Barwon Private Equity Tactical Opportunities
Barwon manages stand-alone mandates for institutional investors. We have managed the Private Equity Tactical Opportunities strategy since 2007, making over 30 investments in this time. The strategy targets listed and unlisted private equity opportunities globally. The strategy is deliberately “high conviction” and is typically invested in only 6 positions at any one time.
- Oakley Capital Investments (“OCI”) – is a London-listed investment company which invests in Oakley Capital managed private equity funds (‘OCPE funds’). OCPE funds had generated exceptional historical returns, however OCI returns had lagged these on account of questionable capital allocation decisions and historical governance lapses. After significant engagement with both management and the board, Barwon formed the view that these historical weaknesses were being addressed and that OCI returns would in the future more closely resemble those of OCPE funds. Barwon was able to secure a substantial stake in the company at a deep discount to NAV from a forced seller, and the investment has performed well to date.
- Dunedin Enterprise – is a London listed investment company which is principally a feeder into PE funds managed by Dunedin LLP, and is currently in run-off. Barwon was able to buy into the company at a substantial discount to NAV shortly after the run-off strategy was announced, with the expectation that the discount could be captured as assets were sold. The remaining portfolio has performed better than expected, and substantial capital has been returned to shareholders as assets have been sold. This investment is on track to have been very successful.
- Athene Holdings Inc – is a life insurance holding company focused on issuing and re-insuring fixed and equity indexed annuities. The company was formed in 2008 with backing of Apollo Global Management to take advantage of consolidation opportunities in the life insurance sector. On behalf of its clients, Barwon invested in a pre-IPO bridge funding round. The investment was very successful generating an IRR of 26%.
- MBI Inc – Barwon made a direct co-investment in MBI, a Chicago-based long-haul waste transport business with a co-investment partner Barwon has worked with on several occasions. This business was the last remaining asset held by the private equity fund manager and was acquired by Barwon on a very attractive 4x EBITDA multiple. The strategy played out as expected, and the investment delivered >3x multiple of invested capital and an IRR of >20%.
- Dinamia Capital – Barwon invested in this Global Financial Crisis-impacted Spanish listed small- to mid-market buyout fund at a substantial discount to NAV. Barwon then played a role in the subsequent restructuring of the Fund and ultimately exiting at a very attractive return. The investment yielded an IRR of over 30% p.a.
- JP Morgan Private Equity Limited This listed private equity vehicle was trading at a discount to NAV. To enable investors to capture this discount, Barwon led the creation of a new realisation share class which received the cash proceeds from any underlying private equity assets sales. To investment was exited after generating a 2x MOIC and IRR of 13%.