Blackwells Capital Activist Presentation Deck
CASE STUDY - COLONY CAPITAL
Overview
Since our March 2020 settlement with Colony Capital
(NYSE:CLNY) through December 2020 we have a 33x
MOIC on our settlement investment as shares have
returned more than 230%
Blackwells initiated a position in Colony Capital due to
its misunderstood conglomerate structure, years of
underperformance and poor governance
Given the Blackwells team's strong history in real estate
and private equity, our operational mindset gave us an
edge in evaluating and creating a successful value
creation plan for the Company
For over two years Blackwells was in active
conversation with Management and the Board,
eventually resulting in the sale of billions of dollars worth
of legacy assets, a more cost-efficient corporate
structure, the removal of the previous CEO, and the
appointment of 4 new Board members
At the time of out initial involvement Colony was an
undervalued real estate holding company with a
collection of underperforming legacy assets. But,
through Blackwells involvement over the last two years,
Colony has transformed itself into a leading global
digital infrastructure, real estate, and investment
manager with over $46 bn in AUM
Blackwells believes that with its Board oversight and the
continued implementation of its strategic initiatives
Colony should be worth upwards of $8.00 per share
BW BLACKWELLS CAPITAL
Strictly Confidential & Trade Secret
October
2018
February
2019
February
2019
January
2019 -
Present
September
2019
July 2019
July 2019
September
2019
Fall 2019-
Winter 2020
March 2020
Colony
Wins
Began private conversations with Colony and privately nominated
new Directors to the Board
Appointed three qualified and experienced independent Directors
to Colony's Board, including two Directors identified by Blackwells
and one Director mutually agreed upon by Blackwells and the
Company
Assigned a Strategic Asset Review Committee of Directors,
including nominees from Blackwells, to actively engage in a
comprehensive review of Colony's assets and businesses
$500 million+ of net proceeds from the sale of non-core assets
from the Company's Other Debt & Equity segment
Closed on the sale of publicly traded and externally managed
NorthStar Realty Europe ("NRE") to AXA, which resulted in net
cash proceeds of approximately $160 million
Reduced cost structure that is projected to result in $50 million of
annual savings by early 2020
Announced a corporate strategy focused on digital infrastructure
and digital real estate sectors, which have the strongest secular
growth drivers in real estate
Reached a definitive agreement to sell Colony's Industrial
segment to Blackstone for $5.7 billion
Announced hiring of in-house investor relations professional in
December 2019
On March 20, 2020 Blackwells settled with Colony Capital for
second time. The settlement created a long-term alignment and
we increased our position to show our support and belief in
Colony. In the settlement we added a fourth Director to the Board
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