About Mac Equity Partners

Mac Equity Partners (“MEP”) is a boutique investment and corporate advisory firm located in Nedlands, Perth. MEP has been established specifically to service emerging companies, wholesale clients and experienced/sophisticated investors. In addition to their representatives in Perth, MEP is connected with consultants located in New York, Los Angeles, the United Kingdom and Singapore.

Are You a Wholesale/Sophisticated Investor?

Many individuals are classified as ‘wholesale’/’sophisticated’ investors and don’t realise. This leads to them missing investment opportunities simply because they are unaware of their investor status.

What Is a Wholesale/Sophisticated Investor?

Under the Corporation Act 2001 as defined by section 761G, a wholesale investor is someone who meets at least one of the following tests:
Has net assets of more than $2.5m and supplies an Accountant’s Certificate confirming this;
Has income of at least $250k over the last two financial years and supplies an Accountant’s Certificate confirming this; and/or
Is investing $500k or more in the opportunity.
Under section 761GA of the Corporations Act, clients who are unable to satisfy the above threshold tests, may ask an Australian Financial Services Licensee to certify them as a “sophisticated investor”. However, the licensee must be satisfied on reasonable grounds that the client has, amongst other things, sufficient financial literacy and experience in using financial services and investing in financial products, and the client must waive their right to certain consumer protections.
However, if you don’t meet any of the threshold tests or the definition of a ‘sophisticated investor’, you are deemed as a retail investor.

What Are the Advantages Of Being A Wholesale Investor?

An investor that has met the above requirements to be a wholesale investor is said to be more knowledgeable when it comes to investing than a retail investor. Therefore, a wholesale investor can pretty much invest in anything. Also there are a number of investment products only available to wholesale investors.
Some of the opportunities available to a wholesale investor are:
Pre-IPO
Private Placements
Private Equity

Compliance information related to our financial license, as well as our privacy policy can be viewed on the following page: Disclaimer and Disclosure 

Services

Mac Equity Partners (MEP) is a licensed business comprised of a team of professionals who have a practical working knowledge of the securities industry in Australia and overseas.
Mac Equity Partners has been established specifically to emerging companies, and provide superior personalised service to wholesale clients and experienced and sophisticated investors.
MEP works with fewer clients in order to invest in and achieve superior outcomes and taking its fees as equity wherever possible MEP looks to co-invest with its clients.
The Company is able to provide the following suite of services:

  • Direct access to ASX securities and transaction services
  • Funding facilitation
  • Strategic advice
  • Company promotion | Market support
  • Corporate consulting
  • MEP’s Project Evaluation Team has extensive experience in identifying and evaluating both early stage private projects and undervalued/underperforming public companies. In addition, MEP’s network in Australia and overseas assist to identify opportunities and to provide additional skills and resources where their expertise and/or location of operation can add value.
  • Once a project is identified that fits our investment criteria, we undertake due diligence to isolate the strengths and weaknesses of the project, to ascertain how the company can be improved and assisted to obtain finance.
  • In order to align our interests with those of our project clients and high net worth investors, MEP prefers to take our fees as equity wherever possible and look to co-invest with our clients. 

Broking Services

  • MEP’s Broking and Corporate Finance Team evaluate equity market opportunities and generate investment ideas through in-house research and technical analysis that our wholesale and high net worth clients can take financial advantage of. In addition, our private clients are provided exclusive access to capital raising offers delivered by our Project Evaluation Team.
  • All trades are cleared and settled by Pershing Securities Australia Pty Ltd. (AFSL 338264)
  • For more information on setting up a Private Client account with MEP, please contact us.

Corporate Finance Services

  • MEP’s demonstrated corporate finance capacity includes:
    • IPO’s and capital raising
    • Market support and promotion
    • Corporate restructuring
  • Strategic alliance partners throughout Australia, North America and Europe enable MEP to successfully raise capital for a wide range of companies in the Australian market. Our distribution networks provide access to fund managers, institutions, local and international stock broking firms and high net worth investors.
  • MEP’s Broking and Corporate Finance Team also work with the Project Evaluation Team to prepare and tailor prospectuses to obtain finance for projects MEP undertakes.
  • MEP provides a full suite of corporate advisory services including access to legal and company secretarial, accounting and bookkeeping services and assistance to source suitably qualified directors and management to strengthen the corporate profile of companies that we act for. MEP is experienced in broker and institutional investor presentations, introductions and road shows.
  • MEP can also provide advisory mandates varying in depth from pure strategy consultation through to management of all facets of a transaction including project acquisitions/divestments/spin offs, deal advice and due diligence whilst providing on-going corporate advice and support.
Mac Equity Partners has acted as Company Secretary for numerous private and public companies. Trained in the latest requirements for Corporate Governance Best Practice MEP can offer company secretarial, accounting and bookkeeping services.
Structural Monitoring Systems (SMS) is engaged in the development and commercialisation of “Comparative Vacuum Monitoring” (CVM) used in testing and monitoring the structural integrity of materials that are subject to operational stress and fatigue primarily in aircraft.

SMS was established and listed on the Australian Stock Exchange in 2004. From highs of $2.54 in November 2004 and $2.49 in March 2007, the share price gradually declined over a period of four years to a low of two cents.

Mac Equity Partners became aware of SMS in 2010. Our extensive due diligence into the company revealed some of the reasons why the share price had collapsed so dramatically. The company was based in Perth with a large number of directors and engineering professionals. Payroll costs were acting as a significant drain on the company’s balance sheet and hindered the allocation of capital towards commercialising the technology. Additionally, consistent capital raisings diluted the value of shares on issue and limited the company’s ability to maintain a tight register.

MEP took control of the company in mid 2010 by conducting a $500,000 placement exclusively to MEP clients. We subsequently restructured the board with industry and commercialisation professionals, appointing an experienced US based CEO to head up the companies operations, which were strategically moved to the US. In order to provide the company with sufficient working capital for commercialisation of the CVM technology, MEP undertook a second placement to MEP clients raising $500,000. In five years since MEP’s intervention, SMS has gained approval from the Federal Aviation Authority in the US and has been one of the best performing stocks on the ASX in 2015, with a share price high of $1.98. The Company is now in the process of signing commercial agreements with a number of major airlines including Boeing and Delta in order to complete the commercialisation of CVM technology.

HZR is a Western Australian based company focused on bringing innovative clean technology to the global market. Through their novel low cost Hazer process, the Company is striving to lead the way in clean hydrogen and graphite production.

Mac Equity Partners sourced HZR in early 2014 when MEP was interested in investing in clean industrial technology. MEP then conducted a series of meetings and visits to HZR’s lab at the University of Western Australia. Extensive due diligence work conducted by MEP reinforce our view that clean hydrogen and graphite produced through the Hazer Process could significantly disrupt global graphite and hydrogen markets.

In December 2014, Mac Equity Partners raised circa $1m seed capital at a market capitalisation of ~$1.8m, exclusively through our high net worth/sophisticated investor client base. MEP then acted as lead manager to the IPO in December 2015, raising $5m at a market capitalisation of ~$18.5m (fully diluted). The raising was significantly oversubscribed, with high profile institutions taking a large portion of the IPO capital.

Within four months of listing, HZR’s share price has been as high as $0.85, representing a fully diluted market cap of ~$81m. Since listing HZR has moved their main laboratory operations to the University of Sydney. The Company is focused on rapidly scaling the Hazer Process and subsequently marketing and selling clean graphite and hydrogen.

Hazer - Performance since listing

Investment Funds

Mac Equity Partners (MEP) and View Street Partners (VSP) are establishing two investment vehicles providing access to unique, high growth opportunities generally only available through MEP and VSP.

The opportunity will allow investors to take advantage of:

The new and unique tax concessions provided by the government through the Early Stage Venture Capital Limited Partnership (VENTURE) or;

Investment through a more traditional investment vehicle in a company structure (CAPITAL). Each structure provides unique characteristics which may be suitable to investors, particularly from a taxation perspective (VENTURE).

Investment highlights

Experienced investment team
A proven track record of identifying, investing in and listing early stage growth companies.

Exclusive access to quality deal flow
Investors receive access to exclusive early stage deal flow, normally only available to MEP and VSP clients.

Early stage investment tax incentives – VENTURE
Shareholders in the ESVCLP will not pay any capital gains or income tax and will receive an up front 10% deduction on their contribution.

Significant investor visa (SIV) compatible – VENTURE
$500,000 investment in the Venture Capital Limited Partnership will satisfy one of the three tests for SIV approval.

Simple transparent organisational structure
Use of independent experts to administer, audit and advise the management company and its Directors.

6009 Limited Partnership (ESVCLP) is an unlisted limited partnership seeking to raise A$15 million by way of a share issue.

ESVCLP is designed for investors seeking exposure to early stage, small and micro-cap emerging companies with the objective of superior absolute returns.

6009 Capital Management Pty Ltd will be appointed as fund managers to execute the mandate. The fund managers will include the Executive Chairman of MEP Bryant Mclarty and the Managing Director of VSP Tim Andrew, each holding co-chief investment officer positions. Accompanying them will be three directors, one of which is an independent director.

Investment mandate

  • High conviction, high concentration – short term volatility acceptable to seek to deliver superior returns over the long term;
  • Thesis dictates a deeper understanding of fewer investments rather than a superficial understanding of many;
  • Investee company characteristics: genuine competitive advantage, unique market position with high barriers to entry;
  • Low turnover, typical investments are held for 3+ years;
  • Smaller fund size ensures that performance is not compromised;
  • Clear risk parameters in place, appropriate for the 6009 strategy;
  • Extensive ongoing management interaction, modelling and ongoing due diligence by VSP and MEP;
  • Sector agnostic. Given the managers’ experience, it is expected that the investments will be more heavily weighted in industrial, agri-business and technology. Resources opportunities will be considered at the discretion of the manager.

Investment Structure

  • Issue of up to 15,000,000 units at A$1.00/unit to raise A$15 million;
  • The Directors have the discretion to accept over subscriptions;
  • Profits will be distributed;
  • This offer is the Wholesale and Sophisticated Investors only under s708 of the Corporations Act 2001;
  • The limited Partnership must not exceed $250 million market value at any stage.

Fees

  • 1.5% annual management fee, paid quarterly in arrears;
  • 20% performance fee over the 90 day bank bill rate plus 4% paid on realisation of profit;
  • Losses rebated against future performance gains;
  • No entry, exit or partner fees.
6009 Capital Limited (Company) is an unlisted public company seeking to raise up to A$15 million by way of a share issue.

The Company is designed for investors seeking exposure to listed early stage, small and micro-cap emerging companies with the objective of superior absolute returns.

6009 Capital Management Pty Ltd will also be appointed using the same management structure as the ESVCLP. This will ensure that investment decisions are coordinated and aligned within the overall structure so as to achieve the best performance for investors in both the ESVCLP and the Company.

Investment mandate

  • High conviction, high concentration – short term volatility acceptable to seek to deliver superior returns over the long term;
  • Thesis dictates a deeper understanding of fewer investments rather than a superficial understanding of many;
  • Investee company characteristics: genuine competitive advantage, unique market position with high barriers to entry;
  • Low turnover, typical investments are held for 3+ years;
  • Smaller fund size ensures that performance is not compromised;
  • Clear risk parameters in place, appropriate for the 6009 strategy;
  • Extensive ongoing management interaction, modelling and ongoing due diligence by VSP and MEP;
  • Sector agnostic. Given manager’s experience, it is expected that the investments will be more heavily weighted in industrial, agri-business and technology. Resources opportunities will be considered at the discretion of the manager.

Investment Structure

  • Issue of up to 15,000,000 shares at A$1.00/share to raise A$15 million;
  • For every two shares, a free $1.30 June 2020 option will be issued;
  • The Directors have the discretion to accept over subscriptions;
  • The Directors have the discretion to declare distributions;
  • Additional shares may be used at NTA;
  • This offer is the Wholesale and Sophisticated Investors only under s708 of the Corporations Act 2001.

Fees

  • 1.5% annual management fee, paid quarterly in arrears;
  • 20% performance fee over the 90 day bank bill rate plus 4%. Paid semi-annually;
  • No entry, exit or Director fees;
  • High watermark – inception capital.

Investors have the opportunity to participate in one or both of the above structures. The investment mandate of both 6009 Limited Partnership (ESVCLP) and 6009 Capital Limited (the Company) will ensure that a particular investor’s risk profile for early stage investment is catered for in both private equity and listed equity formats.

The Chief Investment Officers and Directors of 6009 Capital Management Pty Ltd bring a wealth of specialist and high conviction investment experience with unique access across multiple sectors. Exclusive deal flow from both MEP and VSP will be available to both investment structures providing investors with unique opportunities not generally available to the wider investment community.

Find out more

To find out more about these investment funds, please fill out the below information and we will be in touch.

Publications

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Publications

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Contact

Located in Perth, Western Australia, MEP is connected with consultants located in New York, Los Angeles, the United Kingdom and Singapore. An above average global reach beyond the norm for a small team.

Western Australia shares a time zone with 60 per cent of the world’s population in the nations that promise the greatest economic growth of the 21st century. Countries like Japan, China, Indonesia, Korea, Vietnam, Malaysia, Singapore and other South-East Asian nations.

A. Suite 7, 29 The Avenue, Nedlands WA 6009
PO Box 3096 Broadway, Nedlands WA 6009
Ph. 08 9386 2801

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