In assessing all new investment opportunities, Indigenous Business Australia’s (IBA’s) transaction team is guided by a formal investment strategy which was established in accordance with the organisation’s statutory mandate.
Every investment opportunity is unique and is assessed against its overall strategic goals, with returns and risks carefully weighed against established criteria.
In building and managing Our Investment Portfolio, we guided by an integrated investment philosophy which includes an established set of Investment Guiding Principles and consideration of the following factors:
|Potential for financial sustainability||IBA considers the risk of capital loss from any investment activity over the short and long term.|
|Potential for positive Indigenous economic impact||IBA considers the potential for the investment to deliver:
|Promotion of portfolio diversity||The portfolio’s risk is diversified to minimise the effects of individual investment failure, industry-specific events or regional economic downturns.|
|Potential to introduce specialist management||IBA considers the strength of the management arrangements, the capability of the management team and the team’s willingness to commit to Indigenous capability development, employment, training and procurement.|
|Transaction size||Typically between $10 million and $25 million.|
|Appropriate structuring and governance||IBA seeks to protect itself against risks arising from investment activities through prudent structuring and good governance.|
|Potential for exit||IBA’s goal is to enable its Indigenous partners to acquire the capability to own and manage the investment in their own right.|
|Ability to leverage IBA’s unique position||IBA aims to maximise the value proposition of the service it offers.|
In addition to financial and economic development outcomes, many of our investments carry social and cultural significance for our Indigenous partners.
We measure our success and Our Impact not only by monetary returns and metrics, but from the insights gained and the stories shared by our investment partners.
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