Spire Capital
Spire Capital
Investment Strategies

Connecting you with a world of investment opportunities

Spire Capital selectively searches global private markets in line with key investment themes including digitalisation, energy transition, affordable housing and food security & sustainability. They conduct due diligence, create customised access vehicles and invest in the “sweet spot” of the chosen theme. In addition, they remain nimble in identifying market dislocations and arbitrage opportunities as they emerge.

 

 

Business Highlights

Spire Capital are focused on highly differentiated private market strategies to optimise risk-adjusted returns for clients through the cycle. They have developed a broad private markets platform to enable Australian investors tax/cost-efficient and simplified access to investments otherwise only accessible to large institutional investors.

The philosophy is to invest in assets where value can be identified, created or enhanced – either by buying assets at less than their intrinsic value or investing in businesses with superior earnings potential. Key to this approach is investing in companies and opportunities whose principals are aligned with the business and integral to their growth, rather than in large capitalised companies with high executive turnover and sub-optimal board structures.

Spire Capital’s suite of strategies allows investors to take advantage of global opportunities in a way that suits their needs, whether it’s via closed-end funds, open-end funds and Separately Managed Accounts (SMAs). They also run customised feeder funds for large investors seeking an access solution for private investments sourced themselves. Investing alongside their clients, they are totally aligned with their objectives. Their commitment to being fully transparent and accountable ensures their clients remain informed about all aspects of their investment.

Spire Capital believe the fundamental drivers of outperformance of private markets (vs. public markets) is a function of the following:

  • Market inefficiency can be exploited – private markets are highly fragmented relative to public markets leading to opportunities for outsized returns for the best investment managers
  • Depth of due diligence – access to company-specific information is far more comprehensive in the private markets providing a significant informational advantage for firms with the resources and access to utilise it
  • Active value creation at the asset level – returns are created by accelerating earnings growth through an injection of capital and resources by the private equity sponsor
  • A patient approach – private assets and companies can work toward 5 year business plans without being impacted by market sentiment and rigorous disclosure requirements associated with public markets

Private Markets

Private Credit

Private Infrastructure

Impact Investments

Closed Funds

Please note: Spire Capital will open Fund trading windows twice per year – April & October.

If you have any questions outside of these trading windows please email [email protected]

Spire Oaktree Opportunities Fund XI (AUD)

Overview

Spire Capital Pty Ltd (“Spire”) continues to have high conviction in select pockets of the global private markets (i.e. ‘sweet spots’). For the last 18 months, Spire has been monitoring credit conditions in anticipation of stress given ballooning issuance of sub-investment grade debt, inflated leverage levels and associated vulnerability of corporate balance sheets. This included face-to-face due diligence meetings with a number of distressed debt investors in New York and ongoing dialogue with preferred manager Oaktree Capital Management, L.P. (including its affiliates, individually or collectively, as the context requires, “Oaktree”). After a prolonged period of benign market conditions for distressed debt investing, the cycle turned with the onset of the coronavirus. In mid-March 2020, Spire accelerated final stage due diligence on Oaktree’s distressed debt capabilities and Opportunities XI program before resolving to create and capitalise Spire Oaktree Opportunities Fund XI (AUD) (“the Fund”) with principal capital.

The Fund seeks to deliver steady returns and strong asset growth from global distressed debt. The Fund was established in August 2020 and serves as an AUD denominated Australian unlisted unit trust that feeds into the Oaktree Opportunities Fund XI Feeder (Luxembourg), SCSp (“the Underlying Fund”), a Luxembourg special limited partnership, which will invest substantially all of its assets in Oaktree Opportunities Fund XI (Parallel 2), SCSp in exchange for a limited partner interest therein. LFE European Asset Management S.a.r.l is the alternative investment fund manager (“AIFM”) for the Underlying Fund and the AIFM will appoint Oaktree as portfolio manager.

Key Information

Term Sheet (AUD)
Fact Sheet (AUD)

Spire Oaktree Opportunities Fund XI (USD)

Overview

Spire Capital Pty Ltd (“Spire”) continues to have high conviction in select pockets of the global private markets (i.e. ‘sweet spots’). For the last 18 months, Spire has been monitoring credit conditions in anticipation of stress given ballooning issuance of sub-investment grade debt, inflated leverage levels and associated vulnerability of corporate balance sheets. This included face-to-face due diligence meetings with a number of distressed debt investors in New York and ongoing dialogue with preferred manager Oaktree Capital Management, L.P. (including its affiliates, individually or collectively, as the context requires, “Oaktree”). After a prolonged period of benign market conditions for distressed debt investing, the cycle turned with the onset of the coronavirus. In mid-March 2020, Spire accelerated final stage due diligence on Oaktree’s distressed debt capabilities and Opportunities XI program before resolving to create and capitalise Spire Oaktree Opportunities Fund XI (USD) (“the Fund”) with principal capital.

The Fund seeks to deliver steady returns and strong asset growth from global distressed debt. The Fund was established in August 2020 and serves as a USD denominated Australian unlisted unit trust that feeds into the Oaktree Opportunities Fund XI Feeder (Luxembourg), SCSp (“the Underlying Fund”), a Luxembourg special limited partnership, which will invest substantially all of its assets in Oaktree Opportunities Fund XI (Parallel 2), SCSp in exchange for a limited partner interest therein. The Fund will progressively call capital in line with the requirements of the Underlying Fund and operating expenses of the Fund. LFE European Asset Management S.a.r.l is the alternative investment fund manager (“AIFM”) for the Underlying Fund and the AIFM will appoint Oaktree as portfolio manager.

Key Information

Term Sheet (USD)
Fact Sheet (USD)

Spire Global Private Infrastructure Fund (AUD)

Fund Facts

Investor Type Wholesale investors only
Asset Class Global Private Infrastructure
APIR SPI4963AU
ASRN
IM Date April 11, 2019
Term Sheet Date April 7, 2021
Suggested Investment Period 7 years +
Distribution Annually as at 30 June
Redemptions N/A – The Fund is closed ended
Applications Closed to new investment
Wrap Access Available on request
Investment Partner EQT Infrastructure

Key Information

Term Sheet (AUD)
Fact Sheet (AUD)

Overview

Spire Capital Pty Ltd (“Spire”) continues to have high conviction in select pockets of the global private markets (i.e. ‘sweet spots’). More specifically, this means investment opportunities attached to essential services, underserved end-markets and long-term secular demand trends (e.g. data consumption).

As the world progresses through COVID-19 crisis, the resiliency of “Core” infrastructure assets is being tested as air travel, vehicle movements, energy demand and port throughput are all materially impacted. With this, Spire intentionally went in search of an investment manager able to invest ahead of transformative forces with deep expertise and resources to add value at the asset level. After an extensive global search, Spire resolved to invest in EQT Infrastructure V (‘Fund V’) as a means of capturing a compelling thematic across digital and essential infrastructure and pairing this with active value creation at the asset level. Besides an outstanding performance track-record, Spire was attracted to EQT’s network of proven industrialists & advisors working in tandem with EQT’s investment teams for financial expertise, digital capability and playbook for value creation. Spire and EQT determined a shared passion for combining 3 key elements:

  1. Deep industry expertise
  2. Tight governance structures and
  3. Alignment across board and management incentives

Headquartered in Sweden, EQT Partners is one of the largest private markets firms in the world (with over EUR 84bn in commitments since 1994) and was built on the heritage of the Wallenberg family, one of the most reputable industrialist families in the world. Globally, EQT has a leadership position on digital infrastructure and a number one position in fibre assets.

The Spire Global Private Infrastructure Fund (“the Fund”) serves as an Australian unlisted unit trust that feeds into the EQT Infrastucture V (“the Underlying Fund” or “Fund V”). The Investment Manager for the Underlying Fund is EQT Fund Management S.à r.l. (“EQT”). The Fund is available in 2 variants:

  • AUD denominated – 100% of commitment paid at time of application
  • USD denominated – 45% of commitment paid at time of application. The balance progressively called in line with the Underlying Fund
Spire Global Private Infrastructure Fund (USD)

Fund Facts

Investor Type Wholesale investors only
Asset Class Global Private Infrastructure
APIR SPI2005AU
ASRN
IM Date April 11, 2019
Term Sheet Date April 7, 2021
Suggested Investment Period 7 years +
Distribution Annually as at 30 June
Redemptions N/A – The Fund is closed ended
Applications Closed to new investment
Wrap Access Available on request
Investment Partner EQT Infrastructure

Key Information

Term Sheet (USD)
Fact Sheet (USD)

Overview

Spire Capital Pty Ltd (“Spire”) continues to have high conviction in select pockets of the global private markets (i.e. ‘sweet spots’). More specifically, this means investment opportunities attached to essential services, underserved end-markets and long-term secular demand trends (e.g. data consumption).

As the world progresses through COVID-19 crisis, the resiliency of “Core” infrastructure assets is being tested as air travel, vehicle movements, energy demand and port throughput are all materially impacted. With this, Spire intentionally went in search of an investment manager able to invest ahead of transformative forces with deep expertise and resources to add value at the asset level. After an extensive global search, Spire resolved to invest in EQT Infrastructure V (‘Fund V’) as a means of capturing a compelling thematic across digital and essential infrastructure and pairing this with active value creation at the asset level. Besides an outstanding performance track-record, Spire was attracted to EQT’s network of proven industrialists & advisors working in tandem with EQT’s investment teams for financial expertise, digital capability and playbook for value creation. Spire and EQT determined a shared passion for combining 3 key elements:

  1. Deep industry expertise
  2. Tight governance structures and
  3. Alignment across board and management incentives

Headquartered in Sweden, EQT Partners is one of the largest private markets firms in the world (with over EUR 84bn in commitments since 1994) and was built on the heritage of the Wallenberg family, one of the most reputable industrialist families in the world. Globally, EQT has a leadership position on digital infrastructure and a number one position in fibre assets.

The Spire Global Private Infrastructure Fund (“the Fund”) serves as an Australian unlisted unit trust that feeds into the EQT Infrastucture V (“the Underlying Fund” or “Fund V”). The Investment Manager for the Underlying Fund is EQT Fund Management S.à r.l. (“EQT”). The Fund is available in 2 variants:

  • AUD denominated – 100% of commitment paid at time of application
  • USD denominated – 45% of commitment paid at time of application. The balance progressively called in line with the Underlying Fund

 

Spire Bridge Multifamily Fund V (AUD)

Overview

Spire Capital Pty Ltd (“Spire”) continues to have high conviction in US Multifamily real estate as a resilient source of absolute returns, with low correlation to traditional asset classes. Spire Bridge Multifamily Fund V (‘SBMFV’) provides an opportunity to capitalise on the continuing thematic of increasing demand in Class B US multifamily housing, driven by an existing undersupply of housing, an ageing population, embedded student debt and the economic flexibility that renting provides. By partnering with Bridge Investment Group (“Bridge”), Spire seeks to leverage upon the strong historical performance and streamlined ‘value add’ strategy in order to provide attractive returns with a low risk profile.

As the USA progresses through the COVID-19 crisis, Class B multifamily apartments have experienced higher and more stable occupancy rates than their Class A counterparts, driven by the affordability factor. Given this, and resultant of the success of Bridge’s predecessor multifamily funds, Spire returns to partner with Bridge to leverage from their deep industry experience and expertise, value-add strategy and in house synergies to best capture the emerging and enduring trends in the US multifamily space.

The Spire Bridge Multifamily Fund V (“the Fund”) serves as an Australian unlisted unit trust that feeds into the Bridge Multifamily Fund V (“the Underlying Fund” or “Fund V”). The Investment Manager for the Underlying Fund is Bridge Multifamily V GP LLC, an affiliate of Bridge Investment Group LLC. The Key Target Metrics are as follows:

  • 12-14% Net IRR
  • 1.8x Net Equity Multiple
  • To be achieved via a 5 year ‘buy, fix, sell’ business plan

Key Information

Term Sheet (AUD)
Fact Sheet

Spire Bridge Multifamily Fund V (USD)

Overview

Spire Capital Pty Ltd (“Spire”) continues to have high conviction in US Multifamily real estate as a resilient source of absolute returns, with low correlation to traditional asset classes. Spire Bridge Multifamily Fund V (‘SBMFV’) provides an opportunity to capitalise on the continuing thematic of increasing demand in Class B US multifamily housing, driven by an existing undersupply of housing, an ageing population, embedded student debt and the economic flexibility that renting provides. By partnering with Bridge Investment Group (“Bridge”), Spire seeks to leverage upon the strong historical performance and streamlined ‘value add’ strategy in order to provide attractive returns with a low risk profile.

As the USA progresses through the COVID-19 crisis, Class B multifamily apartments have experienced higher and more stable occupancy rates than their Class A counterparts, driven by the affordability factor. Given this, and resultant of the success of Bridge’s predecessor multifamily funds, Spire returns to partner with Bridge to leverage from their deep industry experience and expertise, value-add strategy and in house synergies to best capture the emerging and enduring trends in the US multifamily space.

The Spire Bridge Multifamily Fund V (“the Fund”) serves as an Australian unlisted unit trust that feeds into the Bridge Multifamily Fund V (“the Underlying Fund” or “Fund V”). The Investment Manager for the Underlying Fund is Bridge Multifamily V GP LLC, an affiliate of Bridge Investment Group LLC. The Key Target Metrics are as follows:

  • 12-14% Net IRR
  • 1.8x Net Equity Multiple
  • To be achieved via a 5 year ‘buy, fix, sell’ business plan

Key Information

Term Sheet (USD)
Fact Sheet

Spire Multifamily Value Fund I (AUD)

Fund Facts

Investor Type Wholesale Investors Only
Asset Class Global Real Estate
APIR SPI0513AU
ASRN N/A
IM Date April 11, 2019
Term Sheet Date May 15, 2020
Suggested Investment Period 5-7 years
Distribution Biannually as at 30 June and 31 December
Redemptions N/A – The Fund is closed ended
Applications Closed to new investment
Wrap Access N/A
Investment Partner Cortland Partners

Key Information

Term Sheet (AUD)
Fact Sheet (AUD)

Overview

Spire Capital Pty Ltd (‘Spire’) continues to have high conviction in US Multifamily real estate as a resilient source of absolute returns with low correlation to traditional asset classes. The Spire Multifamily Value Fund I (AUD) (“the Fund”) seeks to deliver steady returns and strong asset growth from US multifamily assets while maintaining a moderate risk profile.

The Fund was established in May 2020 and serves as an AUD denominated Australian unlisted unit trust that feeds into the Cortland Enhanced Value Fund V LP (“the Underlying Fund”).

The Investment Manager for the Underlying Fund is Cortland Partners LLC (“Cortland”). Headquartered in Atlanta, GA, Cortland is a vertically integrated operating platform with over 1,800 dedicated employees across eight offices in the United States, London, and Shanghai. Cortland is a high-quality investment manager who serves an institutional clientele. The firm has extensive expertise and experience in the acquisition, development, asset management and property management of multifamily properties. Founded in 2005, Cortland specializes in high-growth US cities and suburban sub-markets located in the South-East and South-West United States. The firm manages a portfolio comprised of over 60,000 units and USD 12.1bn in Gross Real Estate Asset Value (as at Q3 2020).

Spire Multifamily Value Fund I (USD) First Close

Overview

Spire Capital Pty Ltd (‘Spire’) continues to have high conviction in US Multifamily real estate as a resilient source of absolute returns with low correlation to traditional asset classes. The Spire Multifamily Value Fund I (USD) First Close (“the Fund”) seeks to deliver steady returns and strong asset growth from US multifamily assets while maintaining a moderate risk profile.

The Fund was established in May 2020 and serves as a USD denominated Australian unlisted unit trust that feeds into the First Close of the Cortland Enhanced Value Fund V LP (“the Underlying Fund”). The Series has been created to provide Spire clients with the opportunity to invest in the First Close of the Underlying Fund (First Close), and thereby participate in the fee concession available to First Close investors (as per terms summarised on Page 3). The Fund will progressively call capital in line with the requirements of the Underlying Fund and operating expenses of the Fund.

The Investment Manager for the Underlying Fund is Cortland Partners LLC (“Cortland”). Headquartered in Atlanta, GA, Cortland is a vertically integrated operating platform with over 1,800 dedicated employees across eight offices in the United States, London, and Shanghai. Cortland is a high-quality investment manager who serves an institutional clientele. The firm has extensive expertise and experience in the acquisition, development, asset management and property management of multifamily properties. Founded in 2005, Cortland specializes in high-growth US cities and suburban sub-markets located in the South-East and South-West United States. The firm manages a portfolio comprised of over 60,000 units and USD 12.1bn in Gross Real Estate Asset Value (as at Q3 202

Key Information

Term Sheet (USD) First Close
Fact Sheet (USD) First Close

Spire US Data Centre Colocation Fund (AUD)

Overview

Spire Capital Pty Ltd (“Spire”) continues to have high conviction in select pockets of global private markets (i.e. ‘sweet spots’). This includes working in partnership with Valterra Partners LLC (‘Valterra’), to find attractive direct co-investment opportunities within the field of private equity infrastructure. More specifically, this means investment opportunities attached to essential services, underserved end-markets and long-term secular demand trends (e.g. data consumption).

As the world progresses through COVID-19 crisis, the resiliency of “Core” infrastructure assets is being tested as air travel, vehicle movements, energy demand and port throughput are all materially impacted. Meanwhile, data is proving to be essential to all sectors of the economy through the disruption. Data volumes in 2022 are forecast to be 3x those recorded in just 2017 and 11x 2012 as data intensity increases and use cases multiply. Internet users, connected devices and speeds continue to increase significantly, creating significantly more demand for data infrastructure services. The assets that provide the access to data (towers, fiber and datacenters) are increasingly being viewed as critical infrastructure to the economy. Data centres are increasingly being viewed as infrastructure assets because they possess many of the same key attributes as traditional core infrastructure investments including long term contracts, stable and predictable cash flows, high free cashflow generation and stable underlying demand drivers.

For the last 12 months, Spire has been working with Valterra to better understand the global landscape for data and the infrastructure that enables its transmission. Data Centres sit at the centre of the data infrastructure system as the point where crucial storage and computing takes place. In particular, data centres at the “edge”, i.e. close to major metropolitan areas and thus close to end consumers, are increasingly important as the internet architecture undergoes a significant transformation as a result of the requirement for zero latency from many users.

Key Information

Term Sheet (AUD)
Fact Sheet (AUD)

Spire USA Multifamily Fund IV (AUD)

Fund Facts

Investor Type Wholesale investors only
Asset Class Global Real Estate
APIR SPI1337AU
ASRN
IM Date April 11, 2019
Suggested Investment Period 5 – 7 years
Distribution Biannually as at 30 June and 31 December
Redemptions N/A – The Fund is closed ended
Applications Closed to new investment
Wrap Access Available on Ausmaq, Netwealth, HUB24 and soon on BT Wrap
Investment Partner Bridge Investment Group

Key Information

Term Sheet (AUD)
Fact Sheet (AUD)

Overview

Spire USA Multifamily Fund IV (AUD) (‘the Fund’) acts as a wholesale Australian feeder fund into the strategy and assets of Bridge Multifamily Fund IV LP (“BMF IV”); a Private Equity Real Estate fund. BMF IV is targeting US$750 million in equity via its capital raise. A Hard Cap of US$1 billion is likely to be determined.

The Investment Manager for the underlying fund is Bridge Investment Group LLC. Bridge is a specialist US real estate funds manager with over US$15 billion in assets under management. Bridge is headquartered in Salt Lake City, Utah, with offices in New York, San Francisco and Orlando. Over the last 24 years Bridge has invested, managed and sold several billion dollars of property assets across all segments of the market. Bridge has a strong operating and property management platform, comprising over 1,000 management, leasing and facilities employees across the 30 states in which assets are owned.

BMF IV will essentially create stabilised multifamily investments for passive, ‘buy & hold’, often institutional, investors to acquire via a competitive process, either individually or as part of a portfolio. BMF IV will be a ‘manufacturer’ of institutional grade assets, on a ‘buy, fix & sell’ basis in order to identify, unlock and return added value to investors. Typically (as the following case Study shows) the strategy will be executed by acquiring a 1980s or 1990s vintage B-grade, suburban garden style asset, which is tired and under ammenitised, and is therefore leased at rentals below the current market for fresher product with better ammenities.

Bridge will implement a business plan which will involve a capital expenditure program to refresh and ammenitise the asset, and then drive a new leasing and renewal strategy at the higher market rents now unlocked as a result of the repositioning of the asset within its market. When it has stabilised the asset (typically 93%+ occupancy at market) and added full value, Bridge will then seek to sell the asset via a competitive process.

BMF IV may also develop new assets (5-10% of the portfolio).

The targeted IRR on invested capital for BMF IV is 12-14% net (USD denominated).

Announcements

27 September 2021

Insights from the Future Fund

Read more

27 September 2021

US Housing Crisis drive significant returns for investors

Read more
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