About our firm
Redwood North invests in Australian companies with owner earnings of $1m to $5m per year
At Redwood North, we believe boring is beautiful. Boring businesses are mature and steady, consistently helping their customers and contributing to their communities. We partner with existing ownership looking toward retirement and/or expansion.
These companies have a rich history and are usually family-owned, with a durable market position, a longstanding customer base, and reliable internal operations. Enabled by these strengths, the existing ownership is making $1m to $5m in owner earnings each year, meaning cash left over after all expenses have been paid and necessary reinvestments have been made.
Redwood North partners with owners to form a plan for the future, which may involve Redwood North buying the company outright , or by forming a new partnership with some, or all, of existing ownership staying involved.
Long-term patient capital
We look for long-term investment in businesses. We place a strong emphasis on creating sustainable cash flows persisting over a long period
We utilise conservative financial leverage in our initial acquisition to de-risk our investments in strong free cash flow businesses
We look for industries and companies who produce a non-discretionary product or service to mitigate risk from changes in economic conditions
We believe great companies are led by great people. Experience has taught us that duplicating the knowledge and years of experience of a committed management team is not an easy task.
History of stable returns
A future promise of a return is very different to a proven track record of providing returns to investors. We invest in companies that have a proven track record of $1–$5m free cash flow over many years
On going dividends
Our belief is that growing companies need to provide a return along the journey and not just at the end. Our portfolio companies seek to distribute a 8% to 15% annual cash dividend.
We are passionate about Australian Small and Medium sized businesses. Each of our Partners have owned SME businesses and are at Redwood North because they want to invest in, and help grow, SME businesses.
In fact, that is how we started. In 2013, we were unable to find an investment firm that shared our passion for smaller companies and our long term/debt conservative investment philosophy. So we started one.
Word got out amongst seasoned and experienced investors that there was an opportunity to invest alongside us and we have grown from there.
Our name, Redwood North, is based on the Redwood Tree, known to stand firm for decades, through good and bad seasons. North, is our compass, we are a strong values driven company.
As our firm grows, these two principles guide our thinking, investment approach, and who we want to work and invest with.
We are SME experts
How we help our companies
Where we add value is in the “business of business”. Businesses we partner with are really good at what they do. Prescriptions for radical change based on spreadsheets built by desktop warriors is nearly always the last thing a business needs. However, there are some aspects of running a business that are universal across all great businesses. The Redwood North team has developed a playbook for the first 12-18 months of our partnership with management, to build a strong foundation for growth.
In addition to providing financial resources, we provide support through:
Financial Systems & Governance
We help create reporting systems that provide company leadership with important and actionable information – and better ensure the company stays on top of the ever-changing compliance landscape.
Marketing & Lead Generation
We help to evaluate and, if needed, establish marketing funnels that ensure more customers find the company, help build trust, and ultimately result in greater sales.
Technology and Operating Systems
It is important that the key ‘know how’ of a business is captured in its process and systems. This is important to reduce key man risk and enables growth without adding significant resources. Understanding and developing the necessary foundation IT systems is a key step to providing stability to the business as it scales.
Succession planning and people leadership
It is not easy to build a great team. If needed, we work with the company to pass the baton of leadership to the next set of stewards who will drive the business forward. We help to build high performing teams, that work in collaboration with our Redwood North team.
Network of Specialists and Experts
We’ve been around and we know how hard it can be to find people who can deliver what they promise. We have built out own extensive network of experts across industries and disciplines who work with our portfolio companies as required. We are supported by our 60+ community of retired operators who are available to provide guidance when needed.
Who We Are
Daniel leads the firm, while supporting portfolio company operators.
Daniel was previously a consultant with McKinsey & Co.
Outside Work: Daniel loves to sail and is President of Australian Sailing, enjoys the round of bad golf and is raising a little girl with his wife, Lisa.
Steve co-founded Redwood North and oversees the acquisition team.
Steve was previously CEO of a property investment business.
Outside Work: Steve enjoys all form of sport, particularly touch football. He is raising a little boy with his partner, Leah.
Paul joined Redwood North following 13 years in investment banking. He oversees the origination team and works with portfolio companies.
Paul was previously a Director at UBS Bank and Credit Suisse.
Outside Work: Paul enjoys cycling, tennis and chess when he’s not chasing his three young kids around with his wife, Alison.
Nick is primarily focused on acquisitions and due diligence. He joined the team from ANZ Institutional Banking and has completed level three of his CFA.
Previously Nick was an Olympic level skier and coach.
Outside Work: Nick loves outdoor sports, particularly mountain bike riding and skiing in winter.
Robert’s role includes working with the portfolio companies, due diligence and deal origination.
Robert joined the team from Deloitte’s M&A Valuation team and has previous experience in the SME sector.
Previously Robert represented Australia as an 800m runner.
Outside Work: Robert enjoys watching the Rabbitohs win, and playing croquet.
Alice’s role includes working with the portfolio companies, due diligence and investor relationship support.
Previously Alice worked for a corporate venture fund and in pharmaceutical and consumer health innovation consulting.
Outside Work: Alice enjoys getting outdoors, watching Formula 1 and learning French.
Our Operating Partners
Chris has extensive experience as a CEO and Chair within the manufacturing sector and provides advice on operations to our portfolio companies.
People and Culture
Wendy has extensive leadership, HR, and RTO experience and provides advice on people and succession related topics to our portfolio companies.
Marketing and Lead Gen
Meg assists portfolio companies to improve their market and sales funnels. Meg has extensive experience at Adidas and Redbull.
Our Board, Investment Committee, and Support Team
Gordon is Chairman of the Board and Investment Committee.
Gordon comes to Redwood North following 20+ years in the private equity industry and co-founder of Catalyst Investment Managers.
Peter is on the Investment Committee and Board of Scully RSV.
Peter comes to Redwood North following 30+ years at Kennards Hire.
EA & Office Manager
Zoe is the Executive Assistant and Office Manager for Redwood North.
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