We released the Punakaiki Fund 2017 Annual Report last week.
The assets have grown from $1.5 million in April 2014 to $28.4 million at the end of March 2017, with the iNAV/Share rising from $10 to $20.10 in the same period. The iNAV is the “investor net asset value per share” and not a GAAP measure. We see it as the most pertinent measure to use as it is the measure that relates to the share price.
That’s a good, if realised, return for our investors. Our internal calculations show a 45% IRR based on the unrealised investment value increase, driven mainly by companies we invested in two or three years ago.
We now have have investments in 19 companies, in seed, very high growth and more mature growth stages (e.g. over $10 million revenue), with most of the value split between the latter two. The smaller ones grew by over 600% (on average) over two years, while the medium ones were over 400% and the large ones over 130%.
We continue our focus on placing most almost all funds with companies that have growing revenue, with the combined FY2017 revenue estimated at $69.5 million in the annual report. We closely monitor financial sustainability, aiming aim to invest into companies that can maintain their viability without raising further funds, and almost all of he investment value is in that category.
As always our principal issue is raising enough funding to place with the companies. We do run periodic offers so get in touch if you are a wholesale investor (e.g. over $100,000 to invest) or any potential investor can sign up to the mailing list from Punakaiki Fund.
We keep our frugal approach to using investor funds during the year, and our net cash used in operating activities was just 1.7% of assets. Compare this to other funds that invest in (and are active directors of) private companies. Moreover we do not take money from the companies themselves – other than reimbursement for travel.