by Mitchell Sneddon via www.eurekareport.com.au
Summary: David Kirk’s Bailador Technology Investments looks for early stage unlisted technology operations with established business models and proven track records. The LIC enters these businesses as a convertible preference shareholder, giving some downside protection. The LIC is currently trading at a 13 per cent discount to NTA, but has closed that gap significantly and has the potential to close it further in near future.
Key take-out: At the market open on Tuesday April 11, we will take a five per cent stake in Bailador Technology Investments (BTI).
Category: Listed Investment Companies
Since the last time I sat down with Bailador Technology Investments (BTI) chief executive David Kirk, the IT focused private equity investment company has been on my mind. It appears Kirk and company are getting it right and they are trading at an attractive long term entry point – this is why BTI is coming into the model portfolio at a 5 per cent weighting.
What boxes does BTI tick?
If you think back to my management checklist article (you can read it here: LIC managers: Finding your perfect match, February 29, 2016), the above list covers close to every point.
Bailador joined a party of 32 VCs from Australia and Shanghai travelling to hear pitches from exciting New Zealand start ups.
Nine top venture capitalists saw the tables turned when they had to pitch to start ups at a lighthearted event organised by the Office of the Queensland Chief Entrepreneur.
Bailador's Managing Partner, David Kirk, sits down with Tom Piotrowski of CommSec.