Nick Browne is the Director and Co-Founder of Jameson Capital. He has over 10 years’ experience in the property and funds management industries with experience across multiple jurisdictions including Australia, Hong Kong and China.
Prior to co-founding Jameson Capital, Nick worked at Macquarie Bank since 2007 where he managed senior debt finance, mezzanine debt finance, and structured financial products and various funds specific to real estate.
After working at Macquarie in their funds management group for a number of years both in Australia and Asia, myself and two of my colleagues saw an opportunity in the investment management space for a boutique fund manager to offer the same investment opportunities and services to medium sized regional and local investors we had been providing to institutional investors, pension funds and sovereign funds.
At that point we decided to get our Australian Financial Services Licence and establish a series of funds marketed to offshore investors seeking exposure to Australian private equity real estate.
Before establishing any investment vehicle, we often spend a significant amount of time talking with the investors we work with to understand what returns they are seeking, what risks they are comfortable with and what sectors they perceive as being the most desirable.
We then overlay this with what investment opportunities and deal flow we are experiencing, and what investment themes we see playing out in the local market over the coming 24-36 months and then collaborate with these investors to match a pipeline of transactions with capital.
The key objective being to deliver a desirable product that produces better risk adjusted returns without simply offering the same products and investment opportunities that every other manager is chasing.
This additional attention to identifying upcoming investment themes is the service delivers the majority of outperformance, the management of the transaction to exit hopefully takes care of itself is the strategy is right and the deal is structured with appropriate incentives for all the parties to deliver the desired outcome.
We are looking for investment opportunities that offer scalable expansion beyond any single transaction. Looking at a single deal that delivers very good returns is of interest, but once we’ve invested the time to educate investors as to why they should be looking at the sector and why this is the best opportunity in the market above all others, we do not want to simply do a single transaction in that space.
The most desirable investment themes are those that are in a niche growth sector that few parties have the expertise to exploit, but are scalable not only within the one city but nationwide.
With the exception of one inner city apartment project, we are currently interested in all sectors including student accommodation, aged care, medical centres, hotels and serviced apartments. Whilst our primary focus is on Sydney and Melbourne, we also spend a lot of time looking at limited opportunities in the Brisbane market.
We primarily work with offshore capital partners either headquartered in Asia or with an office in Asia. The types of organisations include institutional investors, insurance companies, funds of funds, private wealth divisions of investment banks, family offices and high net worth investors.
This varies greatly depending on location, sector, if it’s a development asset or income producing, and if we’re investing equity or simply providing debt. The greatest influence on return expectations is the transaction counterparty, their level of experience and their knowledge of the market.
Whilst I understand that this is not a clear concise response, it is over simplifying it to provide a single estimate, I would however encourage any readers to contact us directly if they are considering an investment opportunity that they would like to discuss in greater specifics.
The differentiating features that create a stand out sponsor for us beyond the purely being aware of a potential project's existence, are the things like their track record and the ability to scale the opportunity into multiple transactions.
Equally important is their vision and business plan for the project, the buyer segment that they are chasing, the key design features in the project that will make it stand out from other competing projects should the market deteriorate. Ultimately the deal structure that is being proposed and is it equitable to investors, is also of paramount importance.