The Opportunity

Small listed companies are overlooked: Co-Investor operates in a space which is often overlooked by traditional fund managers. There are around 2,000 ASX and NZX-listed companies capitalised at less than A$200 million. More than ever since the downturn of 2008-9, these companies have found it difficult to gain the attention of traditional fund managers, brokers and investment bankers.

Capital is scarce for small caps: these companies are nearly invisible, receiving much less attention from the leading investment banks, and can experience great difficulty in raising capital. Even though these companies comply with the governance disciplines of the listed company environment, in truth many need the financing, strategic and deal-making skills of a private equity firm or investment bank.

Small caps can deliver high returns: if played correctly this market can deliver attractive returns to investors due to cyclical capital shortages and illiquidity, and the lack of competition to invest. It's worth noting that it takes considerable skill and patience to exit large positions in small caps profitably.

That's where we come in.

Track Record

Strong risk management and returns since inception: Co-Investor has delivered strong returns to its investors since launching its first investment funds in September 2005. The Co-Investor No. 1 and 2 Funds invested in five companies, selling two in 2007 and 2008. These two exits achieved high rates of return (ungeared pre tax and profit share IRRs of 50.4% and 85.0%) and returned our investors' capital during the sub-prime crisis of 2007-2008, delivering them a carried interest in a portfolio of three companies.