Crestline Brochure V8 Email version

Europe

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

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

Banks
Hedge Funds
Investing
between
traditional
capital providers
Direct Lending
Real Assets
Private Equity
“Adding illiquid credit to a portfolio will
provide access to often underor poorlyutilised
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 funds
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/
Cash Flow
Purchases, lends against
or creates platforms
around assets or cash
flow streams
Corporate
Capital Solutions
Provides capital in the form of
secured debt or structured equity
to middle market and lower middle
market companies
Recurring or
contractual
revenue
Significant
hard asset
value cushion
Multiple cash
flowstreams,
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.

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.
Doug Bratton
He has extensive experience in hedge fund
management, multi-strategy portfolio construction,
private equity and venture capital.
Keith Williams
Partner, Senior Portfolio
Managerand Investment
Committee Member
20 years’ experience
• Prior to joining Crestline, Keith developed and
executed liquid and illiquid distressed strategies
and was responsible for deal sourcing and
execution for private debt strategies in Goldman
Sachs’ Special Situations Group
• 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
CIO Europe and Investment
Committee Member
20+ years’ experience
• Before joining Crestline, Michael was co-
Head of Global Loans and Special Situations
Group at BAML, co-Head of European Special
Situations at Credit Suisse and was founder
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
Managing Director, Europe
18 years’ experience
Sanjeev Sarkar
Managing Director, Europe
16 years’ experience
• Prior to joining Crestline ,Andrey served
as Co-Head of European Distressed Debt
Research and Special Situations at UBS, and
co-founded the Tenax Credit Opportunities
Fund with Michael Guy. Prior to this , Andrey was
Portfolio Manager, illiquid special situations and
distressed debt, Credit Suisse, London.
• Andrey holds a BA from Lipscomb
University, USA.
• Prior to joining Crestline , Sanjeev was cofounder
of the Tenax Credit OpportunitiesFund
with Michael Guy. Sanjeev has over 10 years
experience working as a principal investor,
including as a Venture Partner for a single
LP Fund investing in special situations and
providing growth capital. He also served as a
senior analyst at ADM Capital and Associaate
Cazenove Private Equity.
• Sanjeev has a Masters in Finance from the London
Business School and is a qualified accountant.
Joseph Pigott
COO Europe
18 years’ experience
Jonathan O’Brien
Analyst
3 years’ experience
• Before joining Crestline, Joe was Managing
Director, Fixed Income at Bear Stearns
International. He was also a founding partner
of the Pamplona Management’s Credit
Opportunity Fund responsible for credit
investing in their Credit Opportunities Fund and
Portfolio Manager at Rosette Merchant Bank.
• Jonny was previously an Analyst for an
Australianfamily office with focus on late stage
venturecapital and early stage private equity.
• Jonny holds a Bachelor of Commerce with
adouble major in Economics and Finance
fromthe University of Melbourne
• 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)
• Offshore Wind Turbine
Maintenance
• €50m bond (5 lenders)
• Five year final maturity
• First ranking security
interest on vessel and
other Fund assets
Luxury Goods Co.
• $22 million facility
(2 lenders)
• Three year term loan
• Senior
• First ranking security
interest on inventory
brand and real estate
Wood Fuel Manufacturer Co.
• Wood Fuel Manufacturer
• $10 million acquisition
facility
• First ranking security
interest over all assets
Secured Consumer Lender.
• Secured consumer lending
• $10 million facility
• Three year bilateral
Term Loan with warrants
• First ranking security over
pledged assets

Property Development Co.
• Property Development
Company
• $11 million facility
• Five year bilateral Senior
Term Loan with profit share
• First ranking security
interest on real estate
Rentplus
• Specialist Residential Real
Estate company
• £20 million bilateral facility
• Two year final maturity
• First ranking security
interest on new build UK
residential property
Leisure Co.
• UK Hospitality Group
• $15 million bilateral
Term Loan
• Equity participation
• First ranking lien on
property assets
Auto Dealership Co.
• $10 million facility
• Three year bilateral
Term Loan
• First ranking security on
real estate and a AA-rated
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.