Martino brothers to target chinese investors

Brothers Domenic and Luke Martino’s growing corporate advisory and consulting firm, Indian Ocean Group, is branching out with the launch of a new funds management business that aims to

exploit its access to Chinese capital. The group is finalising the first of what could be a number of specialist funds targeting Australian investment opportunities in sectors from property

and equities to agriculture and technology. The Indian Ocean Venture Capital Fund, which will be seeded by cornerstone Chinese investors, is seeking between $15 million and $50 million. “All

the structural and legal work has been done ... and we’re about to get the first $5 million to $10 million into it,” Luke Martino, Indian Ocean’s executive director, said. He sees the new

business as an important demonstration of Indian Ocean’s widening financial capabilities. Funds management forms the third leg of what Mr Martino describes as a “tripod” set-up, taking its

place alongside Indian Ocean’s corporate advisory business, which has helped raise up to $1 billion for clients since the firm was founded 10 years ago, and an accounting and finance

practice, whose clientele includes high net-worth individuals and family offices. The fund is not limited to Chinese investors but Indian Ocean sees an opportunity to tap its links to

mainland China to raise cash from Chinese investors looking to invest in Australia. The brothers, better known in some circles for a protracted but successful redevelopment of the Guildford

Hotel, have spent considerable time and effort in putting down roots in China. Indian Ocean’s investment includes a three-person team in China, a non-negotiable, Mr Martino says, for any

business hoping to tap the local market for the long term. “It’s very hard to get around in China if you don’t have a team on the ground,” he said. The group also set up a partnership a few

years back with a Hong Kong-based financial services house, BM Intelligence, which has offices across China. The venture provides an important network of referrals and opportunities, as well

as access to BMI’s client base and a sizeable pool of capital. A group of BM Intelligence executives and clients are now visiting Australia taking in Sydney, Canberra and Perth, as part of

what Indian Ocean sees as a long-term tie-up. > It’s very hard to get around in China if you don’t have a team > on the ground. > Luke Martino Mr Martino said despite the

considerable money burnt in Australia by some Chinese state-owned companies after the mining boom, there was still a lot of Chinese interest in Australian commodities, notably coal, iron ore

and lithium. “Commodities are in the dip and on the way back, so this is where you want to buy,” he said. He also cited increasing interest by Chinese businesses in listing on the

Australian Securities Exchange, given the strong corporate governance structures prevailing in Australia. More Chinese companies were openly accepting that better transparency and disclosure

around their operations and finances would attract institutional investors and more cash. GET THE LATEST NEWS FROM THEWEST.COM.AU IN YOUR INBOX. Sign up for our emails