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Auctus diversified investment strategy targets growth markets
3 minute read
Auctus Alternative Investments Ltd (ASX:AVC) has signed a term sheet, subject to formal documentation, to establish RBP Partners as its US asset management business.
Auctus will directly own a 30% equity shareholding via the joint venture in partnership with an investment team based in New York.
The investment team has significant experience investing in North American infrastructure and specialty operating real estate platforms.
Specific sectors of focus include energy, transportation and communications infrastructure, as well as special purpose operational real estate.
The partnerships’ initial investment will be in a leading battery storage company focused on the development and acquisition of large-scale projects for utility customers in North America.
The business is an independent storage platform led by an experienced management team, with several contracted and operational projects in addition to a growing pipeline of opportunities.
Auctus will launch a US$25 million capital raising via a special purpose vehicle to fund its next stage of growth.
Energy storage is a highly fragmented industry that provides global growth opportunities.
Industry consulting group Navigant Consulting is forecasting the sector to grow to US$4 billion globally by 2022.
US$4.8 million raising for Unite Us Fund
Auctus has successfully closed an oversubscribed US$4.8 million raising for the Unite Us Fund.
Investors in Unite Us were a mix of professional, family office and institutional investors from both Australia and overseas.
Unite Us is a US healthcare technology platform experiencing exponential growth.
The group’s technology enables real-time co-ordination between healthcare and community services, in particular comprehensively tracking the Social Determinants of Health (SDOH).
Management said that Auctus had invested along-side Oak HC/FT, with participation from Town Hall Ventures and Define Ventures.
Existing investors Scout Ventures, Luminate (part of The Omidyar Group) and New York Ventures also participated in the round.
With Auctus on board as an investor, America’s largest non-profit integrated health system, Kaiser Permanente announced a partnership with Unite Us to launch a new transformative social health network.
Ventures provide diversification and earnings predictability
The Unite Us Fund will generate revenue to AVC through ongoing management fees along with the potential to earn future performance fees upon exit.
This is a significant development for the company as it provides both predictable and regular revenues.
From a broader perspective, these ventures bring diversification to the company while benefiting from the experience of prominent corporate groups such as RBP partners, and this was highlighted by managing director Campbell McComb in saying, “We are excited to be broadening our offshore investment capabilities sooner than internally modelled.
“This will complement our current joint venture partner, Scout Ventures of New York.
“Our team has spent considerable time with the senior executives at RBP Partners and find their experience, values and goals highly aligned with ours at Auctus.
“We look forward to introducing attractive opportunities to the domestic and offshore investment market via this new joint venture.”