Delivering superior, tax effective streamed returns by investing in Technology Growth Companies
Kestrel Growth is a unique pre-IPO opportunity to invest in a technology growth stapled security consisting of one share in each of:
1. Kestrel Capital: an investor, investment manager and developer of technology growth companies;
And its two managed investment companies:
2. Kestrel Growth Companies Ltd (KGC): a Pooled Development Fund (PDF) with significant tax benefits; and
3. Kestrel Asia Pacific Limited (KAP): a listed investment company investing outside the PDF criteria.
Capital raising: Pre-IPO ~$30m to complement existing portfolio ($30m); IPO $125m (mid 2017)
Market opportunity: Technology growth sector is underserved with growth capital and lacks expertise for global expansion
Stapled security: A share in each of the manager (Kestrel Capital) and the two investment companies (KGC and KAP)
Use of proceeds: Invest in Australian and regional technology growth companies, IPO in late 2016 and increase Kestrel’s FUM
Tax benefits: Access to KGC’s significant Pooled Development Fund (PDF) tax benefits - 0% CGT, 0% tax on distributions etc.
Management: Kestrel Capital: experienced, aligned and with a strong track record of delivering superior returns
Liquidity: Flexible evergreen structure: dividends, capital returns and ASX listing in process
Targeted returns: Investments - 3x capital invested every 5 years (existing portfolio on track)
Manager - Potential for significant value to be created in the manager (Kestrel Capital)
Portfolio target return
To $125 million of fully paid ordinary shares.
3-5x capital over 5 years.
Tax effective streamed returns
The fund is a flexible evergreen structure to be listed on the ASX and delivering dividends and capital returns.