In recent years, management rights syndicates have become increasingly popular in line with investors’ growing appreciation of the exceptional returns they can achieve as part of a syndicate.
What is a management rights syndicate?
Typically, it is a pool of investors (typically, five to six investors, though there is no limit as to the number) who have combined their financial resources to purchase a management rights business.
Instead of the small-scale management rights business typically within the financial grasp of a single investor, syndicates have the means to acquire management rights businesses on a far larger scale. This means high-end, blue-chip management rights businesses typically ranging from $3 million to $10 million in a prime corporate, tourism or residential location.
What makes the syndication model so attractive is that it works effectively for all parties in the syndicate.
The ‘silent’ investor gets the great return of a going concern business via a passive investment with no hands-on management. For the ‘active’ investor, who runs the management rights business on a day-to-day basis, it means significantly higher returns than if they had purchased a smaller business on their own, as they receive a salary as well as a return on their equity investment.
ResortBrokers has considerable expertise in management rights syndication having helped put together more than 30 syndicates across Australia, from our state capitals to our coastal hotspots and developing regions.
Our extensive networks of buyers and sellers in the management rights industry, built up over several decades and constantly expanding via our nationwide reach of over 30 brokers in every state and territory, puts us in a privileged position to make introductions happen.
Whether you're a hands-on operator or an investor looking for a secure passive investment, we can connect you with like-minded people who share your financial vision in order to form a syndicate.
