Australis Investment Management Company (Australis) may, where appropriate, take a minority equity stake in selected fund managers as part of its customised business model. This approach allows Australis to participate in the manager’s long-term success and further align interests between the parties.
Some key points are detailed below:
Australis's Role:
Australis supports selected wholesale boutique fund managers through operational, compliance and governance assistance. In circumstances where deeper strategic alignment is appropriate, Australis may complement this support with minority equity participation, subject to Investment Committee approval.
Equity Stake:
Whether it is in exchange for services or a direct investment, Australis may also take a minority equity stake in a new fund manager if deemed appropriate by the Investment Committee. This requires a shareholder agreement with Australis and the client, in addition to the Corporate Authorised Representative (CAR) agreement that would already be in place.
Alignment of Interests:
This equity stake is designed to align the interests of Australis with the success of the fund manager, as both parties benefit from strong investment performance and growth in funds under management.
Alternative to Equity:
While equity stakes are possible, Australis may also use revenue-sharing or staggered cost agreements as an alternative way to participate in the fund's success.