Why Blue Sky?
Alternative investments, or private markets, are Australia’s fastest growing asset class and projected to become Australia’s largest asset class by 2021, reflecting global trends. (Rainmaker Roundup, Sep Quarter 2016).
Investments in private markets fall outside traditional asset classes such as Fixed Income and Equities. They include Private Equity and Venture Capital, Agricultural Assets, Real Estate and Hedge Funds.
Historically, alternatives have generated superior risk-adjusted returns and they also introduce a level of diversification into a portfolio (i.e. they can provide a buffer to returns when equity markets underperform). Private markets tend to have superior risk-adjusted returns as there are fewer players, there is greater information asymmetry and investors tend to exert a greater degree of control.
In private markets, the track record of the manager matters. The dispersion of returns and the persistence of returns in alternatives, mean it’s really important to choose a high-performing manager.
Blue Sky has built a strong investment track record across private equity, venture capital, hedge funds, private real estate, and real assets of 16.4%1 per annum compounding (net of fees) since inception. We have more than $3 billion in assets under management.
Within private markets, we focus on investing in “the essentials” which we broadly think of as things people need not want. The reason for this focus is to try and ensure that investor’s capital is preserved through all investment cycles. We have demonstrated this through our track record of investments in housing, healthcare, retirement, education, technology, food and water.
Our people collectively own significant equity in the business and invest heavily in its funds. We are bound by collective history and geographic separation and a desire to build Australia’s leading diversified alternative asset manager. We are persistent, innovative, and hard working and are fiercely loyal to each other and those that have supported us.
1. Past performance is not a reliable indicator of future performance.