Shore Capital Partners
CXO Executive Program Introduction
Shore Capital Partners
One East Wacker, Suite 2900
Chicago, Illinois 60601
Confidential & Proprietary
Summer 2020
Shore Capital PartnersShore Capital Partners 2
Presentation Agenda
I. Introduction to Shore Capital Partners
II. CXO Executive Program Overview
III. Appendix
− Southern Veterinary Partners Case Study
Shore Capital PartnersShore Capital Partners 3
Firm Overview
80+Operating
Partners
26Platform
Investments
Since Inception
$1BAssets Under
Management
7Successful Exits
Shore leverages our focused, proactive niche expertise to prioritize
sectors for investment; we have executed against our targeted
sectors across more than 250 investments over the last 11 years
We have a large team comprised of 40 dedicated internal
professionals supported by more than 80 operating partners focused
on driving differentiated value across our portfolio
We have raised over $1 billion across a broad and elite group of
institutional investors over three healthcare funds, one food &
beverage fund, and numerous other special purpose vehicles
Shore Capital Partners aspires to be the premier micro-cap
investment firm
We drive transformational growth through our post-investment
services evidenced by elite return profiles across seven successful
exits
Shore Capital PartnersShore Capital Partners 4
The Shore Capital Partners TeamIn
ve
stm
en
t T
eam
Re
so
urc
e T
eam
, S
ou
rcin
g
Te
am
& F
un
d O
pera
tio
ns
Justin Ishbia
Managing Partner
Ryan Kelley
Partner
Mike Cooper
Partner
John Hennegan
Partner
Don Pierce
Partner
Chris Mioton
Partner
Richard Boos
Partner
Michael Burcham
Exec. Partner
Paul Rutledge
Exec. Partner
Tom Smithburg
Vice President
Rory Kenny
Vice President
Matt Sweeney
Vice President
Jeff Smith
Vice President
Jeff Smart
Vice President
Mickey Jiang
Vice President
Jon Tomberlin
Sr. Associate
Cole Michalek
Associate
Adam Boudjemai
Associate
Max Martineau
Associate
Colin North
Associate
Alex Fordham
Analyst
John Hazen
Analyst
Tim Sharky
Analyst
Jack Harrington
Analyst
Sarah Hirsch
CRCO1
Erik Hannemann
SRT, Director
Chase Hall
SRT, Manager
Sam Ross
SRT, Associate
Nick Wisniewski
SRT, Director
Linda Bloom
CFO, IR
Jeff Williams
COO
Keith Mika
Asst. Controller
Hailie Schroll
Exec. Asst.
Dawn Norris
Exec. Asst.
Abby Sechrist
Head of Events &
Exec. Asst.
Adam Werder
CMO
Craig Shelton
Chief Talent
Officer
Nick DeSalvo
Analyst
Dave Clancy
Analyst
Mike Oleferchik
Sr. Associate
Riley Hall
SRT, Director
Eliza Nagle
SRT, CXO
Paul Coyne
SRT, CXO
Saanchi Bhatia
Analyst3Sam Mendenhall
Analyst3Richard Rolapp
Analyst3
Malia LaFleur
PDM2
Sam Thornton
PDM2
Alex Nevill
Sr. Associate
Ankeet Patel
Sr. Associate
Sabrina Saracino
Talent Analyst
(1) Chief Revenue Cycle Officer
(2) Partnership Development Manager
(3) Joining Summer 2021
Healthcare Team Food & Beverage Team
Shore Resource Team Sourcing Team
Generalist
Fund Operations
Shore Capital PartnersShore Capital Partners
Existing Portfolio Summary
5
Note: Dates represent date of platform investment.
(1) Southern Veterinary Partners’ inception date was October 3, 2014; the platform was subsequently recapitalized via a special purpose
vehicle by Shore on May 4, 2018.
Pre-Fund: Home
Infusion
Realized Investment
Pre-Fund: Laboratory
Services
Realized Investment
Pre-Fund: Physical
Therapy
Realized Investment
Pre-Fund: Urgent Care
Realized Investment
Pre-Fund: Pediatric
Therapy
Realized Investment
HC Fund I: Veterinary
Services
Realized Investment (1)
HC Fund I: Medical
Products
February 20, 2015
HC Fund I: Dental
Services
April 7, 2015
HC Fund I: Autism
Therapy
Realized Investment
HC Fund I: Concierge
Medicine
November 2, 2015
HC Fund I: Interven-
tional Radiology
May 3, 2016
HC Fund I: Wound
Care
January 20, 2017
HC Fund I: Eye Care
Services
February 15, 2017
HC Fund II: Autism
Therapy II
June 1, 2017
HC Fund II: Urgent
Care II
October 13, 2017
HC Fund II: Addiction
Treatment
October 20, 2017
HC Fund II: Veterinary
Services II
October 27, 2017
HC Fund II: Payor
Services
October 31, 2017
HC Fund II: LTC
Ancillary Services
August 15, 2018
HC Fund II: Urgent
Care III
August 24, 2018
HC Fund II: ENT &
Allergy
March 1, 2019
HC Fund II: Physical
Therapy II
April 16, 2019
HC Fund III:
Orthodontic Services
June 20, 2019
F&B Fund I: Baked
Goods
September 16, 2019
HC Fund III: Medical
TPA
November 4, 2019
Shore Capital PartnersShore Capital Partners
Current Portfolio & Target Sectors
Current Investments Realized Investments
6
Target
Sectors
Healthcare Food & Beverage
› Artisan & BFY Baked Goods
› Contract Beverage
Manufacturing
› Fiber-Based Packaging
› Flexible Food Packaging
› Food Safety & Water Testing
› Nutraceuticals
› Outsourced Services
› Pet Food Co-Man
› Specialty Distribution
› Specialty Ingredients
Platform
Investments
› Dental Service Organizations
› Infection Control / Sterilization
› Medical Device Outsourcing
› Oral Surgery
› Orthopedic Services
› Outpatient Mental Health
› Pharma Services
› Physical Therapy
› Podiatry
› Specialty Staffing Services
› Urology
› Women’s Health – OB/GYN
› HR & Benefits Services - PEO
› Insurance Services - Captive
Managers
› Pain Management
Shore Capital PartnersShore Capital Partners 7
Several SCP Companies are Led by Female CEOs and Executives
Melanie
Michael
Allison
Therwhanger
Laura Miller
Dr. Parul Khator
Chryssy MoorKristy
Rohwedder
Hilarie Aitken
Erica Hauser (CXO)
Eliza Nagle (CXO)
(Match Pending)
Shore Capital PartnersShore Capital Partners 8
The “Shore Way”
• Upon consummation of a partnership, Shore works with management to implement tried
and tested analytical and operational tools
Rob
ust
Ma
na
ge
ment
Str
uctu
re
Bu
sin
ess
De
ve
lop
ment
Le
ad
ers
hip
Fin
an
cia
l
Rep
ort
ing &
Me
tric
Mgm
t.
Why We Do It
• Forum for senior management to discuss
progress with Shore Capital
• Access to industry experts and their advice
on growing the business
• Set organizational strategy and discuss
major opportunities or obstacles
• Enables management to focus on their core
competency of running the business
• Increases success rate of de novos
• Drives organic growth
• Generate early interest from likely buyers
• Real-time metric management
• Detailed analysis of current company trends
• Anticipation of future cash needs
• Detailed financial reporting by location
• Agreed upon financial expectations
• Weekly phone calls between management
and portfolio manager
• Interim phone calls with experienced
independent board members
• Quarterly board dinners and meetings
Shore Process and Procedures
• SCP acts as the outsourced deal sourcing
and acquisition team
• Creation of repeatable de novo process
• Development of sales and marketing team
• Exit planning & meeting with potential buyers
• Daily visit and cash dashboard
• Weekly dashboard focused on KPIs (1)
• Weekly 13-week cash flow forecasts
• Monthly accrual financial reporting package
• Annual budget
Example
50
75
100
A B C D E F G
Sco
re
Market
Target
Markets
Visits v. Budget 2,453 10.0%
Mature + Emerging
110.0%
0%
50%
100%
200%
(1) Key Performance Indicators.
Shore Capital PartnersShore Capital Partners 9
The SRT is responsible for
implementing the “Shore
Playbook” of standardized
processes and procedures
upon the consummation of
a partnership to enhance
portfolio company
infrastructure for growth.
Infrastructure
Enhancement
1Continued Support
4
Once the partnership is
finalized, 1-2 SRT members
will be on-site at the
company’s main office at
least once a week for the
entirety of the 100 Day Plan
On-Site Assistance3
The SRT develops a 100
Day Plan that is a mutually
agreed upon list of post-
close action items to allow
new portfolio companies to
hit the ground running
towards a value creation
plan.
100 Day Plan2
After the completion of the
100 Day Plan, the SRT is
available to provide hands-
on support on selected
strategic projects for
portfolio companies
The SRT is a group of operating professionals within Shore Capital offering flexible support to portfolio companies
SRT Value Adds
The SRT strives to build and strengthen scalable, repeatable processes for growth at Shore Capital portfolio companies by:
✓ Streamlining company onboarding
✓ Implementing and refining SCP Standard Operating Procedures (“SOPs”)
✓ Supporting portfolio company management in implementing value creation initiatives
“The 100-day process was a well-organized, in-depth look into many of the key functions of the business. It was extremely
helpful as many of the initiatives were focused in areas of the company that we did not have the time or internal resources to
complete such a thorough review prior to the deal closing”
- Chad Smith, BrightView CEO / Founder
The Shore Resource Team “SRT”
Shore Capital PartnersShore Capital Partners 10
We Are Growth Investors
a) Medical products and concierge medicine investments not illustrated above and analysis only encompasses healthcare
provider portfolio companies.
• We invest in infrastructure and team members to support growth
• Every investment that Shore Capital makes is, at its core, a partnership with the employees
‒ In healthcare, the “assets” are the team members and the company’s culture
Microcap Multi-Site Healthcare Employee Growth
Job Growth at SCP Microcap Multi-Site CompaniesMicrocap Multi-Site Platform Growth Metrics
Current Investment
Growth
Exited Investment
Growth
▲489%Employee Growth
▲602%Revenue Growth
▲823%Employee Growth
▲529%Revenue Growth
2,678%2,500%
1,563% 1,555%
950% 858%
756%
533%
275% 231%
153%
47% 0%
200%
400%
600%
800%
1,000%
1,200%
1,400%
1,600%
Jo
b G
row
th S
inc
e P
art
ne
rsh
ip %
Shore Capital PartnersShore Capital Partners 11
Shore Capital Partners’ Commitment to Growth
(1) According to Pitchbook’s 2019 League Tables – pitchbook’s quoted 45 deals completed which failed to account for final acquisitions made
near year end
* Assets Under Management
Audax Group Shore CapitalPartners
HarbourVestPartners
Genstar Capital Abry Partners The CarlyleGroup
KKR Insight Partners SummitPartners
HarvestPartners
87
64
58
64
45 4542 41 41
38
$26B $1B $68B $17B $13B $224B $208B $20B $19B $7B
Deals
Clo
sed
in
2019
AUM*
• Out of nearly 2000 private equity firms in the United States, Shore Capital Partners was the
2nd most active firm in 2019, outcompeting hundreds of much larger firms(1)
– This is a testament to Shore Capital’s commitment to being the premier microcap investor and first choice for
entrepreneurs seeking a partner for growth
Shore Capital PartnersShore Capital Partners 12
Highly Successful Track Record – Top 1% of Peer Group
Note: Calculated as the weighted average internal rate of return (“IRR”) percentage across all exits by return.
Source: Benchmark data provided by RCP Advisors, an institutional limited partner across many private equity funds. Their data is drawn from
fundraising and diligence documents produced by general partners and public information. Their database contains over 3,400 managers and
more than 8,300 funds.
Company
Entry /
Exit Date
Sector
Shore Capital Exited Investment Performance (Average 5.9x CoC / 96% IRR(1))
Davison
Physical
Therapy
May 2012
August 2013
3.0x CoC / 129% IRR
Home Infusion
July 2010
October 2013
3.8x CoC / 64% IRR
3.8x
Urgent Care
December 2012
August 2016
7.3x CoC / 81% IRR
7.3x
Laboratory Services
September 2011
October 2016
3.8x CoC / 30% IRR
3.9x
Behavioral Health &
Special Ed. Solutions
May 2014
December 2017
7.1x CoC / 91% IRR
7.2x
Veterinary Services
October 2014
May 2018
5.4x CoC / 119% IRR
5.4x
Autism Services
August 2015
March 2020
9.4x CoC / 83% IRR
9.4x
Investment Return Investment Return Investment Return Investment Return Investment Return Investment Return Investment Return
3.0x
Return
Profile
Distribution of Cash-on-Cash Returns by Private Equity Funds Since 2010
Returns
vs.
Private
Equity
Industry SCP Returns in
Top 1% of peer group
Shore Capital PartnersShore Capital Partners 13
Presentation Agenda
I. Introduction to Shore Capital Partners
II. CXO Executive Program Overview
III. Appendix
− Southern Veterinary Partners Case Study
Shore Capital PartnersShore Capital Partners 14
CXO Executive Program Overview
• Mission: The CXO Executive Program seeks to place highly motivated and hungry young
executives into Chief of Staff positions throughout the country with the mentorship and
support needed to succeed, mature and grow into C-level executives
– You want to run your own company one day, but you need more mileage first
Strategy & GrowthBuild and lead execution of growth plan
OperationsLead select company projects to better serve growing customer base
Strategic FinancePartner with other executives to analyze and optimize strategic project recommendations and next steps
Potential Chief of Staff Duties
We’re Looking for the Hungriest Young Executives
You
Shore Capital PartnersShore Capital Partners 15
How the CXO Executive Program Can Boost Your Career
• The CXO Executive Program will boost your career and serve as a natural next step to
apply the foundational skills built early in your career with the lessons that you’ve learned
in Business School
Gro
wth
Time
Early Career Stage:
• Worked hard
• Built foundational skills
Business School:
• Exposure to business
and leadership lessons
• Case study exercises
CXO Program:
• Start as a Chief of Staff,
opportunity to grow to C-suite
with high performance
• Roles dependent on size of
portfolio company
• Strong performers will have the
opportunity to be backed by
Shore multiple times
Established Executive:
• CXO program is a fast
track to c-suite executive
/ leadership positions
(possibly including CEO)
Shore Capital PartnersShore Capital Partners 16
Who We’re Looking For
• The ideal CXO candidate is analytical and process oriented with the ability to identify and
execute on improvement opportunities
– Top candidates will have the horsepower to do the work, the motivation to succeed and weather challenges,
and the fit to become a valued member of the team
– Ability to solve problems you’ve never solved before
– Flexibility to relocate to anywhere in the United States is a must
Ideal CXO Candidate
Curious /
Asks
Questions
Relevant
Prior
Experience
Hungry
Anticipates
Next Steps
Problem
SolverAnalytical
Project
ManagerTeam Leader
Prioritize
Multiple
Projects
Shore Capital PartnersShore Capital Partners 17
Key CXO Chief of Staff Responsibilities
Note: Some job responsibilities may vary by portfolio company
Executive
Sessions
Join executive team meetings on a weekly basis and Board of Directors meetings on a
quarterly basis to provide insights and recommendations
Leadership &
Strategy
As an instrumental part of the senior team, provide leadership toward additional value-
added activities and support operational and departmental excellence
Business
Development
Lead / assist with execution of growth strategies (sales, add-ons, or new store
development, as needed); this includes due diligence, capital expenditure management,
key systems implementation, site selection, and lease review / negotiation
Operational
Execution
Utilize metrics, dashboards, operational checklists and key performance indicators to drive
optimal team performance; hold weekly meetings with middle managers to identify key
operational insights and drive improvements where needed
Drive
Innovation
Provide leadership toward additional value-added activities and support operational and
departmental excellence
People
Management
Recruit, train, and manage key middle managers (e.g. Regional Managers); ensure middle
managers have all staff members complete necessary training, continuing education, and
compliance requirements
Represent
Company
Through personal example, establish the style and approach which will characterize the
company’s dealings with the marketplace
Strategic
Financial
Partner
Lead and perform growth initiative analyses, including coordinating cross-functional input,
synthesizing inputs into aligned recommendations, and supplementing recommendations
with financial modeling and analysis
Shore Capital PartnersShore Capital Partners 18
CXO Introduction: Tom Romanczuk
Key Responsibilities from 1st 6 months
Leading Add-On
Integration and
Synergy Capture
Strategic Partner to Ops
and Bus Dev Teams
Internal Approval /
Authority Ctrl Structure
Inter-Company Transfer
Pricing Strategy Dev.
Leading Cross-Functional
Initiatives
Capex Approval Process
and Planning
Leading Board
Presentation Development
Leading Strategic Finance
Discussions with Board
Leading Cross-Functional
2019 Budget Process
Executive VP of
Global Finance
• Current Shore CXO Executive
• Previous VP of Finance, Hub Group
• Previous Associate, Morgan Stanley
• M.B.A., Kellogg 2016
• B.A., Indiana University (Kelley)
Tom Romanczuk
• Great opportunity to learn how a company runs
under PE ownership
• Chance to serve as the “bridge” between the PE
firm and their portfolio company
• It is a unique opportunity that I would be hard
pressed to find elsewhere in the marketplace
Tom’s Takeaways
Shore Capital PartnersShore Capital Partners
Vice President of
Growth and
Development
• Joined the Shore CXO Program in
Summer 2019
• Previous Senior Consultant, Kaiser
Permanente
• M.B.A., Kellogg 2019
• B.A., Skidmore College
Jonathan Zeidan
Chief Development
Officer
• Joined the Shore CXO Program in
Summer 2019
• Previous Vice President and
Associate, Atlantic Street Capital
• M.B.A. & J.D., Kellogg 2019
• B.B.A., University of Michigan (Ross)
Blake Toll
19
CXO Program Growing Quickly
Chief Strategy
Officer
• Joined the Shore CXO Program in
Summer 2019
• Previous Deal Advisory Manager,
Financial Due Diligence, KPMG
• M.B.A., Kellogg 2019
• B.A., University of Illinois at Urbana-
Champaign
Chris Dardi, CPA
SVP – Sales,
Marketing & Finance
• Joined the Shore CXO Program in Fall
2019
• Previous Brand and Sales Manager,
Beam Suntory
• M.B.A., Kellogg 2017
• B.A., Indiana University
Alan Jannings
Shore Capital PartnersShore Capital Partners
Chief of Staff
• Joined the Shore CXO Program in
Summer 2020
• Previous Senior Financial Analyst, The
Home Depot
• M.B.A., Kellogg 2020
• B.S., Wake Forest University
Ross Boatwright
Chief of Staff
• Joined the Shore CXO Program in
Summer 2020
• Previous Director of Operations –
Primary Care, Gastroenterology,
DaVita Medical Group
• M.B.A., Wharton 2020
• B.A., Brigham Young University
Will Burton
20
CXO Program Growing Quickly (cont.)
Chief of Staff
• Joined the Shore CXO Program in
Summer 2020
• Previous Associate, Keystone Capital,
Inc.
• M.B.A., Kellogg 2020
• B.B.A., University of Iowa
Erica Hauser
Chief of Staff
• Joined the Shore CXO Program in
Summer 2020
• Previous Senior Strategy Consultant,
Gallagher
• M.B.A., Kellogg 2020
• B.S., Brigham Young University
Mark Larsen
Shore Capital PartnersShore Capital Partners
Starting with Shore
Resource Team,
Match Pending
• Joined the Shore CXO Program in
Summer 2020
• Previous Senior Systems Engineer –
Flight Test Integration Lead, Lockheed
Martin
• M.B.A., Kellogg 2020
• B.S., Purdue University
Paul Coyne
• Joined the Shore CXO Program in
Summer 2020
• Previous Senior Associate –
Operations, Cleveland Clinic Abu
Dhabi
• M.B.A., Kellogg 2020
• B.A., University of Notre Dame
Eliza Nagle
21
CXO Program Growing Quickly (cont.)
Starting with Shore
Resource Team,
Match Pending
Shore Capital PartnersShore Capital Partners 22
Compensation and Mentorship
• Your compensation includes a salary, annual bonus, equity incentive units, the opportunity
to co-invest in your company, and unmatched growth opportunities
− Annual bonuses and potential raises to be made at the discretion of the CEO
(1) The equity option value is a target based on a platform’s base case scenario. Annual value is $75k assuming a 4-year hold period.
(2) Range based on Shore’s historical returns. Prior results do not guarantee future results. Annual value assumes 5x return over 4 years.
(3) Sign-on bonus paid ½ upon accepting and ½ upon starting. Paid back pro rata over 24 months if CXO leaves within 2 years of starting.
Monetary Compensation
4-Year Avg. Comp: ~$325k / year
Mentorship Compensation
Average 4-Year Comp: Priceless
• Opportunity to lead team and report to C-level
officer at early-career stage
• Attend and present in Quarterly Board of
Directors meetings
• Assigned mentor who is a seasoned executive to
help guide your personal growth with quarterly,
annual, and 5 year goal planning
• Private annual CXO summit
• Invitation to Annual Executive Leadership
Academy with senior industry executives
Base $150k per year
Annual Bonus $30k per year
Equity Options (1) ~$300k at exit
$50k Co-investment
Opportunity (2) ~$150-470k at exit
Sign-On Bonus (3) $25k one time
Shore Capital PartnersShore Capital Partners 23
CXO Program = Senior Executive Role + Upside Opportunities
• The CXO program is a great option for hungry executives that want significant leadership
experience, mentorship, and “skin in the game” without the risk of pursuing a search fund
Sources: 2018 Stanford Search Fund Study, Kellogg / Booth Employment Report, Shore Capital Research.
Note: Excludes sign-on bonuses.
Average Job
Post-MBA
Direct Report to CEO No Yes You are the CEO
Assigned Mentor Maybe Mid-Level Exec CEO or Board Member Sometimes
Attend & Present in
Exec / BOD MeetingsNo Yes Yes
Search Fund
Conferences
Attend Fund Exec.
Leadership AcademyNo Yes
CXO Program Search Fund / ETA
Base + Bonus ~$180k per year $180k per year ~$100k per year ->
~$275k per year
Equity Options n/a ~$300k at exit ~$0-10M+
$50k Co-investment
Opportunityn/a ~$150-470k at exit Included above
Search Time /
Investment Hold Timen/a
0 Years
4-6 years
1-2 Years
6-8 Years
Average Returns n/a 3.0 to 9.4x 0-13x
Job Certainty Day 1 100% 100%69%
31% of searches fail
Shore Capital PartnersShore Capital Partners 24
Matching Process / Relocation Requirement
• The CXO program includes a relocatability requirement whereby executives are expected
to move to the company HQ to maximize the value of their leadership experience
• Generally, Shore locates company headquarters in major metros, but this is not guaranteed
• Shore’s matching process aims to:
• Create a win / win / win match for the CXO / the company / Shore Capital
• Maximize the CXOs career trajectory with senior executive responsibilities and challenges
• Result in a positive work / life experience for CXOs and their families
• Create a transparent and flexible process that finalizes matches by Q1 or early Q2 where possible
CXO / Company Matching Process
1. Opportunity List
Shore sends draft CXO
opportunity list with offer letters
2. CXO Accepts Offer /
Chooses Cities
CXO chooses 3-4 cities from
opportunity list (4 with Chicago)
3. Shore Proposes Match
Shore reviews CXO preferences
and management team input to
propose final matches to CXOs
4. CXO / Mgmt. Meeting
CXO meets with the management
team onsite; both parties confirm
match is a fit
5. Match Finalized
Shore, company, and CXO work
together to complete option and
equity co-investment; CXO starts
on mutually agreed upon date
6. Shore Resource Team Match
If no match made, Shore honors
compensation package and CXO
works on Shore Resource Team
until match complete
Shore Capital PartnersShore Capital Partners
HC Fund II: Autism
Therapy II
Dallas, TX
CXO: Chris Dardi
CXO Matches Typically In Major Metro Markets
25
Pre-Fund: Home
Infusion
Phoenix, AZ*
Pre-Fund: Laboratory
Services
Syracuse, NY*
Pre-Fund: Physical
Therapy
Detroit, MI*
Pre-Fund: Urgent Care
Nashville, TN*
Pre-Fund: Pediatric
Therapy
Chicago, IL*
HC Fund I: Veterinary
Services
Birmingham, AL
HC Fund I: Medical
Products
St. Paul, MNCXO: Tom Romanczuk
HC Fund I: Dental
Services
Chicago, IL
HC Fund I: Autism
Therapy
Orlando, FL*
HC Fund I: Concierge
Medicine
Highland Park, IL
HC Fund I: Interven-
tional Radiology
Baltimore, MD
HC Fund I: Wound
Care
Geneva, IL
HC Fund I: Eye Care
Services
Atlanta, GA
HC Fund II: Urgent
Care II
Lafayette, LACXO: Jonathan Zeidan
HC Fund II: Addiction
Treatment
Cincinnati, OH
CXO: Will Burton
HC Fund II: Veterinary
Services II
Detroit, MI
HC Fund II: Payor
Services
Seattle, WA
HC Fund II: LTC
Ancillary Services
Chicago, IL
CXO: Blake Toll
HC Fund II: Urgent
Care III
Eugene, OR
CXO: Erica Hauser
HC Fund II: ENT &
Allergy
Atlanta, GA
HC Fund II: Physical
Therapy II
Modesto, CA
HC Fund III:
Orthodontic Services
Nashville, TNCXO: Ross Boatwright
F&B Fund I: Baked
Goods
Akron, OH
CXO: Alan Jannings
HC Fund III: Medical TPA
Eau Claire, WI
CXO: Mark Larsen
85% of Company HQs are in a Top 100 US MSA
• * Denotes Realized Investment
• Note: Paul Coyne and Eliza Nagle’s matches are in progress.
Shore Capital PartnersShore Capital Partners 26
CXO On-Campus Recruiting Next Steps and Key Dates
• The recruiting process formally begins in September as students complete their resume drops and then
concludes in mid-November when students receive their offers
Class of 2021 CXO On-Campus Interview Process & Dates
Resume
Drop
9/27
9/28
10/2
10/2
Career
Website
1st Round
Interview
10/7
10/16
10/13
10/12
Virtual
Skills Test /
Personality
Test
For select
candidates
only
Virtual
2nd Round
Interviews
(VPs)
10/28 or
10/30
Virtual
3rd Round
Interviews
(Partners)
11/5
In-Person in
Chicago
Offers
Made
11/9
Virtual
Offer
Decisions
Due
1/8
Virtual
Small
Group
Sessions
Mid-
September
Short
application
required to
join
Details to
Follow
Virtual
Note: Excludes school specific info sessions or similar events.
Large
Group
Sessions
9/9 / 9/10
One per
candidate
Virtual
Shore Capital PartnersShore Capital Partners 27
Thank you
Questions & Answers?
Shore Capital PartnersShore Capital Partners 28
Presentation Agenda
I. Introduction to Shore Capital Partners
II. CXO Executive Program Overview
III. Appendix
− Southern Veterinary Partners Case Study
Shore Capital PartnersShore Capital Partners 29
Partnership With Southern Veterinary Partners
• Shore realized a 120% internal rate of return and 5.5x cash-on-cash return from its
veterinary services investment; the platform’s growth resulted from:
− Developing a strong management team and implementing several metric management tools / processes
− An aggressive business development strategy acquiring 46 hospitals complemented by significant organic
growth across vintages
Investment Thesis Value Creation Initiatives Strong Returns
❑ Built company through the acquisition of 46
hospitals growing from 3 locations in
Alabama to 49 across 10 states in the
Southeast
❑ Investment in business development and
operations staff (from 2 to 21 FTEs)
accelerating acquisition and integration
activity each year since inception
❑ Focus on client and clinically-focused
service sustains consistent same store
sales growth
» SVP matured into a highly attractive target
for in an active M&A environment
» Within 4 years, Shore and its co-investors
realized a 5.5x cash-on-cash or 120% gross
IRR by growing EBITDA from $1M to $18M
» Tremendous runway for future growth as
there has been substantial corporate
investment leading up to close and
independent hospitals continue to comprise
the majority of market share in our current
and prospective geographies
Vet Services Expenditures ($s in billions) Diversified Platform Growth Strong Revenue and EBITDA Growth
✓ Strong human-animal bond as pet owners
treat their pets as members of the family
✓ Veterinary services are perceived as
necessities rather than luxuries
✓ The industry is almost exclusively cash
business, pet insurance is uncommon in the
U.S. and there is no exposure to
reimbursement risk
✓ The animal hospital market is highly
fragmented with national consolidators
comprising 9% of the market
$27
$36
$46
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
201
5
201
6E
201
7P
201
8P
201
9P
202
0P
202
1P
2015
6 Locations
2016
16 Locations
2017
39 Locations
May-18
49 Locations
$4
$101
$1
$18
$0
$10
$20
$30
$40
$50
$60
$0
$20
$40
$60
$80
$100
$120
Entry Exit
EB
ITD
A ($
in m
illions)
Revenue (
$ in
mill
ions)
Revenue EBITDA
Source: IBIS World.
Shore Capital PartnersShore Capital Partners 30
Compelling Market Dynamics Inspired Proactive Search
Source: Harris Williams.
• In 2013, Shore began actively seeking investments in the general practice veterinary
services industry after thorough research indicated many positive secular trends
− Veterinary sector benefits from consistent growth, recession-resistant characteristics and no reimbursement risk
− Highly fragmented industry creates compelling growth and consolidation opportunities for platforms of scale
− Aging landscape of practicing veterinarians combined with the high accumulation of student debt and the increased
desire for work-life balance has created a market imbalance for practice ownership
− An aging pet population will require more frequent and extensive care; yearly maintenance and ownership costs
escalate due to increased visit frequency and the need for special diets and medication
Increasing Pet Lifespans & Ownership CostFragmented Veterinary Market
33%
25%
22%
20%
16%
9%
Optical
Phys. Ther.
Home Health
ASC
Dental
Vet
To
p P
rovid
er
Ma
rke
t S
ha
re
86%
14%
Independent Hospital
Consolidator Ownership
Vet
Consolidator
Ownership
2025P 10.6
10.911.0
12.0
Dogs Cats
2002 2012
$400$300
$500
$800
$450
$1,200
Kitten AdultCat
SeniorCat
Puppy AdultDog
SeniorDog
Average Pet Lifespan (Years) Average Yearly Pet Ownership Cost
Shore Capital PartnersShore Capital Partners 31
Established Corporate Infrastructure for Growth
At Investment
(October 2014)
At Exit
(May 2018)
Geographic
Scope
Org
Chart
Revenue
($M)
EBITDA
($M)
Employees
Jay Price
Owner
Veterinarians
(6)
Scott Welch
Consultant
Board of Directors
Jay Price
Chief Executive
Officer
Stacey Leonard
Chief Client
Officer
Barron Lakeman
Chief Dev. Officer
Jeff Falone
Chief Medical
Officer
Jeff Wilson
COO
Bryan Wetta
CFO
Jennifer
Majewski
VP, HR
Lacey Bacchus
Marketing /
Communications
Regional
Medical
Directors (3)
Krista Henson
Acquisition
Manager
Regional
Operations
Directors (6)
Zach Evans
Controller
$4.0M
$1.0M
36
$101.0M
$17.7M
1,000+
• Wellness Exams
• Senior Pet Care
• Vaccinations
• Surgery
• Allergies &
Dermatology
• Oncology
• Ophthalmology
• Nutritional
Counseling
Ethan Ott
BI Manager
Existing
Employee
Post-Close
Hire
• Shore and the Board of Directors recruited talented executives to rapidly scale the business
− In addition, established local and regional leadership structure to transition the business from a “line of sight”
management model to a scalable infrastructure capable of transformational growth
Shore Capital PartnersShore Capital Partners 32
Building a World Class Board of Directors
• Shore Capital recruited independent industry experts with meaningful veterinary services
experience and broader expertise scaling healthcare services companies
Director Background & Expertise
Vet Services
General
Healthcare and
Multi-Site
Operations
Board Member Specific Value-Add to SVP Background and Experience
Dan Lorimer (Clinical Expertise)
+ Veterinarian by training; sold to private equity twice
+ Exited at over $1 billion valuation with nearly 60
locations
Darin Nelson (Acquisition Acumen)
+ 25-year head of M&A for largest vet company in the US
+ Acute focus diagnosing and assessing practice health
Dylan Bates (Leadership at Scale)
+ Made the transition from treating-clinician to clinically-
trained CEO
+ Sold to private equity four times (recent multi-billion
dollar sale to Advent)
Tim Martin (Operations Execution)
+ Built two, billion dollar-plus, multi-site healthcare roll-
ups
+ Part of leadership team (COO) that took one of the
nation’s largest dialysis providers public
Dino Eliopoulos (Finance Stewardship)
+ Multi-site healthcare expertise
+ Former CFO of nation’s largest urgent care company
+ Focus on metric management and scaling systems
Jim Forrest (Growth Catalysis)
+ 30 years experience in private equity
+ Expertise in scaling multiple businesses to over $1
billion
Dan Lorimer,
DVM
Dan Lorimer
» Partner, Board Member and Medical Director at
BluePearl
Darin Nelson
» Partner at Pathway Partners
» Chief Development Officer at Veterinary Growth
Partners
» Previously SVP at VCA Antech and Trupanion
Dylan Bates
» Chief Executive Officer and President of ATI
Physical Therapy, a physical therapy company
with over 600 clinics across 24 states
Tim Martin
» CEO of Nashville Healthcare Investments
» Previously Founder and CEO of Ambulatory
Services of America
» EVP and Chief Operating Officer of publicly traded
Renal Care Group
Dino Eliopoulos
» Former SVP and CFO of Provista
» Former CFO of MedExpress
Jim Forrest
» Chairman at Shore Capital Partners
» Former Managing Director of Wind Point Partners;
sat on over 30 boards
» Former President, Gould Incorporated, Recording
Systems
Darin Nelson
Dylan Bates
Tim Martin
Dino
Eliopoulos
Jim Forrest
Shore Capital PartnersShore Capital Partners 33
Streamlined Business Development Engine
Business Development Engine
Evaluate1
Pre-Closing Process
Benchmark2 Diligence3 Integrate4
Closing
• Developed a succinct process to attract
and engage add-ons
• Internal database of all add-on
candidates in the Southeast; nurtured
by outside business development reps
• Initial diligence informs offer based on
future growth opportunities and value
profile
Opportunities to Create Value Prospective Hospital Scorecard
• As part of the diligence process,
management completes a scorecard on
each add-on once enough information
has been gathered
• Scores are benchmarked against one
another and ranked by aggregate score
across five categories: location,
competition, site, staff and deal
dynamic
• SVP streamlined due diligence and
legal processes to more quickly and
efficiently complete acquisitions
• Operational and legal diligence are
accelerated without sacrificing fidelity
• Refined protocols over more than 40
unique transactions
Diligence Process Optimization
• The SVP operations team coordinates
with local hospital leaders to complete
key integration tasks with frequent,
scheduled communications of progress
to management
• Key tasks can often begin up to 50
days prior to close
Advance Integration Processes
• SVP is well-positioned to drive continued, predictable M&A growth
Bring
Under SVP
Supply Contracts
to Realize Cost
Savings
Expand
Service
Offerings for
Comprehensive
CareUpdate
Marketing
Strategies to Stay
Connected to
Customers
Consolidate
Inventory to
Lower
COGS
Mandatory
Customer
Follow-Ups to
Promote
Loyalty
Establis
Care Standards
to Drive Quality
Revenue
Target ~5%
Organic
Growth0%
25%
50%
75%
100%
Loc. Comp. Site
Empl. Deal Dyn.
Skinny-Down
Letter of Intent
Covered All Key
Terms
Accounting
Diligence
Desktop Review
by 3rd Party
Shortened
Asset Purchase
Agreement for
Speed & Cost
Clinical Review
by Proximal
Regional
Medical Director
Retained Single
Attorney to
Lead all
Transactions
Standardized
Insurance &
Benefits
Program via
Single Broker
-50 days
+60 days
Close
Operations
& IT
Insurance,
HR &
Benefits
Financial
Marketing
Shore Capital PartnersShore Capital Partners 34
Acquisitions by Quarter
• The business development engine has evolved from executing one add-on hospital per
quarter to nearly one add-on every two weeks
− A testament to the well-developed processes and personnel that have keyed steady acceleration in deal
closing illustrated below
SVP Acquired Hospitals by Quarter (Through Close May 4, 2018)
3 45 5 6 7
1115 16
2125
3439
4749
0
4
8
12
16
0
25
50
75
100
Bus. D
ev. / O
ps. S
taffN
um
ber
of
Hospitals
Existing Add-Ons M&A / Support Team
Note: M&A / Support team represents business development personnel and operations directors.
Shore Capital PartnersShore Capital Partners 35
Post-Integration Operating Efficiencies Grew Profits
Multiple Buydown (1)
• The SVP team has a long track record of improving operations post-closing
• Post-closing operating initiatives improved hospital EBITDA over time, lowering our
effective purchase multiple by more than a full turn (1.0x) of price
Piloting Ramping Impacting at Scale
▪ Additional medical services (e.g. orthopedics, ultrasound, laser,
teleradiology)
▪ Clinical trials
▪ Marketing evaluation and checklist
▪ Tactical pricing
▪ Community-based strategic plans
▪ Perfect patient experience (starting from reception)
▪ Workflow orientation
▪ Satellite hospitals and tuck-ins
Future
Initiatives
University
Recruiting
Program
ACT Training Resources
Cloud IT
Infrastructure
Online Pharmacy
Management (i.e.
Vets First Choice)
Compliance
Gap Analysis Negotiated
Vendor
Pricing
Discounts
Wellness Testing and
Broad Scale
Preventative Care
DVM
Retention
and Stability
New Technology
Capabilities (Cold
Therapy Laser, Digital
Dental X-Ray)
6.16x
5.06x
3.0x
4.0x
5.0x
6.0x
7.0x
At Closing Implied as of12/31/17
Financials
Pu
rch
ase
Pri
ce
(1) Excludes corporate overhead; representative of all hospitals acquired prior to Jul-17 (representing at least 9 months of
ownership).
Shore Capital PartnersShore Capital Partners 36
Long-Term Investment Rationale
• Shore Capital is confident in moving forward with a longer-term investment strategy in SVP
as a result of (i) the platform’s corporate infrastructure, (ii) efficient operating model, (iii)
remaining whitespace and (iv) strategic peer precedents
Infrastructure1
Whitespace3
Operating Model2
Peer Precedents4
Oct-14Company
Key
Management
Positions
(additions)
• CEO
• CFO
• Chief
Development
Officer
By May-18
• CEO
‒ Regional Med.
Director (8)
• COO
‒ Regional Ops
Director (6)
• CFO
‒ Finance & Data
Team (16)
• CDO
‒ BD Team (7)
• Chief Client Off.
• VP of HR
Incremental additions will propel the Company past its next growth trap Track record of growing top and bottom-line dollars to lower effective multiples
0.00x
4.00x
8.00x
12.00x
Pla
tform
Tota
l 20
14
Ho
spita
l A
Ho
spita
l B
Ho
spita
l C
Tota
l 20
15
Ho
spita
l D
Ho
spita
l E
Ho
spita
l F
Ho
spita
l G
Ho
spita
l H
Ho
spita
l I
Ho
spita
l J
Ho
spita
l K
Ho
spita
l L
Tota
l 20
16
Ho
spita
l M
Ho
spita
l N
Ho
spita
l O
Ho
spita
l P
Ho
spita
l Q
Tota
l Q
1-1
7
Tota
l…
At Purchase Current
6.16x Closing Multiple 5.06x Effective Multiple
16
1412
11 10 109 8 8 7
5 5
3
0
5
10
15
20
25
TX VA FL NC GA SC TN AL OK KY LA MS AR
% M
ark
et S
hare
in
Sta
te
SVP Consolidators
Suggests runway for continued consolidation remains Many large players have made large or long bets on the value of vet services
Note: Operating model chart illustrative; analysis only conducted for hospitals owned for at least 9 months.
Shore Capital PartnersShore Capital Partners 37
Company Overview at 2018 Exit
• Southern Veterinary Partners is a leading consolidator of veterinary hospitals in the
Southeast and an employer of choice among veterinarian graduates in the South
SVP at a Glance Strong Regional Presence & Value Proposition
Integrated Regional Network of Veterinary Hospitals
Core Services
• Wellness Exams
• Senior Pet Care
• Vaccinations
• Surgery
• Allergies & Dermatology
• Oncology
• Ophthalmology
• Nutritional Counseling
10 stateswith strong preceptorship
networks
800,000+pet visits per
year
45,000+new clients per
year
150+active
veterinarians
44.5average veterinarian
age
3%rate of regrettable turnover
to date
Key Company Statistics
✓Vet Leadership: Distinctively tenured, veterinarian-led team headquartered
in Birmingham connects more authentically with local operators
✓Flexibility: Offer flexible deal structures for transitioning veterinarian sellers
✓Brand Autonomy: Maintain local brand and community ties at the hospital
level while sharing best practices
✓Dedicated Back Office: Focus on enhancing business operations and
development allows for veterinarians to focus on practicing medicine
✓Scale: Leverage the combined platform’s size to reduce supply costs
✓Education: Connect with veterinarian peers to share valuable operational
and clinical ideas
✓Track Record: Positive relationships with all seller veterinarian-partners
who are our strongest endorsers and references
Shore Capital PartnersShore Capital Partners 38
Sale Dynamics
• SVP matured into a highly attractive target in an active M&A environment
− Market became educated on the attractiveness of the veterinary services sector
− High interest in a veterinarian-led, sophisticated consolidator of choice in an otherwise underpenetrated region
Active Industry Consolidation Buyer Considerations
has received a minority
investment from
July 2017
has been acquired by
January 2017
has been acquired by
December 2017
• Veterinary services market is large, growing, and highly
fragmented
− Tremendous runway for growth in existing and prospective
markets
• Received interest from strategic and financial buyers
• Ultimately recapitalized by Shore Capital Partners in a new
special purpose vehicle (“SVP Holdings, LLC”)
− Shore has recommitted to an experienced team that has
demonstrated growth beyond expectation year after year
− Recent investments in corporate infrastructure to surround
management with a robust supporting cast reflect additional
value to be realized by SVP
− The longer hold structure of SVP Holdings allows the
Company to pilot new growth strategies and review new
avenues of growth including potential de novos
Shore Capital PartnersShore Capital Partners 39
Returns Summary
• On May 4, 2018, Shore Capital Partners recapitalized Southern Veterinary partners for a total enterprise value of $275M
− Resulted in a gross 5.5x cash-on-cash return including rollover equity held at cost
Equity Returns (1)
$-thousands
$18,909
$103,042
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
Equity Invested Equity Returned
MOI: 5.5x
IRR: 120%
(1) Represents equity from Shore Capital Partners Fund I and Fund I-A, LP and co-investors; includes $1.5M escrow and rollover
equity of $38.6M.
Shore Capital PartnersShore Capital Partners 40
Transformational Seller Returns
• Investors in SVP were rewarded for their faith in the Company’s vision with strong returns
which were often very meaningful for our employees and seller-partners
− No investor made less than 3.0x their rollover investment upon exit and many shareholders received more
than $1 million at second sale
5 employees / sellers
invested in the Company
at inception in October
2014Ori
gin
al
Em
plo
ye
es
Ne
w H
ire
s /
Se
lle
rs 53 other new employees
or sellers invested in SVP
over the course of 3.5
years
All 5 employees and sellers
realized more than 5.0x
cash-on-cash return on
their rollover investment
31 of these new investors
made more than 5.0 cash-
on-cash on their rollover
investment (1)
4 individuals made more
than $1 million upon
SVP’s recapitalization
15 individuals made more
than $1 million upon
SVP’s recapitalization
Among 58 employees or sellers at SVP, 19 became millionaires upon the second sale (33%)
(1) Certain other investors either invested via all or primarily preferred A stock or partnered with the Company later in the hold period
after the share price had increased.