The Core Functions of the Bangko Sentral ng Pilipinas
Sourcing Investors and Partners
1. SOURCING
INVESTORS
AND
STRATEGIC
PARTNERS
With
InduStreams
-‐
June
2012
contact@industreams.com
www.industreams.com
2. Summary
What
How
Why
• Iden8fying
the
• If
you
engage
us
• We
have
big
and
most
relevant
we
wish
to
deliver
diverse
investor,
investors
and/or
–
so
Step
1
is
operator
and
cargo
partners
understanding
owner
network
• Introducing
your
your
situa5on
and
• We
have
insight
to
proposi5on
to
needs
both
the
industry
relevant
• Step
2
is
typically
and
investor
execu5ves
and
an
engagement
communi5es
decision
makers
agreement
allowing
us
to
from
global
and
• Step
3
fast
track
facilitate
regional
leading
process
to
find
3-‐5
effec5vely
companies
high
relevance
• We
have
simple
• Facilita8ng
to
investors/partners
and
effec5ve
secure
agreement
(example)
processes
contact@industreams.com
www.industreams.com
3. Introduc8on
§ There
are
thousands
of
investors,
operators
and
cargo
owners
looking
to
invest
in
and
par5cipate
in
the
development
of
ports
and
infrastructure
§ There
are
as
many
infrastructure,
port
and
asset
owners
looking
to
source
investors
and
strategic
partners
§ There
are
substan5al
challenges
in
connec5ng
from
either
side
including
lack
of
network
and
insight
§ We
have
built
the
network,
insight
and
process
to
facilitate
effec5vely
between
the
two
sides
§ In
what
follows
is
a
short
introduc5on
to
sourcing
investors
and
strategic
partners
contact@industreams.com
www.industreams.com
4. Investor
appe8te
and
magnitude
§ $100+
trillion
in
the
funds
management
sector
alone
§ Big
appe5te
for
increased
alloca5on
to
infrastructure
investments
§ Pension
and
insurance
funds
alone
may
quadruple
their
infrastructure
holdings
§ No
lack
of
cash
in
the
funds
sector
§ Further
to
this
industry
operators
and
industrials
have
substan5al
funds
they
are
looking
to
allocate
contact@industreams.com
www.industreams.com
5. Investor
diversity
(port
example)
OPERATORS
INVESTMENT
FUNDS
AND
PRIVATE
EQUITY
Bulk
Financial
investor
Container
terminal
Macquarie
Infrastructure
Group
Oil
and
liquid
terminal
Brookfield
Infrastructure
Partners
Container
Bulk
terminal
JP
Morgan
Infrastructure
Fund
$10+
million
Operator
Free/logis5c/property
zones
Ci5
Capital
Advisors
DEVELOPERS
SOVEREIGN
FUNDS
Greenfield
Brownfield
Construc5on
Abu
Dhabi
Investment
Authority
Marine
infrastructure
China
Investment
Corpora5on
Developer
Majority
Economic
zones
Government
of
Singapore
Investment
Corpora5on
Port
industry/logis5c
zones
Malaysia
Mining
Corpora5on
Acquisi2on
Oil
&
Liquid
CARGO
OWNERS
PENSION
AND
INSURANCE
FUNDS
Container
shipping
Ping
An
(2nd
biggest
Chinese
insurance
fund)
Oil
shipping,
Bulk
shipping
Ontario
Teachers
Pension
Fund
Logis2c
Zone
$100+
million
Mineral
companies
ATP
(biggest
Danish
fund)
Energy
companies
APG
(biggest
Dutch
fund,
3rd
biggest
globally)
Agriculture
companies
Seed
investor
Free
Zone
DEVELOPMENT
BANKS
AND
INSTITUTIONS
PARTNERS
World
Bank
and
IMF
Minority
$1+
billion
South
American,
Asian,
EU
related
development
banks
and
funds
Middle
Eastern
port
groups
IFU
and
other
niche
banks
contact@industreams.com
www.industreams.com
6. Investor
diversity
(explained)
The
investor
space
and
its
many
cons5tuents
is
much
wider
and
varied
than
most
think.
They
vary
greatly
in
their
investment
objec5ves,
preferences,
size
etc.
From
big
ins5tu5onal
investment
funds
with
more
than
$100
billion
to
small
operators
and
funds
with
less
than
$50
million
to
invest.
The
diversity
in
the
target
investment
size,
investment
stage,
investment
horizon,
target
shareholding
and
investor
role,
proposi5on
to
project
owners
etc
is
vast.
On
the
one
extreme
you
have
very
short
term
focused
funds
ofen
with
high
return
requirements
(15-‐20%)
and
on
the
other
you
have
very
long
term
focused
e.g.
pension
funds
with
fairly
low
return
requirements
(5-‐10%),
each
seeking
to
invest
in
their
own
part
of
the
value
crea5on
chain
(refer
later
slide).
The
great
diversity
among
investors,
their
preference
and
proposi5ons
to
owners
offers
great
poten5al
to
develop,
fund
and
operate
most
projects
with
reasonable
commercial
founda5on.
contact@industreams.com
www.industreams.com
7. The
value
crea8on
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
crea8on
chain
(explained)
The
diversity
in
preference
across
the
investor
value
crea5on
chain
(not
only
in
investment
types)
gives
further
opportuni5es
to
make
new
developments
viable
and
free
up
capital.
Funds
and
operators
typically
have
interest
in
the
implementa5on/development
and
growth
stage
whereas
ins5tu5onal
investors
(including
pension
funds)
have
more
interest
in
the
mature
stage.
The
seed
stage
is
a
significant
challenge
for
most,
ofen
requiring
several
par5es
to
come
together
or
for
someone
to
play
the
seed
investor
role
which
however
is
uncommon
in
the
port
sector.
In
most
cases
there
are
beher
owners
out
there
allowing
par5es
to
either
free
up
their
capital
for
other
developments
or
bring
down
debts
or
commitments.
An
example
of
a
chain
with
changes
in
ownership
could
be
a
fund
together
with
e.g.
a
developer
doing
the
seed
inves5ng,
an
operator
doing
the
actual
development
and
growth
phases
and
a
pension
fund
acquiring
the
asset
once
it
reaches
a
more
mature
stage.
contact@industreams.com
www.industreams.com
9. Typical
engagement
challenges
§ The
local
infrastructure
or
port
and
related
owners
have
lihle
or
no
network
to
the
global
investor,
operator
and
cargo
owner/industrials
communi5es
§ Many
investors
have
lihle
knowledge
of
the
infrastructure
and
port
sector
and
the
local
markets
and
therefore
ofen
abstain
from
inves5ng
due
to
lack
of
comfort
or
insight
§ Most
infrastructure
or
port/asset
owners
rarely
engage
in
a
process
of
finding
partners
or
investors
(many
have
never
done
so
and
for
those
that
do
it
is
ofen
only
once
in
the
life5me
of
a
given
project)
contact@industreams.com
www.industreams.com
10. Our
engagement
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
investor
segments
100-‐500
Step
0
Informa8on
Engagement
Proposi8on
Crea=ng
founda=on
Exchange
Agreement
Formula8on
contact@industreams.com
www.industreams.com
11. Our
engagement
process
(explained)
As
a
first
step
it
is
important
for
us
to
understand
your
situa5on
and
the
circumstances
surrounding
your
needs
including
the
objec5ves
you
are
looking
to
achieve
(Informa5on
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
situa5on.
Once
and
agreement
is
in
place
we
will
together
with
you
formulate
a
proposi5on
to
poten5al
investors
or
partners
and
target
the
segments
that
fit
the
objec5ves
you
wish
to
achieve
(Selec5on).
We
then
typically
Engage
a
few
cons5tuents
one
at
the
5me
and
typically
end
up
reaching
out
to
about
10-‐20
in
order
to
create
substan5al
interest
and
a
good
selec5on
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)
un5l
agreement
is
reached
with
one
or
more
investors
and/or
partners
(Deal).
contact@industreams.com
www.industreams.com
12. Our
facilita8on
proposi8on
ü Big
and
diverse
investor,
operator
and
cargo
owner/
industrials
network
(1,000+
investors
and
execu5ves
in
the
community
and
increasing)
ü Insight
to
both
the
industry
and
investor
communi5es
allowing
us
to
convey
proposi5ons
accurately
and
with
the
right
context
of
the
poten5al
value
these
have
ü Simple
and
effec5ve
process
to
engage
the
right
par5es
with
the
right
proposi5on
to
ensure
geing
to
agreement
in
short
5me
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
commihed
to
listening
to
anyone
who
wishes
to
further
explore
the
possibility
to
invest
in
or
seek
investors
for
the
infrastructure
market
–
no
strings
ahached!
Our
primary
objec5ve
is
to
provide
access
to
opportuni5es
that
might
otherwise
not
be
available
to
you
and
your
company.
If
such
opportuni5es
might
be
relevant
to
you
or
your
company
we
encourage
you
to
reach
out
to
any
of
our
representa5ves
or
on:
contact@industreams.com
contact@industreams.com
www.industreams.com
14. Disclaimer
This
presenta5on
is
issued
for
informa5on
purposes
only
and
does
not
cons5tute
an
agreement,
offer,
obliga5on
or
invita5on
to
enter
into
transac5ons
or
investment
business.
With
this
presenta5on,
INDUSTREAMS
LIMITED
does
not
act
in
any
way
as
your
advisor.
This
presenta5on
is
not
intended
as,
nor
should
it
be,
a
subs5tute
for
consul5ng
with
INDUSTREAMS
LIMITED.
Whilst
this
presenta5on
has
been
produced
from
sources
believed
to
be
reliable,
the
informa5on,
views
and
opinions
expressed
in
this
presenta5on
are
provided
as
of
the
date
of
this
presenta5on
and
remain
subject
to
verifica5on,
comple5on
and
change
without
no5ce.
No
representa5on
or
warranty
whatsoever
(whether
express
or
implied)
is
or
will
be
made
as
to,
or
in
rela5on
to,
the
accuracy,
reliability
or
completeness
of
the
informa5on
contained
herein
or
in
the
appendices
to
this
presenta5on.
INDUSTREAMS
LIMITED
will
not
be
liable
towards
you
or
any
third
party
for
any
eventual
damage
you
may
incur,
caused
by
the
informa5on
contained
in
this
presenta5on
and
its
appendices.
contact@industreams.com
www.industreams.com
16. Pension
fund
example
Objec8ve
Pension
and
insurance
funds
typically
invest
to
secure
long
term
stable
returns
(e.g.
5-‐10%).
Typical
investment
size
Typically
look
to
invest
$100-‐200
million
as
minimum
per
investment
for
their
own
share
and
therefore
total
investment
size
target
ofen
above
$500
million.
Role
and
shareholding
target
Ofen
limited
to
that
of
a
“financial”
investor
and
thus
typically
looking
only
to
take
a
minority
posi5on
and
for
many
are
not
allowed
to
have
the
main
managing
role.
Investment
stage
and
In
general
look
for
acquisi5on
opportuni5es
or
constella5ons
whereby
they
mi5gate
holding
period
development
and
commercial
risk
and
look
to
hold
assets
for
long
periods
(30+
years).
Emerging
trends
include
pension
funds
seeking
to
take
ownership
along
side
en5re
port
owners
(landlords)
as
that
further
diversifies
their
risk
across
more
assets.
Proposi8on
to
asset/project
Primarily
bring
lower
cost
of
capital
to
the
table
(can
live
with
lower
returns)
but
also
owners
some5mes
specific
capabili5es
and
global
brand.
contact@industreams.com
www.industreams.com
17. Operator
example
Objec8ves
Operators
and
some
developers
typically
seek
to
grow
their
poroolio
as
primary
objec5ve
and
require
medium
to
high
returns
(e.g.
10-‐15%).
Typical
investment
size
Most
investment
sizes
are
relevant
ranging
all
the
way
from
$10-‐20
million
to
above
$1
billion
(although
in
laher
case
it
might
only
be
a
few
in
the
industry
that
would
want
to
do
that
alone).
Role
and
shareholding
Most
operators
would
like
majority
and
management
and
an
opera5onal
role
ofen
a
must
target
have.
Investment
stage
and
Do
green
fields
as
well
as
acquisi5ons
ofen
without
any
specific
holding
strategy,
but
most
tend
holding
period
to
just
“hold
on”
once
they
secure
an
investment.
Proposi8on
to
asset/project
Operators
typically
bring
significant
know-‐how
and
skill
and
some5mes
actual
business
to
their
owners
projects.
contact@industreams.com
www.industreams.com
18. Infrastructure
fund
example
Objec8ves
Many
infrastructure
funds
(including
private
equity
funds)
invest
on
behalf
of
other
funds
(e.g.
ins5tu5onal
funds
such
as
pension
fund)
and
look
to
achieve
strong
returns
over
a
shorter
period
(e.g.
15-‐20%),
but
are
typically
also
willing
to
take
on
greater
risk.
Typical
investment
size
As
with
operators
such
funds
invest
in
small,
medium
as
well
as
very
large
scale
investments
(substan5al
diversity).
Role
and
shareholding
Many
funds
are
looking
to
take
majority
but
for
most
however
minority
is
also
an
op5on.
Some
target
of
the
more
sector
specific
ones
would
look
to
have
a
strong
opera5onal
role
as
well
whereas
others
would
not
have
opera5onal
capability
or
interest.
Investment
stage
and
Most
constella5ons
and
stages
are
relevant
for
such,
but
acquisi5ons
are
gaining
popularity,
and
holding
period
ofen
look
to
hold
the
asset
for
8-‐10
years.
Proposi8on
to
asset/project
Very
mixed
value
proposi5on
depending
on
the
fund
in
ques5on
but
do
have
the
benefit
of
owners
being
very
focused
(once
they
raise
a
fund
the
money
has
to
be
spent
over
a
short
5me
period
or
the
clients
will
withdraw
the
funds
again)
and
thus
tend
to
work
effec5vely
and
with
urgency.
contact@industreams.com
www.industreams.com
19. Sovereign
wealth
fund
example
Objec8ves
Sovereign
wealth
funds
and
other
government
type
funds
have
many
different
agendas
but
of
course
mostly
to
further
the
interests
of
the
na5on
they
have
been
mandated
by.
Consequently
they
also
operate
on
a
very
wide
return
range
(e.g.
0-‐20%).
Typical
investment
size
Work
almost
exclusively
with
larger
scale
investments,
most
in
excess
of
$500
million
and
ofen
more
than
$1
billion.
Role
and
shareholding
Almost
exclusively
look
for
a
pure
financial
stake
but
may
well
want
extensive
influence.
target
Investment
stage
and
Green
fields
and
brown
fields
are
all
scope,
however
projects
ofen
need
to
be
among
key
holding
period
projects
na5onally
or
within
the
region
they
invest
in.
Proposi8on
to
asset/project
Given
the
government
leverage
and
wide
return
spectrum
SWF’s
can
come
with
many
different
owners
kinds
of
proposi5ons
and
some5mes
fit
where
no
others
are
relevant.
contact@industreams.com
www.industreams.com