Business Strategy

Avenir Capital is an Australian based investment firm specialising in fundamental, value-oriented and special situation investments in global equity markets. Our investment objective is to compound wealth for our investors by investing in materially mispriced securities which we can buy with a large margin of safety and that offer the potential for superior returns with limited risk of permanent loss of capital. We invest in special situations and quality companies undergoing change that we can buy at a 50% discount to a growing intrinsic value. Avenir is based in Sydney, Australia, which, given Australia’s international heritage and global outlook, allows us to be comfortable hunting out the best bargains globally in which to allocate our investor’s capital.

Adrian Warner - Philosophy

The Avenir Value Fund operates differently from the majority of equity funds in the Australian market. Specifically, we do not allow ourselves to be pigeon-holed into a narrow, inflexible ‘style’ and seek to allocate capital in a concentrated manner to the 15-20 best investment ideas we can find.

Our private equity background provides a distinct investment approach. Firstly, all of our investments are underpinned by deep fundamental research at the company specific level to identify extreme mispricing opportunities where we can buy businesses for 50% or less of their underlying value. Second, we worry about the downside first and exercise discipline in avoiding investment ideas that involve unacceptably high risk of permanent capital loss. Third, we focus on absolute, not relative, returns and avoid index hugging. This allows our best ideas to drive performance in a relatively concentrated manner. And finally, we invest with a longer time horizon than many investors allowing us to benefit from opportunities that others miss due to lack of patience.

We are strong believers that an investment manager’s interests should be firmly aligned with their clients. We have the bulk of our own investable assets invested in the fund alongside our investors. We also have a fee structure that aligns our interests with those of our investing partners in that we charge zero annual management fee and only earn a performance fee when the fund delivers at least a 6% annual return to our investors.

Avenir’s founder and chief investment officer draws upon twenty years experience in financial and investment markets and a deep background in private equity. This background has given rise to an intense analytical focus, a deep seated fear of losing capital in any investment and a disciplined and patient approach to only participating in low risk and materially mispriced investments.

We communicate candidly with our investment partners and treat your investment with Avenir Capital as if it was our own – our money is invested alongside yours.