River Capital Growth Fund
The River Capital Growth Fund makes strategic investments in small to medium sized Australian listed businesses and ‘best of breed’ international companies. We choose investments in sectors where River Capital has deep knowledge and proven expertise.
The Growth Fund’s objective is to meet investors’ requirements for capital preservation and superior investment returns over the medium to long-term.
We invest in businesses that are expected to generate pre-tax returns of at least 15 per cent per annum. The fund’s average return exceeds 20 per cent per annum after all fund expenses and prior to performance fees.
River Capital selects investment options after a rigorous assessment which requires that the following criteria are met:
- Transparent and properly scrutinised operating history
- Predictable earnings and cash flows
- Leading industry position with a sustainable competitive advantage
- A strong balance sheet with minimal reliance on financial engineering
- An expected annual pre-tax return to us of at least 15 per cent through a combination of dividends and capital growth
- A management team that is willing to engage with us as owners
- A history of returning a material proportion of free cash flows to shareholders in the form of dividends
Our focus on capital preservation means we can hold discretionary cash (and cash equivalent) reserves. Our approach enables us to position with an appropriate margin of safety to outperform traditional equity funds with reduced levels of risk and volatility.
Please contact us to discuss the River Capital Growth Fund and its relevance to your investment profile.