11 December 2024
When it comes to investments in these times of uncertainty, deep research and understanding of companies and the wider markets is imperative.
When it comes to investments in these times of uncertainty, deep research and understanding of companies and the wider markets is imperative.
For Auctus Investment Group (ASX: AVC), a global investment manager with $320M Assets Under Management, research and transparency is what sets them apart from competitors.
Auctus provides unique investment opportunities in future-resilient fields like health tech, energy solutions, infrastructure and real estate. While blind funds might go into a number of potential investments, Auctus puts together investment opportunities in a way that the end investor knows what they are buying into and why.
“They know we’ve spent 6 or 12 months researching the opportunity and gotten significant comfort about what’s going on within the business,” said Auctus’ Managing Director Campbell McComb.
Auctus invests in businesses for periods of 2 to 4 years.
“That gives sufficient time for the business to grow. When we’re buying into the business, we think that’s the crucial timing when the business is about to take off.”
When the business performs well for investors, Auctus gains performance fees.
“Potential upside to shareholders comes from those performance fees,” said Campbell.
A key differentiator is Auctus’ involvement with US-based assets and partnerships with Scout Ventures, RBP and Student Quarters. They provide opportunities that are typically unavailable to Australian investors.
With four funds structured out of the US, Auctus has a history of performing well. One of the funds, Unite Us, which Auctus co-invested with US-based Oak Investment Partners, had a pre-money valuation of $180 million. McComb expects this to grow to over $1 billion in value.
“We’ve had a pretty good run that has continued. 2020 was about building the foundations of our business and we’ve been really happy with the progress we’ve made. We went from $36 million in assets in June 2019 to where we are now, which is about $320 million,” said Campbell.
Auctus recently invested in Petstock, its first domestic transaction.
“Petstock is a great example of the kind of quality investments we’re looking for. If you look at what happened with COVID, people are acquiring more pets and buying more pet food and the like. There’s been some serious tailwinds behind that business and we expect that to continue,” said Campbell.
In the coming months, Auctus is continuing to build assets under management both in Australian and overseas, as well as looking at some potential acquisitions in the asset management space.
“We are also targeting some exits out of some of the initial funds and that’s what leads to the performance fees that generate some exciting returns for our end investors,” said Campbell.
“In short, we’re very excited about where we are. Slowly but surely, the market is starting to pay attention to what we’re doing. We expect that to continue and the Assets Under Management growth to continue,” he concluded.
Auctus’ MD, Campbell McComb, recently joined us for our fortnightly webcast ‘The Insider’. This article summarises some of the information he shared with us during the session. You can watch a full recording below, or you can click here to book into our next session where we will be joined by by Gerry Sakkas, CEO of PlaySide Studios (ASX:PLY) and Steven Yatomi-Clarke, CEO of Prescient Therapeutics (ASX:PTX).
‘The Insider’ is a great way to hear directly from the CEOs of fast growing Australian businesses. You will get valuable insights to their industries and companies future prospects.
The Insider: Meet the CEOs – Event Details:
Date: Wednesday, 17th March Time: 12pm AEDT Format: Online, 3 x 15 minute presentations
This is a free event. Click here to book your spot.
Reach does not assume responsibility for the accuracy or completeness of any information provided, and the views expressed are not reflective of Reach Markets position. Any advice contained within this presentation is general advice and does not consider your personal circumstance, you should consider whether it’s appropriate for you.
The information we are giving you is for educational purposes only. “Investing is about understanding your risk” and every time you invest in the share market there is a risk of loss.
Past performance is not a reliable indicator of future performance.