• GROWTH OPPORTUNITIES
    FOR YOUR BUSINESS,
    YOUR CAPITAL

About Us

Stradbroke Capital Funds Management is a boutique investment management firm established to manage investments in Australian small business

Our objective is to generate superior returns for our investors by investing capital, skills and connections in existing business where these resources would otherwise not be available to this part of the economy.

We have a broad range of experience across Corporate Management, Finance, IT and Communications to enable us to identify, invest in and manage a range of businesses across multiple industry sectors.

Stradbroke Capital works with management of constrained businesses to provide solutions that support that enable growth and where necessary, meet the succession needs of owners. With our unique blend of business and investment experience and extensive business networks we offer an approach that we call ‘Realisation Capital’. It’s a strong combination of experience, strategic support and growth capital to help businesses grow to reach their full potential and realise an attractive outcome for all parties.

We are transparent, open and honest and strive to achieve the best outcome for all stakeholders.

We grow enterprises, people and value.

Investors

Our goal is to identify opportunities for investors in a sector of the economy that has been historically underserviced by managed capital due to the limited size of individual investments and the additional effort required to be successful in this part of the economy.

We have a cornerstone investor who has seeded the fund for the first two acquisitions and we are continually seeking additional investors to add to the pool of available capital which will allow us to scale and grow these investments.

Our goal is to frequently be presenting to our group of potential investor interesting and diverse investment opportunities capable of generating immediate returns exceeding our performance hurdles.

For Small businesses

Stradbroke Capital works with Australian small business to grow enterprises, people and value.

Our ‘Realisation Capital’ offering is much more than just investing cash. We strive to improve the capability of businesses and enable them to achieve their growth and expansion aspirations. Where business owners retain significant stakes and management in the business post investment, we will work with them to invigorate strategy and resources along with succession planning solutions. We help put solutions and growth around great ideas!

Due to our focus on driving growth and expansion for our investors, a requirement is that we are also engaged by the business to work with management to challenge the business plan and their underlying business model. We help put a strong and agile commercial framework around good businesses to help them advance to the next stage of their growth cycle. Our fees for these services are predominantly performance based in that the large majority of our fees are only paid when the business achieves its performance objectives and realises cash consideration for our investors.

Our target criteria for the types of businesses we would like to work are outlined under the Investment Criteria section.

Our methodology

Stradbroke Capital’s investment methodology is focused on growth. We pursue investment opportunities where we can add value through our knowledge, skills and capabilities in co-operation with the company’s management team. Our value creating involvement includes:

Focus on Strategy

Implementation of strategies will be key to our success. Too many great businesses have failed because their strategies were never implemented. We have worked on successful strategy implementation in large corporates and can leverage our knowledge to ensure the great ideas and passions of small business owners are converted into tangible outcomes driving profitable growth.

Hands-on operating approach

Stradbroke Capital brings a first-rate skill set to mid-market companies. We work with experienced owners and management and adopt a true partnership approach while ensuring that incentives are aligned to a strong returns for all stakeholders.

Investment Criteria

As a targeted investment firm Stradbroke Capital provides the agility and flexibility to find and execute investments that match the objectives of managed funds.

Given our focus on the Australian small business sector we are searching for individual small businesses requiring up to $10 million in ‘Realisation Capital’ to fund growth and where a roll up opportunity exists, we will consider larger investments. We will also consider all equity options and are comfortable with minority positions that assist in realising strategic visions.

Our focus on this level of investment is driven by the high demand in the SME sector for capital compared to relatively low supply (at reasonable prices) from Banks and other traditional funding sources. We do recognise that large superannuation and investment funds are looking to deploy significant amounts of capital but believe that large fund focus is on much larger investments due the the sheer amount of capital that they need to deploy.

We also believe that investments through Stradbroke Capital could be an alternative option for self-managed superannuation funds and also for much smaller institutional funds looking to access the alternative investment market at this level. The focus of the Federal Government on the growth of the SME sector in Australia is also an important factor in our decision to target deals of this size.

Finally, we will not be considering investments into businesses that have not been commercialised (normally start-ups) or businesses that are in the Property, Construction or Finance sectors.

In summary, our ‘Wish List’ is:

  • Small to Medium Enterprises trading profitably
  • Positive cash flows
  • Capital requirements of up to $10 million
  • Historically growth shy
  • Structurally challenged
  • Skill limitations
  • Fundamentally sound businesses in relatively steady state sectors
  • Next stage ready with plans developed
  • Existing owners want to stay in the business

While continuity of existing management is preferred we will consider acquiring 100% of an outstanding business opportunity where we feel we have access to the management sector and sector experience required to operate and grow the business to exceed our target returns.

Information

Our Directors:

Peter Hudson

phudson@stradbrokecapital.com.au

Peter is a seasoned finance professional with over 20 years’ experience working with some of Queensland’s largest and most prominent businesses. His insight and drive has helped clients undertake and successfully complete transactions of varying size and complexity across a broad range of sectors. As a Partner at KPMG, Peter was in Charge of the Advisory practice in Queensland and also joint leader of the national practice for Government asset sales.

His strength is his ability to financially analyse businesses and quickly understand how they work. Utilising this understanding, Peter is able to challenge management around historical and future financial performance and to help rationalise the sometimes “optimistic” view of growth potential.

Jodie Madders

Director

Jodie was a director at Deloitte in audit gaining experience across all aspects of financial and risk management in a number of industry sectors, including manufacturing, tourism and funds management.

Jodie, for the past 10 years has been part of the financial management team of a privately owned investment business which owns and operates a portfolio of tourism assets across Australia and New Zealand.