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Emerging Unicorn Fund

5%

Annual Distribution

3 Year Term

Growth & Income

ASX & International

A venture-backed company receives unicorn status once it receives an equivalent of a 1 billion USD valuation.

The Emerging Unicorn Fund has been established to facilitate you in acquiring early-entry to listed or unlisted, major growth opportunities.

The fund provides exposure to the emerging unicorn companies that Gleneagle are actively pursuing, allowing you to capitalise on our internal investment strategy. In turn, Investor capital will add additional weight to the Gleneagle Group and our partners’ already significant holdings in these companies.

As a combined force, the Fund will utilise this substantial economic stake to apply strategic influence and further shape the growth of these emerging unicorns.

In the last five and a half years, the global number of unicorn companies has grown from 165 to 743, an increase of 350%.*
Unicorn Statistics

With so much opportunity in market, the most arduous task is identifying which ventures to pay attention to.
Often, investors have little knowledge of these companies until their market caps sky-rocket, seemingly overnight.

*Unicorn global growth data source: PwC analysis, PitchBook Data Inc.

Sophisticated Investors

To be considered for this investment product; applicants must supply evidence they qualify as a Sophisticated Investor.

The Unicorn Strategy

01. Source

Opportunities are primarily sourced via Gleneagle’s established global network within the investment community. This encompasses unrivalled relationships with business founders, private equity firms, advisory firms, legal counsel, and other co-investors.

02. Qualify

Early-stage investing fundamentally relies on a qualitative approach, to assess intangible benefits and analyse potential. Our team brings the wisdom gained from lifetimes spent in global financial markets to identify which companies pose a distinct competitive edge and are positioned to rapidly scale and compete.

03. Due Diligence

Every opportunity undergoes quantitative analysis for performance evaluation and to anticipate future behaviour, ensuring each company meets Gleneagle’s strict investment criteria. Due diligence may also include analysis of; market and competitor information, reference checks, leadership interviews and product or technology reviews.

04. Monitor

We build and hold strong relationships with investee management teams, providing a mutual flow of information. Gleneagle may also seek to appoint a representative of the Fund to the company’s board, providing further opportunity to apply strategic influence, pivot business strategy and facilitate growth.

01. Exit

The above steps equip us to optimise the Fund’s timing and method of exit from each investment. To support this, the Fund itself will have an initial investment term of 3 years – until 31 March 2025

Global Trends

Thematic trends can help to indicate transformative shifts in market, highlighting specific industries and niches for long-term opportunity.

Exceptional Leadership

Driven, passionate, and talented teams build the best companies. Incentives and equity holdings must also be financially aligned with shareholder objectives.

Ripe for Expansion

There’s a sweet spot between reaching initial milestones but yet to take off. The strategic plan must cement their trajectory of scaling rapidly and generating sustainably high margins.

20 million badge

Gleneagle and its partners are accumulating a strategic stake in a listed Nasdaq company, with a current holding of more than $20M USD.

The company operates in the public safety and transportation markets across the globe. It provides a purpose-built, real-time solution for intelligent infrastructure, to make cities safer, smarter, and more efficient.

The feature product is an AI powered system that predicts incidents and enhances public safety with inter-agency operability. It uses 5G processing of optical sensors to capture real time video and traffic analysis, all installed on existing infrastructure.

There are a number of players in the sector, which is ripe for disruption. The company is positioned to scale and establish rapid growth via an expanding global footprint.

We back the company to achieve its revenue potential of $100’s of millions in 5 years, with an accompanying gross margin of 70-80%.

The fund provides exposure to this company, and other emerging unicorns that Gleneagle identify and pursue.

Gleneagle Track Record

Entry
From 90c
Exit
$3 – $4.30
Now
$2.21

+230%

Zip Co is a leading player in the digital payments industry.
Entry
20c
Low
5c
Now
$2 – $4

+1400%

Independence Group acquired Sirius Resources for $4.38 per share / 1.8b.
Entry
From 90c
Exit
$5
Now
$27

+450%

HUB24 is a technology and data provider to the wealth industry.
Entry
From 45c
Exit
$5.85
Now
$7

+1200%

Gleneagle sold 1/2 and hold the remainder, seeing potential for the share price to rise.
Entry
From 45c
Exit
$5.85
Now
$7

+1200%

Gleneagle sold 1/2 and hold the remainder, seeing potential for the share price to rise.
Entry
$2
Low
$56
Now
$151+

+2700%

Gleneagle backed this unicorn in its very early stages, however could have held the position longer.
Entry
15c, 45c, 70c
Exit
$1.45
Still Holding

+220%

Gleneagle backed Nickel Mines’ good management and see potential for even further growth.

This Product is Delivered by Gleneagle

Gleneagle is a Private Investment Bank, connecting individual investors to institutional resources.

Invest at the Source

Leverage Gleneagle’s relationships and buying power to gain access to the same investment vehicles used for their own bank capital.

Rigorous Due Diligence

Each deal is subject to extensive credit assessment, compliance, and underwriting conditions. Each year, only a select few meet Gleneagle's strict criteria.

Aligned Interests

All deals we facilitate and put forward to you are coinvested by Gleneagle, ensuring our interests are always aligned with yours.

$1.2B

Funds under management and advice

108

Team members globally

56,000 +

Clients and counting

≈ $ 2.3B +

Traded through Gleneagle daily

Key Terms

The following table provides an overview of the key terms of the Gleneagle Emerging Unicorn Fund.
ITEMSUMMARY
Investment OverviewGleneagle Asset Management Limited (ABN 29 103 162 278, AFSL No. 226199) (Gleneagle) has established the Fund to facilitate Eligible Investors acquiring an economic interest in listed or unlisted emerging unicorn companies. The Fund's sole purpose is to invest in these companies.
Investment universeListed and unlisted global equities and global swaps.
Legal structure and currencyThe Fund is an Australian unit trust. Units in the Trust (Units) are fully paid.
All dollar amounts referred to in this Term Sheet are in Australian dollars.
Trustee and ManagerGleneagle Asset Management Limited (ABN 29 103 162 278, AFSL No. 226199) is the Trustee and Manager of the Fund.
Eligible InvestorsInterests in the Fund are only available to persons who are wholesale clients for the purposes of the Corporations Act 2001 (Cth) (Corporations Act).
Target raisingGleneagle is proposing to raise $20 million however there is no minimum or maximum size of the Fund.
Application cut off and application moneysApplications will generally be processed on the first business day of each month.

The application form, wholesale status, any information requested and cleared funds (Approved Applications) must be received by the Trustee on or before the 25th of each to be processed on the first business day of the month otherwise it will be processed the following month. Application monies will be held in an account which may be interest bearing until invested in the Fund (or returned to the Applicant) and that interest (if any) earned on this account will be retained by the Trustee.
Minimum InvestmentThe minimum investment by any Investor will be $50,000 unless permitted by the Trustee. [All subscription amounts must be paid in Australian dollars.
Closing DatesThe first close is expected to occur on 31 March 2022 (First Closing) for which Approved Application must be received no later than 25 March 2022. The issue price of a Unit issued on the First Closing will be $1.00.

Subsequent closings may be held at the discretion of the Trustee, provided that the final closing will occur no later than 12 months after the date of the First Closing being 31 March 2023 (Final Closing).

The issue price of a Unit issued subsequent to the First Closing will be based on the net asset value of the Fund calculated on the last business day of each month in accordance with the Trust Deed.
Term of the FundThe Fund will have an initial term of 3 years from the First Closing ending on 31 March 2025 (3rd Anniversary) , which may be extended by up to 2 additional extensions each of 1 year as determined by the Trustee in its discretion ending on 31 March 2026 (4th Anniversary) and 31 March 2027 (5th Anniversary), respectively.

The Trustee must give at least 1 months prior notice (Extension Notice Period) before extending the term of the Fund beyond the 3rd Anniversary and the further extension beyond the 4th Anniversary.

Withdrawal and Transfer from the fundInvestments in the Fund are illiquid. Subject to the below, Investors have no right to redeem their Units prior to the 3 Anniversary or, if the Fund is extended as referred to above, during either of the 2 extension periods.

If the Fund is extended beyond the 3rd Anniversary or the 4th Anniversary, Investors may request the redemption of their units after they receive an extension notice from the Trustee prior to the end of the relevant Extension Notice Period (i.e. by the 3rd Anniversary or the 4th Anniversary as applicable).

If a redemption requests is accepted by the Trustee the redemption proceeds will generally be paid within 15 business days after the 3rd Anniversary or 4th Anniversary.

The redemption of Units in such circumstances will be funded by selling assets and/or by borrowings secured by lodging stock owned by the Fund with the lender. Any interest charged by the lender will be paid from the assets of the fund.
However, the acceptance of all or some of the Units subject to redemption requests and the time for paying out any accepted redemption requests is at the Trustee's absolute discretion.

An Investor may only transfer any of its Units with the prior written consent of the Trustee in its absolute discretion. Investors may seek to sell or transfer their units by notifying the Trustee in writing which will use commercially reasonable endeavours to facilitate the sale of those Units.
DistributionsThe Trustee intends that the Fund will pay an annual distribution yield of 5% per annum (i.e. 1.25% per quarter), which may be paid out of the income or capital of the Fund and may be funded by borrowings secured by lodging stock owned by the Fund with the lender. Any interest charged by the lender will be paid from the assets of the fund.

Distributions will be paid in cash and payments will be made quarterly, based on the 1.25% per quarter in proportion to the time those Units have been invested in the fund for that quarter. Distributions cannot be reinvested in the Fund.

The Fund will not be distributing dividends that have franking credits for taxation purposes.
Administration, Audit, and Registry costs and expensesThe Trustee is entitled to receive:

- a once off upfront administration cost paid to the administrator of $10,000 payable on the commencement of the Fund and a monthly administration cost of the greater of $3,000 per month or 0.09% per annum on the gross assets of the Fund less than $50m, reducing to 0.05% on the assets between $50m-$200m, and 0.02% on assets greater than $200m (plus any GST) payable monthly in arrears.

This minimum amount is increased annually by the annual adjustment being the higher of 3% and CPI on 1 April each year, commencing 1 April 2023;

- a once off upfront registry cost paid to the registrar of $1,000 payable on the commencement of the Fund and a monthly minimum maintenance registry cost of $600 per month (plus any GST) payable monthly in arrears;

- compliance tax and investor reporting paid to the administrator of $4,400 for each financial year ending 30 June each year, payable on completion of the reporting being sent to unitholders and accrued for monthly with each financial year ending 30 June each year;

and

- audit cost (if an audit is conducted in that year) paid to the auditors of $10,000 for each financial year ending 30 June each year, payable on completion of the audit and accrued for monthly with each financial year ending 30 June each year, these payments which is used to pay costs charged by the external administrator, Registry Manager and external auditor. The monthly costs will be accrued monthly in arrears and paid within 15 business days after the month end out of the Fund's assets.

- audit cost (if an audit is conducted in that year) paid to the auditors of $10,000 for each financial year ending 30 June each year, payable on completion of the audit and accrued for monthly with each financial year ending 30 June each year, these payments which is used to pay costs charged by the external administrator, Registry Manager and external auditor. The monthly costs will be accrued monthly in arrears and paid within 15 business days after the month end out of the Fund's assets.

These fees are subject to change by the Trustee giving at least 30 days written notice to unitholders.

Establishment FeeThe Trustee is entitled to receive a once off establishment fee of 4% paid out of each investor's subscription amount which will be used to, without limitation, fund the establishment costs and expenses below.
Establishment Costs and ExpensesAll costs incurred in the establishment of the Fund and other indirect expenses incurred by the Trustee in connection with the operation of the Fund, excluding external administrator, registry and audit costs, will be paid by the Trustee in its personal capacity from the establishment fee. Transaction costs incurred in relation to the acquisition of the Fund's assets or its borrowings will be borne by the Fund.
Performance Fee- 20% of the surplus (if any) of the aggregate of all realisation proceeds (including income and capital) received by the Fund above the amount invested in the Fund;

and

- 30% of the surplus of the aggregate of all realisation proceeds received by the Fund above the amount invested in the Fund, if the surplus is 300% above the amount invested in the Fund.

- The Performance fee will not be accrued based on unrealised assets. If the performance fee is payable, it will generally be paid within 15 business days after the month end in which the assets were realised out of the realisation proceeds.
RisksThe risks of investing in unicorn companies i.e. early stage ventures is typically seen as a highly risky venture, with the potential to bring in high returns. Unicorn companies aren't a commonality and only a limited number succeed. It is not suitable for conservative or risk-averse investors or those who cannot recover from capital loss or have a short term outlook. There is also the liquidity risk and sellers might have to wait for liquidity events to get their money out.

The other risk is majority control where the founders' interests might be poorly aligned with those of small investors. Gleneagle Group, its partners and our sophisticated investors already have significant holdings in those emerging unicorn companies.

The risk is decreased as Gleneagle may also seek to appoint a representative of the Fund to the company's board, providing further opportunity to apply strategic influence, pivot business strategy and facilitate growth.

Access Offer

To learn more about this opportunity and access the offer documents, please get in touch.

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