Pooled Share Class Portfolio
The investment focus of Ora Capital’s Pooled Share Class Portfolio is on risk mitigation and capital preservation through an investment strategy that aims to deliver superior after-tax returns, uncorrelated to traditional investment markets.
The portfolio consists of contractual cash flow businesses, generating predictable revenue, with a lower risk vs. return profile than traditional private equity. This provides investors with stable dividend returns and capital preservation, with a liquidity profile that facilitates an efficient exit at the end of the investment term.
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Why we prefer our strategy
- Conservative: The strategy has a lower risk profile than conventional private equity investments. Each new investment is asset-backed, with counterparties of good credit standing.
- Scalable: Simple structure and deal volumes mean we can deploy cash into several transactions quicker than complex private equity or real estate deals. This minimises cash drag on the portfolio return.
- Diversified: Operating rental businesses are present in most sectors, meaning we can build a portfolio that is diversified and reduce concentration risk to any one sector in the economy.
- Dividend generative: The underlying rental deals produce predictable revenue streams, translating into stable quarterly dividends. This means our investors don’t have to wait long to see a return on their investment.
- Efficient exit: The term structure of these transactions (ie. contracts of 3, 5 or 7 years) allows us to stagger the maturity dates over time, in line with the future liquidity needs of our investors, making it easier to exit than complex real estate or private equity investments.
Access to special opportunities
Special opportunities in private equity investments, other than operating rental businesses, are packaged as look-through investments via a different class of Ora Capital’s shares. Existing and prospective investors will be offered an opportunity to invest, allowing them to diversify into potentially high growth private equity. During December 2019, Ora Capital invested in such an opportunity, Magic Orange, through its limited recourse share class. Please click on the below icon to find out more information.
