Out Now on The Exchange: Gregg Taylor (Salter Brothers): Are we seeing green shoots for high-growth, emerging Australian companies?
In this episode, EW&L Partner and Wealth Advisor Ryan Loehr, speaks with Gregg Taylor from Salter Brothers.
Gregg leads the equities investment team at Salter Brothers, a reputable Australian alternatives investment manager responsible for overseeing $3.5bn of assets for HNW investors and institutions.
We have known Gregg across various iterations of his career, which has seen him work across broking, investment banking and portfolio manager roles with leading institutions. Then building and successfully exiting a large media-tech business as well as a funds management business (Bombora) before joining Salter Brothers. In this episode, we dive into some of the key considerations for founders seeking the right investment partner; unpack some of the common challenges these high-growth businesses face; and discuss why the market for these companies has become attractively priced.
As active investors, finding value often requires a contrarian approach; and both small and pre-IPO businesses have recently lagged larger indices by a large margin. This episode is well suited to founders thinking about taking on a capital partner and key considerations; or investors wanting to understand some of the under-appreciated opportunities in high-growth, emerging Australian companies.
Salter Brothers set to unveil its new global brand, Ardour Hotels and Estates at newly acquired Kingsford Barossa
Salter Brothers is pleased to announce the settlement of their acquisition of the historic Kingsford Barossa in South Australia which will be the first destination for their new global brand Ardour Hotels & Estates from Q3, 2024.
Identifying a gap in the market, Ardour was born from the ambition of growing a portfolio of curated hotels and estates to offer luxurious hospitality experiences within the most naturally stunning settings, for colleagues, families and friends to connect and celebrate. Ardour’s brand story of “Celebrated Luxury” strongly aligns with the Kingsford property in South Australia’s Barossa Region, which has all the essential features to create rewarding, shared experiences. Ardour Kingsford Barossa will deliver a new way for social and corporate gatherings to escape the everyday, only 45 minutes from Adelaide.
This acquisition and the development of the Ardour Hotel and Estates brand strategically aligns with Salter Brothers regional hospitality growth strategy and the formation in 2023 of its hospitality management company, Salter Brothers Hospitality (SBH). Tourism Research Australia reports that nearly half of the nation’s tourism expenditure (46% or $107 billion) occurs in regional Australia, yet investment of high quality accommodation remains to be a challenge.
Speaking about the launch of Ardour at the newly acquired Kingsford property, Tash Tobias, CEO, Salter Brothers Hospitality commented:
“We’re excited to be launching our first Ardour in an esteemed destination such as the Barossa, with a reputation for premium food and wine. For guests seeking a luxurious escape from the everyday, we’ll be creating an iconic hospitality experience that brings together the best of the Barossa with the beautiful Australian backdrop and luxurious spaces available at Kingsford. Our team is looking forward to warmly welcoming guests and providing a rewarding and memorable experience.”
On Salter Brothers selecting South Australia for the first Ardour Hotels & Estates property, South Australian Minister for Tourism, Zoe Bettison said:
“South Australia is excited to welcome Salter Brothers Hospitality to our state as the new owners of Kingsford The Barossa – making it the first luxury destination under the Ardour brand. Situated in the world-renowned Barossa Valley wine region, this stunning historical property which is the iconic ‘Drover’s Run’ home from McLeod’s Daughters is an asset to the region.”
“I look forward to seeing Ardour Kingsford Barossa draw visitors to the region where tourism is currently worth $281 million to our state,” Minister Bettison said.
Salter Brothers has secured the keys of luxury South Australia hotel, Sofitel Adelaide, with the global fund manager confirming settlement of its AU$154m acquisition.
The 5-star hotel on Currie Street, which opened in 2021, is managed by Accor and consists of 251 guestrooms and suites, Garcon Bleu restaurant, two bars, as well as extensive leisure facilities and meeting spaces.
A Prestige Lounge room in one of Sofitel Adelaide’s suite categories
“We are delighted to expand and strengthen our ongoing relationship with Accor,” said Salter Brothers Managing Director, Paul Salter.
“We now have two luxury lifestyle properties in South Australia – including the recently acquired Kingsford The Barossa.
In 2021, Sofitel Adelaide marked the first newly built luxury hotel in Adelaide in 30 years
“Leisure travel is forecast to steadily increase in 2024, with events such as LIV Golf Adelaide virtually sold out, so we are very excited about the region as a destination.”The hotel is the first asset acquired in Salter Brothers’ Core Hospitality Real Estate Fund, which is focused on newer upscale and luxury hotels with broad appeal that require little to no front-end capital expenditure.
The Australian firm is planning to launch a value-add fund and bespoke strategies with its capital partners in the region.
Rahul Ghai has been hired as managing director, Asia, to lead Australian alternative investment group Salter Brothers’ real estate expansion in the region.
Ghai joined the firm’s newly established Singapore office in November from Swiss manager Partners Group, where he was most recently managing director and regional head for private real estate Europe. Before he relocated to London in 2021 to lead the group’s European real estate business, he was managing director and regional head for private real estate Asia at the firm since 2017, based in Singapore. Prior to that, he spent six years at Deutsche Bank in Singapore as managing director and head of investments for Asia-Pacific.
Ghai: The former Partners Group executive has relocated back to Singapore to oversee Salter Brothers’ new office
In his new role, Ghai will lead Salter Brothers’ growth outside of Australia, where he will start by identifying investment opportunities with the firm’s capital partners and institutional clients. It is understood the firm is looking at both bespoke mandates for its institutional investors and an Asia-focused value-add fund to be launched next year.
“Australia is our home market and we have done well on behalf of our clients,” Ghai said. “We are increasingly seeing the maturity and institutionalizing of the broader hospitality sector across Asia, so it feels like a natural extension for us to go outside of Australia. We are also responding to what our clients are seeking, as we grow outside Australia.”
In terms of sector, the firm is planning to grow its boutique luxury hotel strategy across Japan and Southeast Asia. It will also look to acquire or organically build platforms focusing on hospitality and the broader living sector, including serviced apartments, co-living and build to rent, according to Ghai. He added that Salter Brothers’ skill set and experience in managing hospitality assets is “complimentary and transferrable” to the extended living sector.
Having opened its first Asian office outside of Australia in Singapore in August, the firm is understood to be in the process of opening an office in Tokyo next. Currently, it has a team of seven investment professionals across Singapore and Japan. Under the leadership of Ghai, some of the more senior hires in the new team include former KSL Capital Partners vice-president Ethan Quek and former IHG Japan director of finance Gene Osborne. In addition, the firm has an existing hospitality operations team based in Vietnam.
“We are excited about the caliber of the team that we have assembled to launch our Asian expansion, with teams now based in Singapore and Japan,” said Paul Salter, managing director of Salter Brothers. “We are committed to the region with in-country teams that can leverage our our existing scale in Asia-Pacific. In Rahul, we have an experienced leader who we believe is the right person to grow our franchise throughout Asia.”
With capital coming from both private wealth clients and institutional investors, Melbourne-headquartered Salter Brothers invests in specialist property, private equity and credit. The group currently has assets under management of more than A$3 billion ($1.95 billion; €1.8 billion). After Salter Brothers’ hotel platform was formed in December 2015, it has built a portfolio of more than 5,000 rooms across 37 hotels.
Sarah Thompson, Kanika Sood and Emma Rapaport – Oct 17, 2023
Melbourne-based fund manager Salter Brothers is eager to get in on the tech wreck.
Street Talk understands Gregg Taylor’s new wholesale equities fund will launch this week, targeting $50 million in commitments to funnel into private and listed multi-stage tech companies.
The unlisted fund will focus on five verticals, telecommunications, enterprise software, fintech, medtech and property tech, seeking to take advantage of what they see as a 20-year valuation lull in the sector.
“We believe that the current vintage of our Fund presents a compelling opportunity for investors to enter the market at attractive valuations in the technology sector, where valuations are extremely depressed,” potential investors were told.
The investment committee – made up of Taylor, Salter Brothers chief Robert Salter and Waves Tech Ventures co-founder Hayley Evans – will be advised by a group of industry specialists including eftpos Australia chief executive Stephen Benton and Nu Mobile’s boss Paul O’Neile. Investment director Tineyi Matanda and former Morgans stockbroker Chris Titley feature on the fund’s investment team.
Fund target investment universe/stage Salter Brothers Tech Fund information memorandum
The Salter Brothers Tech Fund has a 5-year lock-up period and is targeting a 15 per cent gross internal rate of return. It will charge a 2 per cent management fee and a 20 per cent performance on outperformance of a 5 per cent hurdle over the financial year, subject to a high watermark.
The fund will be nestled alongside the Salter Brother’s private equity and listed equities funds, under the firm’s funds management umbrella, which also includes a property and credit arm. Salter also operates an advisory and capital markets business and a Significant Investor Visa program and has around $3 billion in assets under management.
Fund term Salter Brothers Tech Fund information memorandum
Investor commitments will be accepted in the first year after the launch and unlisted investments made in the first three years. Most of its investments will be centred on Australian and New Zealand small and mid-sized venture capital and late-stage/pre-IPO tech with around a third in listed equities and cash.
In this episode, EW&L Partner and Wealth Advisor Ryan Loehr, speaks with Gregg Taylor from Salter Brothers.
Gregg leads the equities investment team at Salter Brothers, a reputable Australian alternatives investment manager responsible for overseeing $3.5bn of assets for HNW investors and institutions.
We have known Gregg across various iterations of his career, which has seen him work across broking, investment banking and portfolio manager roles with leading institutions. Then building and successfully exiting a large media-tech business as well as a funds management business (Bombora) before joining Salter Brothers. In this episode, we dive into some of the key considerations for founders seeking the right investment partner; unpack some of the common challenges these high-growth businesses face; and discuss why the market for these companies has become attractively priced.
As active investors, finding value often requires a contrarian approach; and both small and pre-IPO businesses have recently lagged larger indices by a large margin. This episode is well suited to founders thinking about taking on a capital partner and key considerations; or investors wanting to understand some of the under-appreciated opportunities in high-growth, emerging Australian companies.
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