Money
Issue No. 27 - February/March
Private equity panel
Fiona Pak-Poy of Innovation Capital, a small Australian and US fund manager, says Innovation specialises in building companies from early and seed stage, including originating deals.
Innovation’s Fund 1, founded in 2000 amounts to $36 million; Fund II to operate in 2005-06 has a $75 million target.
Innovation plays an active role in the rapid development of enterprises it invests in, with a view to exiting within a five-year time horizon.
Prospects are most often early stage companies focusing on technology with well defined market.
Typical investments range from $3 to $7 million across a range of technology sectors, which promotes deal quality and portfolio risk management. Innovation has ventured into medical technology, telecommunications, IT, engineering, environmental, software and biotech sectors.
Innovation has already assisted in developing medical devices including the supercapacitator and speciality pharmaceutical products. It has helped to develop an irrigation service and a paperless ticketing service.
Growing the businesses rapidly by applying proven operational expertise is the objective. Innovation leverages access to knowledgeable international networks, since the primary target markets for supported enterprises are likely to be offshore.
Innovation applies the following investment criteria:
The enterprise must involve a technology product or service with a global market. Ownership of intellectual property has to be clear. There has to be an aligned shareholder group and a strong commercial management team or the ability to build one.
The enterprise must have high gross margins and strong opportunity for expansion under satisfactory valuation and investment terms, and there must be potential for substantial gains via IPO or a trade sale.
Innovation promotes itself as a group of “battle-scarred” industry professionals with technical, industry and advisory experience, who hav...
