What do counting cars and delivering an 18% pa return for investors have in common?

from The Rules of Investing · host Livewire Markets

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. Timestamps 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

What this episode covers

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. Timestamps 0:00 - START2:30 - An uncommon journey5:03 - Private equity has changed10:17 - Dry powder12:16 - Counting cars14:00 - JAADE 16:00 - It all comes down to the people19:58 - Hard conversations21:30 - Earnings runway22:25 - Mable25:40 - Prospection32:39 - Why healthcare companies are good investments37:07 - Don't put too much weight in the past42:00 - A company for the bottom drawer