Case Studies
Issue No. 32 - December/January
Paragon of investment that works
Paragon Advisory recently sold out of two major investments with a sense of a job well done. The companies they had partnered were solid, locally based ventures that were now resourced to be growing - perhaps global – companies.
But talking to Paragon’s CEO, Geoff Thomas, he feels the need to justify Paragon’s methods – as though the angel investor had some explaining to do.
Paragon was the creation of Greg Boulton, John Glenn and Ric Mollison who organised the enterprise during FY2001-02.
From the outset the vision was to be an ‘angel’ investor, handling two or three investments using a fund raised from other investment sources as well as their own.
The Independent Schools Superannuation Trust came to the party with $10 million while another $3million came from a high net worth individual.
Richard Green and Tim Lebbon joined the board and in November 2003 Paragon got started in earnest when Geoff Thomas moved from IT venture capitalist, Playford Capital to become CEO of Paragon.
“For the first two years we were only looking for expansion-stage investments – we didn’t invest in start-ups,” Geoff says.
The decision not to invest in start-ups was based on the huge amount of work required to raise capital for early stage investment, “to do justice to the opportunities”.
Targets had to have at least $2million turnover and intentions to expand their operations either interstate or overseas.
In time, three companies got the nod: Kee Technologies, BresaGen and NuKorc.
“In all the investment cases the companies were looking to expand, whether it be the sales force, marketing or production line improvement,” Geoff says.
“In the past year we have divested sold out of - Kee and BresaGen with a good return for our efforts.
“During the time we invested the sales grew, employment grew and the worth of the shares grew. We are in a win-win situation ...
