Australis Investment Management Company (Australis) may take equity stakes in some fund managers as part of the customised business model offered. The main idea of Australis is to partner with early-stage boutique fund managers to help them launch and operate, potentially providing support in exchange for a minority equity stake. This equity stake is a way for Australis to participate in the success of the product and align their interests with the manager.
Some key points are detailed below:
Australis's Role:
Australis acts as an incubator for wholesale boutique fund managers, offering support in areas like operations, compliance, training, Board / investment committee participation.
Equity Stake:
Whether it is in exchange for services or a direct investment, Australis may also take a minority equity stake in a new fund manager if deemed appropriate by the Investment Committee. This requires a shareholder agreement with Australis and the client in addition to the Certified Authorised Representative (CAR) agreement that would already be in place.
Alignment of Interests:
This equity stake is designed to align the interests of Australis with the success of the fund manager, as both parties benefit from strong investment performance and growth in funds under management.
Alternative to Equity:
While equity stakes are possible, Australis may also use revenue-sharing or staggered cost agreements as an alternative way to participate in the fund's success.