In any given month, Wattle Partners meets with many different professionals offering a new investment product, idea or scheme. Most are a pass from us, but now and again some pique our interest.
This month, we accepted a meeting with Federation Asset Management, not to be confused with the Federation Shopping Centre’s business. The company was founded by a number of ex-Macquarie bankers their track record shows some clear skill in identifying and moving transactions to realisation for investors.
The group is launching a priavet equity, real assets funds with a slight difference. It is available to retail investors, provides daily liquidity and has a minimum investment of $20,000. Now, we generally meeting ex-Macquarie bankers with some trepidation, but were intrigued by the opportunity. The team are specialising in renewables, private equity and real estate investments as they seek to raise around $300m before the end of January 2020.
Thus far they have delivered an average return of 23% on every investment, with an average holding period of five years. Importantly, they have shown adeptness at undertaking due diligence and gaining access to opportunities with some 300 sourced since 2011 and only 30 approved for investment. The CEO Cameron Brownjohn was clear that they were having no problem in identifying opportunities.
We asked about the companies ESG focus and they noted they were seeking to ensure each investment didn’t contribute negatively, and that quality of management was of the highest priority in this space. In terms of the underlying investments, the diverse spread was a point of difference to many technology or venture capital focused funds and included:
- Sendle – A fast growing logistics company servicing small businesses and just recently expanded into the huge US market;
- Synergis Fund – A property investment building disbility housing managed in a joint venture with the respected Social Ventures Australia and delivering an average yield of 10%.
- Windlab – Developer and operator of quality wind farms with specialist resource assessment technology.
All in all, the meeting and detail provided was impressive, once our due diligence is completed we will provide more detailed information.