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IPO Wealth offers attractive returns as investors seek cash alternative

The company’s fund gives investors access to 3.25-6.45% returns over set terms.
The fund has doubled the capital it has raised to $100 million since September
BigPicture
The fund has doubled the capital it has raised to $100 million since September

What does IPO Wealth do?

IPO Wealth Pty Ltd is the investment manager of the IPO Wealth Fund, an Australian company and fund established on behalf of IPO Wealth’s parent company, international investment and corporate advisory group Mayfair 101.

The subsidiary investment outfit is run by chief executive Ewan Laughlin and Mayfair 101 group founder and managing director James Mawhinney, an IPO Wealth director.

Mawhinney is an investment finance professional who has more than 18 years' executive leadership at digital, online and investment companies. He founded Mayfair 101 a decade ago and serves as a director for its various subsidiaries, IPO Wealth, the London-based investment manager M12 Global and TPLC, the Public Listing Co. Mawhinney has worked on merger and acquisition and investment transactions worth more than US$2 billion over the past 5 years, ensuring return for investors.

IPO Wealth CEO Laughlin joined the subsidiary in January 2019 and has more than 28 years of experience in financial services sectors such as institutional banking and corporate finance. He spent the past 10 years with Commonwealth Bank of Australia (ASX:CBA), implementing more than $1 billion in financing solutions, after overseeing significant transactions with ASX 200 companies at National Australia Bank Ltd (ASX:NAB).

What does IPO Wealth own?

Two-year-old company IPO Wealth’s key asset is the IPO Wealth Fund which has attracted $100 million of capital during its short lifetime.

The managed investment scheme offers Australian wholesale and sophisticated investors the opportunity to access investment opportunities during set investment periods such as three months or five years.

Depending on which of six term-based investments an investor chooses, targeted returns are about 3.25% to 6.45% a year.

Distributions are reinvested or paid monthly.

Self-managed super funds, companies, trusts and individuals can take part if they invest at least $100,000.

IPO Wealth’s fund has grown steadily as investors frustrated with banks, low interest rates and poor property investment returns look for alternative investment vehicles.

In about 6.5 months, the capital raised by the IPO fund has grown by $50 million, or 100%, from $50 million in September 2018 to $100 million by last Wednesday.

Mayfair 101 employs a diversified investment strategy, spanning its investments over 11 countries, 10 sectors and five currencies.

The parent group targets its investments to late-stage companies with at least five years of successful operations and other companies looking to exit with trade sales or list on stock exchanges with an initial public offering.

Subsidiary M12 Global is planning a listing on the London Stock Exchange’s AIM market to provide investors in the UK with a similar bank-deposits alternative to IPO Wealth.

Mayfair 101 is expected to fill $3 billion of demand for credit in the market over five years with its retail bonds.

Inflection points

  • $125 million, $150 million and $200 million capital-raising milestones

  • Significant investments and transactions related to IPO Wealth’s portfolio

  • Continued growth and evolution of the company, its business model, strategy execution and senior management team

  • Listings, mergers and acquisitions, and significant transactions for the wider Mayfair 101 group

Director James Mawhinney highlights strong results

“Receiving $100 million of new investment in two short years shows that investors are increasingly seeking income-producing cash alternatives in the face of low interest rates and Australian stock and property market volatility,” IPO Wealth director and Mayfair 101 managing director James Mawhinney said.

“IPO Wealth is particularly attractive to those seeking higher rates of return and the ability to earn monthly cash payments.

“(Mayfair 101’s) assets enable IPO Wealth to offer rates of return that have consistently outperformed term deposits since inception and provide investors an asset class that keeps up with changing times and is well clear of the turmoil being experienced by the Australian economy.

“An increasing number of investors are making the switch.”

 



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