Barwon Private Equity
Tactical opportunities

Barwon manages stand-alone mandates for institutional investors. We have managed the Private Equity Tactical Opportunities strategy since 2007, making over 30 investments in this time. The strategy targets listed and unlisted private equity opportunities globally. The strategy is deliberately “high conviction” and is typically invested in only 6 positions at any one time.

Transactions

  • Colonial First State Private Equity Limited – Barwon led the take-private process of this ASX-listed vehicle which held $110 million of private equity and infrastructure assets. The investment has yielded excellent returns.
  • Macquarie Private Capital Group Limited – Barwon led the take private process of the ASX-listed vehicle that held $150 million of private equity funds and direct co-investments. The investment has yielded excellent returns.
  • JP Morgan Private Equity Limited – This listed private equity vehicle was trading at a discount to NAV. To enable investors to capture this discount, Barwon led the creation of a new realisation share class which received the cash proceeds from any underlying private equity assets sales. To date the investment has yielded strong returns.
  • Dinamia Capital – Barwon invested in this Global Financial Crisis-impacted Spanish listed small- to mid-market buyout fund at a substantial discount to NAV. Barwon then played a role in the subsequent restructuring of the Fund and ultimately exiting at a very attractive return. The investment yielded an IRR of over 30% p.a.
  • MBI Inc – Barwon made a direct co-investment in MBI, a Chicago-based long-haul waste transport business with a co-investment partner Barwon has worked with on several occasions. This business was the last remaining asset held by the private equity fund manager and was acquired by Barwon on a very attractive 4xEBITDA multiple. The business is performing very well and is on track to deliver exceptional returns.
  • Athene Holdings Inc – is a life insurance holding company focused on issuing and re-insuring fixed and equity indexed annuities. The company was formed in 2008 with backing of Apollo Global Management to take advantage of consolidation opportunities in the life insurance sector. On behalf of its clients, Barwon invested in a pre-IPO bridge funding round. Although early days, this investment already has generated strong returns.

Performance

31 Oct 2017 1
Month
3
Months
1
Year
3 Years
p.a.
5 Years
p.a.
ITD
p.a. (1)
Gross Return (2) 2.6% 7.7% 20.6% 22.9% 29.9% 10.3%
S&P Global BMI Index (3) 4.4% 9.0% 23.2% 13.8% 18.6% 6.4%
Gross Outperformance -1.9% -1.3%  -2.7% 9.1% 11.4% 3.9%

Notes

  1. Inception date 1 August 2007
  2. $A mandate returns are annualised and before management fees, performance fees, and other fund expenses.
  3. S&P Global BMI Index Unhedged Net Total Returns Index.