The Buyout Strategy Worth Buying Into

Discover a suite of well-established outperformers in the leveraged loans space.

Yarra’s LBO Strategy invests in Australian domiciled leveraged buyout loans and aims to deliver higher, consistent returns than the Bank Bill Index. With more than 25 years’ sector experience, we provide access to opportunities not readily available in bond markets, offering diversification from traditional fixed income asset classes.

Secure income

We seek to generate higher income from a pool of senior secured loans to established businesses in
defensive sectors with strong investor protections.

Uniquely diverse

The strategy offers exposure to investments not typically available in bond markets, enhancing portfolio diversity and minimising downside risk.

Follow the leaders

We lend to well-established businesses with successful track records, strong management teams and significant opportunities for further growth.

CHART
Gross Performance
31 October 2024
% per month % per annum since inception
%p.a1
1 3 1 3 5 10
Yarra LBO Strategy NA 2.40% 9.43% 7.47% 6.53% NA 6.20%
Bloomberg AusBond Bank Bill Index NA 1.11% 4.41% 2.82% 1.81% NA 1.81%
Relative Return NA 1.28% 5.02% 4.66% 4.72% NA 4.39%

Monthly Commentary

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Quarterly Commentary

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Annual Report

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CHART
Net Performance
31 October 2024
% per month % per annum since inception
%p.a1
1 3 1 3 5 10
Yarra LBO Strategy N/A N/A N/A N/A N/A N/A N/A
RBA Cash Rate N/A N/A N/A N/A N/A N/A N/A
Relative Return N/A N/A N/A N/A N/A N/A N/A

Monthly Commentary

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Quarterly Commentary

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Annual Report

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How we invest

Our strategy specialises in investing in senior secured leveraged buyout loans, supporting private equity sponsors to acquire well-established businesses. These businesses benefit from the sponsor’s strategic oversight and assistance, targeting a successful exit within 3 to 5 years. Our detailed review of credit risks and deal terms aims to support the portfolio’s objective of offering attractive, diversified, risk-adjusted returns.

Bespoke construction

We target only the best deals, based on our detailed analysis, to build a portfolio spanning diverse industry sectors, loan sizes and maturities.

Back market leaders

We invest in businesses with strong brands, proven management, significant market share, and consistent track records of earnings and cash flow growth.

Undertake due dilligence

Our rigorous credit analysis and risk assessment identifies premium opportunities and facilitates the construction of a diversified loan portfolio

Investment summary

Inception Date

September 2017

Management Fees

By negotiation

Investment Horizon

Long term 5+ years

Distribution Frequency

Quarterly

Minimum Initial Investment

By negotiation

No. of Holdings

15-40

Investment summary

Inception Date

September 2017

Management Fees

By negotiation

Investment Horizon

Long term 5+ years

Distribution Frequency

Quarterly

Minimum Initial Investment

By negotiation

No. of Holdings

15-40

Senior Portfolio Manager

Leo Leslie

Investment Manager

Rhys Corry

Access opportunities not readily available in bond markets.

Managed by Yarra since 2018, this strategy is available through the UBS Australian Small Companies Fund
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