provident Group’s most valuable asset is its professional team, Advisory drawn from top buy and sell side Wall Street firms including Lehman Brothers, Salomon Brothers, Bear Stearns, JP Morgan and Deutsche Bank Capital Partners. -1-
  3. 3. Corporate Finance Services Provident’s corporate finance unit provides highly tailored solutions to its client base, operating in markets where matching the client to the right partner is time and business critical. Client Base Services ► Established businesses with existing cash ► Structuring and placing privately flows, or those that have assets/services which can be monetized through contracts negotiated capital: with reliable counterparties ► Equity, quasi-equity, structured debt (including mezzanine), as well as senior debt with institutional sources ► Early stage capital when there is strong sponsorship backing the initiative ► Secondary focus on Private Equity and Mergers & Acquisition Advisory -2-
  4. 4. Capital Raising Capabilities Provident’s corporate finance unit has sourced $3 billion in capital for a range of client needs. •Cross Border Expansion Expansion •Product Diversification Capital •Market Growth Turnaround/Recapitalizations due to: •Balance Sheet Restructuring Acquisition (excess debt) Finance •Operating Difficulties •Adverse Market Conditions Provident’s track record provides with direct access to institutional capital sources in the US and abroad, specializing in privately negotiated transactions in the middle markets. As a result our clients benefit from these investors' expertise and patience to execute these types of financings. -3-
  5. 5. Sector Coverage Provident is able to successfully match financial partners with clients because of its depth of sector knowledge. Provident clients range from Fortune 1000 listed companies to privately held family enterprises in a number of sectors: • Natural Resources • Industrial • Services • Commodity Sector • Transportation • Financial Services • Energy Agribusiness - Row crop producers Transportation/Logistics - Financial Services - Banking, (soybean, cotton, other), permanent Maritime, aviation and ground based specialty financial services, crops, forestry, beef/dairy operations transportation, logistics service consumer credit, trading platforms providers Alternative energy - Bio-fuels, Real Estate/Housing – Low cost thermal energy and wind power Power - Generation, transmission residential housing developments and distribution and commercial real estate Upstream Energy - Oil & Gas exploration and production, oilfield Specialized Manufacturing – Retail/Consumer- Retail and services, coal production Precision Machinery, consumer products Thermoplastics, building products Hospitality/Tourism – Hotel, leisure and tourism projects -4-
  6. 6. Corporate Finance and Advisory Services Provident’s corporate finance unit’s value added is providing highly tailored solutions to its client base, typically operating under tight time constraints and difficult market conditions where matching the client to the right partner quickly is critical. ► Provident’s core mission is to structure and place privately negotiated capital throughout the capital spectrum including equity, quasi-equity, structured debt (including mezzanine), as well as senior debt with institutional sources. ► Provident is typically most successful for clients who have established businesses with existing cash flows, or those that have assets/services which can be monetized through contracts with reliable counterparties. ► Provident will selectively engage clients looking for early stage capital only when there is strong sponsorship backing the initiative. ► Provident has sourced capital for a range of client needs, including expansion capital, acquisition finance or for turnarounds/recapitalizations for companies which need to restructure their balance sheets stemming from the excess debt, operating difficulties or which have been impacted by adverse market conditions. ► A critical Provident advantage is its track record which provides it with direct access to institutional capital sources in the US, Europe and within Latin America which specialize in privately negotiated transactions in the middle markets. These firms are hallmarked by their high degree of expertise and patience to execute these types of financings. -5-
  7. 7. Asset Management Provident and it’s SEC-Registered Investment Advisor affiliate, Provident Group Asset Management, manage a portfolio of asset management products. LMSDF The Longship Multi-Strategy Debt Fund PROVIDENT Launched on February 1st, 2004 GROUP Provident Group Asset Management’s flagship fund of hedge funds Asset Corporate Globally diversified portfolio of “best in class” Management Finance fixed income hedge funds Managed Accounts Capital Raising Distribution Provident Group Asset Management Advisory manages a globally diversified portfolio of asset management products for our global client base in addition to the LMSDF -6-
  8. 8. Selected Biographies Steven J. Carlson Mark Bishop Pavlos Mavrides Matos Phone: +1 212-742-1852 Phone: +1 212-742-1871 Phone: +1 212-742-1851 Email: Email: Email: CEO and Co-founder Partner and Co-Founder-Origination and Execution Partner and Chief Financial Officer • 24 year veteran of Wall Street: corporate finance/advisory, • 10 year veteran of Salomon Brothers Inc. • 12-year Wall Street experience alternative asset management, asset management and fixed income: trading, sales, corporate finance/advisory, capital markets and transaction • Vice President-Business Unit Manager for U.S./Latin American structuring research and capital markets. Equities • Managing Director, Lehman Brothers, 14-year veteran: • Principal in Deutsche Bank Capital Partners’ Latin American • Co-Chaired Latin American Working Committee and served on Private Equity Fund (2000) • Head of Sales (Institutional Sales Group) and FI product Latin American Operating Committee • Managed control and minority Investments for companies in (Private Client Services), • 1996-1997 based in Buenos Aires, responsible for oversight of South America, Mexico and the Caribbean for Deutsche Bank • Business Head Emerging Markets Fixed Income and Capital Partners’ Private Equity Portfolio Derivatives, Salomon’s Joint Ventures in the Southern Cone (MBA: Argentina, Celfin: Chile, Patrimonio: Brazil) • Former Investment Banker in Salomon Smith Barney's Latin • Head of non-agency mortgage trading – CMO, Derivatives, American Investment Banking and Global Power Groups pass-through and he mortgage conduit business • BA Brown University; attended Universität Rostock • Former Corporate Attorney in Brown & Wood LLP’s Global • Harvard’s Kennedy School of Government (M.P.P); • Fluent in German Project Finance and Latin American Securities teams University of Maryland (B.A.). • Columbia Law School (J.D.), Yale University (B.A.) • Fluent in Spanish, Greek, and Portuguese James B. Roper Brian P. Mathis Matthew Yoon Phone: +1 212-742-9176 Phone: +1 212-742-9177 Phone: +1 212-742-1158 Email: Email: Email: Partner and Chief Operating Officer Managing Partner of Asset Management Vice President, Investment Banking • 18-year veteran of Lehman Brothers. • 10-year experience in alternative investment management. • Firefly Capital (3 yrs) – Vice President, Investment Banking for Boston based institutional brokerage/ investment banking firm. • Leadership of key businesses such as Fixed Income Sales • Former member of Investment Management Committee at Established investment banking practice focused on advising and Research, and Global CM Recruiting. PAAMCO, a $7.5 billion fund of hedge funds; responsible for middle market issuers in cross border transactions between N. directional hedge fund strategies, portfolio allocation and Asia and the Americas • Member Fixed Income Operating Committee. guiding strategic initiatives. • Bear Stearns & Co. (Boston) (2 yrs) – Associate, focused on • Founder and CEO of Treeba, Inc, proprietary cutting edge middle market fixed income distribution and fixed income • Vice President, JPMorgan Capital & Lab Morgan, investing in recruiting software. instruments: municipal bonds, auction rate securities, CDOs, multiple sectors, including private equity and the hedge funds • Previously at Wells, Rich, Greene Inc.; BBDO Inc. ABS, MBSs. space. • Accenture – Analyst, High Tech/ Communication Unit & BKL in • Boston College (B.S.). • Harvard Law School (J.D.); Harvard’s Kennedy School of M&A team Government (M.P.A.); University of Michigan Business School • Brandeis University, M.A. in Economics & Int'l Finance (B.B.A.). Korea University, B.A. in Business Administration -7-
  9. 9. Selected Biographies Caroline Lovelace William Liu Andrew Reynolds Phone: +1 212-742-9192 Phone: +1 212-742-9388 Phone: +1 646-723-7626 Email: Email: Email: Asset Management Due Diligence and Product Managing Director, Head of Risk Management Investment Banking Execution Development • Former broker of emerging markets fixed income both • Formerly VP of Investment Management at Ivy Asset sovereign and corporate debt with Tradition Asiel and Tullett • More than 11 years experience in global financial services. Management, a $14 billion fund of hedge funds, where his Prebon. responsibilities included risk analysis & monitoring, fund risk • 5-year veteran in alternative asset management. • 3 years experience in Media industry as a media planner policy and implementation, hedge fund research, due developing advertising campaigns for clients such as Citibank • UBS (3 yrs) - Investment Banking primarily financial services diligence and portfolio management Private Banking, Novartis, and HIP of New York among others. in Southern Europe; Equity Capital Markets, pan-Europe • Former SVP in Lyra Capital LLC, a $1.9 Billion Fund of Funds, • Esade Business School (M.B.A.); • J.P. Morgan Chase (6 yrs) - Investment Banking, Financial where he co-managed hedge fund risk research and due Denison University (B.A.). Institutions Group / JP Morgan Capital / JP Morgan Private diligence and set up and managed a firm-wide VaR analysis Bank. Identified, evaluated and structured private equity and stress testing process. • Basic Spanish investments and managed ongoing portfolio of companies • Former Consultant in CDO Group/Structured Finance and member of the Board of Directors Advisors. Department, at Bank of New York, responsible for deal • The Wharton School, University of Pennsylvania (M.B.A); indenture research, risk analysis and reporting, model Harvard University (B.A.). implementation and portfolio credit risk monitoring of A $2.4 • Fluent in Spanish billions CDO portfolio. • Ph.D in Science of Engineering, Columbia University, M.S. in Science of Engineering, Northeastern University, China, B.S. in Science of Engineering, Jiangxi University of Science and Technology, China. Steven W. Plotycia Phone: +1 212-742-1804 Email: Vice President, Controller • Responsible for finance & controls, hedge fund administration, investor relations and accounting • 4 years experience in alternative asset management • B.A. in Mathematical Economics from Colgate University -8-
  10. 10. Selected Transactions – Emerging Markets Brazil 2009 Brazil 2009 South Korea 2008 Argentina /United States 2008 Jin Young Precision Low-Income Housing Developer Brazilian Farm Operator Machine Co., LTD Non Performing Loans Precision Manufacturer Capital Raising Capital Raising Asset Divestiture US$ 90,000,000 R$ 26,000,000 Equity / Mezzanine Financing US$ 30,000,000 ________ US$ 11,000,000 ______ ____________ Exclusive Financial Advisor ______ Sole Lead Manager Exclusive Financial Advisor Exclusive Financial Advisor Brazil 2008/ 2007 Argentina /Brazil 2007/ 2006 Argentina /Brazil 2007/ 2006 Agribusiness Term Debt Facility Logistics Logistics US$ 10,000,000 Senior Debt Financing Private Equity Financing Asset Purchase US$ 37,200,000 US$ 24,000,000 US$ 50,000,000 Equity Financing Private Equity/Mezzanine Financing US $1,000,000 US$ 10,000,000 ________ __________________________ ________ Exclusive Financial Advisor Exclusive Financial Advisors Exclusive Financial Advisor -9-
  11. 11. Selected Transactions – Emerging Markets Brazil 2006 Brazil 2005 Ecuador 2004 Agribusiness Agribusiness Private Equity Placement Membership Units (Private Equity) US$ 21,000,000 US$ 30,000,000 US$ 32,000,000 Secured Pre-Export Facility _________ ________ _________ Exclusive Financial Advisor Exclusive Financial Advisor Placement Agent Brazil 2004 Costa Rica 2002 Central America 2002 PVC Pipe Manufacturer Convertible Preferred Shares Commercial Banking Agribusiness US$20,000,000 IPO – Common Shares Secondary Listing Secured Pre-Export Finance Facility US$ 11,000,000 US$ 200,000,000 US$ 65,000,000 Commercial Paper Common Shares US$ 6,000,000 @ US$2 per share _________ ____________ ____________________________ Joint Arrangers Sole Lead Manager Exclusive Financial Advisor -10-
  12. 12. Selected Transactions – U.S. and Canada United States 2008 United States 2007 United States 2006 Turbine Vada Energy LLC Energy Solutions Energy Equipment Parts Distribution Exploration Agora-X, LLC & Production Company Private Equity Commodity Trading Platform Private Equity Financing US$ 5,000,000 Development Capital Raise US$ 35,000,000 Senior Secured Debt US$ 7,500,000 ______ US$ 75,000,000 ______ Exclusive Financial Advisor ______ Exclusive Financial Advisor Exclusive Financial Advisor United States 2004 United States 2004 / 2003 PVC Pipe Technology & Service Provider Special Purpose Finance Company Common A Shares M&A Advisory – Sell Side US$ 19,000,000 US$ 6,000,000 Series A Convertible Preferred Shares Equity Financing US$ 5,000,000 US$ 4,000,000 Bridge Financing US$ 1,095,000 ________ Exclusive Financial Advisor Merchant Banker -11-
  13. 13. Current Pipeline (In Progress) Brazil 2009 Australia 2009 Panama 2009 United States 2009 Brazil 2009 CUBBIE GROUP Multiner S.A. Australian Agribusiness International Renewable Energy Provider Brazilian Real Estate Developer Power Generation Restructuring & Capital Raising Repo Client Financing BD A$ 300,000,000 Private Equity Fund Capital Raise Project Financing Project Level Financing Debt Refinancing US$ 90,000,000 Exclusive Financial Advisors ________ ______ ______ Exclusive Financial Advisor Exclusive Financial Advisor Exclusive Financial Advisor Exclusive Financial Advisor Peru 2009 Brazil 2009 Guyana 2009 United States 2009 Brazil 2009 Iowa Participacoes, S.A. SSI US Coal International Consolidated Simon & Shock Int’l, LLC Producers Minerals Brazilian Cotton Farming Platform Hardwood Lumber Company Polymetallic Peruvian Mine Equity Financing Canadian Graphite Mine Capital Raising Capital Raising / Asset Sale Senior Secured Debt US$ 50,000,000 US$ 45,000,000 ______ Capital Raising / Asset Sale US$ 65,000,000 ______ ________ Exclusive Financial Advisor ______ ________ Exclusive Financial Advisor Exclusive Financial Advisor Exclusive Financial Advisor Exclusive Financial Advisor -12-
  14. 14. Case Study – Private Equity Brazil Iowa Farms ► Business: Integrated large scale agribusiness company headquartered in the Brazil 2008/ 2007 US that owned/operated 22,550 acres of producing farmland and a cotton gin in the Brazilian state of Bahia Agribusiness Term Debt Facility ► Company’s need: The Company was in its second year crop year and critically US$ 10,000,000 Private Equity Financing US$ 50,000,000 needed capital to finance crop inputs. Longer term, the Company also needed Equity Financing US $1,000,000 equity capital to scale its operations by acquiring new land to create a business __________________________ Exclusive Financial Advisors which could be exited via a strategic sale or local public issuance. ► Challenges Involved: Pre-cash flow positive, thinly capitalized balance sheet Depressed commodity prices for cotton, lack of quality off-takers with good credit profiles Lack of a recognized strategic and technical partner ► Provident Solutions: Refinanced existing debt with a $10MM 5 year debt facility structured to defer principal amortization Raised $1MM of equity from a strategic off-taker/advisor which included a multi-year agreement that intermediated off-taking risk for both local and international off-takers for cotton Provided expansion capital raising $50MM of private equity (2.5x oversubscribed) -13-
  15. 15. Case Study-Balance Sheet Restructuring/Expansion Financing Fluviomar International Limited ► Business: 2nd largest barge transportation company (30% market share) on the Argentina /Brazil 2007/ 2008 Hidrovia, Latin America’s primary North-South inland river complex ► Company’s need: Restructure Balance Sheet, replacing expensive short term debt Logistics with longer term structured debt facility, expansion capital required to grow fleet and 1. Asset Purchase US$24,000,000 exploit rising commodity price environment 2. Strategic Investment ► Challenges Involved: US$ 10,000,000 ____ Exclusive Financial Advisor Complex ownership and capital structure, multiple legal jurisdictions Highly over-leveraged Balance Sheet High cost bridge debt and sellers notes created drag on cash flows Argentina /Brazil 2007/ 2006 ► Provident Solutions: Replaced high cost bridge and term financing with Senior Secured Bullet Logistics Amortizing facility, freeing up cash flow Senior Debt Financing US$ 37,200,000 Financed acquisition of major asset purchase enabling company to increase Private Equity/Mezzanine Financing US$ 10,000,000 cash flow and accommodate larger bridge financing ________ Exclusive Financial Advisor Ongoing engagement to restructure entire balance sheet and source equity capital to de-leverage the balance sheet , as well as provide expansion financing to grow barge fleet -14-
  16. 16. Contact Information PROVIDENT GROUP 654 Madison Avenue, Suite 1009 New York, NY 10065 Tel: (212) 742.4900 ● Fax: (212) 742.1890 -15-
  17. 17. Disclaimer This document is for informational purposes only and is not intended as an offer to sell or a solicitation with respect to the purchase or sale of any security. This document has been made available through Provident International Securities, Inc. a FINRA registered broker-dealer and wholly owned subsidiary of Provident Group Limited. This document does not take into account the investment objectives, financial situation or particular needs of any particular person. Although the information in this document is based on information obtained from sources Provident Group believes to be reliable, Provident Group does not guarantee the accuracy of the information and it may be incomplete or condensed. Any unauthorized use, duplication or disclosure is prohibited by law and will result in prosecution. © Provident Group Limited, 2008.