Tao Overview Presentation to State of Connecticut Retirement Plans and Trust Funds
TAO OVERVIEW
STRATEGY
STRUCTURE
PERFORMANCE²
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Reincarnation of highly opportunistic "balance sheet" from the Goldman Sachs Americas Special Situations Group
platform
TAO is designed to flexibly allocate across multiple sub-strategies within credit and special situations and generate
attractive risk adjusted returns at each point in the credit cycle
Today, the portfolio is weighted towards "defensive yield" investments which generate cash yield and are
generally uncorrelated to financial markets
We believe the COVID 19 crisis may result in an increased volume of rescue financings, portfolio acquisitions, and
distressed for control opportunities, and may therefore result in a shift of weightings in the TAO portfolio in the
near term
Differentiated fund structure
J-curve sensitive fee structure
Modified promote structure
LP commitment duration management
Initial capital raising and investments beginning in 2012, with total commitments to TAO vehicles today of $21.4
billion¹
$13,699 million equity invested and committed³
Strong TAO track record with intense focus on managing risk units at this part of the late cycle
2012 1.7x gross MoM, 26% gross IRR, 19% net IRR
2013 - 1.3x gross MoM, 11% gross IRR, 7% net IRR
2014 - 1.6x gross MoM, 18% gross IRR, 13% net IRR
2015 1.2x gross MoM, 10% gross IRR, 6% net IRR
2016-1.3x gross MoM, 15% gross IRR, 10% net IRR
2017-1.1x gross MoM, 10% gross IRR, 6% net IRR
2018 - 1.1x gross MoM, 11% gross IRR, 7% net IRR
2019 1.1x gross MoM, 21% gross IRR, 15% net IRR
2020 - 1.0x gross MoM, NM gross IRR, NM net IRR
1. Total TAO commitments exclude (i) commitments made by Sixth Street-affiliated and "friends and family" investors as well as (ii) commitments for which a termination election has been submitted.
2. As of 3/31/2020. Please refer to the following two pages for additional disclaimers on the estimation of net IRRS by TAO vintage, along with the performance summaries in the Appendix for further performance
detail and disclosure
3. Includes TAO 1.0 and TAO Global as of 6/24/2020. Includes committed capital that is not yet funded
Note: For each of the TAO annual vintages represented, please see the applicable historical performance summary and related notes for each fund which includes a fund description and important information
regarding the calculation of all performance figures represented herein. Past performance is not indicative of future results
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SIXTH STREET HIGHLY CONFIDENTIAL
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