Castlepines Corporation is an international equity fund that invests its own and partner equity in major assets for secure, long-term yields.
Castlepines principally operates in the following sectors:
- Mining and resources;
- Power generation and utilities;
- Real estate; and
- Shipping and marine.
Castlepines seeks to purchase long-term, conservatively-yielding assets that provide a secure passive income stream. Equity is sourced from Castlepines’ own pension funds, large public pension funds and the pension funds of insurance companies. Castlepines has developed an investment model that provides access to substantial pension fund capital relatively quickly and efficiently. This capital is provided through one or more of our partner banks that act as pension fund advisers.
Castlepines’ typical investment term is 20 years or longer. Because we focus on secure long-term investments, equity costs to amortise capital and provide a return on equity are relatively low, well under double digits. If an investment term is shorter than 20 years, higher yields are required to enable Castlepines to amortise the capital over the shorter period.
Castlepines are investors, not lenders. We invest directly into certain projects and assets, taking a direct ownership interest. Castlepines generally takes no form of security over an asset, which normally means no mortgage, charge, loan or lien.
Castlepines is a passive investor and does not seek to actively participate in the operations of assets or control the board of asset operating companies.
Benefits from a Castlepines investment
A Castlepines investment can provide companies with an opportunity to retrieve significant capital tied up in passive, low growth assets that provide marginal returns, and to use those funds in more profitable areas. Assets sold to Castlepines can then be leased back for long periods at relatively low rates. The increased liquidity realised through a Castlepines investment can improve ratings and credit standing with lenders and suppliers.
The Castlepines approach can also be utilised by governments to enable them to focus on service delivery, rather than locking up funds through ownership of low commercial yield assets. Through sale of these unproductive assets and lease-back at low rates, capital can be released and deployed by governments in more needed areas. Castlepines investment in building new public assets is an alternative to government capital expenditure.
The Castlepines difference
Castlepines differs from many other equity and hedge funds by:
- Making all-equity investments for 20 years or longer, rather than short term debt-funded investments followed by asset sale or refinancing;
- Having lower yield expectations and an exceptionally low cost of capital, through its long-term all-equity investment model;
- Providing fixed terms and yields over the investment term;
- Security on assets normally not being required; and
- Taking no part in asset management decisions.
Castlepines investment model will suit many worthwhile projects that would normally only be successful if such a long-term and low-cost approach were taken.