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Investment Strategy

Our investment strategy focuses on providing established, profitable businesses with capital as well as management support to promote growth. The size of our investments varies, allowing us to cater for both large and small investment amounts.

We currently have investments in a range of sectors, including retail, agribusiness, manufacturing and industrial services and have a new pipeline of projects on the way. The characteristics we look for in our investments are:


Superior business

Market share or growth opportunity

Defensible strategic position

Strong cash flows

Track record of profitable operations


Strong management team

Exceptional, entrepreneurial owners that are committed to the business

Quality and depth of management within the business (BSPE rarely seeks management control)


Opportunities to add value where we have particular skills

Drive performance measurement and culture

Strategic introductions across our network

'Corporatise' business through improved reporting and improved corporate governance

Close involvement in sourcing and advising on M&A and exit opportunities


Corporate Governance

Willingness to adopt best practice corporate governance standards

Clear ownership and corporate structure


Exit Plan

Clear exit route such as IPO, third party acquisition (including secondary buy-outs), management buy-out or buy-back of their investment

Targeted Internal Rate of Return (IRR) of 30%

Investee Companies

Viking Rentals

Viking Rentals has grown to become one of Australia's largest toilet hire businesses in the five years since it was established.

BSPE first invested in Viking Rentals in 2007. Since then, Viking has grown from a fleet of 270 toilets generating ~$400k turnover to a fleet of approximately 3,700 toilets (as well as a range of other hire products such as temporary fencing and power poles) that generates over $5m turnover.

Viking Rentals was named in Business Review Weekly's (BRW) 'Fast Starters' list in 2009 and 2010 and was runner up in the Hire & Rental Industry Association's Rental Company of the Year in 2010 and 2011.

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Viking Rentals

BRW Fast Starter

Lenard's

Lenard's is a franchise business based on value-added fresh chicken products.

BSPE invested in June 2008 to help fund a nationwide buy-back of all Master Franchise Licenses, allowing Lenard's to achieve direct 'line of sight' to its franchisees, more aggressively expand its network and improve implementation of marketing and product initiatives.

Since BSPE's investment, Lenard's revenue has increased by 70% and profits have grown by 90%.

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Lenard's
Paradise Motor Homes

Paradise Motor Homes (PMH) is a manufacturer of multi-award winning luxury motorhomes.

BSPE invested to provide PMH the capital to move the business to a new production facility as well as providing additional management support. PMH's production has since grown from 15 vehicles to more than 50 vehicles per annum.

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Paradise Motor Homes
Beach Burrito Company

Beach Burrito Company was established in Sydney in 2006 as a new concept in the 'fast casual' dining space.

With the help of expansion capital from BSPE, the company has expanded to three restaurants and in 2010 was listed in BRW's 'Fast Starters' list.

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Beach Burrito Company
BRW Fast Starter
Enthalpy

Enthalpy provides consulting services to major mining projects, using its valuable project management intellectual property across a diverse range of blue chip clients.

BSPE invested in Enthalpy in 2010 to facilitate the growth and corporatisation of the business in preparation for a planned exit within 3-5 years.

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Enthaply
Trustee of Professional Capital Investments Equities Trust

On 31 March 2009, Blue Sky Private Equity was appointed by the South Australian Supreme Court as trustee and on 9 December 2009 responsible entity for the following portfolio companies held within the Professional Capital Investments Equities Trust ARSN 140 753 715 (PCI Trust):


 
Firewire Surfboards

Founded in 2006 and headquartered in San Diego, USA with an Australian office at Currumbin Queensland, Firewire designs and manufactures surfboards using proprietary shaping technology. ASP World Tour surf champion Taj Burrow rides and promotes its boards, which are distributed globally.

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Firewire Surfboards
CommStrat Limited

Established in 1963 and publicly listed since 1986, CommStrat (formerly 900 Degrees) is a publishing and conference company. The company produces up to 20 annual conferences and a number of publications covering private equity, local government, roads, environment, defence, infrastructure and irrigation.

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Commstrat
BioCentral Laboratories

Adelaide based BioCentral Laboratories develops environmentally friendly and biodegradable polyacrylamide products which assist in water conservation and bringing 'value add' qualities to water. These products have applications across a range of industries including agriculture, manufacturing, mining, road construction and fire control.

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BioCentral Laboratories
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