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Fund III Overview

We’re plugging into Fund III, now deep in its harvest mode, playing strong to the classic tune of operational value creation and maintaining low leverage levels. So far, we’ve returned close to $1.4 billion to our investors on a $768 million fund. This year, we achieved our goals of continuing to grow the value of the portfolio and the selling of Sportech to a strategic buyer for $315M – all in the face of demand softness, ongoing inflation, high interest rates and labor tightness.

With six assets still rocking, the Fund III playlist remains electric, packed with hits that continue to deliver memorable performances.

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Speakers

Fund III Overview

Jaime Forsyth

Partner, Head of Investment Team

Track 1 - Edsal

Kevin Mulligan

Managing Director, Investment Team

Track 2 - Kauffman

Ethan Klemperer

Senior Operating Executive, Head of the Operating Team

Track 3 - Sportech Exit

Kevin Mulligan

Managing Director, Investment Team

Ethan Klemperer

Senior Operating Executive, Head of the Operating Team

Jon Garland

Vice President, Investment Team

Jim Glomstad

CEO, Sportech

Caleb Hanson

Vice President of Sales, Sportech

Track 4 - Mac Papers + Packaging

Matt Farrell

Director, Investment Team

Track 5 - Jason

Lee Mlotek

Managing Director, Investment Team

Track 6 - Astro Shapes

Jaime Forsyth

Partner, Head of the Investment Team

Track 7 - Liberty Safe

Kevin Mulligan

Managing Director, Investment Team

Submit Your Question

Have a question or topic that you would like the Monomoy Partners to address? Please submit your questions here, or directly to Ashley Johansen at ajohansen@mcpfunds.com, and we will aim to answer them at our Live Q&A Session on October 25th

    Definitions & Disclosures

    Some Definitions

    Past performance is not indicative or a guarantee of future results.

    All “Gross” returns in this presentation are calculated using the actual cash flows in to and out of the applicable investment(s). Therefore, these returns are calculated before carried interest, management fees, costs related to fund-level borrowings, and other fund expenses borne by Limited Partners. These fees and expenses will reduce returns in the aggregate and are expected to be material. Gross returns presented herein do not reflect the timing effect of utilizing fund-level borrowings in advance of receiving capital contributions. Additionally, investments may be held in part by vehicles (each a “Blocker”) designed to address certain limited partners’ tax, regulatory or other similar issues. Gross returns are calculated without regard to taxes and expenses incurred by the Blockers, the impact of which could be material.

    Net DPI means total distributions to Limited Partners, except for return of Temporary Investments, divided by their total contributions, except for Temporary Investments.

    Net TVPI means the sum of Limited Partners’ NAV and total distributions, except for return of Temporary Investments, divided by their total contributions, except for Temporary Investments.

    Gross IRR means the aggregate, annual, compound, gross internal rate of return on invested capital and is based on the dates investments and distributions from investments were made and their Unrealized Value as of the measurement date.

    Net IRR means the aggregate, annual, compound internal rate of return on Limited Partners’ investment in the fund based on the actual dates and amounts of Limited Partners’ contributions to and distributions from the fund as well as Limited Partners’ aggregate remaining value as of the measurement date. These amounts include the payment of management fees, carried interest, borrowing costs (including interest incurred on fund level credit facilities whether secured by assets of the fund (i.e., asset-backed facilities) or Limited Partners’ undrawn capital commitments (i.e., subscription facilities)) and other fund expenses, but does not take into account any tax liabilities borne or deemed to be borne by Limited Partners (such as, for example, taxes resulting from the Limited partners’ domicile). With respect to any particular fund, differences in timing of a Limited Partner’s commitment to the fund and the economic and other terms applicable to certain Limited Partners therein may increase or decrease the net performance information realized by such Limited Partners and, accordingly, the actual net performance information of a particular limited partner may differ from the net performance information indicated herein. Additionally, Net IRR includes the timing benefits of fund-level borrowings and may be lower in the absence of such borrowings.

    Realized or “Realized Value means the cash proceeds of an investment distributed to the Fund. Realized Value is not reduced for taxes or expenses incurred by the Blockers, if any.

    Unrealized Value means fair value of an unrealized investment (or portion thereof) determined in accordance with ASC Topic 820 and Monomoy’s internal valuation policy.

    Total Value means the sum of Realized Value and Unrealized Value.

    Cash Returned means the cash proceeds from the sale of investments, interest income and distributions received from investments.

    Temporary Investments are investments that were returned within a specific time frame, as defined by each fund’s respective partnership agreement, which are recallable by the general partner.

    Top Quartile means the quartile performance information collected and presented by Cambridge Associates, Preqin and PitchBook. The benchmark statistics do not include information on all applicable private equity funds available for investments or all vintages of such private funds, and therefore are necessarily incomplete. In addition, the benchmark statistics make certain assumptions and weightings, and the use of other assumptions could lead to materially different results. Because the benchmarking methodology is proprietary, it is not possible for Monomoy to assess the universe of private funds included, or whether such funds have investment programs or risk/return profiles similar to the Fund. Use of other methodologies and/or the inclusion of all or other applicable private funds might lead to the Fund being ranked materially differently. Accordingly, undue reliance should not be placed on the benchmark statistics as the utility of such measures and comparisons is limited by foregoing and other reasons. There can be no assurance any such historical trends will continue in the future. There can be no assurance that any benchmark ranking after the date herein will produce similar rankings and performance statistics. Additional information is available upon request. Past performance is not indicative or a guarantee of future success.

    PitchBook Ranking: The Global Manager Performance report was published by PitchBook, an independent third-party, on July 30, 2024, with data as of December 31, 2023. To be included in the ranking, PitchBook required fund families to have at least two funds that were at least five years in age and have available fund performance details. A total of 2,182 buyout fund families were included in their evaluation. This report is not an endorsement of Monomoy’s advisory services by PitchBook. For more information on PitchBook’s methodology for ranking investment managers, please refer to the end of their report. Finally, past results are not indicative or a guarantee of future results.

    Implied Net Returns metrics are being provided for illustrative purposes only.  Since management fees, carried interest, expenses and use of a Fund’s credit facility are calculated and applied at the Fund level and not with respect to any particular investment, it is not feasible to calculate the exact net returns of a single investment or subset of investments. In order to provide net return information on a single investment made by a Fund, Implied Net Returns (IRR and Multiples) are calculated by multiplying the applicable gross return for the individual investment by a ratio derived from the applicable net returns of the Fund relative to the applicable gross return of the Fund’s total portfolio. As a result, such returns are designed to approximate the impact of management fees, carried interest, expenses, the Fund’s credit facility and the timing difference between cash flows to/from investments and cash flows from/to Limited Partners on a particular investment.  These returns do not reflect what the net returns would have been if the applicable fund made only the relevant investment and fees, carried interest, expense and leverage assumptions had been applied to cash flows related to such investments. Implied Net Returns are calculated each quarter based on the applicable Fund’s performance as of that quarter.  Therefore, although an individual investment’s gross returns are not likely to change after the investment is fully realized (though they could in certain instances, including as a result of liabilities or changes that arise after realization), the Implied Net Returns will likely change quarter-to-quarter based on Fund level changes in management fees, carried interest, expenses and leverage usage.  There is no single, generally accepted method for calculating net return for individual investments, and alternative methods may have produced materially different results, which may have been lower.  These practices and policies relating to such calculations may change over time, and such changes may cause net returns shown to increase or decrease unrelated to any actual change in value of the relevant investment(s). Additional information is available upon request. Past performance is not indicative or a guarantee of future success.

    Unlevered Net IRR is calculated for illustrative purposes and is meant to approximate what the Limited Partners’ Net IRR would be if all contributions and distributions were made at the time the Fund makes an investment or receives proceeds from an investment, rather than based on the actual dates and amounts of limited partners’ contributions and distributions. Unlike standard Net Returns, which use the actual cash flows that are impacted by leverage at the Fund level, the Unlevered Net IRR is calculated to approximate the net return of an investment as if it were made without the use of leverage. In addition to the impact of timing, Unlevered Net IRR does not take into account the costs associated with the Fund’s line of credit.

    Important Information

    This presentation contains information about current and future private investment funds (collectively, the “Funds”) managed by Monomoy Capital Management, L.P. or one of its affiliates (collectively, “Monomoy”). The information provided s for informational purposes only, and is not a recommendation, an offer to sell or the solicitation of an offer to purchase an interest in any investment vehicle managed or sponsored by Monomoy

    All information in this data room concerning Monomoy, the Funds, their affiliates, and their respective portfolio companies, is strictly proprietary and confidential. The information provided is for the sole use and information of members of the Funds and may not be reproduced or shared with anyone outside the Funds without the express written consent of the general partner.

    The presentation is intended to provide an overview of the Monomoy investment strategy and the investment results of the Funds as of the date of the presentation.  Past performance is not indicative or a guarantee of future success. The historical data contained in this presentation contains estimates of unrealized value which may differ significantly from the actual returns received by investors.  Investments in private equity funds such as those managed by Monomoy are speculative and involve a substantial risk of loss.  No assurance can be given that the Funds will achieve their investment objectives or avoid substantial losses. The presentation is not intended to be relied upon as the basis for any investment decision. The presentation does not constitute an offer or solicitation in any state, country or other jurisdiction to subscribe for or purchase any limited partnership interests or other securities.

    The information contained herein does not purport to be complete.  This document speaks as of the date hereof or as of the specific date(s) noted herein, as applicable, and Monomoy undertakes no obligation to update any of the information contained herein.  Forward-looking statements may express Monomoy’s expectations for future events but cannot constitute a guarantee. Additional Information, including information about specific investments, is available on request.

    Certain information contained herein has been obtained from published and non-published sources and has not been independently verified by Monomoy or its affiliates.  None of Monomoy, the Funds, or their respective affiliates or any of their respective directors, officers, employees, partners, shareholders, advisers and agents makes any assurance, representation or warranty, express or implied, as to the accuracy, correctness, fairness, reasonableness or completeness of any of the information contained herein, and each expressly disclaims any responsibility or liability therefor.

    Statements contained in this presentation are based on current expectations, estimates, projections, opinions and beliefs of the investment team of Monomoy as of the date hereof unless stated otherwise.  Such statements involve known and unknown risks and uncertainties, and undue reliance should not be placed thereon.  Neither Monomoy nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein and nothing contained herein should be relied upon as a promise or representation as to past or future performance of the Funds or any other entity.  Certain information contained in this document constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “expect”, “anticipate”, “target”, “project”, “estimate”, “intend”, “continue” or “believe” or the negatives thereof or other variations thereon or comparable terminology.  Due to various risks and uncertainties, actual events or results or the actual performance of any investment may differ materially from those reflected or contemplated in such forward-looking statements. Any forward-looking events discussed in this presentation may not occur.  Monomoy undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    All “gross” data in this presentation is calculated before carried interest, management fees, costs relating to a fund’s credit facility and other fund expenses borne by investors in the applicable fund. These fees and expenses will reduce returns in the aggregate and are expected to be material. Further details on Monomoy’s investment advisory fees and expenses can be found in Part II of its Form ADV and additional information is available upon request.

    There can be no assurance that partially realized and unrealized investments will be sold for values equal to or in excess of the valuations listed herein. Actual returns on unrealized investments will depend on, among other factors, future operating results, market conditions at the time of disposition, transaction costs and the timing and manner of sale, all of which may differ from the assumptions on which the valuations reported herein are based. Accordingly, the actual realized returns on investments that are partially realized or unrealized may differ materially from the values indicated herein.

    Members of the Monomoy Operating Team are exclusive to, and full-time employees of Monomoy Capital Management, L.P. (“MCM”). The cost of certain services provided by the Operating Team to Monomoy portfolio companies are borne by the applicable portfolio companies and are not offset against management fees paid to MCM by a Fund.

    Monomoy does not deploy a dedicated environmental, social and governance (“ESG”) strategy, but instead considers ESG risks as one of many factors when making investment decisions for its Funds.  Evaluating ESG factors can be subjective and Monomoy makes no guarantee that its ESG initiatives will be successful or generate meaningful returns.  Monomoy became a signatory to the UN PRI in November 2020.  The PRI is a voluntary framework and becoming a signatory does not imply any level of skill regarding ESG or performance alpha related to ESG.  As a signatory to the PRI, Monomoy commits to integrating ESG factors to the majority of its Funds, but the extent of this integration is subject to Monomoy’s sole discretion.

    The interviews posted herein speak to each persons’ experience working with Monomoy’s operating team and none of the persons who participated in these interviews were directly compensated in connection with providing such commentary. These interviews are not, and should not be construed as, an endorsement of Monomoy’s investment advisory services.