Industry Updates

Treasury Group invests in Evergreen Capital Partners

Tuesday, May 29, 2012

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Opalesque Industry Update - Treasury Group Limited (TRG) is pleased to announce that it has acquired a minority equity interest in Evergreen Capital Partners Pty Ltd (Evergreen), a Melbourne based absolute return manager. This investment by TRG builds upon the existing relationship between TRG and Evergreen which was initiated in December 2011 when Evergreen was appointed to assume management responsibility for the Ascot Fund. Founded in 2009 by Tim Hannon, Evergreen is a boutique funds management business with a focus on management of ASX listed equities via an absolute return style. Evergreen’s flagship fund is the Evergreen Australian Equities Return Fund through which it seeks to generate investment performance via systematic exploitation of market inefficiencies whilst also seeking to preserve capital.

In addition to its core equities focus, Evergreen has a joint venture with Freehold Investment Management. The JV manages Australian real estate and infrastructure securities. This business is operated separately from the equities business and is led by Andrew Smith.

Currently, Evergreen manages approximately $100m in funds on behalf of high net worth individuals, family offices and institutions. The property JV currently has $70m in funds under management.

Andrew McGill, Chief Executive Officer of TRG said “Evergreen has generated enviable returns for investors across the volatile equity market conditions that we’ve seen over the past few years. The enthusiasm, passion and focus on client outcomes of the Evergreen team underpin their success to date.”

TRG is very pleased to partner with Evergreen at this point in its development and is confident that the strength of our Distribution capability and range of support services will further underpin the continued growth and success of Evergreen TRG has acquired a 30% stake in Evergreen in return for an upfront payment of $1.4m plus a further deferred amount contingent upon the achievement by Evergreen of business performance hurdles prior to 30 June 2014. All amounts will be funded by TRG out of internally available working capital.

The majority of the TRG stake has been acquired from interests associated with Jo Rylance, Evergreen’s Executive Director and COO. Following the transaction, Ms Rylance will continue at Evergreen in her executive capacity. Mr Hannon remains the majority owner of Evergreen and also holds a significant personal investment in the Evergreen Australian Equities Return Fund alongside clients.

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