STRATEGIES

Our approach to investment management is built on rigorous research, disciplined execution, and a long-term perspective.

Softwater Capital Fund

Objective

The Fund aims to provide investors with potential for returns based on venture capital investments which will have a moderate to high risk profile. The target investment rate of return to investors is 20% net of fees over the 5–10-year period by making complying Venture Capital Limited Partnership investments in in Australian businesses with assets of no more than $250 million.

Growth strategy illustration
Value strategy illustration

Value Strategy

The investment strategy of the Fund is to take a high- volume and industrialised approach to building a large, diversified portfolio of investee companies which may span across the pre seed, seed, start-up and early expansion stages. The Fund will target eligible VCLP investments including:

  • Disruptive Technology Sector

    • The Fund will seek opportunities within the technology sector encompassing hardware, software, life sciences, artificial intelligence and social media. Specific focus will be on fin-tech, internet marketplaces and enterprise software. The Fund will focus on investments into businesses that commercialises the relevant technology.

  • Alternative Energy Technology Sector

    • The Fund will seek opportunities within the alternative sector encompassing energy usage tracking, demand management technology, fuel cells, small scale solar and small-scale geothermal technologies. The Fund will focus on investments into businesses that offer commercialisation and expansion opportunities.

  • Environmental, Social and Governance Sector

    • The Fund will seek opportunities that demonstrate commitment to environmental, social and governance (ESG) goals. Provided that the sectors of companies comply with the Venture Capital Act 2002 (Cth) the Fund will consider investments from all sectors that display dedication and profitable pursuit of ESG outcomes.

  • Other Sectors

    • The Fund will have the ability to invest into other sectors if the investment complies with the Venture Capital Act 2002 (Cth) and other prescribed laws and regulations. Other investments outside the technology and alternative energy technology sectors assist in diversifying the inherent risks within the specific industry sectors. In addition, other investments will provide the Fund with greater exposure and provide flexibility in adapting to Australian and global market conditions.

Target Fund Size

  • Minimum initial Fund size: A$10 million
  • Maximum Fund size: A$100 million
Sustainable strategy illustration
Value strategy illustration

Minimum Investment

The minimum investment is $200,000 per application and thereafter in amounts of $50,000.

Our Investment Process

A disciplined, repeatable process is at the core of our investment approach.

1

Research

Comprehensive analysis of markets, sectors, and individual securities

2

Evaluation

Rigorous assessment of investment opportunities against our criteria

3

Construction

Portfolio construction with focus on risk management and diversification

4

Monitoring

Continuous monitoring and adjustment of portfolio positions