Bentley Capital Limited (ASX Code: BEL) invests its own balance sheet capital into an investment strategy with the following features:
•Strategic activist and cornerstone stakes in ASX small-cap listed companies
• We also consider private businesses, assets and projects where an exit event is likely and foreseeable
• Generally we seek deep value at the entry price, taking advantage of temporary undervalued situations, companies with cash backing, or where optionality is embedded in the share price due to the value of assets being overlooked
• The opportunity for our entry may often be due to a special situation or event
• While we seek value investments, the underlying business or asset must also have significant capital growth potential, often unrecognised by the wider market
• We prefer to have input into strategic direction, often including board representation
Our formal investment mandate is set out in the Investment Mandate section
All investment decisions are first screened and analysed by the Bentley Capital Investment Team
We look at many companies and opportunities each month before eliminating all but the very few investment propositions which fit our strict criteria.
Bentley’s investment universe principally comprises:
• ASX listed companies with market capitalisation under $100m, with a “sweet spot” of up to $30m
• ASX “shells” and restructuring situations with market caps of less than $10m
• Unlisted companies with an enterprise value of less than $20m if a clear plan for seeking ASX listing is in place
In general we target an investment size of between $2m and $7m for each investment, depending on the particular opportunity. This may translate into an equity position of between 5% and 25% of listed companies, and sometimes higher in special situations and unlisted assets. In some cases we invest smaller amounts into seed capital deals to get an early seat at the table of a fast emerging new company.
We also consider providing corporate finance to projects, sponsoring the creation of new listed companies by financing ASX shells to acquire new assets, investing in undervalued cash/NTA situations, and looking at turnaround and distress situations.
Bentley is currently focused on the following sectors:
• Energy (oil, gas, coal, alternatives, renewables)
• Metals (gold, iron ore, copper, rare earths)
• Other mineral resources
• Technologies and services, especially in resources and mining
• Fast growing creative and information-based businesses
• Distressed / turnaround / pre or post insolvency situations
The size of any one investment will be carefully weighed in relation to the overall capital base of the Company with a view that there should be a prudential exposure to any single investment.
If the size of the investment is material to an investee company, Bentley aims to take an active role in the strategic direction of such companies by seeking a seat on the Board or collaboration with management, with the common objective of adding shareholder value.
If your company or project demonstrates these characteristics, and is seeking equity capital, we’d like to hear from you. Contact Us