HMC Capital Partners Fund I

Strategic Investment in Lendlease

HMC Capital Partners Fund 1 holds a strategic stake in Lendlease Group (ASX: LLC), an Australian real estate and construction company which operates a fully integrated (i.e. own, develop & manage) model across Australia, Asia, Europe and the Americas.

On 8 August 2023, HMC Capital Partners Fund 1 released a presentation on investee company Lendlease which outlines our investment thesis and views on strategic initiatives to unlock significant value for shareholders.
"While we are supportive of Lendlease’s broad strategic direction, we believe the company needs to take decisive action quickly in order to reverse long-term underperformance and transition to a more focused, high return on equity business,” said HMC Capital Partners Managing Director Victoria Hardie.
"Key priorities include a swift exit or selldown of low returning, capital intensive businesses in order to strengthen the balance sheet, a resetting of development and FUM targets to a more sustainable level, and a greater focus on markets where Lendlease has real competitive advantages."

Click here to view the presentation.

HMC Capital Partners Fund I (Fund), is an Australian-domiciled unlisted fund providing exposure to a high-conviction investment strategy seeking to generate superior risk-adjusted returns.

The Fund will target public and private companies with real asset backing where there is potential to unlock ‘trapped’ value through improved capital allocation and portfolio management.

The Fund is managed by the same team which led the real estate acquisition of Masters from Woolworths Limited in 2017 and who founded HMC Capital, complemented by additional dedicated and high calibre investment professionals.

This Fund will target our highest conviction ideas and leverage our proven investment track record and skills to generate attractive risk adjusted returns which are non-correlated to equity markets over the long-term

Key Fund Features

Feature	Detail
Fund Inception	31 August 2022
Unit Pricing Frequency	Monthly
Target Return¹	15%+ net IRR per annum measured over a 3 to 5 year holding period.
Target Distribution Yield¹	2 to 4% per annum (post the second anniversary of First Close).
Manager Participation	HMC Capital has invested $150 million into the Fund.
Portfolio Positions	Up to 10 positions in listed investments²
Available to:	Investors who meet the definition of a wholesale investor and who have a minimum investment amount of $50,000
Fees	Management fee: 1.0% p.a. of NAV Performance fee: 20% performance fee above 7% p.a. hurdle rate subject to a high-water mark.
Applications	Monthly applications with instructions to be sent through 10 business days before month end.
Redemptions	Quarterly on the last business day of Mar, Jun, Sept, and Dec with 90 days' prior notice. Redemptions will be subject to a limit of 5% of the fund units outstanding at the end of each quarter.

Target Return and Target Distribution Yield are net of base management fees and costs but before tax (if applicable) and performance fees. This is only a target and may not be achieved.
The Fund has the flexibility to hold up to 25% unlisted assets should that arise from execution of listed investment value maximization strategy

Reports

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Fund Collateral

Fund Collateral

TitleDate
HMCCP Fund 1 - Quarterly Report - March 202405/04/2024
Information Memorandum18/03/2024
HMCCP Fund 1 - NAV Statement - February 202411/03/2024
HMCCP Fund 1 - Fund Summary - November 202323/11/2023
HMCCP Fund 1 - Research Report

InDepth with Misha Mohl - October 2023

Misha Mohl, Group Head of Strategy, was recently interviewed by Laurence Parker-Brown from the Inside Network.

Misha’s InDepth interview covers HMC Capital Partners’ investment thesis for Lendlease, and our strategy to shrink the company to greatness.

InDepth with Victoria Hardie - June 2023

Victoria Hardie, Managing Director - HMC Capital Partners, was recently interviewed by Peter White, The Inside Network.

Victoria's InDepth interview with Peter White covers the origins of HMC Capital Partners, investing in high-conviction, scalable real asset strategies and taking a proactive approach to investments.

InBrief with Victoria Hardie - March 2023

Victoria Hardie, Managing Director - HMC Capital Partners, was recently interviewed at The Inside Network's, Alternatives Symposium in Melbourne.

Victoria's interview with Drew Meredith (Inside Network) covers the strategy that HMC Capital Partners Fund 1 uses to invest, the areas where HMC Capital is currently finding opportunities for the fund, what the impact of rising interest rates is having on the portfolio and describing what asymmetric returns means in the context of HMC Capital Partners Fund 1.