BTI - Bailador Technology Investments

[System]

Bailador Technology Investments invests in businesses with established revenues and a proven business model operating in the information economy.

Bailador will typically invest $5-10 million into an investee company and targets minority investments alongside highly motivated founders and management who have best-in-class technology or business systems and excellent growth prospects.

http://www.bailador.com.au

 

[So_Cynical]

Started trading today at around the list price.

• Issue price of $1 per share including one option.
• Market Cap: 75,913,633
• Issued Shares: 77,462,891
• BTIO $1 Options expiring 31 March 2016

List below of the businesses already invested in.
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[So_Cynical]

Bought a few today after watching for many months, 0.85 seems to be the bottom and is 15% less than the float price, NTA of over $1 - a nice mix of Tech/Internet investments, a stark difference to pretty much all the LIC's that seem to be obsessed with conservatism and mainstreaming,
~

 

[So_Cynical]

A couple of new shareholders added to the list, Eureka report and Washington H Soul Pattinson & Company, SOL will now be a substantial holder with about 20%

http://bailador.com.au/news/eureka-report-our-newest-lic-purchase-bailador

http://bailador.com.au/news/washington-h-soul-pattinson-invests-in-bailador

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1 year into this and my 85c buy in is looking ok, didnt catch the bottom but still bought at about the right level - time.
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[So_Cynical]

(23rd-April-2015 ) Bought a few today after watching for many months, 0.85 seems to be the bottom.

Sold half my position today @ $1.14 ~ a tidy 32% profit for holding 14 months, figured the job was done considering i had held for the CGT discount and needed to continue my pursuit of dividends...could be quite a while till BTI pays a divi.

 

[Dona Ferentes]

Bailador is having a good year. As a LIC, it has different characteristics than many others, being

• High Conviction (currently 8 investments plus cash)
• Technology focused
• Seeking growth stage investment.

Companies BTI invests in typically share the following characteristics:
• Run by the Founders
• Two to six years in operation
• Proven business model with attractive unit economics
• International revenue generation
• Huge market opportunity
• Ability to generate repeat revenue

The market cap is $178 million, with the latest NTA per share (pre-tax) of $1.51; post tax, which is more relevant considering the growth/ cash realisation, is $1.34. So it is not really trading at a discount. And it can be lumpy; recently one asset was exited for cash, another had a 49% uplift on revaluation. But it is the imprecise nature of pricing, whether by new equity to the holding, or a comparable company being repriced.

It is start-up tech world; if you want exposure to SiteMinder, instacluster, Straker, Stackla, Lendi, Rezdy, Brosa, DocsCorp and Standard Media Index (whoa there; no spell check(!!) ) with a clip (MER), then this could be a way to diversify the risk.

Daily for last 15 months:

 

[Dona Ferentes]

Australia’s only listed venture capital business Bailador Technology Investments has reaped the benefits of soaring tech valuations to post a $27.6 million profit in financial 2021, as the value of its portfolio companies jumped $52 million to $179 million.

The group’s co-founder David Kirk said financial 2022 could prove a watershed year if Bailador holds sharemarket investments on the assumption its two largest portfolio holdings SiteMinder and Instaclustr hit the ASX boards.

“We think these are great businesses,” Mr Kirk said. “And one of the reasons we took our fund public in the first place was to allow us to hold our best positions for as long as it made sense to do so. As we’ve seen with lots of tech businesses over the last 10 or 15 years, they just grow and grow and grow. So exiting them early, too early, can sometimes be the worst investment decision you make.”

Over the financial year Bailador sold stakes in portfolio holdings DocCorp, Viostream and Lendi for total cash proceeds of $31 million, while another holding, Stackla, merged with Finnish e-commerce start-up Nosto.

Net tangible assets (NTA) per share climbed 23 per cent higher to $1.53 for the investment portfolio over financial 2021. As at June 30, Bailador had eight company holdings and typically invests between $5 million to $10 million in e-commerce, software, or digital businesses at a later-stage, when capital is sought to accelerate revenue growth.

 

[Dona Ferentes]

NetApp a global cloud-led, data-centric software company announced that it has signed a definitive agreement to acquire Instaclustr. As a result, technology expansion capital fund Bailador Technology Investments will increase its carrying value in Instaclustr to $118m. The valuation uplift of $54m is an increase of $0.38 NTA per share (pre-tax). On completion of the transaction Bailador will realise its full position in Instaclustr in cash with proceeds expected to be received in FY22.

David Kirk, Bailador co-founder and managing partner, said: “Instaclustr has been a standout performer in the Bailador portfolio since investment, and the sale of the company to NetApp represents a great outcome for both Bailador and Instaclustr shareholders.”

 

[Dona Ferentes]

One of their better ones

regarding NetApp’s agreement to acquire Instaclustr, we can confirm that all conditions of the sale agreement are now satisfied, and the transaction has been completed.

As a result of the transaction, Bailador has received A$118m of net cash proceeds through the sale of 100% of its investment in Instaclustr.

The $118m of net cash proceeds received by Bailador is 14.2x the $8.4m investment cost, representing an IRR of 80%. Due to favourable exchange rate movements, proceeds are higher than initially indicated. As a result the BTI NTA per share (pre-tax) will increase by a further 3.5c per share over the published 30th April NTA per share (pre-tax) of $1.99.

 

[Dona Ferentes]

MD Paul Wilson said Bailador has a conservative approach to valuation and remains confident in the underlying fundamentals of all its holdings.

After realising investments in advertising measurement company Standard Media Index and open-source database business Instaclustr in the second half of financial year 2021-22, the Fund has 46% in cash.

Bailador’s returns to shareholders outperformed the S&P/ASX 200 and the S&P/ASX All Technology Index in 2021-22, returning 9.8 per cent versus the tech-index decline of 36 per cent.

 

[divs4ever]

maybe i started this investing adventure too late in life

this always seems to be too far out on the risk curve for my tastes

maybe if i had started investing in my 40's ( or younger ) i would have grabbed a handful of these as a 'growth stock ' ( but NOT 'backed up the truck ' )

 

[So_Cynical]

maybe i started this investing adventure too late in life

this always seems to be too far out on the risk curve for my tastes

maybe if i had started investing in my 40's ( or younger ) i would have grabbed a handful of these as a 'growth stock ' ( but NOT 'backed up the truck ' )

BTI is exactly the kind of stock that needs to be held in a large (many stocks) well balanced portfolio, well balanced requires some diversification and a sprinkling of higher risk holdings, i sold out of BTI a couple of years back.

 

[Dona Ferentes]

“We have felt for some time that valuations generally were becoming aggressive, so our focus has been more on realising investments, and we have been particularly selective when making new investments,” said BTI in its latest portfolio update.

and so they were lucky / prudent to cash out of 2 of the successes, before the tech fever cooled.

The fund holds up to 12 companies, and is currently public 29%, private 24% and cash 46+%. Some of the assets held have been written down quite a lot; some have stayed the same.

MD Paul Wilson says they are seeking new investments. He says there remains a “significant number of high-quality expansion stage tech companies” in Australia despite market declines, with many trading at “valuations significantly lower” than those seen for several years. “The difference is that there is currently less capital chasing those companies, and valuations are more reasonable.”

 

[divs4ever]

BTI is exactly the kind of stock that needs to be held in a large (many stocks) well balanced portfolio, well balanced requires some diversification and a sprinkling of higher risk holdings, i sold out of BTI a couple of years back.

yes , but i needed to buy in about 5 years ( or more ) before i actually started investing ,

i stayed a little inside the risk curve where BTI plays , and did very nicely , albeit aided be some big bits of luck

i also opted for the 'lesser banks ' to compensate for the growth i needed ( since i missed the GFC )

however younger members have time to learn and tweak strategies while they still have an earning stream

 

[NotRetired]

Is this worth investing in? I was looking at the fees… they have a management fee of 1.75 and a performance fee of 17.5%

 

[Garpal Gumnut]

This is where the dart fell for the July 2024 Stock picking Competition.

Tech is all the go in the USA and our ASX lacks investment avenues for meaningful appreciation in that sector. BLI seems to satisfy, being an investor in startups and then selling on when the investment reaches a point between startup and mature for profit. They sold a script and certificate outfit to WES from memory for a good profit.

gg