Interested in becoming an investor?
Join our community.
people who have had real world experience within a business as an owner, CEO, and/or Investor.
Looking to invest in the economic engine room of Australia
Our Members seek to invest in value. In Australia, strong value exist in the Australian Middle-Market, which we refer to as the “Economic Engine Room of Australia”.
Nearly 60% of Australian GDP is driven by the Middle-Market that employs over 23% of all Australian employees.
As the majority of the 5.5 million baby boomer population pass the retirement age of 65 in 2020, it is expected 400,000+ businesses will require new ownership. Data shows that around 40,000 of them produce $2m+ of EBITDA.
Redwood North provides direct access to investing in the Australian Middle-Market – access that previously was very difficult, or even nearly impossible, to obtain.
Long-term, multi-generational, focused thinkers
When it comes to investing, Redwood North and our Members share the same set of values.
Our Members are primarily family offices and higher net worth individuals who seek growth as well as capital preservation. Becoming a Member of Redwood North is a selective process, aimed to ensure that your capital is invested with people who believe in the same investing values as you.
Most of our Members have created successful businesses – they understand the importance of long term thinking and the benefit it provides.
We work together. Many of our Members are experts in their field, and they are committed to lending their expertise when we seek it.
Joining the Community
How to become an investor and member of the community?
Let us know you are interested
The first step is to let us know you are interested, you can do that by clicking on this link below.
We will email you more information
We will email you more information about us, our firm, and our previous investments so that you can understand more about what we do.
We would like to meet you
This provides an opportunity for you to get to know us and have your questions answered. We also want to get to know you and ensure you are a good fit for our investment community.
Once approved as a Member
Once approved, you will receive a notice when an opportunity is available for investment. There is no obligation to invest. Redwood North typically provides 2-4 opportunities a year for investors to invest.
How we make our investors money
As an Member, you will receive an overview of each investment opportunity.
It is completely free to be a member of Redwood North, and there is no obligation to invest in all or any of our investments, however if you don’t make any investments after a while we will eventually ask you why?
Our minimum investment level is $50K and our maximum is 33% of the total raise.
Our return varies by the type of investment. However, we typically pay a 8% to 15% fully franked dividend per year and in total, aim to return to investors an IRR of at least 20% over the life of the investment.
We invest within companies that are on the cusp of growing to the next phase. An ideal company for us would have between $1-5m in earnings, within an industry that is growing, a good management team, and are priced at 3-4 times the last twelve months of earnings.
We typically purchase 51% to 80% of the business, and work with the existing managing team to grow the business so that it is realising at least $10m in earnings.
We are able to grow the business to $10m in earnings through initially growing the business we initially purchased and also acquiring other business that offer strategic and/or operational benefits.
- We have a set playbook across a number of foundation business skills. Every business is at a different stage along these foundation business elements and we seek to implement this together with management within our first 12 month of ownership.
- We have an experienced set of operating partners who are able to work alongside and support the existing management.
- Assistance from our experienced Investor Community Members
Over a 5-7 year time frame we grow the business to a $10 m earnings business. We then start to explore different opportunities to sell the business to other financial firms, a trade sale, or to the public markets through an IPO for a high multiple, at least 5-6x, the earnings of the business.
Along the way, we typically pay a 8% to 15% fully franked dividend per year and in total, aim to return to investors at least 20% IRR on their money once capital is returned to investors.
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