Oakmount and Partners Ltd. Proactive Investor Interview.
Posted on 10th April 2021 at 14:09
Sculpted from experience, built for success.
Oakmount & Partners has found a formula that works for companies seeking growth capital and the investors who back them.
It is a contradiction that is accepted by seasoned investors, but rarely
mentioned in general conversation - financial markets aren't always the best arbiters of value or allocators of capital.
If this is a problem for those smaller, growth companies out there banging the drum for good assets or projects, then it is an opportunity for those smart enough to spot this anomaly.
Glenn King is one of those people who has always had a keen eye for where the market has flatly mis-priced the risk-reward (or should I say reward-risk) equation.
He reveals he was a successful early investor in Strategic Minerals and Sirius Minerals before parlaying that experience into his business, Oakmount & Partners, which he set up in 2009.
Oakmount sources much-needed growth capital for projects, mainly in natural resources and usually ones with a green slant to them.
It does this by tapping into a pool of high-net-worth and ultra-high-net-worth investors who share King's foresight.
In return for providing this capital, they are looking for a better than market return for their backing with the added kicker of capital growth.
This circle is squared by using a convertible loan note structure that might pay an annual yield in the 7-12% range but also provides the 'upside potential' of a price increase you might enjoy buying equity.
Oakmount has provided capital for London-listed Tasmanian miner NQ Minerals, and its expansion plans outside the island. And it has also helped fund the pre-IPO development of Australia-focused InterGroup Mining, owner of the wonderfully named Brilliant Brumby and Brandy Creek gold projects.
"We've raised extensive amounts of capital for both of those businesses so that they have been able to go on and broaden their mining tenements and assets in both Tasmania and Queensland," says King."
In doing this investors earn an attractive yield on their invested capital and there's the addition of significant upside potential from a capital growth perspective."
NQ is looking to move its listing to the LSE from the Aquis exchange in the near future, providing it with a new investment audience, while InterGroup is preparing to float in the UK this summer.
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Making more possible.
Today. Tomorrow. Together.
Oakmount and Partners Ltd. Est 2009.
Sculpted from experience, built for success.
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