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BLA, BLUE SKY ALTERNATIVE INVESTMENTS LIMITED
nipper
post Posted: Dec 1 2016, 11:53 AM
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BLA is holding its annual investor briefing in Brisbane this morning, providing an update on its portfolio of businesses and its outlook.

QUOTE
Blue Sky, part venture capital fund, part private equity and real estate investor, has delivered rapid growth, with assets under management rising from $200 million to $2.4 billion in four years. [The briefing] could prove a colourful ­affair — Blue Sky has assembled a high-powered panel including Harvard University entrepreneurship head Josh Lerner and former Young Australian of the Year Jessica Watson.

But underneath Blue Sky's success — its share price has risen 174 per cent from $2.78 at the start of last year to $7.62 — is a more complicated landscape of un­evenly performing investments — some flourishing, others sluggish, others, such as Shoes of Prey, much worse.
- and so it is (colourful) - down about 6% as the day progresses. Some vultures are gathering:
QUOTE
....A copy of Blue Sky's most recent accounts, annotated by a hedge fund that does not have a position against the company, and reviewed by The Australian, show concerns about how the fund manager values assets, particularly as performance fees are often based on rising valuations.

Short-selling has increased from negligible in March to about 3 per cent of Blue Sky's shares last week. Red flags pointed to by short-sellers include the one-year increase in receivables from $15.6m to $54.4m, likely performance and management fees from funds yet to be paid......

In August, Ord Minnett's Nicholas McGarrigle downgraded Blue Sky to hold, noting that while it was "well positioned in the growing Australian alternative investment sector" he found "limited valuation headroom".

"We run 60 assets — you show me a stockbroker or a fund ­manager who gets 60 out of 60 calls right and I'll show you a liar," CEO Rob Shand said..

{oh well, the 10 Bag tag is elusive}



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time."
- Dr John Hussman

“If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions.” ― Michel de Montaigne
 
nipper
post Posted: Nov 18 2016, 08:37 AM
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In Reply To: nipper's post @ Oct 13 2016, 09:11 AM

Our business grew at approximately 50% in FY16
• Underlying NPAT: Up 57% from $10.4 million to $16.3 million
• Fee-earning AUM: Up 56% from $1.35 billion to $2.1 billion at 30 June 2016
• Underlying revenue: Up 44% from $43.6 million to $62.8 million
• EBITDA margin: Grew from 35.5% in FY15 to 39.0% in FY16 (and moving towards 50% as business scales)
• AUM to NPAT conversion: Conversion of ~1.0% of average fee-earning AUM to NPAT expected to continue
• Cash flow conversion: Improved from 59% in FY15 to 71% in FY16 as our business matures

Investment returns over 10 years are 16.7% p.a. net of fees
• Realised 29 investments since inception, with our realised track record superior to our overall track record
• Comprehensive review of returns since inception undertaken by Ernst & Young at the end of FY16
• Our track record is a key source of competitive advantage and is difficult to replicate

Fee-earning AUM grew to $2.4 billion at the end of Q1 FY17 (up from $2.1 billion at 30 June 2016)
• Fee-earning AUM to exceed $3 billion by the end of FY17
• Targeting $5 billion in fee-earning AUM by end of FY19and $10 billion shortly thereafter

AUM from all investor segments has grown
• Institutional investors: Have attracted capital from 10 institutions (both domestic and offshore)
• Wholesale/sophisticated investors: This network remains our core and continues to grow rapidly
• Retail investors: Excess demand for recent BAF raise reflects strong demand for alternatives from retail investors

FY17 earnings guidance: anticipate underlying FY17 NPAT of $24-26 million



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time."
- Dr John Hussman

“If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions.” ― Michel de Montaigne

Said 'Thanks' for this post: mullokintyre  
 
nipper
post Posted: Oct 13 2016, 09:11 AM
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In Reply To: nipper's post @ Oct 3 2016, 01:11 PM

Only if you're interested, BLA presentation out is worth a look to see a pathway for part of the allocated investment dollar.


Returns, returns, returns: Continue to deliver great returns (and access to Alternatives) to all investors
• Continue to lead the Alternatives market in Australia: Cement our position as Australia’s leading diversified alternative asset manager
• Growth to $10b+ in AUM (would still represent <2% of the Alternatives market)
• Trusted partner to Tier 1 institutions: Will expand partnerships with institutional investors, while always retaining diverse sources of capital
• International expansion: Spearheaded by North American business (incl. Cove), may move into other geographies selectively (esp. with a distribution focus)
• Asset class expansion: May expand into other Alternatives classes (but won’t go outside Alternatives)



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time."
- Dr John Hussman

“If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions.” ― Michel de Montaigne
 
nipper
post Posted: Oct 3 2016, 01:11 PM
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Thanks: 1081




Blue Sky share price since IPO @ $1.00 and the emergence of shorting activity



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time."
- Dr John Hussman

“If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions.” ― Michel de Montaigne
 
nipper
post Posted: Aug 20 2016, 12:15 PM
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In Reply To: nipper's post @ Aug 19 2016, 10:28 AM

QUOTE
Mark Sowerby is stepping down from the Blue Sky Alternative Investments business he founded in 2006 to focus on his family and charitable works after the company posted a record net profit of $10.5 million. Robert Shand, a former Bain & Co consultant who joined the business in 2010 and has been chief operating officer since 2013, will take over from September 30.

Mr Sowerby, 45, built the Brisbane-based business from start-up to Australia's only listed funds manager focused on alternative assets, with $2.1bn of funds focused on private equity, real estate, infrastructure and other real assets, up from $1.35bn a year earlier.

Yesterday he paid credit to Mr Shand for the result, noting that for the past two years he has been pulling back from running the business to focus on building its presence in New York and train for a famous swim across the English Channel last year. "I haven't been running the business day to day for the past 18 months and I have to say it has been doing remarkably well without me,'' Mr Sowerby said.

Investors were shocked, however, marking the shares down 10 per cent after they briefly touched a record high of $8.99 at the open.

Shaw and Partners analyst Martin Crabb said Mr Sowerby had been the face of the business since it was founded, in a similar way to Platinum founder Kerr &shy;Nielson, and it would take investors time to accept his departure.

"Those investors who put in for the $67 million raising in May probably got a bit of a surprise,'' Mr Crabb said. "But the company has got pretty good bench strength.''

Mr Shand, who spent his early career consulting to the private equity industry on deals in London, Tokyo, Sydney and Johannesburg, said Blue Sky was still "undeniably a fast-growing company" and ready to deploy $62m in cash on the balance sheet for co-investments to facilitate deals for its funds.

Fee-earning funds under management rose 55 per cent to $2.1bn — hitting the milestone a year ahead of a prediction made in 2012 when the company floated — and the illiquid nature of 88 per cent of those funds provided a guaranteed revenue stream for the company.

Total income rose 44 per cent to $62.8m. Performance fees more than doubled from $8.8m to $18.7m, with Mr Crabb predicting the results would become less lumpy as the company continued to grow.

Investors were shocked, however .... especially the buyer of the line of 50,000 that went on after 3pm on Thursday, at $8.69. One could say Caveat emptor, but there is a lingering odour, with the news being announced at 9.50am next morning



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time."
- Dr John Hussman

“If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions.” ― Michel de Montaigne
 
nipper
post Posted: Aug 19 2016, 10:28 AM
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In Reply To: nipper's post @ Aug 19 2016, 09:51 AM

and then the founder and CEO goes and resigns
QUOTE
Whilst Mark Sowerby, as founder and the initial visionary of the business, has driven much of the early strategy and growth of the business, it is the Blue Sky team, and in particular our leadership team or 'Partners Group', which has driven growth over the last three years
market doesn't like it



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time."
- Dr John Hussman

“If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions.” ― Michel de Montaigne
 


nipper
post Posted: Aug 19 2016, 09:51 AM
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Posts: 2,841
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QUOTE
Blue Sky Alternative Investments Limited (ASX: BLA) announced its results for the year ending 30 June 2016, reporting an underlying Net Profit After Tax of $16.3 million (up 57 per cent from $10.4 million in FY15) and a 44 per cent increase in revenue to $63.0 million (up from $43.6 million).

Fee earning Assets Under Management (AUM) at 30 June 2016 grew to $2.1 billion, up from $1.35 billion at 30 June 2015. As expected, a number of investments in private equity and private real estate were successfully exited throughout the year.
Since inception in July 2006, Blue Sky has generated an internal rate of return across its funds of 16.7 per cent per annum net of fees to the end of June 2016.

Managing director Mark Sowerby said the combination of a ten-year investment track record across the four major alternative asset classes, increased investor engagement across retail, wholesale and institutional clients, and continued strong deal flow would lead to further growth in fee earning AUM in FY17 and beyond.

"Reaching $2 billion in AUM this year was an important milestone for us as a business. The fact that most of this is invested in illiquid funds differentiates us from other local fund managers and provides an incredibly solid foundation for our future growth," Mr Sowerby said. "The Australian funds management industry has $2.6 trillion in funds under management today and this is anticipated to grow to $4.1 trillion over the next five years. By 2021, alternative assets are expected to be the largest investment class in Australia."

Blue Sky is Australia's only listed fund manager focused on a range of diversified alternative investments, including private equity and venture capital, real assets (primarily water and agriculture), private real estate and hedge funds.
The company will pay a fully franked dividend of 16 cents per share to shareholders (record date: 2 September 2016; payment date: 16 September 2016).

and this:
QUOTE
In the year we joined the ASX (2012) there were approximately 100 listings; of those companies, Blue Sky has the highest Total Shareholder Return (TSR) of more than 788%. Of the top 300 companies on the ASX, we have delivered the fourth highest TSR over this period behind Magellan, Dominoes and Syrah Resources.
I could also put this in fast growing small caps thread, but there needs to be a quantum leap in activity for next stage. while AUM grew from $1.35 to $2.1 Bill, note that Macquarie grew AUM by $54bill last year!!



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time."
- Dr John Hussman

“If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions.” ― Michel de Montaigne
 
nipper
post Posted: Jun 6 2016, 09:54 AM
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Retail Entitlement Offer closes with greater than 86% take up.

Retail Entitlement Offer fully underwritten by Ord Minnett Limited and Morgans Corporate .

Placement and Entitlement Offer raised a total of $66.8 million @ $6.50 (......SP now $8.20)



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time."
- Dr John Hussman

“If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions.” ― Michel de Montaigne
 
nipper
post Posted: May 11 2016, 08:54 AM
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Posts: 2,841
Thanks: 1081


should see some of the Blue Sky Agricultural Fund 3 end up in BAF Blue Sky Alternative Access Fund - a LIC



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time."
- Dr John Hussman

“If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions.” ― Michel de Montaigne
 
nipper
post Posted: May 11 2016, 08:54 AM
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Posts: 2,841
Thanks: 1081


QUOTE
Blue Sky Alternative Investments is poised to announce a placement and rights issue as early as Wednesday.

This column understands the raising will be between $65 million and $70 million
Street Talk

probably going to deploy funds to this and other endeavours
QUOTE
Organic processor Kialla Pure Foods' $12m fund link-up
  • The Australian
Innovative Toowoomba organic grain and flour processor Kialla Pure Foods has been part-sold to a private fund owned by listed Australian investment company Blue Sky Alternative Investments.

The Blue Sky Agricultural Fund 3 bought 30 per cent of family-owned Kialla Foods, started from scratch by Quentin and Michelle Kennedy in 2005. The private equity partnership deal is valued at $12 million.

The capital injection will fund doubling Kialla's specialist organic flour processing facilities at Toowoomba and the purchase of a new 800ha irrigated grain farm near Theodore, west of Bundaberg on the Dawson Valley irrigation scheme.

The new grain property, to be converted over the next three years to organic crop production, will be 80 per cent-owned by Blue Sky and 20 per cent by Kialla Pure Foods and its animal-feeding offshoot, Aus Organic Feeds. The farming operation will supply Kialla's Greenmount mill with about 25 per cent of its organic wheat, sorghum, maize, chickpeas, canola, chia and other unusual grains, as sourcing organic crops becomes more difficult and expensive.

The partnership between Blue Sky and Kialla marks the trend among many small food-processing businesses, to expand using outside capital, enabling them to lock in closed supply chains and improve export focus.

Mr Kennedy, who will remain as managing director and majority owner of Kialla, said it was exciting to contemplate both rapid expansion and a move up the supply chain to part-owning a large organic grain farm.

"It has become harder and harder to access enough organic grain; there is a real shortage of it and it has been holding us back," Mr Kennedy said. "This way we get surety of supply and capital for expansion to go the next step."

In the past year, a shortage of organic grains has caused skyrocketing farmgate prices, as urban bakers and millers move into specialised breads and flours. Scarce organic wheat was selling for more than $700 a tonne, nearly triple the price of conventional wheat, while organic sorghum was earning $500 a tonne.

More farmers are looking to move into organic grain production, as demand soars from organic producers of beef, milk, pork and egg needing to feed their livestock, as well as from the organic bread industry. But it takes three years of formal accreditation to convert a property where chemicals were previously used into an organic certified farm; a cost many farmers cannot afford.

Blue Sky Investments investment director Michael Blakeney said a key reason for investing in Kialla was soaring demand for organic-accredited and branded produce from Australia. "We also see that in producing these speciality agricultural products there is an opportunity to better integrate and close the supply chain; our investment hopefully will be able to supercharge Kialla and take it to the next level," he said.




--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time."
- Dr John Hussman

“If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions.” ― Michel de Montaigne
 
 


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