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Sourcing Investments
1. SOURCING
INVESTMENTS
AND
STRATEGIC
PARTNERS
With
InduStreams
–
June
2012
contact@industreams.com
www.industreams.com
2. Summary
What
How
Why
• Iden9fying
quality
• If
you
engage
us
we
• We
have
big
and
infrastructure
wish
to
deliver
–
so
diverse
project/
investments
and
Step
1
is
asset
owner
and
strategic
understanding
your
local
industry
partnerships
that
situa?on
and
needs
networks
match
your
needs
• Step
2
is
typically
an
• We
have
insight
to
• Introducing
engagement
both
the
industry
relevant,
partners
agreement
and
investor
and
project/asset
• Step
3
fast
track
communi?es
owners
process
to
find
3-‐5
allowing
us
to
• Facilita9ng
to
high
value
targets
facilitate
effec?vely
secure
agreement
(example)
• We
have
simple
and
effec?ve
processes
contact@industreams.com
www.industreams.com
3. Introduc9on
§ There
are
thousands
of
port,
infrastructure
and
asset
owners
looking
to
source
investors
and
strategic
partners
§ There
are
as
many
investors,
operators
and
cargo
owners
looking
to
invest
in
and
par?cipate
in
the
development
of
ports
and
infrastructure
§ There
are
substan?al
challenges
in
connec?ng
from
either
side
including
lack
of
network
and
insight
§ We
have
built
the
network,
insight
and
process
to
facilitate
effec?vely
between
the
two
sides
§ In
what
follows
is
a
short
introduc?on
to
sourcing
investments
and
strategic
partners
contact@industreams.com
www.industreams.com
4. Investment
poten9al
and
need
§ In
Asia
alone
ADB
es?mates
a
need
of
more
than
$8
trillion
for
infrastructure
(up
to
2020)
§ Globally
there
are
thousands
of
local
project
promoters
such
as
port
groups
that
simply
do
not
have
the
exposure
to
engage
investors
effec?vely
with
needed
investment
opportuni?es
§ And
there
are
as
many
asset
owners
of
many
different
types
of
assets
who
wish
to
capture
value
from
their
investments
or
simply
to
free
up
cash
from
non-‐core
ac?vi?es
contact@industreams.com
www.industreams.com
5. Investment
diversity
(port
example)
Bulk
Financial
investor
Singapore Dampier Corpus
Christi London Southampton
Shanghai Hamburg Gladstone Bergen Wilhelmshaven
Container
Rotterdam New
York Primorsk Taichung Calais
$10+
million
Operator
Tianjin Nantong Bremen Bombay Baltimore
Ningbo Vancouver Long
Beach Barcelona Forth
Ports
Guangzhou Yantai Corpus
Christ Sao
Sebastiao Bilbao
Greenfield
Brownfield
Qingdao
Hong
Kong
Nanjing
Kitakyushu
Algeciras
Pohang
Lake
Charles
Trieste
Pittsburgh
Yanbu
Qinhuangdao Tangshan New
Orleans Texas
City Karachi
Dalian Itaqui Grimsby Baton
Rouge New
Mangalore
Developer
Majority
Busan lianyungang Beaumont Saldanha
Bay Tampa
Nagoya Tubarao Huntington Paradip Milford
Haven
Shenzhen Marseilles Constantza Jeddah Odessa
Acquisi2on
Oil
&
Liquid
South
Louisiana
Houston
Newcastle
Kobe
Mobile
Hampton
Roads
Tees
Manila
Leghorn
Paranagua
Antwerp Amsterdam
Ports St.
Petersburg Alexandria Paulsboro
Ulsan Osaka Valencia Taranto Tarragona
Logis2c
Zone
$100+
million
Chiba
Port
Hedland
Tanjung
Pelepas
Sepetiba
Plaquemines
Dunkirk
Gothenburg
Tampa
Valdez
Texas
City
Port
Kelang Richards
Bay Madras Jubail Liverpool
Rizhao Hay
Point Jawaharlal
Nehru Tanjung
Priok Savannah
Yingkou Novorossisk Los
Angeles Zeebrugge Brisbane
Seed
investor
Free
Zone
Kaohsiung Tokyo Genoa Mormugao Lubeck
Inchon Santos Calcutta Durban Pascagoula
Yokohama Le
Havre Izmit Duluth-‐Superior Angra
dos
Reis
Minority
$1+
billion
contact@industreams.com
www.industreams.com
6. Investment
diversity
(explained)
The
infrastructure
investment
field
is
very
diverse
and
whereas
it
shares
common
aSributes
across
asset
classes
each
class
and
most
loca?ons
have
their
own
unique
aspects.
When
taking
the
port
sector
as
an
example
the
range
spans
over
a
host
of
different
sectors
from
oil
storage,
bulk
terminals
(such
as
coal,
iron
ore
etc.),
container
terminals
to
en?re
port
areas
and
a
mul?tude
of
different
purposes
such
as
transshipment
or
gateway
hub.
When
adding
geographical
and
project
specific
circumstances
as
well
as
the
preferences
on
owner
and
investor
side
on
specific
roles
(minority,
majority,
operator,
financial
investor
etc)
this
makes
for
a
diversity
that
both
makes
it
possible
for
most
infrastructure
investors
to
iden?fy
something
that
suits
their
needs
but
also
makes
it
more
complex
to
iden?fy
such.
contact@industreams.com
www.industreams.com
7. The
value
crea9on
chain
Creating the product Scaling the
– from greenfield to investment – from low
Expand
operation to high yield
Seed
Implement
Grow
Mature
Transform
Seeding the investment - from Creating the market -
idea, opportunity or need to building the top line and Divest
attractive proposition foundation for efficiencies
Continued value
creation…
contact@industreams.com
www.industreams.com
8. The
value
crea9on
chain
(explained)
The
diversity
in
preference
across
the
investor
value
crea?on
chain
(not
only
in
investment
types)
gives
further
opportuni?es
to
make
new
developments
viable
and
free
up
capital.
Some
have
interest
in
the
implementa?on/development
and
growth
stage
whereas
others
have
more
interest
in
the
mature
stage.
The
seed
stage
is
a
significant
challenge
for
most,
oVen
requiring
several
par?es
to
come
together
or
for
someone
to
play
the
seed
investor
role
which
however
is
uncommon
in
e.g.
the
port
sector.
In
most
cases
there
are
beSer
owners
out
there
allowing
par?es
to
either
free
up
their
capital
for
other
developments
or
bring
down
debts
or
commitments.
This
provides
an
opportunity
for
investors
with
interest
in
any
of
the
phases,
from
seed
to
mature.
contact@industreams.com
www.industreams.com
9. Typical
engagement
challenges
§ Many
investors
have
liSle
knowledge
of
e.g.
the
port
sector
and
the
local
port
markets
and
many
therefore
abstain
from
inves?ng
due
to
lack
of
comfort,
insight
or
resources
§ The
local
port
or
infrastructure
related
owners
have
liSle
or
no
network
to
the
global
investor,
operator
and
cargo
owner/industrial
communi?es
§ Most
port,
infrastructure
or
asset
owners
rarely
engage
in
a
process
of
finding
partners
or
investors
(many
have
never
done
so
and
for
those
that
do
it
is
oVen
only
once
in
the
life?me
of
a
project
or
e.g.
terminal)
contact@industreams.com
www.industreams.com
10. Our
sourcing
process
Step
4
Deal
Closing
the
deal
1-‐5
Develop
Step
3
Deal
development
5-‐10
Step
2
Engage
Engaging
the
most
relevant
10-‐20
Step
1
Choosing
the
relevant
Focus
investment
segments
100-‐500
Step
0
Informa9on
Engagement
Proposi9on
Crea=ng
founda=on
Exchange
Agreement
Formula9on
contact@industreams.com
www.industreams.com
11. Our
engagement
process
(explained)
As
a
first
step
it
is
important
for
us
to
understand
your
situa?on
and
the
circumstances
surrounding
your
needs
including
the
objec?ves
you
are
looking
to
achieve
(Informa?on
Exchange).
With
a
reasonable
understanding
we
can
then
with
you
work
out
an
Engagement
Agreement
and
terms
that
makes
sense
on
both
sides
and
suit
the
situa?on.
Once
an
agreement
is
in
place
we
will
together
with
you
formulate
a
proposi?on
to
poten?al
project
and
asset
owners
or
partners
and
target
the
segments
that
fit
the
objec?ves
you
wish
to
achieve
(Selec?on).
We
then
typically
Engage
a
few
cons?tuents
one
at
the
?me
and
typically
end
up
reaching
out
to
about
10-‐20
in
order
to
create
substan?al
interest
and
a
good
selec?on
for
the
further
process.
From
there
we
chose
the
candidates
with
highest
fit
and
likelihood
to
close
actual
agreements
with
and
seek
to
facilitate
on
both
sides
(Develop)
un?l
agreement
is
reached
for
one
or
more
investments
or
with
a
partner
(Deal).
contact@industreams.com
www.industreams.com
12. Our
facilita9on
proposi9on
ü Big
and
diverse
project/asset
owner
and
local
industry
networks
(1,000+
execu?ves
in
the
community
and
increasing)
ü Insight
to
both
the
industry
and
investor
communi?es
allowing
us
to
convey
proposi?ons
accurately
and
with
the
right
context
of
the
poten?al
value
these
have
ü Simple
and
effec?ve
process
to
engage
the
right
par?es
with
the
right
proposi?on
to
ensure
ge]ng
to
agreement
in
short
?me
period
contact@industreams.com
www.industreams.com
13. Risk
free
engagement
We
talk
to
new
funds,
investors
and
industrials
every
week
and
as
policy
are
commiSed
to
listening
to
anyone
who
wishes
to
further
explore
the
possibility
to
invest
in
or
seek
investors
for
the
infrastructure
market
–
no
strings
aSached!
Our
primary
objec?ve
is
to
provide
access
to
opportuni?es
that
might
otherwise
not
be
available
to
you
and
your
company.
If
such
opportuni?es
might
be
relevant
to
you
or
your
company
we
encourage
you
to
reach
out
to
any
of
our
representa?ves
or
on:
contact@industreams.com
contact@industreams.com
www.industreams.com
14. Disclaimer
This
presenta?on
is
issued
for
informa?on
purposes
only
and
does
not
cons?tute
an
agreement,
offer,
obliga?on
or
invita?on
to
enter
into
transac?ons
or
investment
business.
With
this
presenta?on,
INDUSTREAMS
LIMITED
does
not
act
in
any
way
as
your
advisor.
This
presenta?on
is
not
intended
as,
nor
should
it
be,
a
subs?tute
for
consul?ng
with
INDUSTREAMS
LIMITED.
Whilst
this
presenta?on
has
been
produced
from
sources
believed
to
be
reliable,
the
informa?on,
views
and
opinions
expressed
in
this
presenta?on
are
provided
as
of
the
date
of
this
presenta?on
and
remain
subject
to
verifica?on,
comple?on
and
change
without
no?ce.
No
representa?on
or
warranty
whatsoever
(whether
express
or
implied)
is
or
will
be
made
as
to,
or
in
rela?on
to,
the
accuracy,
reliability
or
completeness
of
the
informa?on
contained
herein
or
in
the
appendices
to
this
presenta?on.
INDUSTREAMS
LIMITED
will
not
be
liable
towards
you
or
any
third
party
for
any
eventual
damage
you
may
incur,
caused
by
the
informa?on
contained
in
this
presenta?on
and
its
appendices.
contact@industreams.com
www.industreams.com
16. Private
oil
storage
terminal
(example)
Principal
purpose
Development
and
opera?on
of
storage
tanks
and
jeSy
for
oil,
petrochemical
products
or
other
liquid
cargo
to
service
amongst
others
oil
tankers,
oil
majors,
oil
traders
and
others.
Investment
size
A
smaller
private
facility
of
up
to
500,000
cbm
capacity
could
be
in
an
investment
range
of
$75
to
$100
million.
Target
return
Varies
greatly
from
product
to
product,
type
of
customer
contracts
and
geography,
for
a
private
smaller
facility
in
a
strategic
oil
trading
loca?on
it
could
be
anywhere
from
10%
to
20%+
(IRR).
contact@industreams.com
www.industreams.com
17. Greenfield
container
develop.
(example)
Principal
purpose
Gateway
hub
to
facilitate
the
growing
export
and
imports
to
and
from
a
developing
country
serving
a
cap?ve
local
market.
Investment
size
Substan?al
capacity
of
1-‐2
million
TEU
as
well
as
general
cargo
berths
with
expected
investment
requirement
above
$500
million.
Target
return
15-‐20%
IRR
assuming
upfront
securing
of
anchor
tenants
and
reasonable
?me
to
market
from
construc?on
is
ini?ated.
contact@industreams.com
www.industreams.com
18. Port
group
partnership
(example)
Principal
purpose
Consolida?ng
all
container
cargo
ac?vi?es
in
a
new
port
area
to
boost
segment
growth
and
op?mize
port
opera?ons.
Investment
size
A
secondary
port
looking
to
develop
ini?al
smaller
dedicated
facility
with
3
berths
on
700
meters
with
capacity
of
500,000
TEU
could
require
investment
in
range
of
$100-‐150
million.
Target
return
15%+
IRR
assuming
the
right
entry
price
and
management
structure.
contact@industreams.com
www.industreams.com
19. Government
infrastructure
PPP
(example)
Principal
purpose
Key
marine
infrastructure
such
as
locks
providing
access
to
inner
ports.
Investment
size
$1.0
–
1.5
billion
to
be
invested
for
the
development
and
management
of
the
needed
infrastructure
(likely
to
be
a
consor?um
of
investors,
construc?on
and
other
companies).
Target
return
6-‐10%
government
guaranteed
IRR
(fixed
payments
done
by
government
on
regular
basis
–
no
commercial
risk).
contact@industreams.com
www.industreams.com