TIP Financial Services Opportunities Fund
Targeting >20% IRR returns by investing in the most promising wealth management and funds management boutiques, led by the next generation.
Investment Highlights
Research by the Productivity Commission highlights the $3.5 trillion intergenerational wealth transfer by 2050 of property, unspent super and other investment assets bequeathed to family beneficiaries.
Indicating growth in excess of $50 billion for the wealth management sector across advice, investment administration and management.
TIP Financial Services Opportunities Fund aims to leverage our existing set of curated assets to micro-target the most attractive investment sectors benefiting from these dynamics, while delivering income, capital growth and portfolio diversification benefits.
- SMEs in wealth advisory, funds management and financial services infrastructure
- Invest to empower younger talent to buy-out retiring owners or establish own boutique
- Debt-led investment structure to preserve the independence, culture and control of the portfolio assets
- Resources and infrastructure made available on an opt-in basis for value add
Strong conviction in investment strategy and alignment to investor interests with $5m seeded by TIP.
| Target Fund Size | $35m (including $5m seeded by TIP) |
| Target Return | >20% p.a. IRR over the Fund life (via distributions and and capital growth) |
| Eligible Investors | Sophisticated or wholesale investors |
| Fund Term | Target a return of 6-8 years to allow recycling of capital |
| Fees | 2% p.a. (plus GST) Management Fee and 20% Performance fee (subject to 8% IRR return hurdle) |
Disciplined approach to the identification of opportunities, taking advantage of TIP’s ecosystem, relationships within the financial services industry, and strategic investments and partnerships to access high quality investment opportunities.
Deal sourcing strategy combines proprietary channels and external networks to ensure a comprehensive view of the market and access to a range of potential investments.
Key investment criteria include:
- SME financial services businesses that are profitable or with a clear and executable near-term path to profitability
- Debt led investment approach with a focus on downside protection
- Scope for value add
- Multiple investment exit options available
- Potential arbitrage opportunity
Due diligence process typically spans six to eight weeks and serves as the basis for investment decisions. Thorough assessment of the proposed investment will be conducted, including key people, business model, financial
performance, growth prospects, key risks, and potential synergies and partnership opportunities for the TIP ecosystem.
The role of the Investment Committee is to review and approve investments and divestments by the Fund. The Investment Committee is chaired by Andrew Rutherford and complemented by other independent members.
- Andrew has over 15 years’ financial services experience, including more than 10 years’ CEO/Board experience
- Andrew co-founded TIP in 2012, and as CEO has led and been hands-on in building and growing the group into the ASX-listed, diversified investment house today
- Andrew has led all of TIP’s equity investments that collectively have delivered >2x MOIC return to date
- Prior to TIP, Andrew worked as an investment banker for Credit Suisse
- He is a co-author of ‘Relative Performance Incentives and Price Bubbles in Experimental Asset Markets’ published in the Southern Economic Journal and ‘Building a Wealth Winner by Transferring Knowledge’ available on Amazon
- Andrew holds a Bachelor of Economics with Joint First Class Honours in Economics and Finance from the University of Sydney
- Greg has over 15 years’ financial services experience including more than 10 years’ Board experience
- Greg has known Andrew for close to 10 years and been working with Andrew and TIP since 2022
- Prior to TIP, Greg spent over 15 years in private equity across fund, deal-by-deal and family office environments, including at Yorkway (founded by a former CEO of AMP), Principal Invest (family office of the co-founder of One Investment Group, which Greg led the private equity investment into) and Axle Equity Partners (deal-by-deal private equity firm that Greg co-founded and grew)
- Greg has had a leadership role in the investment of over $100 million in equity capital and realised a 2x MOIC return on investment to date
- Greg is a Chartered Accountant and holds a Bachelor of Commerce and an MBA both from the University of New South Wales/AGSM
- Dean is responsible for overseeing the financial strategy and operations of TIP, including sourcing, structuring and overseeing investments and general management
- Prior to joining TIP, Dean worked as a Director of Mergers and Acquisitions with KPMG. In this role, he led the growth and development of KPMG’s Greater Western Sydney team
- Dean holds a Master of Applied Finance from Macquarie University and a Senior Executive MBA from University of Melbourne
- Sanjee is responsible for managing TIP’s AFSL obligations, funds management operations and the distribution of TIP’s fund products
- Sanjee is also responsible for the operational oversight of TIP’s education business for self-directed investors
- Prior to joining TIP, Sanjee worked at State One Stockbroking, where he was the Chief Operating Officer and Executive Director
- Sanjee holds a Bachelor of Business from Western Sydney University
Click here to view our latest Newsletters.
TIP is investing $5 million of the $35 million target Fund size.
The Fund is seeded from inception with four assets. Additionally, we are actively evaluating several opportunities. One of which is currently in exclusivity and undergoing due diligence.
The Fund is targeting returns of >20% p.a. IRR net of fees over the Fund life via distributions and capital growth.
$100,000 for investors via Investment Markets.
The Fund is targeting a term of 7 years to allow recycling of capital.
Management fees of 2% p.a. (plus GST). Subject to achieving a minimum return for investors of 8% per annum compounded annually, performance fee of 20%.
The Fund is illiquid, however in certain situations, we will endeavour to help create liquidity for an investor by offering those units to other investors.
Statutory Statement
This offer of scheme interests is available to wholesale clients only. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
General Disclaimer
IMPORTANT STATEMENT ABOUT YOUR USE OF THIS SITE
Information on this site is intended for Australian users only.
This site is operated by Investment Markets (Aust) Pty Ltd. (ACN 634 057 248) (IMA, we, us and our), the holder of Australian Financial Services Licence (AFSL) no. 527875. The content is provided solely for information purposes, is not a recommendation or an offer to buy or sell a security, and is not warranted to be correct, complete or accurate. To the extent permitted by law, neither IMA, its affiliates, nor the content providers (such as the issuers of securities who appear on the site) are responsible for any investment decisions, damages or losses resulting from, or related to, the content, data and analyses or their use. The investment products on this site and any statements made about them by their issuers are not vetted, verified or researched by IMA. The presence of an investment product on this site should not be interpreted as an implied endorsement of it by IMA. Certain content provided may constitute a summary or extract of another document such as a Product Disclosure Statement. To the extent any content is general advice, it has been prepared by IMA. Any general advice has been provided without reference to your investment objectives, financial situations or needs. For more information refer to our Financial Services Guide. To obtain advice tailored to your situation, contact a financial advisor. You should consider the advice in light of these matters and, if applicable, the relevant Product Disclosure Statement (or other offer document) before making any decision to invest. Past performance does not necessarily indicate an investment product’s future performance. The content is current as at date of initial publication and may not be current as at your date of viewing. For a more complete understanding of all the terms and conditions of your use of this site click here.