Crestline Brochure V8 Portrait Pages FINAL BOOKLET V2

Europe

Table of contents 01
02
History of the Firm 06
Opportunistic Investing 08
Themes 10
People
Case Studies

History of the firm

Crestline Investors Inc. (“Crestline”) Crestline has a 67-person
is an employee-controlled asset investment team with broad
management firm founded in 1997 investment experience across market
by Douglas Bratton. cycles, geographies, and asset classes.
In addition, a team of dedicated
The company was originally formed to professionals provides the highest
manage the alternative investments caliber of operational excellence,
of Edward P. Bass, and in 2001, was relationship management and
expanded to outside investors. The governance for Crestline’s clients.
firm’s mission is to provide attractive
risk-adjusted returns for sophisticated Investment teams are based in Fort
asset owners. Worth, Texas and London, UK with
supporting offices in New York,
We use our credit expertise and Chicago, Toronto and Tokyo.
innovative products to pursue value
creation in global markets. To date,
Crestline has launched 9 specialized
opportunistic funds.

The Bass organization has a legacy of sponsoring successful
investment platforms…

ESL Investors

Opportunity

Provision of bespoke capital to smaller companies and the financing
of out-of-favour cash flowing assets, in North America and Europe.

Strategy

Off market, bilateral, senior secured or first dollar out financing,
structured with significant investor protections, in sizes of $50m
or smaller, addressing a less competitive market. A repeatable
investment underwriting process, focused on capital preservation.

Team

An investing team based in the US and Europe that has
completed over 50 deals over since 2013, with experience of
mid-market lending, restructuring, private equity, asset based
lending, distressed debt and turnaround management.

“In the main mid-market (€30m-€250m
of debt) most funds are still focused
on sponsor-backed deal flow with
targeted IRR’s of 7-9%. However, more

interesting opportunities exist for more
risk tolerant funds who can fill the

current gap between direct lenders and
special situations funds and are looking
for unlevered IRR’s of 10-12% for more
complex situations in Europe which do
not fit the investment criteria of banks nor

mainstream direct lenders.”
- Deloitte Alternative Deal Tracker Q2 2016

Market Conditions

Small firms are the lifeblood of Europe’s economy.
Around 99% of all non-financial companies in the
European Union are SMEs, that is, firms with fewer
than 250 employees and less than €50m in annual
turnover. They account for 58% of value added and
66% of jobs. - The Economist
But new bank lending to small firms in the euro area
plummeted 35% between 2008 and 2013 to €649 billion.
It fell sharply in Britain too.
Europe’s banks, laden with bad debts and forced by new
prudential rules to hold more capital against corporate
loans, will continue to surrender market share to non
bank lenders.

“Our time-sensitive refinancing
required speed and certainty of
execution, and flexible structuring”.

- Former CEO of luxury goods manufacturer and retailer

Hedge Funds Banks Direct Lending

Investing
between
traditional
capital providers

Real Assets Private Equity

“Adding illiquid credit to a portfolio will
provide access to often underor poorly-
utilised return sources (illiquidity, skill
and complexity premia) and at a point
in the cycle where there is a critical
need for investors to diversify sources of
credit risk.”

- Towers Watson

Crestline’s Opportunistic Investment
strategies offer capital solutions, ranging
from $10 to $50 million, to under-served or
capital constrained asset classes,
including SME’s, out-of-favour sectors,
stressed situations or special situations.

• Off Market Origination
• Bilateral or small club transactions
• Senior, secured or ‘first dollar out’
• Smaller deals, less competitive, dynamic
• Often asset backed

Asset-based/ Corporate
Cash Flow Capital Solutions

Purchases, lends against Provides capital in the form of
or creates platforms secured debt or structured equity
around assets or cash to middle market and lower middle
flow streams
market companies

Recurring or
contractual

revenue

Significant Multiple cash
hard asset flowstreams,
value cushion value pools or

ways to
de-risk/exit

“The facility was a timely solution at a time
when the complexity of the situation we
found ourselves in meant very few lenders
were willing to invest the time or money in us”

- Chairman, Property Company*

*The borrower is not a Crestline client and dealt with the European team in a
previous professional capacity.

Doug Bratton Mr. Bratton is founder and majority owner of
Crestline Investors, Inc., the general partner of
Crestline Management, L.P., the investment manager,
and Crestline Associates, L.P., the general partner of
the Crestline fund of funds domestic products.

He is the Chair of the Investment and Executive Committees.

Mr. Bratton has been an investment professional
with organizations utilizing alternative asset
strategies since 1983.

He has extensive experience in hedge fund
management, multi-strategy portfolio construction,
private equity and venture capital.

Keith Williams • Prior to joining Crestline, Keith developed and
executed liquid and illiquid distressed strategies
Partner, Senior Portfolio and was responsible for deal sourcing and
Managerand Investment execution for private debt strategies in Goldman
Committee Member Sachs’ Special Situations Group
20 years’ experience
• Keith also worked at McKinsey and Company
and US restructuring boutique. Keith holds
a BBA in Finance from Southern Methodist
University and an MBA from Rice University.

Michael Guy • Before joining Crestline, Michael was co-
Head of Global Loans and Special Situations
CIO Europe and Investment Group at BAML, co-Head of European Special
Committee Member Situations at Credit Suisse and was founder
20+ years’ experience and Senior Portfolio Manager of the Tenax
Credit Opportunities Fund.

• Michael also worked at McKinsey &
Company in London. Michael is a graduate
of the Harvard Business School and Oxford
University.

Andrey Panna Sanjeev Sarkar

Managing Director, Europe Managing Director, Europe
18 years’ experience 16 years’ experience

• Prior to joining Crestline ,Andrey served • Prior to joining Crestline , Sanjeev was co-

as Co-Head of European Distressed Debt founder of the Tenax Credit OpportunitiesFund

Research and Special Situations at UBS, and with Michael Guy. Sanjeev has over 10 years

co-founded the Tenax Credit Opportunities experience working as a principal investor,

Fund with Michael Guy. Prior to this , Andrey was including as a Venture Partner for a single

Portfolio Manager, illiquid special situations and LP Fund investing in special situations and

distressed debt, Credit Suisse, London. providing growth capital. He also served as a

senior analyst at ADM Capital and Associaate

• Andrey holds a BA from Lipscomb Cazenove Private Equity.

University, USA.

• Sanjeev has a Masters in Finance from the London

Business School and is a qualified accountant.

Joseph Pigott Jonathan O’Brien

COO Europe Analyst
18 years’ experience 3 years’ experience

• Before joining Crestline, Joe was Managing • Jonny was previously an Analyst for an
Australianfamily office with focus on late stage
Director, Fixed Income at Bear Stearns venturecapital and early stage private equity.

International. He was also a founding partner Jonny holds a Bachelor of Commerce with
adouble major in Economics and Finance
of the Pamplona Management’s Credit fromthe University of Melbourne

Opportunity Fund responsible for credit •

investing in their Credit Opportunities Fund and

Portfolio Manager at Rosette Merchant Bank.

• Joe hold a BA in literature from the University
of McGill. and an MBA in Finance from
McMaster University

“Working with a flexible and thoughtful counterpart
got the transaction over the line”
- CEO RCapital

Case Studies

Jack-Up InvestCo (DBB) Luxury Goods Co.

• Offshore Wind Turbine • $22 million facility
Maintenance (2 lenders)

• €50m bond (5 lenders) • Three year term loan
• Five year final maturity • Senior
• First ranking security • First ranking security

interest on vessel and interest on inventory
other Fund assets brand and real estate

Wood FuelManufacturer Co. Secured Consumer Lender.

• Wood Fuel Manufacturer • Secured consumer lending
• $10 million acquisition • $10 million facility
• Three year bilateral
facility
• First ranking security Term Loan with warrants
• First ranking security over
interest over all assets
pledged assets

Property Development Co. Rentplus

• Property Development • Specialist Residential Real
Company Estate company

• $11 million facility • £20 million bilateral facility
• Five year bilateral Senior • Two year final maturity
• First ranking security
Term Loan with profit share
• First ranking security interest on new build UK
residential property
interest on real estate

Leisure Co. Auto Dealership Co.

• UK Hospitality Group • $10 million facility
• $15 million bilateral • Three year bilateral

Term Loan Term Loan
• Equity participation • First ranking security on
• First ranking lien on
real estate and a AA-rated
property assets receivable

“Our construction financing was difficult for
traditional shipping banks to provide, because of
the vessel’s more specialised and bespoke nature”.
- Former CEO, DBB

Europe

This financial promotion is issued by Crestline Europe, LLP which is authorised and regulated by the Financial
Conduct Authority (FCA). This report may not be reproduced, distributed or transmitted in whole or in part in
any media. Some information contained in this document is based on data received from third parties that we
consider reliable and is accurate to the best of Crest-line’s knowledge. However, Crestline has not independently
verified the information and does not otherwise give any warranty as to the truth, accuracy, or completeness of

such third party data, and it should not be relied upon as such. The material is not intended to be a formal
research report and nothing in this presentation should be interpreted to state or imply that past results are an
indication of future performance. This document is a summary, is for informational purposes only and does not
constitute an offer to sell or a solicitation of any offer to buy or sell securities of any entity, investment product

or investment advisory service. There can be no guarantee that any Crestline Fund will achieve its investment
objective. An investment in any Crestline Fund is speculative and involves a high degree of risk, and investors

risk loss of their entire investment. Past performance is not indicative of future performance. Any opinions
expressed herein are our current opinions only. There can be no assurance or guarantee that

Crestline’s investment strategy will achieve its stated goal. All information provided in this presentation is for
informational purposes only. In addition, it should not be assumed that any of the securities and/or strategies
discussed herein were or will prove to be profitable. Crestline accepts no liability for loss arising from the use of

this material.