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River Capital

INVESTOR ORIENTED
COMMERCIALLY ASTUTE
COMMUNITY MINDED

Welcome to River Capital. We are an investment firm with an uncompromising commitment to investor and community success.

“We are a community of independent investors with an uncompromising commitment to investor and community success.”

Our Story

With an unconstrained focus, we have a track record of delivering long term exceptional investment returns across both listed and private, equity and debt markets.

Barry and Suzi Carp established River Capital in 1996 with the objective of finding great investment opportunities that would create value for those close – their family, friends, and colleagues. This small group of value aligned investors has grown since our inception, but one thing that remains unchanged is our commitment to and recognition of the power of compounding, and its ability to create wealth over the long term for all.

Throughout our 28-year journey we have used market dislocations to broaden our scope, capitalising on a range of opportunities from domestic bonds (following the Global Financial Crisis), to a series of bespoke public and private equity and debt deals with varying capital growth and income objectives.

Our decades of experience identifying opportunities globally, across public and private, and equity and debt markets gives us a unique perspective on investing. The companies that we invest in value our long-term wealth creation mindset and the deep expertise that exists in the broader River community. Our broad mandate also allows us to offer investee companies flexible solutions across the capital structure.

A strong alignment of interest exists between our team & our investors, with significant co-investment in our Funds by Shareholders, Board Members and Executives. Current funds under management are approximately $1 billion, with around a quarter of that owned by our families, staff, and our closest associates.

At the heart of River Capital is community. Our relationship with the more than 600 family and friends that have invested alongside us is one of the cornerstones of our success. We pride ourselves on our focus and commitment to always placing our investors’ interests first.

We genuinely respect the financial capital of our investors and accept with humility the responsibility of its investment.

Our Offerings

Founders Fund

The Founders Fund is led by River Capital Founder, Barry Carp. The Fund brings 25 years of expertise and judgement of companies and their businesses to a concentrated exposure of 15-20 listed equity opportunities.

The equities selection is focussed in two key areas:

– Strong management led growth equities in sectors that we are intimately familiar with and where we are confident that we can deliver at least 2 times our investment over a five-year period.

– Special situations emerging from market turmoil where current purchase prices are materially lower than our view of asset value and will provide 15% per annum rates of return as that discount reduces.

The suggested investment time frame for this Fund is 5 years with distributions made annually. Fees will comprise a performance charge of 15% of all profits with 1% of this pre-paid each year. The minimum investment will be $250,000.

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dividend plus fund

The Dividend Plus Fund is led by long-term River Capital Board Member, Jim Craig.

Jim’s experience, including as Chair of the Australian Super Investment Committee and Macquarie Corporate advisers, provides the River Capital team with valuable investment skills and opportunities.

The Fund was initially created by Jim as an income focussed portfolio for his family and friends. The Dividend Plus Fund comprises relatively stable, defensive cash flow stocks and targets an 8-12% per annum return including dividends exceeding 3.5% and capital growth of 5-7%.

Investments in this concentrated portfolio of 8-15 stocks are likely to exhibit one or more of the following characteristics:

– relatively stable and defensive cash flow profile

– a demonstrated ability to earn excess returns on its investment capital

– a demonstrated discipline with respect to internal capital allocation – are trading at a significant discount to its assessed inherent value

– an asymmetrical payoff profile – i.e. strong potential upside with limited / quantifiable downside.

The suggested investment time frame for this Fund is 5-7 years with distributions made semi-annually. Fees will comprise a performance charge of 15% of all profits with 1% of this pre-paid each year. The minimum investment will be $250,000.

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strategic investments

Strategic Investments refers to River Capital’s unlisted investment platform. Led by Josh Ludski and Jim Craig, the team continues to build on our successful track record of 15+ private markets deals.

Our mandate is simple, we leverage the expertise and networks we have built over 25 years to take material stakes in great Australian businesses, alongside exceptional people we know, in areas we have studied deeply, and where we have an ability to influence outcomes for our investors. We only pursue opportunities we are genuinely excited about with River Capital management and staff being the largest investors in each Strategic Investment (20%+ of capital raised).

Each investment is made on a deal by deal basis. We regard access to these deals as a key benefit of participation in our Founders and Dividend Plus Funds.

Many of the businesses we partner with are underpinned by strong and growing cash flows. The size of investments typically range from $20-100m and the holding period is flexible. The structure of our investment is tailored towards the needs of each company and its shareholders, and can take the form of equity, debt, or a structured solution in between. We leverage our networks to bring operational expertise to assist in value creation, we are more than just capital.

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