Magnetic Alliance. Page 1

1.

Page 1
• MAGNETIC ALLIANCE
• PROFIT GROWTH FUND
• Fund specialising in doubling profit and
valuation
• for underperforming trading businesses with
sub 5% EBITDA
• Investor Deck
• Magnetic Alliance Copyright 2025 | PRIVATE &
CONFIDENTIAL

2.

Page 2
• The Magnetic Alliance Growth
• Fund is a Specialist Investment
• Fund For Undervalued
• Australian Business
• THE OPPORTUNITY
• The Magnetic Alliance Growth Fund (the
“Fund”) is a specialist investment
• fund investing in undervalued, small to midsized Australian businesses that

3.

Page 3
• Controlling stakes in underperforming, overlooked
• businesses operating in “boring” sectors that
are
• essential to the Australian economy and
community
• and that are ignored by earlier stage venture
investors
• and by larger private equity investors.

4.

Page 4
• MAGNETIC ALLIANCE PLANS TO RAISE $25M$50M
• TO ACQUIRE 3 PLATFORM BUSINESSES
• TARGET SUPER PROFITS EXCEEDING 21% ROI
• Target Fund Size
• 25m to $50m (Closed)
• 5m Minimum
• 15% p.a. IRR net of fees
• 5-7 Years

5.

Page 5
• Magnetic Alliance Fund is a fundamental
business improvement-based
• investment firm focused on buying and
improving underperforming businesses
• in boring but needed industries
• 01.
• We are differentiated from other investment
firms, as we co-own a custom-built
• transformation company, and have no need to

6.

Page 6
• WE ARE A HYBRID OF PRIVATE EQUITY AND
VENTURE CAPITAL
• BUT FOCUS ON FUNDAMENTAL GROUND-UP
BUSINESS IMPROVEMENT
• FUND TYPE
• Our target acquisition may be too large for a
VC
• who are looking for early-stage businesses
with

7.

Page 7
• ELIGIBLE INVESTMENTS
• Business that buy
• and sell goods
• Businesses that
• perform services
• Businesses that provide both
• service with product
• component such as installation
• i.e. Roofing/Solar

8.

Page 8
• WHOLESALE
• INVESTOR FUND
• $20M To $50M
• Seeking Investor Capital
• 15% Annual Net Return
• Target ROI for Investors Net of Fees
• 5 Years
• Lock-Up Period
• Advisory & Business

9.

Page 9
• WE LIVE AND BREATHE EXCELLENCE
• 21 PRESTIGIOUS AWARDS HIGHLIGHTS OUR
FOCUS ON EXCELLENCE
• Australian Business Leaders
• Of The Year, Mark Lim
• (Magnetic Alliance CEO &
• Founder), Optus Business
• Awards, 2016
• Aralian Young Entrepreneur Of

10.

Page 10
• what could we do with $25m to $50m for
investors?
• If $280,000 can create $192,000,000 of
growth,
• with
• $192M
• We Grew Portfolio
• From 0 to Lifetime Revenue
• to

11.

Page 11
• producing consistent long-term growth results
• We have a system-driven approach,
• CONSISTENT RESULTS
• 0.21
• 0.64
• 0.83
• 2.83
• 3.75
• 5.10

12.

Page 12
• Trading year
• Revenue
• Number of jobs completed
• EBIT
• Net Profit Before Tax
• Staff Count
• 2016 FY
• 2024 FY
• $11,565,289

13.

Page 13
• Trading year
• Revenue
• Number of jobs completed
• EBIT
• Net Profit Before Tax
• Staff Count
• 2022 FY
• 2024 FY
• $19,752,56

14.

Page 14
• Trading year
• Revenue
• EBIT
• Net Profit Before Tax
• Staff Count
• METRIC
• EBIT
• Net Profit Before Tax
• Staff Count

15.

Page 15
• Our goal is not to take over the world,
• become a market disruptor or the next giant
unicorn
• 10% EBIT
• Make fundamental
• improvements to create
• EBIT upside of 10%+
• The strategy is simple and ultra focused –
• “Fundamental business improvement”

16.

Page 16
• THE PROBLEM
• (Early Mid-Sized $20M+)
• Challenges that potential
• target acquisitions face
• Management expertise centred around the
product and industry and not
• fundamental business and financial
management limiting scale and margin
• improvement

17.

Page 17
• & MULTIPLE BY GRASS ROOTS BUSINESS
IMPROVEMENT:
• OUR EXPERTISE IS HELPING BUSINESSES GAIN
HIGHER EBITDA
• Cost Reduction 1
• STAGE 1
• Reduce Fat & Waste
• Optimise Labour Force Mix AU/Offshore
• Optimise Roles & Responsibilities

18.

Page 18
• Ability to access businesses in
• liquidation at low price and
• turned losers into winners
• Buy Low
• Expertise in driving business
• performance & culture with
• experienced executive management
• Pro management
• Expertise in building & developing

19.

Page 19
• THE FUND
• HIGHLY EXPERIENCED TEAM WHO HAVE
• WORKING HISTORY DATING BACK 20+ YEARS
• Jack Gleeson
• Will McEwin
• B.AG.SC University of Sydney
• Agribusiness Seminar Harvard
• Business School
• Seasoned leader with 45 years

20.

Page 20
• Recent data indicates that a significant
proportion
• of businesses listed for sale remain unsold.
• Over 90% of potential buyers failing to
complete
• a business purchase.
• 298,476 businesses closed for reasons such as
• retirement, lack of profitability, or strategic
exits.

21.

Page 21
• Top 8 Fastest-Growing Sectors in Australia
(2025)
• We target underperforming businesses
• in growth projected industries
• It's much easier to fix an underperforming
• business in a growth industry than run
• the best business in a dying industry
• We are open to investing in sub-industries
• outside the top 8 if they have strong growth

22.

Page 22
• GFC 2008 – Resilient Industries in Australia
• COVID-19 2020 – Resilient Industries in
Australia
• Market Size
• (Latest Available)
• Mining
• Sector
• GDP Contribution: 9.8% in 2008–09. Growth in
Gross

23.

Page 23
• FUND STRATEGY
• TARGET FRAGMENTED INDUSTRIES
• We are targeting businesses in the below
• fragmented industries that are ripe for
consolidation
• Growth Rate
• (CAGR)
• Renewable Energy
• (Solar, Wind,

24.

Page 24
• We aim to consolidate small to medium
businesses
• and grow them towards the large end,
attracting
• higher exit multiples
• There are 2.663 million businesses in Australia
as of June 2024,
• ranging from self-employed people to large
businesses with 200

25.

Page 25
• FUND STRATEGY
• TARGET AGEING BUSINESS
• OWNERS NEEDING EXIT
• The average age of a business owner in
Australia
• is 49 years, reflecting a gradual increase in
• average age
• This trend highlights a demographic shift, with
• an ageing population of business owners and

26.

Page 26
• EFFICIENT DD PROCESS CAN SCREEN QUICKLY
• AND COST EFFECTIVELY TO SCAN MORE
OPPORTUNITIES
• FUND STRATEGY
• Lightning-Fast Performance DD
• 65 Criteria to filter potential investments
• 600 Question survey for possible
improvements
• PHASE 1

27.

Page 27
• DEALFLOW: HOW WE FIND LOW-COST
OPPORTUNITIES
• MA sources deals through 3 main channels:
• Deal Source
• Direct marketing to specific
• target market. Via advertising
• or industry targeted direct
• communications
• Existing database of clients,

28.

Page 28
• KEY FUND TERMS
• STRUCTURE
• KEY PARTIES
• FUND SIZE AND CLOSES
• Unregistered managed investment scheme,
structured as an Australian unit trust
• Trustee – True Oak Investments Pty Limited
ACN 002 558 956, AFSL 238184
• •Investment manager – Magnetic Alliance

29.

Page 29
• MANAGEMENT FEES AND EXPENSES
• MANAGEMENT FEES
• ESTABLISHMENT COSTS
• ONGOING FUND EXPENSES
• 2.50% per annum (exclusive of GST) on all
funds under management in the Fund
• Up to $[275,000] (plus GST) incurred in the
establishment of the Fund
• $[ ] (plus GST) per annum incurred in respect

30.

Page 30
• PERFORMANCE FEES (CARRIED INTEREST)
• The Manager will be entitled to a performance
fee in the form of carried interest based on
the net income
• of the Fund, after all management fees and
Fund expenses
• The Manager’s entitlement to carried interest
will be tiered and subject to a full catch-up
mechanism
• Distribution / carried interest waterfall:

31.

Page 31
• RISKS OF INVESTMENT FUND
• KEY RISKS
• No assurance of investment return. No
assurance of investment return can be given
to
• investors in the Fund. The return on
investment will depend on the success of the
Fund’s
• investment in the underlying businesses,
which cannot accurately be forecast at the

32.

Page 32
• FROM $0 TO 9 FIGURES IN 2 YEARS
• SUCCESS STORY
• *Past performance of MAC’s previous
businesses and investments in this slide
should
• not be viewed as a reliable indicator of future
performance of the Fund.

33.

Page 33
• CORPORATE DIRECTORY
• Our Professional Team
• CORPORATE LAWYER
• SUNDARAJ & KER
• +61 2 8880 5130
• Level 31, Australia Square
• 264 George Street, Sydney NSW 2000
• CORPORATE ADVISOR
• TIP GROUP

34.

Page 34
• The Magnetic Alliance Growth
• Fund is a specialist investment
• vehicle designed to unlock
• value in overlooked Australian
• businesses._x000D_
• INVESTMENT THESIS
• We know the trade-off: high-growth, volatile
investments offer big
• potential but carry high risk, while low-

35.

Page 35
• A LETTER FROM OUR SEO
• As an investor, you’ve built wealth, but you’re
stuck in a dilemma: safe investments protect
capital but barely
• grow it, while volatile markets tempt with high
returns but expose you to sleepless nights. It
feels like you
• always have to choose between growth and
safety._x000D_
• What if there was another path one that

36.

Page 36
• THANK YOU
• For any further details contact us
• +61 7071 3000
• CONTACT COMPANY
• fund@magneticalliance.com.au
• EMAIL
• 70 Pirie Street Adelaide
• ADDRESS
• www.magneticalliance.com.au

37.

Page 37
• DISCLAIMER
• Issue of this document. This presentation
dated [insert] (Presentation) has been
prepared by Magnetic
• Alliance Capital (ACN XXX XXX XXX) (MAC) in
relation to the proposed MAC Turnaround
Trading Fund (Fund).
• The trustee of the Fund will be [TIP Trustees
Limited (ACN 094 107 034, AFSL 246621)]
(Trustee). MAC is the