How we Invest

Billions of dollars are spent on research that never makes it to market. This is our hunting ground.

How we Invest

Deal Flow

Grey Innovation Group (GIG) operates a scalable platform to fast track the commercial success of startups.

The Fund has first market access to GIG's pipeline of sophisticated startups with skilled teams, initial customers and ready for scaling. Established partner relationships with leading global universities, research institutes and government, as well as expert manufacturing and distribution partners, all lead to significantly reduced risk.

GIG earns revenue by providing discounted (25%) services to their startup companies and Grey Innovation Ventures (GIV) Fund portfolio companies. GIG grants First Right of Refusal to GIV Fund. GIG is investing $2.5m into GIV Fund. 

Grey Innovation Investment Partners (GIIP) has an independent Investment Committee including Valuation determination (external as required).

GIG earns 20% carry of Fund Carry. GIIP executives/team earns 80% of Carry.

 

 

Frequently Asked Questions

Q.
Given the close relationship between Grey Innovation Group (GIG) and Grey Innovation Investment Partners (GIIP)/ Grey Innovation Ventures funds (GIV), how can we be satisfied the perceived conflict of interest is handled?
A.
Upon application for our ESVCLP license, DISER, the ATO and Gilbert and Tobin ensured there was not an Affiliates situation with respect to GIG and GIV shareholders. In addition, the Boards of GIG and GIIP constitute different personnel, except for Jefferson Harcourt. Whilst GIG has afforded GIIP and GIV funds first right of refusal to all capital raisings of GIG startup companies, (after any pre-emptive rights of ‘current’ shareholders), GIG has no say in the investment decision. The GIIP Managing Director (Matt McNamara), non-executive director, Susan Oliver AM and CIO (Adrian Critchlow) constitute the Investment Committee and will independently make all investment decisions.
Q.
Given GIG owns 100% of GIIP, what is the economic benefit to GIG?
A.
The General Partner, GIIP, draws modest management fees of 1.5% p.a. for the investment period and reduced to 1% for the management and divestment period. It is not anticipated the GP will make a meaningful profit from Management Fees. The economic benefit GIG and GIIP Executive team aim to make will be via outperformance of the funds. After the Limited Partners (LPs) are returned their committed capital plus a Preferred Return of 8% IRR, the over performance “Carry” will be distributed 80% to LPs and 20% to GIIP. GIIP has in turn resolved to distribute any Carry, 80% to Executives and Non-Executives for their respective contribution over the life of each fund, and the remaining 20% to GIIP. NB: GIG will also be a LP of $1M in GIV1.
Q.
What is the relationship/arrangement with respect to GIG startup companies and them being deal flow for GIV funds?
A.
GIG has afforded GIIP and GIV funds first right of refusal to all capital raisings of GIG startup companies (after any pre-emptive rights of ‘current’ shareholders). GIV will also source deal flow, predominantly Australian, from other early stage cleantech and medtech companies from Australia and overseas.
Q.
How do GIV portfolio companies benefit from the GIG team and services?
A.
All GIV portfolio companies, not just those sourced from the GIG stable, will be able to avail themselves of GIG staff via reduced rates (25% DISCOUNT TO MARKET RATES) shared services agreements and licenses to GIG proprietary IP and software.

Principles

Responsible Investing Principles

We consider ESG risks and opportunities with every single decision we make.

We believe that the key to a sustainable future is the commercialisation of technology that enhances the way we live and use our planet, without causing harm or depleting natural resources.

As a signatory of the UN Principles of Responsible Investing (PRI), we abide by the 6 principles for incorporating Environmental Social and Governance issues into our investment practice. We focus on the following UN Sustainable Development Goals where we think we can have the biggest impact:

Good health and well-being

Ensure healthy lives and promote well-being for all at all ages.

Gender equality

Achieve gender equality and empower all women and girls

Clean water and sanitation

Ensure availability and sustainable management of water and sanitation for all.

Affordable and clean energy

Ensure access to affordable, reliable, sustainable and modern energy for all.

Decent work and economic growth

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.

Industry, innovation and communities

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.

Sustainable cities and communities

Make cities and human settlements inclusive, safe, resilient and sustainable.

Climate action

Take urgent action to combat climate change and its impacts.

Life below water

Conserve and sustainably use the oceans, seas and marine resources for sustainable development.

Life on land

Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.

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