Our investment approach
We use a high-conviction approach to make strategic and substantial holding investments in a small number of companies that offer high potential returns.
We may also chose to participate in non-core opportunities by taking a purely transactional approach to fee based advisory work with performance based equity upside.
Our investments generally fit one of the following categories:
- • Direct investment in early-stage or mature businesses with low entry prices and clear pathways for accelerated revenue and capital growth within 12–24 months.
- • Incorporation or acquisition of publicly-listed, suspended or otherwise unlisted companies that meet our investment criteria.
- • Short-term opportunistic arbitrage and trading opportunities.
Actively managing risks
We have an opportunistic appetite for higher-risk transactions that offer strong short to medium-term growth potential.
We seek to identify, mitigate and actively manage risks by using our:
- • deep understanding of our chosen industries
- • due diligence and analysis
- • deal structuring and funding skills.
With every investment we make, we have a clear and pre-determined exit strategy that’s typically based on key events.
The companies we invest in have typically experienced one or more distinct ‘special situation’ events, such as:
- • A period of significant accelerated growth
• Business expansion or transition events
• Maturity and liquidity events
• The need to access immediate and significant levels of capital for bankable projects or non-conforming higher risk opportunities.
We believe these events provide excellent opportunities to invest in strong and well-managed businesses at a low entry price.
Investment Case Studies
Digital4ge Pty Limited
|Investment||$750,000 (15% equity holding)|
|Description||Core high-conviction investment|
Digital4ge focuses on the commercialisation of disruptive or otherwise breakthrough products that solve everyday consumer and enterprise problems using smart mobile technology.
The business plan is to originate, build and commercialise an average of six portfolio companies each year, maintaining a controlling position in each through to specific liquidity events consisting of trade sale, initial public offering (IPO) or large-scale external funding.
The business targets early to mid-term exits to pre-identified natural and strategic buyers who may also participate in the early stages of commercial and technical design and build of each portfolio business.
Digital4ge founders are highly experienced with a proven track record in the development and exit of large-scale commercial businesses brought about through the convergence of internet and mobile technology and disruptive business opportunities.
CEO Jamie Pride has a 20-year career history in peer-to-peer and enterprise software and mobile application development. He was a Partner at Deloitte Digital, CEO at realestate.com and held key executive roles at salesforce.com and Cisco Systems before building and selling his own technology start up to a major US-based saleforce.com partner.
CDO Ben McGrath built and led one of Australia’s largest digital agencies, FreshWeb, before selling the business in 2012. Ben has a specialist focus in user experience and mobile development.
Digital4ge’s first spinout, REFFIND LIMITED, successfully listed on the ASX on 9 July this year after completing an IPO positioning the company with an initial market capitalization of $20m (ASX : RFN). Post IPO Digital4ge holds a 48% equity holding in REFFIND which excluding further investment by Chapmans provides Chapmans with a 7.2% ‘look through’ holding. REFFIND has a highly compelling value proposition and scalable business model in the burgeoning employee engagement and communications sector.
For more on REFFIND please visit www.reffind.com .
Digital4ge has a strong pipeline of compelling mobile technology based opportunities which present Chapmans with substantial capital growth from it’s existing holding combined with further core seed capital investment opportunities each with their own liquidity events such as REFFIND’s IPO.
For more on Digital4ge please visit www.digital4ge.com
Digital Star Media Holdings Pty Limited
|Investment||$700,000 (40% equity holding)|
|Description||Core high-conviction investment|
Digital Star Media is developing a unique App-based sports fan engagement business providing fans with a new level of interactive, tailored and personalised access to their favourite sports stars. It seeks to provide an extension to standard media and social media via the utilisation of smart peer-to-peer (P2P) technology and unique shortform digital media content.
The fan engagement business aims to deliver a compelling value proposition for players, fans, sporting codes and sponsors alike in Australia and overseas markets.
The company has received significant interest and support from key stakeholders in the professional sporting code, sports marketing and media sectors and is well positioned to achieve it’s growth targets.