A recent article in the Australian Financial Review highlighted the challenges experienced by ASX floated companies in 2018, with an average decline of 30% for the six largest new offers of the year. Meanwhile, investors who participated in $100m share placements with organisations like Blue Sky Alternative Investments and RCR Tomlinson have lost almost all of their capital. "A lot of businesses are raising capital for the wrong reasons, such as cashing out existing shareholders," Sebastian Evans of small cap fund manager NAOS Investments told The Australian Financial Review.
Meanwhile, its been a very different story in the property space, with those choosing to invest their funds in bricks and mortar enjoying plenty of good news. Virtually every single property deal from 2018 is at or above issue price, which is no mean feat given the market volatility which has sent so many capital raisings and IPOs outside the property sector into a downward spiral.
CFMG Capital, via the CFMG Land & Opportunity Fund (an unlisted investment vehicle) has also enjoyed a stellar 2018, launching 3 funds to market with fixed 12% p.a returns (net of fees).