Spyglass Portfolio -- Megatrends

0 New Position: Shift4 Payments, Inc. (FOUR) SHIFT④ Shift4 Meets Spyglass's Seven Core Investment Criteria • • Leadership position in secular growth industry → Shift4 is a leading provider of end-to-end payment solutions with market share across hotels, restaurants, and stadiums Results-oriented, entrepreneurial management team with long-term focus and proven track record → Shift4 is led by its CEO and Founder, Jared Isaacman, who started the business at the age of 16 → Jared is the Company's largest shareholder and owns more than 30% of the shares outstanding Sustainable competitive advantage → By integrating with a large variety of software solutions, Shift4 is able to position itself as the payment solution of choice for complex merchant environments Above-average long-term revenue growth Net revenue grew from $253 million in 2018 to $728 million in 2022 • Above-average long-term earnings growth • Adjusted EBITDA margins are over 40% and margins continue to move higher Financially sound Shift4 has $705 million in cash on its balance sheet and $1.7 billion of debt with an average cost of debt of 1.35% → Shift4 is FCF positive Attractive valuation → Spyglass Base Case model suggests the potential for a 20% or greater annual return over the next five years 31

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