The Exchange by EWL Private Wealth
May 12 2023
Brendan Lyons: Investing Patient Capital in Times of Illiquidity
Following a dramatic change in central bank rhetoric in 2022, and one of fastest shiftsin interest rate policy in history – small, high growth, and emerging businesses saw their valuation reset.
Now, enter 2023, a market with much higher costs of capital, much scarcer liquidity, and generally cautious investor sentiment. Should investors be considering investment in these businesses?
While seemingly uncomfortable, the best private market vintages usually favour conditions like those experienced in 2022 and now 2023.
In this episode, I speak to Brendon Lyons, Head of Private Investments and Portfolio Manager of the Perennial Private Investments team. The Perennial team manages approximately $7.4B across Australian public and private markets.They have an experienced team of 66 professionals, with 16 of those sitting across private markets and listed small and micro caps. Within our industry, Perennial is renowned for its expertise across small and micro-cap investing and with the number of high growth businesses choosing to stay private forlonger, it was natural for Perennial to move into this market.
We talk to how the macroeconomic environment has changed over the last 12-18 months, particularly with regards to lower levels of liquidity, as the cost and availability of capital becomes more expensive and scarcer, and creating opportunities in high growth, smaller and emerging businesses. The Perennial team are arguably the pioneers of Australian private to public investing, helping to professionalise and prepare private businesses for an eventual public listing and to ensure they are as ‘market ready’ as possible. Brendon highlights how the number of companies they are seeing has grown from around 300 to now 900 annually, how the types of businesses they invest in are either profitable, or at break even, and how a decades long track record has enabled the Perennial brand to attract some of the best founders, and structure deals that many others can’t.
Important disclaimer
Emanuel Whybourne & Loehr Pty Ltd (ACN 643 542 590) is a Corporate Authorised Representative of EWL PRIVATE WEALTH PTY LTD (ABN: 92 657 938 102/AFS Licence 540185).Unless expressly stated otherwise, any advice included in this email is general advice only and has been prepared without considering your investment objectives or financial situation.
There has been an increase in the number and sophistication of criminal cyber fraud attempts. Please telephone your contact person at our office (on a separately verified number) if you are concerned about the authenticity of any communication you receive from us. It is especially important that you do so to verify details recorded in any electronic communication (text or email) from us requesting that you pay, transfer or deposit money, including changes to bank account details. We will never contact you by electronic communication alone to tell you of a change to your payment details.
This email transmission including any attachments is only intended for the addressees and may contain confidential information. We do not represent or warrant that the integrity of this email transmission has been maintained. If you have received this email transmission in error, please immediately advise the sender by return email and then delete the email transmission and any copies of it from your system. Our privacy policy sets out how we handle personal information and can be obtained from our website.
The information in this podcast series is for general financial educational purposes only, should not be considered financial advice and is only intended for wholesale clients. That means the information does not consider your objectives, financial situation or needs. You should consider if the information is appropriate for you and your needs. You should always consult your trusted licensed professional adviser before making any investment decision.
Emanuel Whybourne & Loehr Pty Ltd (ACN 643 542 590) is a Corporate Authorised Representative of EWL PRIVATE WEALTH PTY LTD (ABN: 92 657 938 102/AFS Licence 540185).Unless expressly stated otherwise, any advice included in this email is general advice only and has been prepared without considering your investment objectives or financial situation.
There has been an increase in the number and sophistication of criminal cyber fraud attempts. Please telephone your contact person at our office (on a separately verified number) if you are concerned about the authenticity of any communication you receive from us. It is especially important that you do so to verify details recorded in any electronic communication (text or email) from us requesting that you pay, transfer or deposit money, including changes to bank account details. We will never contact you by electronic communication alone to tell you of a change to your payment details.
This email transmission including any attachments is only intended for the addressees and may contain confidential information. We do not represent or warrant that the integrity of this email transmission has been maintained. If you have received this email transmission in error, please immediately advise the sender by return email and then delete the email transmission and any copies of it from your system. Our privacy policy sets out how we handle personal information and can be obtained from our website.
Catch-up on all our latest
Insights
US Trip: learning from those who drive the largest market in the world.
Our partner Ryan outlines his recent trip to New York and some of the most valuables takeaways.
Podcast
Susanne Bransgrove (Founder Liquid Gold Consultants) - Family Business Succession, The Discussion You NEED To Have Now
In today’s episode Managing partner Tim Whybourne caught up with the founder of Liquid Gold consultants, Susanne Bransgrove
Podcast
Antonia Ruffell: What does the Australian Philanthropic sector look like and who should think about setting up a Private Ancillary Fund (PAF)
This week on The Exchange Podcast we had the pleasure of hosting Antonia Ruffell, CEO of Start giving, a brand new...
NewsLetter
Subscribe to keep up to date with our market insights
Thankyou!
Oops! Something went wrong while submitting the form.
Free Download
Download our Semi-Annual Investment Outlook Report
Oops! Something went wrong while submitting the form.
