Recent deals by ASX-listed investment firms include Travelodge and US space infrastructure.
ASX investment companies such as Auctus (ASX:AVC) primarily specialize in equities, but the uncertain equity market environment has led investors to seek alternative assets with just as much potential but less short-term volatility.
The change from year to year and the season of current quarters has seen several companies announcing new initiatives or updating the market on the performance of their existing investments.
Real estate is an alternative asset to stocks and an investment company with a foothold in both the ASX (as a listed investment company operator) and ownership is Salter Brothers.
Yesterday Salter announced it was buying the Travelodge brand in Australia consisting of 11 hotels with 2,032 rooms between them.
The deal was for $620 million and was the first deal struck by a new joint venture between Salter, Singapore’s sovereign wealth fund GOIC and investment firm Partners Group.
Salter told shareholders he would create value by giving the portfolio a redesign that included rebranding and targeted capital spending. He also hinted that other deals could be in the works.
“This significant joint venture demonstrates confidence in the Australian hospitality sector and confidence in our experienced management team with proven contract research capability, active hotel asset management skills and our value-added capabilities, all of which will be actively deployed in this portfolio,” Salter said. Brothers director of fund management Niall McCarthy.
“Following this acquisition, we are well positioned to progress towards the acquisition of new assets in this sector.”
Although Stockhead has reached out to Salter for comment, the deal comes just weeks after Salter listed its own publicly traded investment company (LIC) which, although separate from the hotel joint venture, was the first of its kind since the outbreak of COVID-19. .
Telehealth is an area that has several ASX-listed games, but an ASX-listed technology investment firm Custodian (ASX:BTI) announced yesterday that it was investing in a private game.
Bailador will invest $5.5 million in InstantScripts, a company offering services including virtual consultations and prescriptions.
InstantScripts was only founded in 2018 but has already served over 300,000 Australian patients – a figure that has increased significantly due to COVID-19.
Bailador says he was drawn to the company by the traction it got in such a short time as well as the challenge InstantScripts was looking to meet, reducing costs and improving access to healthcare.
“We are delighted to partner with Asher [Freilich] and the InstantScripts team as they accelerate their growth plans and continue their journey of building Australia’s preeminent digital health platform,” said Paul Wilson, Co-Founder and Managing Partner of Bailador.
Auctus is another example of an alternative asset-focused ASX investment firm.
Auctus published its quarterly report yesterday in which it announced that its assets under management had increased by more than 230% to reach $350 million and realized cash inflows of $4.8 million.
Its investments include US student housing and energy storage, and in recent months, US space infrastructure as a service company – Voyager Space.
Voyager is a holding company for several space-related businesses, including Nanoracks, which owns an airlock on the International Space Station.
“Voyager is less focused on space travel, i.e. Virgin, Space X, and more focused on providing services to these space and more traditional companies,” an Auctus spokesperson said. Stockhead yesterday.
The company told shareholders that Voyager Space is considering an S1 listing in the United States in the coming months and that it is considering a standalone ASX listing for its US student housing fund in early 2022.