Logistics Market Overview...Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 BGSA Index S&P 500 15.3% 25.8% Source: Capital IQ, BGSA Analysis. The 2020 BGSA Supply Chain Index: Surge

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Benjamin Gordon

Welcome Remarks

Welcome!A Representative List of Speakers and Industry Leaders

2020: Unprecedented, thanks to COVID

Source: IATA

66% Decline in Passenger Volume $118 Billion in 2020 Losses

COVID-19: Biggest Shock to Aviation since World War II

2020: A Surprisingly Strong Year for Supply Chain Public Market Performance. How to Explain the Paradox?

(40.0%)

(30.0%)

(20.0%)

(10.0%)

0.0%

10.0%

20.0%

30.0%

Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21

BGSA Index S&P 500

15.3%

25.8%

Source: Capital IQ, BGSA Analysis

The 2020 BGSA Supply Chain Index: Surge Led by LTL, Parcel, Software, and Logistics…

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0%

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Energy Transportation & LogisticsTechnology DistributionTruckload

Logistics Healthcare Distribution

Global Parcel / Logistics Supply Chain Technology & SoftwareLess-Than-Truckload

Railroads / Rail Services

30.1%

(11.0%)

45.6%

10.3%

20.5%

34.7%55.0%

17.1%

(15.6%)

Source: Capital IQ as of December 31, 2020

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

0 10 20 30 40 50 60 70

… But the Key Driver was Parcel, which gained $110B to reach $343B, fueled by eCommerce

Note: bubble size reflects enterprise value


2020 %

Ch

an

ge

Owens & Minor

LTL Parcel Software Logistics Railroad Healthcare Truckload Elec Dist Energy Airlines

DSV

XPO

Roadrunner

Union

Pacific

Saia

K+N

YRC

TFI

AmericoldCanadian

Pacific

American Software

Absolute Software

ArcBest

Agility

Patterson

Companies

McKesson

Henry Schein

J.B. Hunt

Daseke

Mullen

CDW

Heartland Express

Arrow

SYNNEX

Delta

Southwest

World Fuel

United

American

Ryder

Descartes

WiseTech

$99B

FedEx

$165B

UPS

$79B

DHL

PFSweb

Echo

Value Is Migrating to Parcel and Last-Mile Logistics

Rectangle area is based on market value growth in 2020


Railroads / Services

Truckload

Healthcare

Distribution

Supply Chain Tech

Less-Than-Truckload

Technology Distribution

Logistics & Supply Chain ServicesGlobal Parcel / Logistics

Energy

Our 2020 Prediction Showcased Clouds on the Horizon

Overpriced

Market

Presidential

Election

Government

Regulation

Economic

Recession

Tax

Increases

Trucking

Bankruptcies

Freight

Recession

China

Trade War

Amazon

We Got Most of These Right… but we Missed COVID

Overpriced

Market

Presidential

Election

Government

Regulation

Economic

Recession

Tax

Increases

Trucking

Bankruptcies

Freight

Recession

China

Trade War

Amazon

33% drop… but then

84% spike!

EB-5 battle

Blue Wave →

2021 hikes?Even uglier than expected

• April: 2.5x worse than 2019

• Stimulus-fueled rebound

Mexico replaced China

as #1 US trade partner

• 57% increase in freight

• Bought 11 planes

• CVG hub launch

The Good News

Ecommerce

Last-Mile

Reverse Logistics

Supply Chain Tech

Capital Markets

Cold Chain

US Ecommerce Growth

Ecommerce

penetration as a

percentage of retail

COVID Compressed 10 Years into 3 Months

Ecommerce and WFH Accelerates Growth in Last-Mile

Source: Capgemini Research Institute

13%

20%

16%

41%

11%

Warehousing Sorting Parceling Last-mile delivery Remaining supply

chain cost

41% of B2C Supply Chain Cost

Last-Mile Growth is Driving A Flurry of M&A Activity

Source: IBISWorld, BGSA

$83.7 $83.8$84.9

$87.5

$90.4

$94.6

$99.7

$104.6

$109.7

$114.8

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Acquires

Acquires Acquires

2013

2015

Acquires Acquires

2017

Acquires Acquires

2018

Acquires Acquires

2019

2020

Acquires Acquires Acquires Acquires Acquires

Reverse Logistics: Market Growth & Sector Tailwinds

Sources: Statista, eMarketer, Narvar, Locus Robotics, Sales Cycle, UPS, Retail Customer Experience

$334 $387

$461

$596

$746

$884

$1,052

$1,232

$1,424

$1,636

2014A 2015A 2016A 2017A 2018A 2019A 2020E 2021E 2022E 2023E

8%Brick-and-Mortar

Retail Return Rate

25%E-Commerce

Return Rate

74%Shoppers Would

Switch Brands Due to

Returns Policy

88%Shoppers Check

Return Policies

70%2020 Annual Growth in

Total Packages

Returned

18%Returns Cost to E-

Commerce Companies

as a % of the

Purchased Item

Global Reverse Logistics Market (USD in Billions)

Cold Chain is Sizzling Hot

Sources:

Cold Chain Monitoring Market Report – Markets and Markets Research Private Ltd.

Cloudleaf State of Supply Chain Visibility Report

Global Cold Chain Monitoring Market, By Region (USD Billion)

• 92% of total respondents said they

could not 100% trust the data coming

in from tracking products

• 99% of respondents in pharmaceutical

industry claimed to be using manual

processes for visibility

• 87% of respondents in the

pharmaceutical industry said they do

not have 100% visibility into the last

mile of delivery.

COVID Accelerated the Need to Ship, Track, and Monitor Pharmaceuticals

Proliferation of Technology Investments

Supply Chain Tech is Attracting Unprecedented Capital

• Supply chain technology has

attracted $302 billion since 2011

• In 2020, SCT reached a record

$52 billion

• Freight tech, a key subset,

attracted $4B in venture funding

• 2021 could be even stronger

Source: FreightWaves

SPAC Spike

Source: Refinitiv

74 SPACs, over $40 Billion Raised, and $63 Billion in Dry Powder

SPAC Interest in Green Supply Chain / Sustainability

Source: Luma Partners

A Cautionary Tale: Nikola

Ben Graham: “In the short-run, the stock market is a voting machine. In the long-run, it is a weighing machine.”

Dropped from $80 to $15, and still valued at $6B, despite less than $0.2M of revenue

What Cambridge Capital Looks For

19th Century:

The Railroad

20th Century:

The Box

21st Century:

The Digital Supply Chain

▪ In 1869, Leland Stanford drove the

Golden Spike into the ground in Utah,

creating the first coast-to-coast railroad

▪ Railroad fortunes were built by the

Vanderbilts, Carnegies, and Flaglers

▪ In 1956, Malcolm McLain refitted an oil

tanker to carry 58 shipping containers

from Newark to Houston

▪ Containerization helped fuel the fortunes

of shipping and trucking empires like

Maersk and JB Hunt

▪ “The Amazon Effect” sparks a new

ecosystem in automation, e-commerce

fulfillment, and the digital supply chain

▪ New billion-dollar winners emerge,

including Uber, GENCO, XPO, Flexport,

and many more

Convergence of Transportation and Technology Creates Billion-Dollar Opportunities

Cambridge Capital: Key Investment ThemesE-Commerce

Fulfillment

The COVID-19 pandemic accelerated e-commerce penetration in the US from 16% to 34% of all retail sales, resulting

in 10 years of expected e-commerce penetration growth in just 3 months; fulfillment sector benefits

Last-Mile DeliveryLast mile delivery is a $115B industry (according to IBISWorld), and is currently the biggest cost driver in the supply

chain; companies that innovate and enable more efficient last mile delivery options will succeed

Cross-Border

Flow of GoodsFulfillment and delivery of goods is usually dominated by local incumbents, but increasingly shippers/sellers want to

consolidate vendor relationships and be able to monitor all of their activities, globally, from a consistent vendor

Predictive Supply

Chain Decisioning

The recent advances in productizing AI and ML at scale create a new class of companies that can automatically cure

supply chain issues, saving money, time and reputation for large global shippers

Pure-Play Software

Niche Leaders

We prioritize category leaders in niche supply chain software categories (e.g. reverse logistics, warehouse labor

management, mode-specific TMS) who do not try and be ubiquitous across segments/markets, and who could also

serve as missing puzzle pieces for larger, broader competitors

Man + Machine WinsPurely tech-enabled 3PLs, or even 3PLs who are more services-based, will continue to provide value for shippers

based on specialization, capabilities and density – not everything can be fully automated by technology

Supply Chain

Visibility

Next level of supply chain visibility, connecting all stakeholders in a shipment onto a trusted platform, which enables

“higher pixel” visibility and provides predictive analytics and machine learning, leading to enhanced supply chain

resiliency and efficiency

Specialized

Telematics

As video telematics and voice/data networks mature to allow for real-time edge computing, there are a universe of

interesting companies that will achieve significant success (by replacing older commodity GPS tracking vendors)

“Digital” Freight

Forwarders

While capital has flowed into a small number of unicorns in the sector, we believe that other tech-enabled forwarders,

especially those who understand the legacy business model’s profit drivers, will be more successful

“Digital” BrokersSimilar to forwarders, we believe the best “digital” brokerage opportunities are actually to invest in brokers undergoing

a digital transformation, given importance of reputation, relationships, density and market share

Cambridge Strategy: Key Segments, Services and Platforms

Auto

mation

Specia

lized

Off

erings

Data

/ A

naly

tics

Market Segments

Typ

es

of

Se

rvic

es

Sourcing GFFCross-border

Middle Mile Last MileReverse Logistics

Other Services

Ware-housing

Optim

ization

E-C

om

merc

e

E-Commerce Fulfillment

Digital Freight

Forwarding

Supply Chain Visibility

Predictive Supply Chain Decisioning (AI, ML)

TMS/WMS/OMS/ERP

Tech-Enabled or Services-Based 3PLs

Digital Brokers

Last-Mile Delivery

Cross-Border E-Commerce

Enablement

Specialized Telematics

https://www.bringg.com/https://liftit.co/https://www.google.co.il/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiTxpn3z-7WAhVD2RoKHdbSCFsQjRwIBw&url=https://www.moneycrashers.com/ecosquid-review-resell-recycle-used-electronics/&psig=AOvVaw0YV4I13m1avDrnlY1P0oex&ust=1508019332470618

Key Cambridge Criteria

◼ Top-notch management teams with clear

vision for future growth

◼ Experienced leaders with demonstrated

ability to achieve growth and profitability

objectives

◼ High-growth companies with meaningful

market tailwinds

◼ Strong base of recurring revenues

◼ Well positioned to accelerate further

growth and gain market share

◼ Multiple paths to successful outcome

Logistics Distribution Last-MileTransportation Automation

INVESTING IN SUCCESSFUL BUSINESSES ACROSS ALL SEGMENTS OF THE SUPPLY CHAIN

PARTNERING WITH COMPANIES READY FOR FUTURE GROWTH

INVESTMENT CHARACTERISTICS AND UNDERWRITING PARAMETERS

◼ Preferred Investment Size: $10-50 million equity investments

◼ Ownership: Invests in both a minority and majority capacity

◼ Use of Proceeds: Growth capital, strategic initiatives, acquisitions and/or shareholder liquidity

◼ Partnership Approach: We invest in partnership with management to add tangible value

DIFFERENTIATED TECHNOLOGY OUTSTANDING MANAGEMENT STRONG MARKET POSITION

◼ Companies that employ technology to

drive differentiation

◼ Disruptive business models and a unique

offering in the market

◼ Category leadership, first-mover

advantage, or other barriers to entry

Cambridge Capital Team ExpansionMatt Smalley – Principal

• Previously Macquarie Capital, Insight Partners

• $1+ billion of executed private equity investments

• NYU Stern BS

• 10-year experience as an investor

Essa Al-Saleh – Operating Partner

• Previous CEO of Agility GIL

• Built company from $150M to $5 billion

• Tufts BS, Boston College MBA

• 16-year history with the firm

Dave Stubbs – Operating Partner

• Previously Kuehne + Nagel Lead Logistics

• Built company from 0 to $400M

• Haverford BA, Wharton MBA


Rimas Kapeskas – Operating Partner

• Previously VP Strategy and Managing

Director, UPS Strategic Enterprise Fund

• Univ of Connecticut BS, Emory MBA

• 35 years logistics experience

• 10-year experience as an investor

Shai Greenwald – Director of Business Development

• Previously FleetBoston Financial, EMC

• Built BGSA’s business development

• Boston University MBA


Mike Stethem – Senior Associate

• Previously Resilience Capital Partners, BMO

Capital Markets, KeyBanc Capital Markets.

• UNC MBA, Ohio University BA

David Bucko – Associate

• Previously Regions Securities

• Auburn University BA

Benjamin Gordon – Managing Partner

• Founder, BGSA

• Founder, 3PLex

• Yale BA, Harvard MBA


Has been acquired by

Exclusive advisor

to Dixie Warehouse


Exclusive advisor

to Interlog USA

Has acquired

Exclusive advisor

to England Logistics

Has acquired

Exclusive advisor to

PWC Logistics


Exclusive advisor

to Converge

Has acquired


Open Mile

Has acquired

Exclusive advisor to YRCW

Has acquired

Exclusive advisor to PCD

Has acquired


Hyphen and Wynnchurch

Has acquired


4SameDay

Has acquired

Exclusive co-advisor to

ITRenew

Has acquired


Clover Telecom

BG Strategic Advisors – Leading Investment Bank in the Supply ChainRepresentative Transactions

Thanks to Our Sponsors

Documents

Logistics Market Overview...Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 BGSA Index S&P 500 15.3% 25.8% Source: Capital IQ, BGSA Analysis. The 2020 BGSA Supply Chain Index: Surge