MONTHLY REPORT MARCH 2020 BARWON GLOBAL LISTED PRIVATE

Barwon Investment Partners is EQUITY FUND an investment management company specialising in private equity and real estate. Net Performance at 31 March 2020¹

1 Month 3 Months 1 Year 3 Years 5 Years 10 Years ITD % % % % p.a. % p.a. % p.a. % p.a.²

Net Return³ (22.2) (28.2) (14.1) (1.3) 2.0 9.0 3.5

MSCI ACWI Small (20.2) (28.5) (21.6) (4.0) 0.0 6.1 3.3 Cap Index⁴ Relative (2.0) 0.3 7.5 2.7 2.0 2.9 0.2 performance

Entry Price NAV Price Exit Price

Unit Price as at 31 March 2020 0.6404 0.6378 0.6352

1A$ domiciled unit trust. The Fund hedges foreign currency exposures. 2Inception date is 01 June 2007. 3Returns are after management fees, performance fees, and other fund expenses. 4MSCI ACWI Small Cap Net Total Return Local Index.

The Barwon Global Listed Private Equity Fund’s (Fund) net return for the month of March 2020 was -22.2%, underperforming the MSCI ACWI Small Cap Net Total Return Local Index (Index) by 2.0%. Over the 10 years ended 31 March 2020 the Fund has returned 9.0% p.a., outperforming the Index by 2.9% p.a. and outperforming the listed private equity sector, as measured by the LPX50 Index, by 2.4% p.a.

MARCH 2020 1 MONTHLY REPORT

Market Commentary

There was one contributor over the month: Calisen plc (GBP +30.9%). Detractors included PennantPark Investment Corp (USD -46.1%), Brait SE (ZAR -42.3%), 3i Group (GBP -28.6%) and KKR & Co (USD -17.3%). The extreme volatility we have seen in financial markets over the past month reflects the uncertain outlook and the wide range of possible outcomes. Our focus remains on assessing the NAV impact on underlying investments and risks to capital structures. The unprecedented volatility has thrown up opportunities to buy, and indeed to sell. As a result, the Fund had one of its most active months in terms of portfolio turnover. The portfolio changes can be broadly grouped into: ▪ Adding high quality listed PE funds managed by leading sponsors. For example, Brookfield Business Partners is a Canadian listed PE fund managed by Brookfield Asset Management which invests alongside its unlisted PE funds. It has a debt-free balance sheet and a relatively defensive PE strategy with a bias towards investments with infrastructure-like characteristics reflecting the history of the firm. ▪ Increasing the weight of existing holdings. For example, Intermediate Capital Group, a European alternative asset manager, sold off heavily despite its highly resilient earnings profile and committed capital AUM not subject to redemptions. ▪ Reduced some positions which have outperformed on relative valuation basis, including core holdings. Earlier in the month we exited our long term holding in Onex Corporation due to its outsized exposure to first-order impacted businesses in the travel sector. ▪ The Fund also added a few PE backed listed companies. A new position was established in Calisen, a highly defensive UK utilities meter provider backed by KKR. It recently completed its IPO in February, and was sold off heavily despite no risk to revenues from the disruption.

It is worth highlighting one of the hardest hit sectors of the LPE universe – the listed private loan funds. The largest segment of this is the US-listed BDCs. On 21 February, BDC stocks were trading at an average 0.98x book value. Today they trade around 0.5x book value. BDCs fair value their investments quarterly, and whilst we expect some mark down in their March quarter asset valuations (c. 5-15%), we believe the sector has materially oversold.

BDCs Historical Mean Price to Book Multiple

The market dislocation has created an attractive entry point into strong portfolios of directly- originated private loans and we have both added to existing holdings and bought into high quality funds with limited exposure to first-order COVID-19 impacted businesses.

MARCH 2020 2 MONTHLY REPORT

Underlying Investment Exposures on a Look-Through Basis

Investment Classification (%) Vintage Year5 (%) Geographic Exposure (%)

Buyouts1 25 Pre-2014 13 North America 62

PE Backed Securities2 15 2014 16 Europe 30

Alternative Asset Manager3 32 2015 10 Other 8

Private Debt4 16 2016 14 Total 100

Liquidity 12 2017 13

Total 100 2018 25

2019 9

Total 100

1A buyout is the act of a firm or fund that invests in established companies, often with the intention of improving operations and/or financials. The firm or fund will typically acquire the whole, majority or a controlling stake in the company and investment often involves the use of leverage. 2PE Backed Securities includes listed equity securities of companies which have a level of ownership ('backing') by a private equity / alternative asset manager. 3The Alternative Asset Manager classification includes listed equity securities of private equity / alternative asset management firms where the company itself is listed on a recognised stock exchange. 4Private debt includes any debt extended to privately held companies and most commonly involves non-bank institutions making loans to private companies. 5A vintage year is the milestone year in which the first significant influx of investment capital is delivered to a project or company.

5 Largest Holdings by Weight

Company Type

KKR & Co Inc Alternative Asset Manager

Blackstone Group Inc Alternative Asset Manager

Intermediate Capital Group plc Alternative Asset Manager

PennantPark Investment Corp Private Debt

Ares Capital Corp Private Debt

MARCH 2020 3 MONTHLY REPORT

Key Information

The Barwon Global Listed Private Equity Fund is an Australian domiciled unit trust offering daily liquidity. Foreign currency exposures are substantially hedged into Australian dollars.

Trustee & Manager Barwon Investment Partners Applications & Withdrawals Daily Unit Prices Daily Minimum Investment $50,000 Buy-Sell Spread 0.40% Distributions Semi-annual Management Fee 0.65% Performance Fee 15% in excess of 12% hurdle Bloomberg Fund Code BAGLLPE AU Equity

Barwon also manages the Pareturn Barwon Listed Private Equity Fund, a Luxembourg- domiciled UCITS Fund and the Barwon Global High Income Fund, an Australian-domiciled unit trust.

Contact Us For More Information PAN-Tribal Asset Management

Level 3, 1 Collins Street Colin Woods - CEO Melbourne VIC 3000 E: [email protected] T: 03 9654 3015 M: 0410 499 357 F: 03 9662 3304 David Myers - Key Account Manager (VIC/SA/WA) pantribal.com.au E: [email protected] M: 0413 051 376

Matthew Mantle - Key Account Manager (QLD) E: [email protected] M: 0408 451 549

Mark Aufderheide - Key Account Manager (NSW/ACT) E: [email protected] M: 0408 847 211 Nick Baring - Key Account Manager (VIC/TAS) E: [email protected] M: 0457 520 297

Barwon Investment Partners

Level 10, 17 Castlereagh Street Sydney NSW 2000

DISCLAIMER: While every care has been taken in the preparation of this document, neither Barwon Investment Partners Pty Limited ABN 19 116 012 009 AFSL 298445 nor PAN-Tribal Asset Management Pty Limited ABN 35 600 756 41 AFSL 462065 make any representation as to the accuracy or completeness of any statement in it, including without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This document has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this document, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This document has been prepared for use by sophisticated investors and investment professionals only and is solely for the use of the party to whom it is provided.

MARCH 2020 4