MillhouseIAG is an Australian and International Private Equity and Venture Capital fund manager and holds an Australian Financial Services Licence (AFSL # 283445). The MillhouseIAG Group has been operating in the venture capital and private equity industry since 1991 and the founder and principal shareholder, Mr David Millhouse, has been involved in the industry since 1983 when he became the Founding Chief Executive of UniQuest Ltd.

Private Equity Experience

MillhouseIAG has a highly qualified and experienced Board of Directors. In conjunction with this Board, the investment management team has a diverse range and depth of experience in private equity management.

The investment management team comprises of representatives in:

• Australia (Brisbane, Sydney)
• Singapore
• Germany (Berlin, Frankfurt)

The team contains a blend of personnel with experience in private equity funds management as well as growing and developing emerging companies. MillhouseIAG also boast relationships with experienced personnel in Hong Kong and the United States who assist the group with merger and acquisition transactions and public market exits.

Click here to view Profile of the Management Team.

MillhouseIAG Private Equity Investment Offerings

Coupled with MillhouseIAG’s extensive experience in the private equity and venture capital industry, MillhouseIAG has scoured the world for world’s best practice in private equity when establishing these investment offerings.

It is the blend of the right structure, investment strategy and strategic relationships which enable the group to capture the economic profit available from opportunistic investment opportunities on an international scale.

These investment offerings represent a unique opportunity for investors seeking to invest in the private equity sector. 

MillhouseIAG Limited is the Investment Manager of the following investment vehicles:

• MillhouseIAG Australian Private Equity Fund I (Institutional Offering)
• MillhouseIAG International Private Equity Fund I (Institutional Offering)
• MillhouseIAG Private Equity Trusts #1 & #2 (Institutional Offering)
• MillhouseIAG Private Equity Fund (Retail Offering)
• MillhouseIAG Global Sports Private Equity Fund (Retail Offering)

Additional information (i.e. performance tables, research reports, public documents etc) in relation to the above mentioned investment vehicles can be accessed from our 'Media & Downloads' webpage.

Millhouse AG, a Berlin based wholy owned subsidiary of MillhouseIAG is the Investment Manager of:

• Deutsche Life Sciences GmbH - Berlin, Germany

How we manage the private equity portfolio

MillhouseIAG aims to deliver superior returns by investing in private market assets across a three-country axis of Australia, Germany and Singapore. MillhouseIAG utilises its skill and knowledge as an Australian and International Private Equity Fund Manager to select, add value, grow and ultimately exit assets for the benefit of our investors.

MillhouseIAG has:

• Specific experience in the private equity asset class internationally;
• Skilled and knowledgeable management team in Australia, Germany and Singapore;
• A proven and superior track record;
• Robust investment management and risk management processes;
• The ability to identify and successfully exit private market assets.

Private Equity Objectives & Must Haves

Objectives

• Alpha Based Return - Ability to capture investment opportunities opportunistically
• J-curve elimination - It is imperative for private equity fund managers to eliminate the J-curve (a continual period of negative returns) in order to continually generate the returns targeted by private equity for their investors
• Liquidity - Historically private equity is an illiquid asset class. MillhouseIAG understands that investors' circumstances may change. MillhouseIAG is able to offer retail investors the opportunity to redeem their investment in 30 days subject to the Managers discretion.
• Covariance with Public Equity - Private equity should negatively co-vary with public equity markets, providing diversification as well as return benefits to an investors underlying portfolio.
• Top Quartile Performance - It is imperative for managers to generate consistent top quartile performance in order to attract further capital. In alpha based asset classes such as private equity it is the skill of the manager which determines the type of return investors will receive.

Must Haves

• International Reach - Investees demand it, Markets demand it and Exits demand it.
• Arbitrage - In order to profit in private equity, the manager must have the ability to make an arbitrage profit. This is achieved by buying and selling assets in the most appropriate capital markets.
• Strategic Relationships - International relationships enable the manager to capitalise on opportunistic investment opportunities as they arise.

Importance of Skilled Management

In alpha based asset classes, the return generated for investors is entirely driven by the skill of the manager. It is therefore of great importance that the manager and its management team is experienced in dealing in the private equity and venture capital asset class. This is evident by the large dispersion between 1st and 3rd quartile performance returns in the private equity and venture capital asset class.

In contrast, beta driven asset classes (traditional asset classes), returns are market specific. Therefore when the market goes up, returns in those asset classes go up (and vice versa). As the figure demonstrates below it doesn't matter who the manager is in these beta driven asset classes as illustrated by the lack of dispersion between 1st quartile and 3rd quartile performance.

USA: 1st to 3rd Quartile Performance Disparity

Asset Returns by Quartile 10 Years Ending December 31, 1997

Source: Dr. Martin Haemmig – The Globalisation of Venture Capital

Objective & Investment Strategy of MillhouseIAG

The principle strategic objective of the MillhouseIAG Private Equity Trusts and Fund are to provide capital for emerging growth companies in Australia, Singapore and Germany.

The principal strategy is to match Hubs of Innovation with Hubs of Capital on an Australia-Singapore-China-Germany-USA orientation.

"Hubs of Capital" are centres which have a significant venture investment infrastructure with substantial capital available for investment in these types of opportunities. MillhouseIAG anticipate that the principal Hubs of Capital will be Singapore, Australia, the United Kingdom, the United States and other developed countries.

"Hubs of Innovation" are centres which have a significant number of innovative companies with world leading expertise and technology. These provide suitable foundations for the development of Platform Companies. MillhouseIAG anticipate that the Trusts' principal Hubs of Innovation will be Australia and Germany.

Investment Strategy of MillhouseIAG

MillhouseIAG focuses on building value for investors by:

• Undertaking a "build and grow" investment mentality rather than a traditional "buy and sell" mentality
• Providing "hands-on" management leadership by the principals; introducing and infusing "best of breed" practices in corporate functions such as capitalisation planning, finance and control, human and resource management and corporate governance

To achieve this goal, the MillhouseIAG undertakes the following investment strategies:

• "Direct Investment in Platform Companies with Strategic Opportunities":
  • Build and Grow platform companies from Hubs of Innovation to tap production economics in various countries with product marketing to the world using the worlds Hubs of Capital.
  • Later stage investments
  • Large Market Capitalisation at exit
  • International in Scope and Scale
• "Strategic investments into Existing Private Equity & Venture Capital Funds":
  • Investments into other private equity and venture capital fund managers in Germany, Singapore and Australia where there is significant underlying portfolio value.
  • Accelerate the diversification process on a multi-country and multi-end use markets basis.
• "Venture Capital Investments":
  • Earlier stage investments which can be sold into Platform companies providing a constant source of innovation for them.

International Relationships

The MillhouseIAG Group has built numerous existing and longstanding relationships with various international partners in many countries over the years.

MillhouseIAG is the Australian partner of the Singapore Economic Development Board (EDB) for Seeds Investment Pte Ltd, which focuses on companies wishing to establish start up operations in Singapore. As a result of this partnership the Singapore Economic Development Board has agreed that it will match dollar for dollar any funds that MillhouseIAG invest into companies that are approved under the SEEDS program. As part of the program the Trusts and Fund will be credited with 1/3 of Singapore EDB’s capital gain on exit, this is a core component of the Trusts’ and Funds’ proposed investment strategy.

The following is a list of MillhouseIAG’s international partners and relationships:

Australia

• Strong relationships and networks with Queensland State Government
• Existing associations with NSW and VIC State Governments
• Existing associations with Federal Government bodies since 1994 - Primary Industries: New Industries Development Program - Ausindustry - AusTrade

Singapore

• Accredited Australian partner of the Singapore Economic Development Board (EDB) for Seeds Investment Pte Ltd
• Several Private Equity Firms

Germany

• KfW Bankengruppe (KfW)
• European Investment Fund (EIF)
• Deutsche Bank Global Banking

General Advice Warning

The advice contained on this website is general advice. It has been prepared without taking account of any person's objectives, financial situation or needs and because of that, any person should, before acting on the advice, consider the appropriateness of the advice, having regard to the client's objectives, financial situation and needs. If the advice relates to the acquisition or possible acquisition, of a particular financial product - the client should obtain a Product Disclosure Statement relating to the product and consider the Statement before making any decision about whether to acquire the product.