Tikehau Investment Management

Colloque Retraite & PlacementsNovember 8th, 2016

QuebecNovember 8th, 2016

Confidential – Strictly reserved for Limited Partners of TDL III Fund

Strictly Confidential

Tikehau Capital OverviewOrganisation

2

(1) Source: Tikehau Capital - As at 30.09.2016

SNAPSHOT

§ Founded in 2004

§ A diversified investment firm active across the capital structure

§ C. in assets (1)

§ Of which c. of permanent capital (1)

§ 170+ employees and partners

§ Established track record in Private and Public markets

§ Pioneer & Leader in alternative financing for SMEs in Europe

€ 8.7bn€ 1.5bn

EXPERTISE (1)

% of assets Credit Liquid Strategies

17%

Equities Liquid Strategies

5%

Private Debt & CLO42%

Real Estate11%

Principal Investment & Private Equity

25%

GROWTH IN ASSETS (1)

Million €

868 1 558

3 375

5 007

7 401 8 709

2011 2012 2013 2014 2015 YTD 2016

INTERNATIONAL

PARIS

LONDON BRUSSELS

MILAN

SINGAPORE

SINGAPORE Principal Investment, Private Debt,Liquid strategies

PARIS

LONDON

BRUSSELS

MILAN

Principal Investment, Private Equity,Private Debt, Liquid strategies, RealEstatePrincipal Investment, Private Equity,Private Debt (direct lending, loans, CLO)

Principal Investment, Private DebtPrincipal Investment, Private Debt, RealEstate

Strictly Confidential 3

Tikehau Investment Management

(1) Source: Tikehau Capital - As at 30.09.2016, excluding Lyxor portfolio

REFERENCE PARTNERS AUM BREAKDOWN

INVESTMENT PHILOSOPHY

§ Independence

§ Fundamental analysis

§ Patrimonial approach

§ Transparency

§ Strong alignment of interest

Employees 3.6%12.6%

71.2%

12.6%

% AuM

employees

110+A team of

Fund managers & analysts

30+ Open-ended and closed-ended funds

40+AMF approval in

2007bn (1)

AuM

€6,1

Institutional68%

Third Party Distributors

16%

Tikehau Capital6%

Family Offices10%

A PRIVILEDGED RELATIONSHIP

% AuM

Equities LiquidStrategies

6%

Real Estate15%

Private Debt54%

Credit LiquidStrategies

25%

Strictly Confidential

Direct Lending MarketAlternative lender deal tracker

4

§ 47 leading alternative lenders have completed 784 deals (327UK and 457 others European) over the past 15 quarters (fromQ4 2012 to Q2 2016)

§ Market share: the UK (42%), France (25%), Germany (11%) andothers (22%)

§ Over the last 12 months, split of deals by sectors:

§ UK: TMT (18%) has been followed by Business,Infrastructure & Professional Services and Manufacturingwith respectively 16% and 11%;

§ Europe: TMT (17%), Healthcare (17%), Business andInfrastructure (14%)

EUROPEAN DEAL TRACKER

Source: Deloitte, Tikehau Group

Strictly Confidential

Direct Lending MarketAlternative lender deal tracker

5

HISTORICAL BREAKDOWN BY COUNTRY

Source: Deloitte, Tikehau Group

2420

34 35

56

4143

80

64

55

62

7169

6367

0

10

20

30

40

50

60

70

80

90

Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

UK France Germany Other Europe

Strictly Confidential

Direct Lending MarketFocus on the European market

6

EUROPE FOCUSED DIRECT LENDING FUNDRAISING BY YEAR

Source: Preqin

§ $15.7bn raised in Q2 2016 globally of which Europe focused funds represent $8.4bn

5

2

6

15

1716

10

2,9

1,1

3,5

8,5

13,2

18,8

8,4

0

2

4

6

8

10

12

14

16

18

20

2010 2011 2012 2013 2014 2015 Q22016No. of Funds Aggregate Capitale Raised ($bn)

Strictly Confidential

Historical Leverage and Equity Contribution

7

Leverage (Total Debt/EBITDA) (1)

(1) S&P Q32016

Average Equity Contribution (1)

Strictly Confidential 8

What is direct lending?

Source: Deloitte

Stretched senior

€50m €100m €150m €200m €250m €300m

20%

15%

14%

13%

12%

11%

10%

9%

8%

7%

6%

5%

4%

3%

2%

1%

Mid-cap Private Placements

Traditional senior debt

Unitranche

PIK

Mezzanine

Growth capital

Structured equity

Tike

hau’

spo

sitio

ning

A number of alternative lenders are able to fund across the whole capital structure from senior debt to structured equity

Strictly Confidential 9

Private Debt allows for flexible structure between senior bank debt and equity

Senior debt and asset-backed lending

Unitranche and subordinated debt

Mezzanine debt

PIK debt

Equity

Stretched senior debt

2 - 4%

> 15%

4 - 7%

1 - 3x

3 - 6x

> 5x

3 - 4x

5 - 7x

§ Current yield – generatingrecurring income on average E+ 500 bps, generally paidquarterly

§ Floating rate – hedge againstrising interest with Euribor /Libor floor in most transactions

§ Secured – typically on theassets of the issuers

§ Conservative covenants toclosely monitor operatingperformance and protectlenders

7 - 10%

11 - 14%

12 - 16%

TIKEHAUFOCUS

Capital Structure Gross Return Leverage(1) Key Features

(1) Debt / EBITDA

Strictly Confidential

Rationale for investors: an attractive risk profile

10

An Attractive Risk Return Profile… … with Interesting Features

1. Regular coupon

2. Interest risk protection (Floating Rate)

3. Downside protection though seniority over

capital structure

5. Some equity upside through warrants

6. Favorable Solvency II treatment (look-through

dashboard reporting)

7. Long-term investments – good match for

liabilities

8. Diversification

9. Not market driven

Source: Prequin

Risk and Return by Strategy (Vintage 2003 – 2013 Funds)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

8.0% 9.0% 10.0% 11.0% 12.0% 13.0%

Risk

-St

anda

rd D

evia

tion

of N

et IR

R

Return - Median Net IRR

Buyout

Infrastructure

Real Estate

Venture Debt

Direct Lending

Distressed Debt

Mezzanine

Special Situations

Strictly Confidential

A Different Risk / Return Profile

Expected return

Key investment criteria

Portfolio profile

Protection

Value creation

Involvement in management of the companies

11%-14% (incl. warrants / equity) 20%-30%

Capacity to reimburse the debt / loan to value Value creation

High geographical and sector diversification (40+ companies)

Low diversification (5-15 companies)

Better than Equity / Riskier than Senior/Unitranche

Interest received+ nominal repaid + warrants

Observer Seat

Higher risk possible

Growth of results / Leverage effect / Acquisitions

Core Business

Mezzanine-PIK Equity

7%-10% (incl. warrants)

Capacity to reimburse the debt / loan to value

High diversification

1st ranking securities

Interest received+ nominal repaid

Observer Seat

Unitranche

11

TermsCash coupon: Euribor (floor 0.5-1%)

+ margin 3-5%PIK 3-6% + Warrants

n.a.

Usual main features

8-10 yearsNon call 2yrs, 2% then 1%

prepayement penalty – Bullet debtn.a.

6-8 yearsNon call 2 years

Bullet debt

4%-7%

Capacity to reimburse the debt / loan to value

High diversification

1st ranking securities

Interest received+ nominal repaid

n.r.

Senior

Cash coupon: Euribor (floor 0.5-1%) + margin 3-5%

4-7 yearsAmortizing and bullet

Cash coupon: Euribor (floor 0.5-1%) + margin 3-5%

PIK 3-6% + Warrants (optional)

Represent 80% of our activity

The information contained in this presentation is confidential and is for the exclusive use of the original listed recipient(s). The contents of this presentationare for informational purposes only, and should not be regarded as an offer to sell or a solicitation of an offer to buy any securities, futures, options,investment products, share of funds or other financial product or services. All market prices, data and other information are not warranted as to completenessor accuracy and are subject to change without notice. This presentation is not intended for distribution to, or use by, any person or entity in any locationwhere such distribution or use would be contrary to law or regulation, or which would subject TIM to any registration requirement within such location.

TIKEHAU INVESTMENT MANAGEMENT32, rue Monceau – 75008 Paris Tél.: +33 1 53 59 05 00 – Fax: +33 1 53 59 05 20491 909 446 RCS Paris AMF certification number: GP 07000006 Insurance broker registered under number: ORIAS 09 051 177