Find out why investing in the technology sector through Bailador Technology Investments is likely to achieve consistent investment returns and how the fund reduces your risk exposure.
We are all familiar with just how large technology companies such as Apple, Google and Facebook can become. Technology companies can scale quite quickly, with many +$10 billion companies less than 10 years old. Valuations reflect that rapid growth and overall size potential.
Overall technology sector returns have been strong, with popular indices (e.g. NASDAQ Internet and NASDAQ 100 Technology) generating per-annum double-digit returns for the past 4 years.
The foundation for technology sector development is solid macro drivers:
These drivers create new markets, services and business opportunities enabled by technology, with new companies thriving on innovation and disruption of traditional industry structures.
BTI also provides immediate exposure to an established portfolio, with companies at various points in their life cycles, all with material upside prospects.
Bailador is well positioned to delivery strong returns by continuing to execute on its existing investment approach using established risk management techniques.
Sector Expertise: Bailador leverages its reputation, relationships and track record to generate high quality deal flow.
Expansion Stage: We believe Expansion Stage is the appropriate intersection of risk and reward. The underlying technology of the company is de-risked, revenue generation is in the ballpark of $2-10M, management have proven execution capability, and there’s a clearly identified growth opportunity.
Deal Structure: Bailador typical invests to give BTI exposure to the full equity upside along with substantial downside protection (as long as the business is sold for at least the principal amount, BTI will be the first to get its money out). Bailador also has access to all information and veto rights on important decisions.
Diversification: A portfolio of investments diversifies risk. BTI's portfolio has been selected from hundreds of investment opportunities identified and reviewed.
Asset Class: unprecedented access to Expansion Stage investing for retail investors. With BTI listing on the ASX, investors now have access to and asset class that was previously only accessible to High Net Worth Individuals (with minimum equity commitments of $500K and lock-up periods of 5-7 years), Silicon Valley investors and private equity funds.
Global Growth: All companies in BTI’s portfolio were founded in either Australia or New Zealand, though have leveraged their business model and expanded internationally. Nearly all of our companies are positioned in large, high growth, global markets, generating more than 50% of their revenues from outside Australasia.
Protections: the capital structure and contractual protections detailed below are protections that are unavailable to retail investors in public companies.
BTI is run by an experienced, specialist expansion capital, manager with a strong track record and extensive relationships within the technology sector.
Bailador has the sector expertise and breadth of exposure to make informed investment decisions, employing proven investment criteria.
As at 30 June 2015, gross portfolio investment returns generated since inception (pre tax and fees) were 22.7%.