GP Investments : 3Q20 Results

GP Investments

Earnings Release Third Quarter 2020

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3Q20 Highlights

November 13th, 2020 - This release reports the 3Q20 results of GP Investments, Ltd. ('GP') [B3: GPIV33], a leading firm in private equity and alternative investments.

Highlights of the quarter included:

1. GP Investments' results in the third quarter of 2020 reflected the sustained volatility in capital markets, which continue to reverberate the uncertainties generated by the COVID-19 outbreak. Mark-to-market adjustments in our portfolio companies have translated into unrealized losses and the further devaluation of the Brazilian Real contributed negatively to GP's results. GP ended the quarter with a total net loss of USD 36.3 million. As of September 30, 2020, GP Investments' NAV totaled USD 239.1 million (USD 2.18 per share), a 13% decrease since last quarter.
2. Operationally, GP continued to improve its efficiency, with 3Q20 operating expenses declining to USD 3.3 million, down 23% vs. 3Q19. The decline reflects the management's persistent focus on cost control.
3. In July, GP Investments and Spice PE created G2D Investments, Ltd ("G2D"), an investment firm that will target primarily minority investments in tech-enabledcompanies that have developed disruptive technologies, and operate in large addressable markets, led by outstanding management teams, and with clear competitive advantages. G2D was born with a geographically diversified portfolio and with platforms that allow it to pursue new investment opportunities in companies headquartered in Europe, the United States and Brazil. G2D
   Investments portfolio now includes Blu, The Craftory, Expanding Capital, Quero Educação, CERC and Sim;Paul.
4. Since its formation, G2D has completed two new investments: CERC, a fintech that provides an underlying infrastructure for credit financial markets, offering validation, registry and clearing of receivables services; and Sim;Paul, a Brazilian tech-empoweredbrokerage platform with a unique value proposition for IFAs (Independent Financial Advisors).
5. At the beginning of 4Q20, The Craftory announced two new investments: Dyper, a subscription- based diaper service that delivers the highest quality bamboo-basedcompostable diapers directly to customer's doorstep each month; and Edgard & Cooper, a company that offers foods for dogs and cats made with natural and nutritious ingredients.

About GP Investments

GP Investments is a leading private equity and alternative investments firm. Since its founding in 1993, GP Investments has raised USD 5 billion from investors worldwide, completed investments in more than 50 companies, and executed over 25 equity capital market transactions.

GP Investments has a consistent and disciplined investment strategy targeting established companies that have the potential to grow and to be more efficient and profitable by becoming leaders in their industries. Since 2006, GP Investments Class A Shares have traded in the form of Brazilian Depositary Receipts (BDRs) on the Brazilian Stock Exchange (B3 S.A. - Brasil, Bolsa, Balcão), under the ticker GPIV33, and similarly on the Luxembourg Stock Exchange.

The firm currently has offices in São Paulo, New York, London and Bermuda. For more information, please visit www.gp-investments.com

GP Investments

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End of Quarter Figures

Market Cap						2
USD 86mm		8.5
Share Price		7.5				1.5
USD 0.78	BRL	6.5					USD
	-						-
Net Asset Value	Price	5.5				1	Price
Share					Share
USD 239.1mm
		4.5
						0.5
NAV per Share		3.5
USD 2.18
		2.5				0
NAV Discount		Sep-19	Dec-19	Mar-20	Jun-20	Sep-20
64%				BRL	USD

NAV per Share & Discount

GP Investments

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The Publicly Listed Portfolio - Performance

GP's portfolio of publicly listed companies this quarter had a negative contribution of USD 22.7 million (excluding the FX impact) resulting in a fair market value ("FMV") within GP's 3Q20 results as outlined below:

• Centauro (CNTO3): Centauro shares depreciated by 22.4% in the third quarter of 2020, with a closing price of BRL 25.39 per share.
• BR Properties (BRPR3): BR Properties shares appreciated by 0.9% in the third quarter of 2020, with a closing price of BRL 9.00 per share.
• Rimini Street (RMNI): Rimini Street shares depreciated by 37.5% in the third quarter of 2020, with a closing price of USD 3.22 per share.

LTM Share Performance (in local currency¹)

Base: Sep. 2019 = 100.
230
200
170
140
110
80
50
Sep-19	Nov-19	Jan-20	Mar-20	May-20	Jul-20	Sep-20
		Centauro	BRPR	Rimini Street

1. BR Properties (BRPR3) and Centauro (CNTO3) are priced in Brazilian Reais, while Rimini Street (RMNI) is priced in U.S. Dollars.

GP Investments