Hancock & Gore aims to generate significant cashflows from operations to cover management costs of the business, dividend payments and to ensure liquidity for new opportunities. Substantial surplus cash in a low interest rate environment creates a drag on investment returns.
H&G actively seeks appropriate risk adjusted returns from shorter term strategies (less than 12 months) to generate investment returns.
Short term income generation strategies include:
Case Study: Mint Payments convertible notes
Mint is an Australian fintech institution specialising in a wide range of end-to-end payment solutions.
Mint processes over $3bn transactions per annum which is expected to grow rapidly particularly in its core segment of travel as Australia continues reopening domestically and internationally.
Tourism and travel was over a $120bn sector in Australia prior to COVID and has been rapidly recovering during 2022.
Mint has now completed the integration of transformative acquisition IPG Group and continues to grow revenue rapidly from a profitable base. H&G holds a senior debt instrument in Mint.
BOND LIKE RETURNS