Q4 2023 Cannae Holdings Inc Earnings Call

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Operator: The Ultimate Parody Site-Limited Good afternoon, ladies and gentlemen, and welcome to the Cannae Holdings Inc. fourth quarter and full year 2023 financial results conference call. During today's presentation, all parties will be in a listen-only mode.

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Speaker Change: Good afternoon, ladies and gentlemen, and welcome to the can I holdings incorporated fourth quarter and full year 2023 financial results conference call. During today's presentation, all parties will be in a listen only mode. Following the company's prepared remarks. The conference will be opened for questions with instructions to follow at that time.

Operator: Following the company's prepared remarks, the conference will be open for questions, with instructions to follow at that time. As a reminder, this conference call is being recorded, and a replay will be available through 11:59 pm Eastern Time on February 28th, 2024. With that, I would like to turn the call over to Jamie Lillis of Solberry Strategic Communications. Please go ahead.

Speaker Change: As a reminder, this conference call is being recorded and a replay is available through 11 59 P. M. Eastern time on February 28th 'twenty 'twenty four with that I would like to turn the call over to Jamie Lillis of sole Barry Strategic Communications. Please go ahead.

Jamie Lillis: Thank you, Operator, and all of you for joining us. On the call today, we have our Chairman and Chief Executive Officer, Bill Foley, Cannae's President, Ryan Caswell, and Brian Coy, our Chief Financial Officer. Before we begin, I would like to remind listeners that this conference call and the Q&A following our remarks may contain forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements about Cannae's expectations, hopes, intentions, or strategies regarding the future, are forward-looking statements. Board-looking statements are based on management's beliefs as well as assumptions made by and information currently available to management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected.

Jamie Lillis: Thank you operator, and all of you for joining us on the call today, we have our chairman and Chief Executive Officer Bill Foley.

Jamie Lillis: And I as President Bryan Caswell, and Brian Coy, our Chief Financial Officer before we begin I would like to remind listeners that this conference call and the Q&A. Following our remarks may contain forward looking statements.

Jamie Lillis: It involved a number of risks and uncertainties.

Jamie Lillis: <unk> that are not historical facts, including statements about <unk> expectations hopes intentions or strategies regarding the future are forward looking statements forward looking statements are based on management's beliefs as well as assumptions made by and information currently available to management.

Jamie Lillis: Such statements are based on expectations as to future financial and operating results and are not statements of fact actual results may differ materially from those projected.

Jamie Lillis: The company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise. The risks and uncertainties to which forward-looking statements are subject include but are not limited to the risks and other factors detailed in our quarterly shareholder letter released this afternoon and in our other filings with the SEC. Today's remarks will also include references to non-GAAP financial measures. Additional information, including a reconciliation between non-GAAP financial information and GAAP financial information, is provided in our shareholder letter.

Jamie Lillis: The company undertakes no obligation to update any forward looking statements, whether as a result of new information future events or otherwise.

Jamie Lillis: The risks and uncertainties, which forward looking statements are subject to include but are not limited to the risks and other factors detailed in our quarterly shareholder letter, which was released this afternoon and in our other filings with the SEC.

Jamie Lillis: Today's remarks will also include references to non-GAAP financial measures.

Jamie Lillis: Additional information, including a reconciliation between non-GAAP financial information to the GAAP financial information is provided in our shareholder letter I would now let's turn the call over to our chairman and CEO Bill Foley will open with a few brief remarks, followed by Ryan Caswell. We will then open the line for your questions.

Jamie Lillis: I would now like to turn the call over to our Chairman and CEO, Bill Foley, who will open with a few brief remarks, followed by Ryan Caswell. We will then open the line for your questions. Thanks, Jamie.

William Patrick Foley: Thanks, Jamie.

William Patrick Foley: As we previously announced, I have assumed the role of CEO, and Rick Massey has taken on the role of Vice Chairman of our Board of Directors. I'd like to thank Rick for his many contributions to Cannae over the last four years and look forward to continuing to work with him. As CEO, I will focus on returns to shareholders, both immediate and longer term. I am very aware of the deep discount that Cannae shares trade at to net asset value and appreciate the input from our shareholders on the importance of share buybacks. In my letter released this afternoon, I noted the company's intention to commence a modified Dutch auction tender to repurchase $200 million worth of Cannae's common stock at a price per share between $20.75 and $23.75. The transaction will commence in early March and will be funded by cash on hand. Further details, including the terms and conditions of the tender offer, will be filed with the SEC over the coming week.

William Patrick Foley: As we previously announced I have assumed the role of CEO and Rick Massey has taken on the role of Vice Chairman of our board of directors I'd like to thank Rick for his many contributions to can I over the last four years and look forward to continuing to work with it.

William Patrick Foley: As CEO I will focus on returns to shareholders, both immediate and longer term I am very aware of the deep discounts that can ice shares trade to net asset value and appreciate the input from our shareholders on the importance of share buybacks. In my letter released this afternoon I noted the company's intention to commence a modified Dutch auction.

William Patrick Foley: <unk> tender to repurchase $200 million worth of can ice common stock at a price per share between $20.75 and $23.75.

William Patrick Foley: The transaction will commence in early March it will be funded by cash on hand, further details, including the terms and conditions of the tender offer will be filed with the FCC over the coming weeks.

William Patrick Foley: The Dutch tender is in addition to our previously approved share repurchase programs, under which we repurchase approximately 24% of our shares outstanding compared to March 31st, 2021, having returned more than 510 million in capital. Additionally, Cannae still has 12.6 million shares remaining on our previous share buyback authorizations, which is in addition to the tender offer that we've announced today and, when taken together, speaks to our commitment and one way we're looking to close Cannae's share price discount to net asset value. As a top 5 holder of Cannae, I am very aligned with our shareholders in creating value and seeing our share price not only appreciate towards the fair value of our portfolio but also grow that value. Looking back over our history, private company investments have been an important part of Cannae's success. Ceridian is the best example, where we've now received over $2.1 billion in gross proceeds from the sales of stock in this company. I'll now turn the call over to Ryan Caswell, our president.

William Patrick Foley: The Dutch tenders. In addition to our previously approved share repurchase programs, which under which we've repurchased approximately 24% of our shares outstanding compared to March 31, 2021, having returned more than $510 billion in capital.

William Patrick Foley: Additionally, can I still has $12 6 million shares remaining on our previous share buyback authorization, which is in addition to the tender offer that we've announced today and when taken together speaks to our commitment and when we were looking to close can is share price discount to net asset value.

William Patrick Foley: As a top five holder of can I, I'm very aligned with our shareholders and creating value and seen our share price not only appreciate towards the fair value of our portfolio, but also growing that value.

William Patrick Foley: Looking back over our history private company investments had been an important part of <unk> success. Ceridian is the Best example, where we've now received over $2 $1 billion of gross proceeds from the sales of stock in this company.

William Patrick Foley: I'll now turn the call over to Ryan casual are trusted.

Ryan Caswell: Thank you, Bill. Continuing to find attractive investments is critical to our long-term success, and I'm excited with our announcement today of our strategic investment in partnership with Janna Partners, where we acquired a minority stake for approximately 1.58 million Cannae common shares and 18 million in cash. I'm thrilled to partner with Barry Rosenstein, Scott Osvelt, and the JANA team, who have built an incredible track record as a public company investor. We believe a partnership with JANA creates significant upside for Cannae as a result of one, the sourcing of new control opportunities for Cannae. JANA's business is based on finding undervalued public companies with specific catalysts to unlock value. Cannae and JANA can collectively work together to find situations where Cannae can be part of the catalyst to unlock value at the target company, i.e. Cannae acquires a carve-out, the company, or provides other capital solutions.

Ryan Caswell: Thank you Bill.

Ryan Caswell: Continuing to find attractive investments is critical to our long term success and I'm excited with our announcement today of our strategic investment and partnership with Jana partners, where we acquired a minority stake for approximately 1.58 million can I common shares and $18 million in cash I'm thrilled to partner with Barry Rosenstein, Scott at about mid <unk>.

Ryan Caswell: Janet team, who has built an incredible track record as a public company investor.

Ryan Caswell: We believe a partnership with Jana create significant upside at four.

Ryan Caswell: Or can I as a result of one <unk>.

Ryan Caswell: Sourcing of new control opportunities for canine Janet businesses based on finding undervalued public companies with specific catalyst to unlock value can I and Janet and collectively work together to find situations, where can I can be part of the catalyst to unlock value with the target company I can I acquired the carve out the company.

Ryan Caswell: We'll provide other capital solutions.

Ryan Caswell: This relationship will be beneficial to both Cannae through the sourcing of these opportunities, as well as JANA by giving them a different tool to execute their strategy, that is, leveraging Cannae as a catalyst for a target company, and thus driving returns for both ends. The second reason why we're excited about this investment is that we believe there will be an increase in the value of the JANA platform. JANA's standalone business is well-positioned for success given its industry-leading returns and long track record of success. We believe their stand-alone business, coupled with the opportunities from our partnership, will enable JANET to enhance its already strong performance and help their group grow their business to its optimal scale, thus increasing the overall value of JANET. 3.

Ryan Caswell: This relationship we beneficial to both P&I through the sourcing of these opportunity as well as Jana by giving them a different tool to execute their strategy at leveraging Chennai as a catalyst to talk to a target company.

Ryan Caswell: And thus driving returns for both entities.

Ryan Caswell: Number two the second reason why were excited about this investment because we believe there will be an increase in the value of the Jana platform Janet Standalone business is well positioned for success given its <unk>.

Ryan Caswell: Given its industry, leading returns and long track record of success, we believe their standalone business, coupled with the opportunities from our partnership.

Ryan Caswell: Will enable janet to enhance their already strong performance and help them grow their business towards optimal scale, thus increasing the overall value of gannett's business.

Ryan Caswell: Three closing of <unk> stock price to NAV gap overtime, we believe by leveraging the Jana relationship.

Ryan Caswell: Closing of Cannae Stock Price NAV Gap. Over time, we believe by leveraging the JANA relationship, Cannae's ability to source proprietary acquisition opportunities and make new investments, and with the improving performance of Cannae's underlying portfolio, the stock price-to-NAV gap will close, resulting in significant returns to our shareholders. Cross-equity ownership of the transaction aligned both parties in the other's success. I would note that Cannae will not pay fees on its investment in JANF funds or future opportunities. Additionally, the Agena investment will not be subject to any of the Tras-Amine management or incentives.

Ryan Caswell: <unk> ability to source proprietary acquisition opportunities and make new investments and with the improving performance of connived underlying portfolio the stock price to NAV gap will close resulting in significant returns to our shareholders.

Ryan Caswell: Cross that equity ownership of the transaction aligns both parties and the other's success.

Ryan Caswell: I would note that can I will not pay fees on its investment and Janet find their future opportunities.

Ryan Caswell: And additionally.

Ryan Caswell: The Gen investment will not be subject to any of the trasimene management or incentive fees.

Ryan Caswell: Thank you. Thank you. Thank you.

Ryan Caswell: Yeah.

Ryan Caswell:

Ryan Caswell: I would also like to talk about the CSI investment.

Ryan Caswell: I would also like to talk about the CSI investment. Through our relationship with Frank Martire and Bridgeport Partners, we participated in CSI's LBO in 2020. CSI has outperformed all expectations and brought in a new large investor in December, valuing the company at approximately $2 billion, a 31% increase from the take-private valuation. As part of this investment, Cannae received a $37 million cash distribution, or 43% of the initial capital that we invested, while the implied value of our ongoing position represents 104% of our original investment. I would next like to turn to Black Knight Football.

Ryan Caswell: Through our relationship with Frank Martire, and Bridgeport partners, we participate in CSI L. B O in 2020 to CSI has outperformed all expectations and brought in a new large investor in December valuing the company had approximately $2 billion, a 31% increase from the take private valuation.

Ryan Caswell: As part of this investment can I received a $37 million cash distribution or 43% of the initial capital that we invested while the implied value of our ongoing position represented 104% of our original investment.

Ryan Caswell: Hi.

Ryan Caswell: I would now like to turn to Black Knight football.

Ryan Caswell: At AFC Bournemouth, our management team has done a terrific job transforming Bournemouth both on and off the field. Currently, the team is ranked in 13th place, which is up from last year's 15th place, and we believe we can move higher than that. Additionally, the business side of Bournemouth has performed very strongly, with hospitality up approximately 50% year-over-year, ticketing up 13% year-over-year, and sponsorship up 40% year-over-year. In January, Black Knight Football announced that it had purchased a minority interest in Hibernian Football Club in the Scottish Premier League.

Ryan Caswell: At AFC born with our management team has done a terrific job transforming born with both on and off the field. Currently the team is ranked in 13 play.

Ryan Caswell: This is up from last year's 15 place and we believe we can move higher than that Additionally, the business side before that perform very strong with hospitality up approximately 50% year over year ticketing up 13% year over year and sponsorship up 40% year over year and January Black night football announced.

They purchased the minority interest and Hibernian football club by the Scottish primarily we are excited to partner with the Gordon family and believe at Hibernian will be a strong contributor to our multi club ownership strategy. We believe finding private investments like these where we can acquire operating companies partner with management teams and actually and actively engaged to help grow their businesses.

Ryan Caswell: We are excited to partner with the Gordon family and believe that Hibernian will be a strong contributor to our multi-club ownership strategy. We believe finding private investments like these, where we can acquire operating companies, partner with management teams, and actively engage to help grow their businesses, will drive value for our shareholders. Moving on to our listed companies, DNB's constant currency growth of 5.1% in the quarter is an acceleration from 4.8% in the third quarter and 3.2% in the second and first quarters.

Ryan Caswell: We will drive value for our shareholders.

Ryan Caswell: Moving on to our listed companies Dnb is constant currency growth of five 1% from the quarter is an acceleration from the four 8% in the third quarter and three 2% in the second and first quarters, while wildlife topline revenue growth was one 9% the company posted 12% growth in adjusted EBITDA.

Ryan Caswell: While Alight's top line revenue growth was 1.9%, the company posted 12% growth in adjusted EBITDA and hit $2.2 billion in BPAS total contract value booking since 2021, $700 million over the three-year target of $1.5 billion that they had set. Alight also has more than $6.5 billion of future revenue under contract. The team is also working with Stefan on Alight's strategic portfolio review, which they announced this morning. We believe that we can expand Alight's profitability and recurring revenue model while building a more valuable business. Finally, starting in the third quarter of this year, trazomines fees will be reduced by approximately 16% going forward as a result of Rick Massey moving into the vice chairman role.

Ryan Caswell: <unk> had $2 2 billion in <unk> total contract value bookings since 2000, since 2021 $700 million over the three year target of one 5 billion that they had set.

Ryan Caswell: A light also has more than $6 5 billion of future revenue under contract. The team is also working with the band on a light strategic portfolio review, which they announced this morning, we believe that we can expand the life profitability and recurring revenue model, while building a more valuable business.

Ryan Caswell: Finally, starting in the third quarter of this year trasimene fees.

Ryan Caswell: These will be reduced by approximately 16% going forward as a result of Rick Massey moving into the vice chairman role too.

Ryan Caswell: To conclude, we are very optimistic about what the future holds for Cannae and our shareholders as we find new high-return investments, continue with our share buybacks, and gradually rebalance our portfolio. Taken together, I believe this will have the dual effect of driving our net asset value higher while closing our share price to the NAV discount. I'll now turn the call over to Brian Coy to touch on our financial position. Thanks, Ryan.

Ryan Caswell: To conclude we are very optimistic with what the future holds for can I and our shareholders as we find new high return investments continue with our share buybacks and gradually rebalance our portfolio taken together I believe this will have the dual effect of driving or NAV net asset value higher well, while closing our <unk>.

Ryan Caswell: Share price to NAV discount I'll now turn the call over to Brian going to touch on our financial position.

Brian Coy: Ryan at the closed today can is aggregate net asset value was $2 four 3 billion or $33 61 per can I share comparative to third quarter's 2.38 or $33 67 per share.

Brian Coy: At the close today, Cannae's aggregate net asset value was $2.43 billion, or $33.61 per Cannae share, comparative to the third quarter's $2.38 or $33.67 per share. Cannae's liquidity position is strong, with $149 million of corporate cash and short-term investments, net of the cash invested in a JANA transaction. The company also has $150 million of undrawn capacity under its existing margin loan. The only outstanding debt presently is approximately $60 million under our revolver that matures near the end of 2025. Under an amendment to that revolver, we paid down $25 million of the balance and fixed the interest rate at 7%, saving Cannae approximately $4 million annually in interest payments.

Brian Coy: <unk> liquidity position is strong with $149 million of corporate cash and short term short term investments net of the cash invested and as Janet transaction. The company also has a $150 million of undrawn capacity under its existing margin loan. The only outstanding debt presently is approximately $60 million under our revolver that matures near the end of 2000 and.

Brian Coy: 25 under an amendment to that revolver, we paid down 25 million and the balance in fixed the interest rate at 7% saving can I approximately 4 million annually in interest payments.

Speaker Change: I'll now turn the call back to the operator to begin the Q&A session.

Speaker Change: We will now begin the question and answer session.

Speaker Change: Ask a question you May press Star then one on your Touchtone phone. If you are using a speakerphone. Please pick up your handset before pressing the keys. If at any time. Your question has been addressed and you would like to withdraw. It. Please press Star then two at this time, we will pause momentarily to assemble our roster.

Operator: I'll now turn the call back to the operator to begin the Q&A session. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touch-tone phone. If you're using a speakerphone, please pick up your handset before pressing the key.

Our first question comes from Kenneth Lee of RBC capital markets. Please go ahead.

Kenneth S. Lee: Hey, good evening and thanks for taking my question first one on the tender offer wonder if you could talk a little bit more about the motivation for pursuing a tender offer versus perhaps some of the other options you could have pursued thanks.

Operator: If at any time your question has been addressed and you would like to withdraw it, please press star. Then, At this time, we will pause momentarily to assemble our roster. Our first question comes from Kenneth Lee of RBC Capital Markets. Please go ahead. Hey, good evening.

Kenneth S. Lee: Well, we went to the tender offer a plan to accelerate our share repurchase program to retire shares retire shares. We found as we were repurchasing shares first we were blacked out various points in time due to earnings or earnings releases or activities that we were involved in for example to Janet transaction.

Kenneth S. Lee: And thanks for taking the questions. First one on the tender offer. I wonder if you could talk a little bit more about the motivation for pursuing a tender offer versus perhaps some of the other options you could have pursued. Thanks.

And also we're limited limited by the number of shares we can buy per day.

William Patrick Foley: We went to the tender offer plan to accelerate our share repurchase program to retire shares. However, we found that as we were repurchasing shares, first, we were blacked out at various points in time due to earnings releases or activities that we were involved in, for example, the JANA transaction. And also, we're limited by the number of shares we can buy per day. And while we can do large bulk or large share block transactions, they were really becoming... even far fewer for us to execute against.

Kenneth S. Lee: And well, we can do large large bolt or large share block transactions they were really becoming.

Kenneth S. Lee: No.

Kenneth S. Lee: Few and far between gross to execute against so we felt like at this point with our share price trades as an a b discount that we should just accelerated our buyback program, which in fact, that's what the tender offer is doing and retire retire more shares more quickly.

Kenneth S. Lee: Gotcha.

Kenneth S. Lee: And then in terms of our funding would be the tender offer you mentioned using cash on hand.

William Patrick Foley: So we felt like at this point, with our share price traded at this NAV discount, that we should just accelerate our buyback program, which, in effect, that's what the tender offer is doing, and retire more shares more quickly. Gotcha. And then, in terms of funding the tender offer, you mentioned using cash on hand. I presume that there could be some drawdown potential in the loan facilities, but just want to get a little bit more color around that.

Kenneth S. Lee: I presume that there could be some draw down potentially in the loan facilities, but just want to get a little bit more color around that thanks, yes. It could be a combination of drawdown under our margin loan facility or it could be a sale of the continued sale of some of our Oh liquid securities liquid public securities.

Kenneth S. Lee: We have about $150 million cash on hand, right now so the $200 million figure.

Kenneth S. Lee: Really it's only $50 million short of what we actually have an on hand in the bank at this point. So we're really not concerned about raising the additional $50 million and if we actually have a green shoe, which was 15% of the 200 million that would be an additional $30 billion, but we're very confident that we can raise those funds really expeditiously and easily.

William Patrick Foley: Yeah, it could be a combination of drawdown under our margin loan facility, or it could be a sale of continued sale of some of our liquid securities, liquid public securities. We have about $150 million cash on hand right now. So the $200 million figure really is only $50 million short of what we actually have on hand in the bank at this point. So we're really not concerned about raising the additional $50 million.

Speaker Change: Gotcha very helpful. There and if I could ask another follow up here.

Speaker Change: Could you just talk a little bit more about the in terms of the Jackup partnership I Wonder if you can get a little more detail in terms of the voting arrangements and in any kind of detail around that in terms of supporting the management and the board there. Thanks.

William Patrick Foley: And if we actually have a green shoe, which would be 15% of the $200 million, that would be an additional $30 million. But we're very confident that we can raise those funds really expeditiously and easily.

Speaker Change: Yes, so as we noted in our press release, we agreed to a voting agreement with Jana.

Ryan Caswell: Very helpful there. And if I could ask another question, could you just talk a little bit more about the JANA partnership? I was wondering if you could get a little bit more detail in terms of the voting arrangements and any kind of detail around that, supporting the management and the board there. Yeah, so as we noted in our press release, we agreed to a voting agreement with JANA.

Speaker Change: We view this as a partnership we're excited to work together they are taking stock and can I and we are taking stock and Gina.

Speaker Change: And we believe kind of could be cross ownership will incentivize both of us to work together and we believe it'll be a benefit to both businesses through there in terms of driving returns and an increasing AUM and to ours in terms of sourcing.

Speaker Change: <unk> proprietary <unk>.

Ryan Caswell: You know, we view this as a partnership. We're excited to work together. They're taking a stock in Cannae, and we are taking a stock in JANA.

Speaker Change: Acquisitions of operating businesses.

Speaker Change: Gotcha and just one one final follow up for me if I may.

Speaker Change: Can you talk a little bit about how some of the partnering on potential opportunities with Janet could look like but wondering if you could just further flesh that out in terms of potential structures.

Ryan Caswell: And we believe kind of the cross ownership will incentivize both of us to work together. And we believe it'll be a benefit to both businesses through theirs in terms of driving returns and increasing AUM, and to ours in terms of sourcing, you know, proprietary acquisitions of operating businesses. Gotcha.

Speaker Change: Making control acquisitions with Jana and I think you mentioned a bit about some carve outs. Just wondering if you could just perhaps talk on a hypothetical or some other.

Ryan Caswell: And just one final follow-up for me, if I may. You talked a little bit about how some of the partnering on potential opportunities with JANET could look like, but I was wondering if you could just further flesh that out in terms of potential structures of making control acquisitions with JANA, and I think you mentioned a bit about some carve-outs. Just wondering if you could just perhaps talk about a hypothetical or some other, further flesh out of some of the opportunities. What could they look like?

Speaker Change: Further flush out of some of the opportunities how how could they look like thanks.

Speaker Change: Yeah, I think you really ought to take a look at Genesis DIC investment deck I'd be very revealing to you and Ryan could provide that to you. If you like we'd like to see it.

Speaker Change: The document they use when they are raising raising funds from third party third party sources. There is no specific transaction currently on the table a number of things that Jan is looking at and that they've shared with us appear to be very interesting, but theres no. One transaction. This pending at this time, we anticipate several.

William Patrick Foley: Thanks. Yeah, I think you really ought to take a look at Janet's deck, the investment deck. It'd be very revealing to you, and Ryan could provide that to you if you would like to see it.

Speaker Change: Transactions occurring.

Speaker Change: Each year and there will be partners with them on.

Speaker Change: Got you and actually just one more if I if I could squeeze in would it also be possible for Jana, perhaps to invest in any of the portfolio companies within the <unk> portfolio is that also a possibility.

William Patrick Foley: It's a document they use when they're raising funds from third-party sources. However, there is no specific transaction currently on the table. A number of things that Janet is looking at and that they've shared with us appear to be very interesting, but there's no one transaction that's pending at this time. We anticipate several transactions occurring each year that we'll be partners with them on. Gotcha, and actually, just one more, if I could squeeze in, would it also be possible for JANET, perhaps, to invest in any of the portfolio companies within the Cannae portfolio? Is that also a possibility?

Speaker Change: Everything everything really is on the table with Janet I'm sure that you can help us with some of our portfolio companies in terms of looking at alternative strategies rose due to sale of all or a portion of the assets going private transactions all kinds of different situations degenerate group is a very skilled group of investment.

Speaker Change: Festivals and really look forward to look forward to the partnership.

Speaker Change: Oh great.

Speaker Change: I'll step back into the queue. Thank you very much.

William Patrick Foley: Everything really is on the table with JANA. I'm sure they can help us with some of our portfolio companies in terms of looking at alternative strategies relative to the sale of all or a portion of the assets, going private transactions, all kinds of different situations. The JANA group is a very skilled group of investment professionals, and we really look forward to the partnership. Well, great. Well, I'll step back into the queue. Thank you very much.

Speaker Change: As a reminder, if you have a question. Please press Star then one.

Speaker Change: Our next question comes from Jonathan Base of Stephens. Please go ahead.

Jonathan Base: Hey, guys. Thanks for taking my questions I was hoping you could address the public versus private investment philosophy.

Jonathan Base: Where do you guys see the team spending the majority of their time and efforts moving forward now to the private investments.

Operator: As a reminder, if you have a question, please press star. Then. Our next question comes from Jonathan Bates of Stevens, please go ahead. Hey guys, thanks for taking my questions. I was hoping you could address the public versus private investment philosophy. Where do you guys see the team spending the majority of their time and efforts moving forward and out of the private investments? You have today; ignoring the size, what do you see as having the most promising return potential over the next handful of years? Look, I think in terms of public versus private, we are going to be much more focused on private investments going forward. I think it works better if you think of what Cannae is and the capital it has and how we can most effectively leverage our permanent capital.

Jonathan Base: Today, ignoring the size what do you see as having the most promising return potential over the next handful of years.

Jonathan Base: Okay.

Speaker Change: Look I think in terms of in terms of public versus private.

Speaker Change: We are going to be more much more focused on private investments going forward.

Speaker Change: It's a I think it works better if you if you think of what can I is in the capital that had and how we can most effectively.

Speaker Change: Effectively leverage our permanent capital, we believe looking at private businesses, it will be better than that in the public and we like the public businesses that we have but I think youll see us sell down.

Speaker Change: Those names over times and look to reinvest in private businesses.

Speaker Change: And then in terms of the portfolio of private businesses that we have today.

Ryan Caswell: We believe looking at private businesses, it will be better than the public. And we like the public businesses that we have, but I think you'll see us sell down those names over time and look to reinvest in private businesses. And then in terms of the portfolio of private businesses that we have today, I don't have a perfect answer, but I'll say, just because we were talking about it before, I think you heard a little bit about some of the results that you've seen at Bournemouth and Black Knight Football. In terms of the success that we've had on both the business side and the football side, we believe that, going forward, we'll be able to continue those successes, and furthermore, we think the multi-club network that we are building, as we build that out, there's more value to extract from that.

Speaker Change:

Speaker Change: I don't have a perfect answer, but I will say just because we were talking about it before I think you heard a little bit about some of the results that you've seen at Bournemouth and Black Knight football.

Speaker Change: In terms of the success that we've had in both the business side and the football side.

Speaker Change: We believe that.

Speaker Change: We believe that going forward, we will be able will be able to continue those successes.

Speaker Change: Furthermore, we think the multi club network that we're building.

Speaker Change: Well as we are.

Speaker Change: We build that out there's more value to extract from that so we're very excited about the bathroom are very excited about the team has done to date.

Speaker Change: And we think Theres big there's big upside going forward.

Speaker Change: So if you look back at our public company investments. They are really a result of something that was private.

Ryan Caswell: So we're very excited about the investment, we're very excited about what the team has done to date, and we think there's big upside going forward. And also, if you look back at our public company investments, they were really a result of something that was private that converted into a public asset. So Dun & Bradstreet, we engaged in a going private transaction, then took it public, and we still have our position in that company. Alight was a result of a private company that was converted into a public company via an SPAC that we had sponsored. And Ceridian, or Dayforce, of course, is a long-term investment that was private for years and years and years, and as it went public, we then began disposing of our interest in Dayforce, and we're down to a fairly small number of shares. Paysafe, again, was a SPAC transaction that we participated in and were a sponsor of, and the same with SystemOne.

Speaker Change: <unk> is a public asset so denim bridge Street, we engaged in a going private transaction then took it and took it public and we still have our positioning that in this company are light was the result of a private company that was converted into a public company be a spec that we that we sponsored.

Speaker Change: And Ceridian or D Force of course is a long term investment that was private for years and years and years and as we went public we didn't begin to dispose of disposing of our interest in the NDA for summer, we're down to a fairly small fairly small number number of shares PC again was the spec transaction then.

Speaker Change: We participated in a responsible and the seamless system warm so really our public company assets that we've acquired if generally started out as private asset private company asked us to convert it into a public school.

Speaker Change: To a public company.

Speaker Change: Okay. Thank you and.

Speaker Change: On Ryans last point, there touching on the multi club strategy with the new minority stake and Hibernia and can you maybe highlight the multi cloud strategy what it is and why it makes sense why it can be successful.

Ryan Caswell: So really, our public company assets that we've acquired have generally started out as private assets, private company assets that converted into a public asset, and now it is a public company. Okay, thank you, and on Ryan's last point there, touching on the multi-club strategy, with the new minority stake in Hibernian, can you maybe highlight the multi-club strategy, what it is and why it makes sense, why it can be successful? Well, the Premier League is a difficult league to compete in. It's the best football league in the world.

Speaker Change: Well the Premier League is a difficult lead to compete and is the best Football League in the world.

Speaker Change: With.

Speaker Change: Sovereign wealth funds as owners private equity firms as owners and obviously, we own we owned interest in bornemann, but we found as we got involved in the investment that having interest in other clubs in top leagues is very advantageous in terms of the transfer window and acquire.

Speaker Change: Marine players and also loaning players to those clubs and the Scottish Premier League as it is it is a terrific of football League.

William Patrick Foley: Sovereign wealth funds as owners, private equity firms as owners, and obviously, we own the interest in Bournemouth. But we found, as we got involved in the investment, that having an interest in other clubs in top leagues is very advantageous in terms of the transfer window and acquiring players and also loaning players to those clubs. And the Scottish Premier League is a terrific football league. And obviously, there's no immigration issue with regard to Scotland and the UK.

Speaker Change: It's obviously, there's no immigration issue with regards to Scotland, and the U K. They develop a lot of good players that can also work the way down to <unk> and the other thing that we can do with Hibernia is actually gives them players on loan to.

Speaker Change: To develop in the Scottish Premier League. So they can eventually rotate back to the English Premier League and the same is true with the FC Laureled live which is again is the elite born in France and.

Speaker Change: Recently, we had loan to player to L'oreal and we just took that player back in January and last year, we acquired a player the world.

William Patrick Foley: They develop a lot of good players that can also work their way down to Bournemouth. And the other thing we can do with Hibernian is actually give them players on loan to develop in the Scottish Premier League so they can eventually rotate back to the English Premier League. And the same is true with FC Laurent, which is again in League 1 in France, recently we had loaned a player to Laurent and we just took that player back in January and last year we acquired a player from Laurent, Dango Atara, and he's now playing at Bournemouth and the result is if you own a piece of another team, say 40 percent that we own of the League One team, when we buy a player we really are only paying 60 percent to the other owners.

Speaker Change: Dangled, a terror and E seasonal plane is born with.

Speaker Change: The result is that the only piece of the other teams that 40% that we owned it.

Speaker Change: Of the Li one team when we buy a player we really are only paying 60% to the other orders. So it's a.

Speaker Change: Italy and financially is a very advantageous situation to be in and we think frankly, we like to invest in a couple of more clubs and other leagues that could be supportive or other.

Our goal to make AR continues to build Barnabas and move it up in the table in the Premier League and right now you'd have to see that borne this sits at the top of the pyramid and the other teams are supporting Portland, but we're also supporting them in terms of delivering players and and helping them develop their teams and coordinating on on the.

Speaker Change: <unk>, which we play coordinating in the transfer window. So it's really a it's a it's none of the original model and its Manchester Manchester City really has developed over the last 15 or 20 years and they now have 13 or 14 clubs that are invested in so we will we will never had that many clubs but.

William Patrick Foley: So strategically and financially it's a very advantageous situation to be in and we'd frankly like to invest in a couple of more clubs in other leagues that could be supportive of our of our goal to continue to develop Bournemouth and move it up in the table in the Premier League and right now you'd have to say that Bournemouth sits at the top of the pyramid and the other teams are supporting Bournemouth but we're also supporting them in terms of delivering players and helping them develop their teams and coordinating on the manner in which we play, coordinating in the transfer window so it's really a, It's not an original model, and Manchester City really has developed it over the last 15 or 20 years, and they now have 13 or 14 clubs that they're invested in. So we will never have that many clubs, but a few more would be interesting.

Speaker Change: A few more would be it would be interesting.

Speaker Change: Okay.

Speaker Change: Alright, thanks for the color guys.

Speaker Change: Yeah.

Speaker Change: This concludes our question and answer session I would like to turn the conference back over to Mr. Bill Foley for any closing remarks.

William Patrick Foley: Yes. Thank you operator, we're very excited with the opportunities ahead and confident in our strategy as we transform our portfolio, which we believe will deliver value to our shareholders. We look forward to speaking with you again on our first quarter 2024 earnings calls have a great day.

Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Speaker Change: [music].

William Patrick Foley: Alright, thanks for the call, guys. This concludes our question and answer session. I would like to turn the conference back over to Mr. Bill Foley for any closing remarks. Thank you, operator. We're very excited about the opportunities ahead and confident in our strategy as we transform our portfolio, which we believe will deliver value to our shareholders. We look forward to speaking with you again on our first quarter 2024 earnings call. Have a great day. The conference is now concluded. Thank you for attending today's presentation.