Arowana’s asset management business was initially established in 2007 with the launch of its inaugural fund, the Arowana Capital Australasian MicroCap PE Fund 1 (AMPEF 1). This inaugural fund was one of only a minority of 2007 vintage funds globally that were able to successfully navigate the global financial crisis (GFC) and deliver a top quartile return. Following the successful realisation of this fund in June 2013, Arowana proceeded to formalise the establishment of a specialist asset management business. Between July 2014 and December 2014, it launched two new funds, being the Arowana Australasian Special Situations Fund (AASSF 1) and the Arowana Australasian Value Opportunities Fund (AAVOF), which is now publicly listed and known as the Arowana Contrarian Value Fund (ACVF).
As a Certified B Corporation, the asset management business is committed to operating and investing in accordance with the B Corp principles and fundamentally believes that sustainable investing is not mutually exclusive with superior returns.
Fund I: Arowana Capital MicroCap PE Fund 1 (AMPEF 1)
Launched in 2007, AMPEF I was established to provide succession capital to SME companies in Australia, New Zealand and South East Asia. Within 2 months of first close in June 2007, the Arowana general partnership started to get very concerned about the world financial and economic outlook following the collapse of two Bear Stearns funds in the United States in July 2007. Furthermore, it was concerned about some of the prices being paid for SME businesses in Australia and the limited due diligence that was being conducted by its peers. As a result, the Arowana general partnership decided to hold off on any investments. It did not start deploying the majority of its committed capital until after the Lehman Brothers collapse in September 2008. This decision helped underpin the strong investment results of this fund, which was realised in full in June 2013.
Fund II: Arowana Australasian Special Situations Fund (AASSF)
Established in 2014, the AASSF is an unlisted wholesale fund. The fund is currently in harvest and therefore closed to new investments. It was established to enable investors to take advantage of significant opportunities providing alternative funding to SME and growth enterprises that are unable to obtain conventional financing. These investments can be structured to limit downside, deliver favourable risk asymmetry and achieve IRRs in excess of 20% (incorporating annualised yields in excess of 8%). The AASSF vehicle invested in non-controlling stakes in SME and growth companies with business interests in Australia, New Zealand and Asia that require investment capital for growth and/or a special situation but are unable to secure it from conventional sources. It does so by investing through structured securities that typically have both debt and equity features.
Fund III: Australian Special Income Opportunities Fund (ASIOF)
Launched in 2018, the ASIOF wholesale trust was established to fund an increasing unmet debt financing need amongst Australian SME and growth companies and to provide our co-investors with an opportunity to be part of the solution and earn an attractive income based yield and capital return.
For more information please contact us directly.
Arowana Contrarian Value Fund (Listed Investment Company)
Launched in December 2014, the Arowana Contrarian Value Fund Limited (“Arowana CVF”) is an ASX listed investment company (LIC) (ASX ticker CVF) managing a portfolio of of publicly listed Australian and International listed securities.
ACVF’s primary investment objective is to generate superior absolute returns over the medium to long term, provide shareholders a rising stream of dividends, and grow Net Tangible Assets per share.
Please visit Arowana CVF for the latest figures.