Blackwells Capital Activist Presentation Deck
CASE STUDY - COLONY CREDIT
Overview
Since the appointment of Colony Credit's new CEO in
April 2020, the company's stock price is up +130%
through the end of December 2020
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Alongside its position in Colony Capital, Blackwells
also began working on strategic initiatives at Colony
Credit (NYSE:CLNC) of which Colony Capital owned
36%
The Colony Credit initiatives included many of the
same themes including poor governance, lack of
accountability, self-dealing, and poor capital allocation
In less than two years, Colony Credit's share price lost
35% of its value, tangible book value per share
declined by nearly 30%, and in its short life as a public
company, Colony Credit cut its dividend by more than
30%
In November 2019, Colony Capital proposed that
Colony Credit internalize its management by directly
hiring, from Colony Capital, the very people who have
incompetently managed the Colony Credit portfolio for
years
The Blackwells involvement eventually resulted in
stopping Colony's ill-conceived internalization of
Colony Credit, the removal of the CEO Kevin Traenkle,
and the appointment of a highly qualified CEO in
Michael Mazzei to take Traenkle's place
BW
BLACKWELLS CAPITAL
Strictly Confidential & Trade Secret
December
2019
February
2020
$8.00
$7.00
$6.00
CLNC Stock Price Since Appointment of New CEO
$5.00
$4.00
$3.00
Wins
$2.00
Colony
Prevented the ill-conceived internalization of Colony
Credit's management
Blackwells public and private letters to the Board led to
the removal of CLNC's CEO Kevin Traenkle and the
announcement of strategic alternatives and initiation of
share buyback (~20% of market cap)
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