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Blue Sky reports 57 per cent profit growth and $2.1 billion in Assets Under Management

22 Aug 2016
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Mark Sowerby

Mark Sowerby

Blue Sky Alternative Investments Limited (ASX: BLA) has announced its results for the year ending 30 June 2016, reporting an underlying Net Profit After Tax (NPAT) of $16.3 million (up 57 per cent from $10.4 million in FY15) and a 44 per cent increase in revenue to $63.0 million (up from $43.6 million).

The company will pay a fully franked dividend of 16 cents per share to shareholders (record date: 2 September 2016; payment date: 16 September 2016).

Fee earning Assets Under Management (AUM) at 30 June 2016 grew to $2.1 billion, up from $1.35 billion at 30 June 2015. As expected, a number of investments in private equity and private real estate were successfully exited throughout the year.

Since inception in July 2006, Blue Sky has generated an internal rate of return (IRR) across its funds of 16.7 per cent per annum net of fees to the end of June 2016.

Managing director Mark Sowerby said the combination of a ten-year investment track record across the four major alternative asset classes, increased investor engagement across retail, wholesale and institutional clients, and continued strong deal flow would lead to further growth in fee earning AUM in FY17 and beyond.

“Reaching $2 billion in AUM this year was an important milestone for us as a business.The fact that most of this is invested in illiquid funds differentiates us from other local fund managers and provides an incredibly solid foundation for our future growth,” Mr Sowerby said.

“The Australian funds management industry has $2.6 trillion in funds under management today and this is anticipated to grow to $4.1 trillion over the next five years. By 2021, alternative assets are expected to be the largest investment class in Australia.”

Blue Sky is Australia’s only listed fund manager focused on a range of diversified alternative investments, including private equity and venture capital, real assets (primarily water and agriculture), private real estate and hedge funds.

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