Kestrel Structured
Capital Fund (KSC)
The Kestrel Structured Capital Fund (KSC) was launched to provide wholesale investors superior risk-adjusted returns with income, structural protection and exposure to the upside from investing in "lightly banked" Australian businesses.
Please note the following information has been prepared for the use of Wholesale and Professional Investors only.
What is Structured Capital?
Structured investments blend elements of debt and equity, providing contractual returns and downside protection. They can take various forms, including corporate debt facilities or individual corporate loans (first ranking or subordinated) with attached warrants, options, or conversion rights.
Structured financings are often used as a primary capital source or combined with equity raising and traditional debt to optimise capital structures and enhance shareholder value. While they have a higher cost of capital compared to traditional bank debt or inventory/receivable financing, they result in less shareholder dilution than pure equity issuance.
Structured financings are ideal for funding acquisitions, aggressive organic expansion, and infrastructure projects needing capital access for at least 18 months to achieve their value objectives. However, they may not be suitable for early-stage businesses that might struggle to meet the contractual rate of return and exit payments.
Application of Structured Capital
Structured financings may be used as a primary source of capital or combined with equity raising and traditional debt to optimise the capital structures of listed and private companies to optimise shareholder value.
Structured finance is well suited to funding acquisitions, aggressive organic expansion and infrastructure, which require access to capital for at least 18 months to accomplish their value objectives. Structured capital is not well suited to early-stage businesses that may struggle with the contractual rate of return and exit payments.
real revenue from real customers
Commercial Growth
sector agnostic, excluding bio-technology, property, retail
Industry
What we invest in
predominately listed companies, 30% NAV total unlisted exposure
ASX focus
diversified by sector, 30% NAV supply chain limit, where substantial interdependence exists
Risk
sophisticated companies with market capitalisation of up to $500m
Scale
Fund Details
Risk-Based Investment Process
We adopt a fundamental approach seeking to build a complete picture of value with stage gates. Security is typically first-ranking.
Investment Team
Phillip Carter
Managing Director, Investment Committee Member
Phillip is a Managing Director of Kestrel Capital and an Investment Committee Member of Kestrel Structured Capital, Kestrel Growth Companies and KTT fund.
Phillip has over 20 years of experience in investment management, spanning all facets of corporate finance.
Prior to joining Kestrel in 2006, Phillip was a director of a leading UK-based investment management and strategy consulting practice. During this time Phillip managed the InterTechnology Fund, recognised by the EVCA as one of the most active development capital funds in Europe. He also assisted growth companies and blue chips in formulating strategy and implementing it through direct investment, M&A, licensing, joint ventures and partnering.
BEng, MAppFin, PhDEng, SFFin, FAICD, IMC(UK), GSFP
Niall Cairns
Executive Director, Investment Committee Member
Niall is a Managing Director of Kestrel Capital and an Investment Committee Member of Kestrel Structured Capital, Kestrel Growth Companies and the KTT fund.
Niall has over 25 years of direct seed, venture capital, private equity and listed company experience focused on technology growth companies.
Niall provides significant transaction expertise, operational and director level experience, technology investment and has a track record of value creation and the delivery of investment returns.
BEc, ACA
Jon Cane
Executive Director, Investment Committee Member
Jon is Executive Director and Investment Committee member of Kestrel Structured Capital.
Jon has over 25 years of experience as a legal adviser handling international and domestic transactions for corporate clients and private equity funds, both in Australia and the UK.
Prior to working in Australia, Jon was a partner of a leading London law firm, where he handled large cross-border and domestic transactions, as well as general corporate advice on equity and debt capital raisings.
Separately Jon has been involved in developing a fintech start-up and a fast-growing health care business.
BA, LLB
Ian Neal
Executive Director, Investment Committee Member
Ian is an Executive Director and Investment Committee Member Kestrel Structured Capital.
Ian's professional background is in financial markets, commencing as an equities analyst and moving to various banking positions until establishing Nanyang Ventures. Ian is a Chairman for The Executive Connection where he mentors CEOs. He is a life member of the Financial Services Institute of Australia, a previous National President of the Securities Institute of Australia and was a member of the first Corporate Governance Council which established the Corporate Governance Guidelines. Ian was a director of Prime Media Group Ltd from July 2008 to May 2021 and has been a director of Laserbond Limited since May 2022.
B.Comm. SF.Fin
Kestrel's Unique Approach
Our commitment to flexibility and alignment drives our approach. This flexibility is reflected in our pricing, which we believe is a strategic advantage. We employ sophisticated structures to optimise capital utilisation, including options like balloon payments and payment in kind.
Our efficient processes, including strategic outsourcing, expedite funding from initial engagement, ensuring swift and informed investment decisions. We emphasise a bottom-up valuation of the business and time spent with management to understand the business and its customers.
Potential for asymmetric returns
Substantial coverage
Significant growth or undervaluation of business
Understand key macro factors impacting coverage and valuation
Assess whether macro factors are built into pricing
What will shift value during our investment term
Identify dependencies
360° review of value case
Exit opportunities and risks
Why us? Why now?
