The Rules of Investing What do counting cars and delivering an 18% pa return for investors have in common?
There is a good reason why Australia’s sovereign wealth fund, the Future Fund, maintains a 16% allocation to private equity. Returns, returns, returns.
Private equity, and the lucrative returns it offers, has traditionally been the restricted domain of institutional investors and off limits to retail investors.
Ellerston Capital's JAADE Private Assets Fund bucks that trend by offering retail investors exposure to unlisted Australian growth companies. Like private equity, JAADE’s managers act as a partner with the companies it invests in by holding a space on their respective boards.
It’s a model that clearly works.
As of June this year, the retail fund has returned 14.48% pa over three years and almost 18% per annum since inception.
In today’s episode, Livewire's David Thornton sits down with Jayne Shaw, Investment Director at Ellerston Capital and analyst for the JAADE fund. Jayne didn’t take the typical road into funds management. Initially trained as a nurse, she went on to take a number of roles in leadership positions in healthcare organisations. This appropriately explains why Jayne looks after the healthcare allocation within the JAADE fund.
She also explains why the “carpark indicator” is a great way to know when the deals are on in private equity.
Topics include:
- the evolution of private equity over the last few years,
- today’s deal flow,
- the first order principles that guide Jayne’s process; and
- the investment case for Mable and Prospection – two companies that are shaking things up in the healthcare space.
0:00 - START
2:30 - An uncommon journey
5:03 - Private equity has changed
10:17 - Dry powder
12:16 - Counting cars
14:00 - JAADE
16:00 - It all comes down to the people
19:58 - Hard conversations
21:30 - Earnings runway
22:25 - Mable
25:40 - Prospection
32:39 - Why healthcare companies are good investments
37:07 - Don't put too much weight in the past
42:00 - A company for the bottom drawer