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Perhaps the assumption that markets are still anchored by predictable economic policies needs to be challenged. For the first time since the fall of the Berlin Wall, political volatility – once background noise – is potentially reshaping investment risk at a structural level.
Qualitas set to list after raising $335 million
Australia’s leading alternative real estate investment manager, Qualitas, has officially closed its initial public offering (IPO), having raised $335 million based on an offer price of $2.50 per share. That gives a market capitalisation of $735 million for a listing on December 23, just before Christmas.
Management will use capital raised at the IPO to co-invest in assets, like ASX-listed property investor Charter Hall Group or Centuria Capital. The offer was increased to $335 million from $300 million to make room for a late order from an existing large Asia-based investment group, and a firm that was already in Qualitas’ underlying funds.
Qualitas has three platforms, consisting “of 13 active funds, comprising five specialist commercial real estate credit funds and eight specialist real estate private equity funds. Together with other investor and non-fund mandates, Qualitas has a total of $4.22 billion in funds under management (FUM), having grown this at 36 per cent a year since inception in 2008.
Qualitas chairman Andrew Fairley AM said: “Since its founding, the business has sought to leverage its strong local market knowledge, specialised management skillset, industry contacts and broader investment infrastructure spanning origination, execution and active asset management to deliver on its investment strategies.
“This investment approach has driven attractive, risk-adjusted returns for our fund investors and, in turn, has enabled Qualitas to consistently grow its underlying FUM and build strong, enduring relationships with domestic and international institutions. We are excited about the future prospects of Qualitas and are pleased to have the opportunity to welcome new investors to share in this exciting journey.”
Proceeds from the offer will be used primarily to fund co-investments to grow FUM and to provide balance sheet capacity to underwrite, bridge and warehouse time-sensitive investment opportunities for Qualitas funds.
Qualitas co-founder and group managing director Andrew Schwartz said: “The IPO provides an opportunity for investors to partner with us in the operating vehicle and enjoy the future growth of a company highly respected by clients and well-recognised by peers here in Australia and offshore. In many ways, we are still at the start of our journey and we are presenting this opportunity at a time of strong underlying momentum in our business across all our strategies. We treasure our Qualitas track record and will work hard to maintain our results now and into the future for the benefit of new and existing investors.”
The pricing of $2.50 a share was 13.7 times forecast EBITDA for the 2022 financial year and 19.1 times forecast net profit after tax and amortisation. Macquarie Capital acted as the broker for the IPO bookbuild.
