Blue Sky Alternative Investments
Blue Sky Alternative Investments is a dedicated alternative investment fund manager with a diverse range of investment offerings across four alternative asset classes: Private Equity, Private Real Estate, Hedge Funds and Water.
Investment Track Record
Since inception, Blue Sky's investment teams have built a track record of delivering strong investor returns across each asset class that compare favourably with industry benchmarks. While investor returns (and liquidity) vary by investment mandate, overall Blue Sky Funds have generated returns of 19.8% per annum (net of fees) since inception.
| Investment Group |
Blue Sky returns since
inception (p.a.) 1 |
Average 5 year sector
returns (p.a.) 2 |
Degree of investor
liquidity |
| Private Equity |
23.9% |
3.5% |
 |
| Private Real Estate |
12.4% |
5.3% |
| Water |
9.3% |
9.6% 4 |
| Apeiron |
11.9% |
2.3% |
| Weighted Average 3 |
19.8% |
n.a. |
|
| Australian shares |
n.a. |
-2.4% |
|
Private Equity
Blue Sky Private Equity has a team of five investment professionals with international and domestic experience across a range of industry sectors and invests in Australian small and medium-sized enterprises (SMEs) with the following characteristics:
 High growth, entrepreneurial companies with a need for capital to fund expansion
An established track record of profitable operations
Led by exceptional, entrepreneurial owners committed to the business
Innovative ideas to lead or take advantage of change in their industry
An enterprise value of between $10 million to $30 million
A clear path to exit within three – five years
Investee companies include Lenard's Chicken, Viking Rentals, Beach Burrito Co., Enthalpy and Paradise Motor Homes. Since its inception in 2006, Blue Sky Private Equity has delivered an internal rate of return (IRR) of approximately 24% for its investors.
In 2010, BSPE launched its expansion capital fund (EC2010 Fund) which will make further investments in rapidly growing businesses with a need for additional capital.
Private Real Estate
Blue Sky Private Real Estate seeks out opportunities to invest private equity into Australian real estate. Blue Sky Private Real Estate has a demonstrated track record of success through challenging financial cycles and is well positioned to capture emerging opportunities in the commercial, mezzanine and residential sectors.
With expertise in development, project sourcing, project management and investment banking, the Blue Sky Private Real Estate team targets an internal rate of return (IRR) of greater than 20% on development projects and an IRR of 10% to 15% for residential funds management projects.
Blue Sky Private Real Estate adopts the Blue Sky investment philosophy of active management, playing an important role in managing projects and opportunities through to completion.
Hedge Funds (Global Macro)
The Blue Sky Apeiron Global Macro Fund provides investors with exposure to a highly liquid and uncorrelated investment which has a demonstrated track record of strong returns over a five year period.
The Blue Sky Apeiron Global Macro Fund is managed by David Hobart, a highly regarded manager in the industry who was awarded 'Best Emerging Manager' in 2009. David has gained industry experience at Bankers Trust, ABN Amro and Macquarie Bank. Since 2006, the Blue Sky Apeiron Global Macro Fund has returned an internal rate of return (IRR) of over 10% per annum.
Typically, global macro managers employ a top-down global approach, identifying political trends and global macroeconomic events which affect the valuation of financial instruments. Profits are made by correctly anticipating price movements in global markets and having the flexibility to use a broad investment mandate. The Blue Sky Apeiron Global Macro Fund is a discretionary fund which looks to capture price movements in equities, fixed income, currencies and commodities markets over a medium term time horizon.
Blue Sky Apeiron aims to generate returns of 15% per annum (net of fees).
Water
The Blue Sky Water Fund provides an opportunity for wholesale investors to invest directly in the Australian water market and derive returns from the ongoing management of an increasingly scarce and vital resource; fresh water.
The Blue Sky Water Fund will invest in a regionally diversified portfolio of Australian water entitlements using a long term buy and hold approach, with capital gains expected to accrue as water is priced more appropriately to reflect its relative scarcity. Water volumes allocated to the water entitlements will be sold to agricultural and urban users, deriving a regular annual yield.
The Blue Sky Water Fund will fulfil a market need, and its investments are consistent with the objective of Australia's National Water Initiative to value water appropriately and allow it to be traded to its highest economic use.
Blue Sky Investment Partners (SA)
Blue Sky Investment Partners (SA) (BSIP) is responsible for the international expansion of Blue Sky into South Africa. BSIP acts as distribution channel for Blue Sky products in private equity investments, property development and property ownership. BSIP partners with key industry players to achieve its objectives.
BSIP also focuses on identifying Australian businesses with expansion potential to South Africa and facilitates such transactions through capital raising and sourcing appropriate partners in relevant markets. |
