MA_Ptt

1.

MAGNETIC ALLIANCE
P R O F I T G R O W T H F U N DF u n d s p e c i a l i s i n g i n d o u b l i n g p r o fi t a n d v a l u a
tion
for underperforming trading businesses with sub 5% EBITDA
I n v e s t o r D e c kM a g n e t i c A l l i a n c e C o p y r i g h t 2 0 2 5 | P R I V A T E & C O N F I D
E N T I A LM a g n e t i c A l l i a n c e C o p y r i g h t 2 0 2 5 | P R I V A T E & C O N F I D E N T I A
L

2.

The Magnetic Alliance Gr owth
Fund is a Specialist Investment
Fund For Undervalued
Australian BusinessT H E O P P O R T U N I T Y
The Magnetic Alliance Gr owth Fund (the “Fund”) is a specialist investment
fund investing in undervalued, small to mid-sized Australian businesses that
have str ong fundamentals and operate in matur e markets, but that have failed
to r ealise their full potential because of poor pr ocess, inconsistent
management and/or under -r esour cing.W e will use our pr oven track
r ecor d in unlocking value
and pr ofit potential in businessBacked by the expertise and pr oven track
r ecor d of the Magnetic Alliance business
that has long succeeded at r e-basing
and gr owing operating business coupled
with a team of investment and transactional
experts, the Fund:will sour ce, diligence and price
unique investment opportunitieswill gr ow the EBIT of the businesses
that it invests in thr ough the application
of pr ocess, people and disciplinewill opportunistically build scale
thr ough bolt-on acquisitions in
sectors ripe for consolidationwill exit investments to a pr oprietary
network of trade and financial buyersW e will take majority contr olling stakes
to implement change quicklyThe Fund will take contr olling stakes in the businesses that it
acquir es, so that it is confident that it can make the implement
the change necessary to ensur e success .And cr eate long term sustainable
businesses with option f or investors

3.

Contr olling stakes in underperforming, over -looked
businesses operating in “boring” sectors that ar e
essential to the Australian economy and community
and that ar e ignor ed by earlier stage ventur e investors
and by lar ger private equity investors.The Fund mandate is to strategically pur chase
businesses in solid sectors that will benefit fr om
pr ocess and discipline, technology , management
expertise, and outsour cing solutions aiming to double
pr ofit or mor e.The Fund’ s “point of differ ence” is to utilise the pr oven
Magnetic Alliance capability to transform businesses
fr om underperformance to pr ofitability and exponential
gr owth.Leverage will be used wher e optimal for acquir ed
businesses, not just to incr ease Fund r etur ns.Investments will be sour ced thr ough pr oprietary
r elationships and on-the-gr ound knowledge, diligence
will be detailed and cautious, investment will be
signed-off by independent, experienced transaction
pr ofessionals, investments will be managed closely
fr om Day 1 seeking transformative pr ofit gr owth
thr ough genuine “hands-on” operational knowledge.Sector “r oll-ups” will be sought wher e
attractive and,
by pushing investments firmly into the Australian SME
market, exits will be available to lar ger private equity
funds or strategic buyers or trade competitors.Making Grea t AgainBoring Business

4.

MAGNETIC ALLIANCE PLANS TO RAISE $25M-$50M TO ACQUIRE 3 PLA TFORM BUSINESSES T
ARGET SUPER PROFITS EXCEEDING 21% ROI
T arget Fund Size25m to $50m (Closed)5m Minimum15% p.a. IRR net of fees5-7 Y
earsSophisticated$250,000Dividends + Cap GainsT arget First CloseT arget Retur nFund Life (T
erm)Eligible InvestorsMinimum InvestmentDistributionsRetur n Hur dle8%8% - 14%14% - 21%21%
+--Base T argetStr etch T argetSuper T argetMgmt. Fee <$5mMgmt. Fee > $5m0%20%3
0%40%2.5%1.5%IN V ESTMENT DET AILST ARGETRETURN BANDCARR YDEAL STRUCTUREKEY F U N
D TERMS

5.

Magnetic Alliance Fund is a fundamental business impr ovement-based
investment firm focused on buying and impr oving underperforming businesses
in boring but needed industries01.W e ar e differ entiated fr om other investment firms, as we coown a custom-built
transformation company , and have no need to seek expensive consulting firms
to pr ovide advice, allowing funds placed to focus on implementation02.Magnetic Alliance Capital’
s mandate is to strategically pur chase
underperforming assets in solid industries which will only be aided,
rather than r eplaced with technology or outsour cing including Ai03.Our strategy is simple, and
align with our expertise, which is taking businesses
with low pr ofit and amplifying their performance to achieve double or multiples
of its existing pr ofit, to incr ease shar eholder/investor value04.Following our track r ecor d in
fundamental business impr ovement & dir ect
investments to pr ove our model works and is able to deliver r etur ns for
shar eholders, we ar e now offering our investment appr oach to eligible investors
thr ough Magnetic Alliance Fund 105.SNAPSHOT

6.

WE ARE A HYBRID OF PRIV A TE EQUITY AND VENTURE CAPIT ALBUT FOCUS ON FUNDAMENT AL
GROUND-UP BUSINESS IMPROVEMENTF U N D T Y P EOur tar get acquisition may be too lar ge for
a VC
who ar e looking for early-stage businesses with
high gr owth potentialAnd too small for a PE, who ar e looking for lar ger
pur chases with matur e companies with higher
valuationsOur tar get investments ar e businesses in good
industries, with higher , mor e matur e r evenues,
but underperforming with lower pr ofit, due to
the capability ceiling of management, giving
us a chance to make significant impr ovements
while pur chasing businesses at a discountW e then have an opportunity to sell to PE funds
at higher multiples as we tar get industries that
ar e attractive to PE’ sV entur e Capital19.7%13.5%11.9%9.9%6.4%Private EquityStocksReal
EstateBondsCambridge Associates US
V entur eCapital Index
(Cambridge Associates)Cambridge Associates US
PrivateEquity Index
(Bloomber g)S & P 500 Index ( M or ningstar
D ir ect)N C R EI F Pr operty
Index( N C R EI F )Bar clays US Aggr egate Bond
Index( M or ningstar D ir ect)A sset C lassA ve . A nnual R eturnS ource

7.

E L I G I B L E I N V E S T M E N T S Business that buy
and sell goodsBusinesses that
perform servicesBusinesses that pr ovide both
service with pr oduct
component such as installation
i.e. Roofing/SolarPr operty DevelopmentFinancial Instruments (i.e.
Cryptocurr ency , Exchange-T raded
equities, derivatives)Early-stage tech start-ups,
such as Fin-T ech, Bio-T echBiomedical or Biotech or
Inventions/Patent r eliant
businessesBusinesses that
pr oduce, manufactur e
or add value to
pr oducts for sale.
I.e. Pr emium FoodWHA T ARE WE PLANNING TO INVEST IN?
POTENTIAL INVESTMENTSAgricultur e,
Agribusiness & FoodHealth Car e &
Health ServicesEnergy & W aste
ServicesPr ofessional &
Business ServicesConstruction,
T ransport & T radesSECTORS
E X CL UD E D ACTIVITIESThe aim is to invest in genuine trading businesses
that ar e f undamental to the A ustralian economy

8.

WHOLESALE
INVESTOR FUND$20M T o $50MSeeking Investor Capital15% Annual Net Retur nT ar get ROI for
Investors Net of Fees5 Y earsLock-Up PeriodAdvisor y & Business
Ser vices>$2.1BRevenue Added T o Clients21 A war dsInter national A war ds by Major Brands13 Y
earsTime In BusinessDIRECT INVESTMENT
P AST PERFORMANCE$192MLifetime Revenue in our portfolio>285XPortfolio Revenue Gr owth12
Out Of 13 Y earsConsecutive Gr owthN E W
* Past performance of MA ’ s prior investments should not be consider ed a r eliable indicator of
futur e performance of the Fund.WHO WE AREMagnetic Alliance has 3 parts to its business

9.

WE LIVE AND BREA THE EXCELLENCE21 PR ESTIGIOUS AWAR DS HIGHLIGHTS OUR FOCUS ON
EXCELLENCE
Australian Business Leaders
Of The Y ear , Mark Lim
(Magnetic Alliance CEO &
Founder), Optus Business
A war ds, 2016
Aralian Y oung Entr epr eneur Of
The Y ear , Mark Lim (Magnetic
Alliance CEO & Founder),
Australian Y oung Entr epr eneur
A war ds 2019Australian Business Leaders
Of The Y ear , Mark Lim
(Magnetic Alliance CEO &
Founder), Optus Business
A war ds, 2017
South Australia’ s T op 40 Leaders Under
40, Mark Lim (Magnetic Alliance CEO &
Founder), Er nst & Y oung / InDaily’ s 40
Under 40 A war ds, 2019
W orkplaces Of The Y ear ,
Magnetic Alliance, Optus
Business A war ds, 2017
T op 10T op 10T op 10T op 10Finalist
W orkplaces Of The Y ear ,
Magnetic Alliance, Optus

10.

wha t could we do with $25m to $50m for investors?If $280,000 can crea te $192,000,000 of
growth,with$192MW e Gr ew Portfolio
Fr om 0 to Lifetime RevenuetoWITH $280K INVESTED 10 YEARS AGO, WE GR EW
PORTFOLIO FR OM 0 TO LIFETIME R EVENUE $192MWha t makes
us confident

11.

producing consistent long-term growth resul tsWe ha ve a system-driven approach, CONSISTENT
RESUL TS
0.210.640.832.833.755.107.2010.19.617.231.044.360.0
2012/1310 000 00020 000 00030 000 00040 000 00050 000 00060 000 000
2013/142014/152015/162016/172017/182018/192019/202020/212021/222022/232023/242024
/25
285X Gr owth
in 13 Y earsCAGR 78.57%
With 12 out of the last 13 years of systematic gr owth
* Financial information is unaudited. Past performance of MA ’ s prior investments should not be
consider ed a r eliable indicator of futur e performance of the Fund.Do not take yearly r esults
too seriously , instead, focus
on 4- or 5-year averages W arr en Buffett““

12.

T rading yearRevenueNumber of jobs completedEBITNet Pr ofit Befor e T axStaf f Count2016
FY2024 FY$11,565,2897639$470,244$394,75828$2,130,2151407($101,369)($99,004)92016-2024
FY443% 443% 564%499%211%FROMMETRICTOGROWTH
EBITNet Pr ofit Befor e T axStaf f CountNet T angible Assets (NT A)Shar eholder Capital InvestedT
otal ROIBusiness V aluation MultipleAppr oximate Business V
aluation$77,188$417,916$200,000197%6.00$2,368,548$200,000(50%)NT
A$77,188441%0%499%164.%2,969%C A S E S T U D Y 1TRANSPOR T & LOGISTICS$2m T o $11.5m
with $200K Investment
* Financial information is unaudited. Past performance of MA ’ s prior investments should not be
consider ed a r eliable indicator of futur e performance of the Fund.
It is noted that the investment in its transport business was made dir ectly , not in the context of
an investment fund.

13.

T rading yearRevenueNumber of jobs completedEBITNet Pr ofit Befor e T axStaf f Count2022
FY2024 FY$19,752,56358$1,721,861$1,683,82025$4,282,27979$93,166$81,91632022-2024
FY361%353% 1,748%1,956%733%FROMMETRICTOGROWTH
EBITNet Pr ofit Befor e T axStaf f CountNet T angible Assets (NT A)Shar eholder Capital InvestedROI
%Business V aluation MultipleAppr oximate Business V
aluation$283,160$1,939,0661001,683,820%6.00$10,102,91710081,916%3.00$245,747585%0%1,
956%4,011%C A S E S T U D Y 2ROOF REP AIR$0 T o $20,000,000 with $100 Investment
* Financial information is unaudited. Past performance of MA ’ s prior investments should not be
consider ed a r eliable indicator of futur e performance of the Fund.
It is noted that the investment in its r oof r epair business was made dir ectly , not in the context of
an investment fund.

14.

T rading yearRevenueEBITNet Pr ofit Befor e T axStaf f CountMETRICEBITNet Pr ofit Befor e T
axStaf f CountNet T angible Assets (NT A)Shar eholder Capital InvestedT otal ROIBusiness V
aluation MultipleAppr oximate Business V aluation2024 FY$8,728,336$306,441$268,44137TO
$171,575$30,000895%3.00$805,3222020 FY$1,191,736($39,258)($53,478)6FROM
($22,282)$30,000(178%)NT A($22,282)2020-2024632%881%602%517%GROWTH
870%0%602%3,714%2025 FY$20,070,399$5,723,804$5,597,65925FORECAST
$5,698,520$30,00018,659%6.00$33,585,9562024-2025 1,584%14,680%10,567%317%GROWTH
FORECASTED
25,674%0%10,567%150,829%C A S E S T U D Y 3DECONT AMINA TION$0 T o $20,000,000 with
$30k Investment & $5.7m EBIT For ecast
* Financia l in f ormation is u na ud ite d . P ast p er f ormance o f M A ’ s p rior investments sho
uld not b e consi d er e d a r e l ia bl e in d icator o f fu t u r e p er f ormance o f the F u n d .
It is note d that the investment in its d econtamination bu siness was ma d e d ir ect ly , not in the
conte x t o f an investment fu n d .
Note : 2020 FY Ann u a l ise d u sin g 5 months Act u a l s

15.

Our goal is not to t ake over the world,become a market disruptor or the next giant unicorn10%
EBITMake fundamental
impr ovements to cr eate
EBIT upside of 10%+The strategy is simple and ultra focused –
“Fundamental business impr ovement”
to double pr ofit/value
Raise absolute EBIT by gr owing
r evenue and scaleGr ow T op Line Organically Find underperforming businesses
with sub 5% EBIT
SIMPLE INVESTMENT STRATEGY
01.Scale absolute EBITGr ow By Acquisition02.Develop business quality that
will double the EBIT multipleDouble EBIT Multiple0 3 .

16.

T H E P R O B L E M(Early Mid-Sized $20M+)Challenges that potential
target acquisitions face
Management expertise centr ed ar ound the pr oduct and industry and not
fundamental business and financial management limiting scale and mar gin
impr ovement01.Reliance on key person (founder) in the absence of cor e business
infrastructur e and systems, limiting scale and undermining mar gins02.Poor systems and cor e
business infrastructur e leading to inefficiencies,
service inconsistencies, and gr owth limitations03.Unsophisticated people management and
motivational structur es, leading
to difficulties to scale and maximise staff utility and cr eate a business
cultur e04.Difficult for founder to step-back fr om operations given key person r eliance
and lack of business systems and structur e.05.Plateau - Founder/Owners Reach Capability Ceiling,
Struggle
T o Gr ow Further06.

17.

& MUL TIPLE BY GRASS ROOTS BUSINESS IMPROVEMENT :OUR EXPER TISE IS HELPING BUSINESSES
GAIN HIGHER EBITDA
Cost Reduction 1ST AGE 1Reduce Fat & W aste
Optimise Labour For ce Mix AU/Offshor e
Optimise Roles & ResponsibilitiesCost Reduction 2ST AGE 2Operational Efficiencies
Systemisation
AutomationSales & MarketingST AGE 3Boost Lead Generation
Build, T rain & Manage Sales T eam
Cr eate Scalable Sales SystemsBolt-On AcquisitionsST AGE 4Acquir e like businesses which can incr
ease top line &
maintain EBITDA at 10%
Gr ow portfolio & access higher exit multipleStrategic SynergiesST AGE 5Gain syner gies fr om
platform and bolt - on
Acquir e businesses that gi v e platform competiti v e edge
ownership
governance
people
cul ture &
teamssales &
M arketingfinanceleadership &
managment
riskstra tegy
T echopera tions

18.

Ability to access businesses in
liquidation at low price and
tur ned losers into winnersBuy Low
Expertise in driving business
performance & cultur e with
experienced executive managementPr o managementExpertise in building & developing
pr ocesses & systems businesswide driving pr ofit & scaleSystemiseExpertise in cr eating str ong
financial infrastructur e, practices,
systems & r eportingFinancial upgrade
Expertise in building low-cost
offshor e workfor ce incr easing
pr ofit acr oss entir e businessLow-cost staf fT rack r ecor d in building &
developing sales teams
to drive mor e sales & pr ofitAmplify sales
Expertise in driving efficient backend pr ocessing & impr oving AR,
AP , Recs, AdminBack-end efficiencyC r eated infrastructur e to pr ovide
end-to-end tech solution &
automation incr easing pr ofit & scalet ec h i nno v ationExpertise in developing end to end
marketing capabilities incr easing
mar gins, scale & pr ofitabilitycustomer g r owt hSolutions : o ur system th at g r ow
b usiness & a mplifies p r ofitsT H E O P P O R T U N I T Y

19.

THE FUNDHIGHLY EXPERIENCED TEAM WHO HAVE
WORKING HISTORY DATING BACK 20+ YEARS
Jack GleesonWill McEwinB.AG.SC University of Sydney
Agribusiness Seminar Harvar d
Business School
Seasoned leader with 45 years
commer cial experience and 31 years
executive management experience
Jack has played a key executive r ole
in one of the icons of Australian
agribusiness & notably built the first
end-to-end Meat & Livestock supply
chain in the world
Jack’ s scope included full P&L
management r esponsibility for
businesses spanning globally , with
collective tur nover r eaching 3.2 billion
dollars
Jack has held dir ectorships and
chair ed boar ds of several Australian
companies.EXECUTIVE DIRECTORBBus (Agricultur e) University of
Adelaide, Grad. Dip in Accounting &
MBA Deakin University , Grad. Dip. Of
Finance & Investment Financial
Services Institute & Harvar d Agri Exec
Certificate, Harvar d Business School &

20.

Recent data indicates that a significant pr oportion
of businesses listed for sale r emain unsold.Over 90% of potential buyers failing to complete
a business pur chase.298,476 businesses closed for r easons such as
r etir ement, lack of pr ofitability , or strategic exits.362,893 businesses ceased operations in
2023/24,
r epr esenting a 14.0% exit rate.As of June 2024, 53,364 businesses ar e listed for
sale.INVESTMENT STRA TEGY
IS TO FIND AND GROWF U N D S T R A T E G YUNDER-PERFORMING
OR DISTR ESSED OPPORTUNITIES
Often a business with a sound
underlying pr oduct/service and industry
dynamics but poor underlying business
management infrastructur eOften heavily discounted due to
underperformance and lack of cor e business
management infrastructur e despite sound
pr oduct and industry outlookSOUND PR ODUCT/SERVICE
BUT POOR BUSINESS PEOPLE
S our ce : Australian B ur eau of S tatistics, B usiness failur e rate r eaches 15 - year
high, N ational Retail Association calls for gover nment action - A BC N ews

21.

Top 8 Fastest-Growing Sectors in Australia (2025)
W e tar get underperforming businesses
in gr owth pr ojected industriesIt's much easier to fix an underperforming
business in a gr owth industry than run
the best business in a dying industryW e ar e open to investing in sub-industries
outside the top 8 if they have str ong gr owth
pr ospectsAgricultur e, For estry
and Fishing in Australia8.70%Grain, Sheep and Beef Cattle farming
Horticultur e and Fruit Gr owing
Livestock and livestock pr oducts
Renewable ener gy in agricultur eSector1RankProjected
Revenue Growth
(2025)AUD 350-370 billionMarket SizeKey Growth Segments
(researched)
Health Car e and Social
Assistance in Australia7.00%A ged and D isability Car ers
A llied health pr ofessions
M edical P ractitioners2USD 200-210 B illionE lectricity , Gas, W ater and
W aste Ser v ices in Australia4 . 9 0%W ater Supply , Sewerage and D rainage Services
Renewable ener g y
E ngineering pr ofessionals3Data I nconclusi v ePr o f essional, Scienti fi c and
T echnical Ser v ices in Australia3. 6 0%M anagement and O r ganisation A nalysts
Softwar e and A pplications P r ogrammers
D atabase and Systems A dministrators and IC T
Security Specialists
Sustainability-r elated services

22.

G F C 2 0 0 8 – R e s i l i e n t I n d u s t r i e s i n A u s t r a l i aC O V I D - 1 9 2 0 2 0 – R e s i l i e
n t I n d u s t r i e s i n A u s t r a l i aMarket Size
(La test A v ailable)MiningSectorGDP Contribution: 9.8% in 2008–09. Gr owth in Gr oss
V alue Added (GV A): 21% incr ease fr om 2005–06 to
2009–10.Growth Ra te
(Post -GFC)T ARGET RESILIENT INDUSTRIES F U N D S T R A T E G Y
GDP Contribution: 8% in 2007–08; 8.4% in 2009–10.
Export V alue: 51.4% of total goods exports in 2008–09.
Mineral Exploration Expenditur e: 116% higher in 2008–09
compar ed to 2004–05.Mining &
Resour ce
ExtractionIr on or e: Continued str ong demand, especially fr om China;
Lithium: Incr eased demand for electric vehicle batteries;
Coal: Stable demand, especially for ener gy pr oduction in Asia;
Liquefied Natural Gas (LNG): Incr eased exports to meet
global ener gy needs$ 41.4 B8.7%246 ,3 00$ 2 3 5. 3BDigital
Econo my &
T ec h nolog yE-commer ce platforms : R apid gr owth of online r etai l
Cloud computing : S ur ge in r emote wor k solution s
Cybersecurity : I ncr eased demand for data pr otectio n
T elework softwar e : V ideo confer encing and collaboration
tools$ 122.8 B6.6% 580 , 000N/ AH ealt h car e &
Social
AssistanceMedical technology (MedT ech ): R apid de v elopment of
diagnostic tools , v entilators , v accines; Pharmaceuticals :
Gr owth in pharmaceutical manufacturing , particularl y v accines ;

23.

F U N D S T R A T E G YT ARGET FRAGMENTED INDUSTRIESW e ar e tar geting businesses in the
below
fragmented industries that ar e ripe for consolidationGrowth Ra te
(CAGR)Renewable Energy
(Solar , Wind,
Battery Storage,
Hydr ogen)Industr y84.96bn kWhMarket Size
(2025)Key Industr y
Segments8.81% – 38.6%
(2025 to 2029)Solar photovoltaic systems
Wind farm development
Battery storage solutions
Hydr ogen fuel technology
Ener gy grid optimizationArtificial
Intelligence &
AutomationUSD $3.99B26.25%
(2025–2031)AI-power ed SaaS platforms
Automation for business operations
AI cybersecurity solutions
Robotics pr ocess automation (RP A)
Pr edictive analyticsPr ofessional
ServicesUSD $1.84B /
USD $3.55B
( G lobally)5.32%
(2025–2029)M anagement consulting services
Engineering consulting services

24.

W e aim to consolidate small to medium businesses
and gr ow them towar ds the lar ge end, attracting
higher exit multiplesTher e ar e 2.663 million businesses in Australia as of June 2024,
ranging fr om self-employed people to lar ge businesses with 200
or mor e employees.
Non-employing1,542,422Business Size Ca tegor yNumber of Businesses57.9%% of Tot al
BusinessesMicr o (1–4 employees)653,51124.5%Small (5–19 employees)393,66214.8%Medium
(20–199 employees)68,2142.6%Large (200+ employees)5,1890.2%TOT AL2,663,000100%T ARGET
SMALL
TO MID SIZED &
GROW LARGE
Sour ce: Fastest Gr owing Sectors by Revenue in Australia in 2025 IBISW orldF U N D S T R A T E G Y
1 7. 4% of businesse s
ar e in scope ( 461,876 )Sel f -employed (non-employing)1 , 663, 8371-4 employees6 9 3, 55 8519 employees2 3 2 , 20020-199 employees68, 214200+ employees5 , 1 8 9

25.

F U N D S T R A T E G YT ARGET AGEING BUSINESS
OWNERS NEEDING EXITThe average age of a business owner in Australia
is 49 years, r eflecting a gradual incr ease in
average ageThis tr end highlights a demographic shift, with
an ageing population of business owners and
fewer young entr epr eneurs entering the market.Nearly half of all business owners ar e aged 50
or older , Many medium-sized business owners
ar e delaying r etir ement, opting to r etain
ownership longer due to economic volatility
and market conditions.The decline in inter generational transfers further
r einfor ces the need for strategic succession
solutions within the business sector r epr esenting
good buying opportunities for our fund.Under 308%Age grouppercent age of business owners3049~45%50 and over47%60 and over22%
0%10%20%30%40%50%60%
Under 30 years30-39 years50 years and over19762021Sour ce: Employment in the 2021 Census |
Australian Bur eau of Statistics & SMALL BUSINESS OWNERS
GETTING OLDER | ASBFEO% o f b u s i n e s s o w n e r s

26.

EFFICIENT DD PROCESS CAN SCREEN QUICKL YAND COST EFFECTIVEL Y TO SCAN MORE OPPOR
TUNITIESF U N D S T R A T E G Y
Lightning-Fast Performance DD
65 Criteria to filter potential investments
600 Question survey for possible impr ovementsPHASE 1Full DD including compliance
and verificationPHASE 22 PHASE PR OCESS
FOR DUE DILIGENCE
T rading businessAustralian basedRevenue $50m+Mar gin 30%+T rading businessAustralian
basedRevenue $50m+Mar gin 30%+EBIT <5%Multiple 1 - 5 xH igh-cost base due to ine ffi ciencyS u
ff ering fr om manual pr ocessesLac k s systemsS tr ong operationsN o succession planBusiness Ow
ner Bottlenec k

27.

DEALFLOW : HOW WE FIND LOW -COST OPPOR TUNITIES
MA sour ces deals thr ough 3 main channels:Deal SourceDir ect marketing to specific
target market. V ia advertising
or industry targeted dir ect
communicationsExisting database of clients,
industry r elationships, 10,000
businesses on databaseV ia Agents, business br okers,
liquidators, financial
planners, accountants01
02
03

28.

KEY FUND TERMS
STRUCTUREKEY P AR TIESFUND SIZE AND CLOSESUnr egister ed managed investment scheme,
structur ed as an Australian unit trustT rustee – T rue Oak Investments Pty Limited ACN 002 558
956, AFSL 238184
•Investment manager – Magnetic Alliance Capital Pty Limited ACN 688 720 916, CAR [ ]
•Fund administrator – GXE Pty Limited ACN 643 428 693
•Portfolio services pr ovider – Magnetic Alliance [ ] Pty Limited ACN [ ]First close - $5 million
•Final close – within 24 months of first close
•Final close tar get - $25 million
•Maximum size - $50 millionBy the fifth anniversary of the first closeThe fifth anniversary of the
final close15%+ IRR over the life of the Fund, net of all fees and expensesWholesale
investors$250,000No liquidity or r edemption rightsINVESTMENT PERIODFUND TERMT ARGET
IRRWHO CAN INVESTMINIMUM COMMITMENTLIQUIDITY

29.

MANAGEMENT FEES AND EXPENSES
MANAGEMENT FEESEST ABLISHMENT COSTSONGOING FUND EXPENSES2.50% per annum
(exclusive of GST) on all funds under management in the FundUp to $[275,000] (plus GST) incurr
ed in the establishment of the Fund$[ ] (plus GST) per annum incurr ed in r espect of the operation
of the Fund

30.

PERFORMANCE FEES (CARRIED INTEREST)The Manager will be entitled to a performance fee in the
form of carried inter est based on the net income
of the Fund, after all management fees and Fund expensesThe Manager’ s entitlement to carried
inter est will be tier ed and subject to a full catch-up mechanismDistribution / carried inter est
waterfall:First, 100% of distributions to investors until each investor has r eceived cumulative
distributions equal to their invested capitalSecond, 100% of distributions to investors until each
investor r eceives an amount equal
to an 8% IRR over the life of the FundThir d, 100% of distributions to the Manager as carried inter
est until it r eceives an amount
equal to 20% of the cumulative distributable incomeFourth, 80% to investors and 20% to the
Manager until each investor r eceives an amount
equal to a 15% IRR over the life of the FundFifth, 70% to investors and 30% to the Manager until
each investor r eceives an amount equal
to a 20% IRR over the life of the FundTher eafter , 60% of distributions to investors and 40% to the
Manager as carried inter est

31.

RISKS OF INVESTMENT FUNDK E Y R I S K S
No assurance of investment r etur n. No assurance of investment r etur n can be given to
investors in the Fund. The r etur n on investment will depend on the success of the Fund’ s
investment in the underlying businesses, which cannot accurately be for ecast at the date
of this Pr esentation. Investors may not r eceive any r etur n on their investment in the Fund
and may lose the amount of capital invested in the Fund.Unlisted investment risk. As at the date of
this Pr esentation, the Fund intends to solely
invest in unlisted companies. As a r esult, ther e is pr esently no open market to establish
an independent value for the Fund’ s investments and no assurance that a determination
of fair value will be obtainable in the market or that ther e will be market for the
investments.Investment exit risk. MAC intends to invest into unlisted portfolio companies whose
securities ar e not commonly traded among investors. Such investments usually carry
no entitlement for investors to withdraw fr om or otherwise r elease their investment in
underlying portfolio companies. Accor dingly , the Fund may not be able to r eadily
r ealise its investment in its underlying portfolio companies.Long time horizon. Investing in private
investments r equir es a long-term commitment.
An investment in the Fund is intended to have an investment horizon of five to seven
years but may be held for longer . This means that r ealization of value thr ough capital
gr owth may be similarly timed as gains (or losses) ar e only r eleased when investments
in portfolio companies ar e sold and ther e is no guarantee that this will be achieved
within the anticipated timeline.Experience. MAC, nor its principals, do not have pr evious
experience in funds
management, private equity or investing capital on behalf of others. Past performance
of MAC’ s pr evious businesses and investments (which have been made dir ectly by
MAC) should not be viewed as a r eliable indicator of futur e performance of the Fund.Pot en t i al
c o n fl ic t of in t er e st . MAC (or a r elated body corporate of MAC) will pr ovide

32.

FROM $0 TO 9 FIGURES IN 2 YEARSSUCCESS STOR Y
*Past performance of MAC’ s pr evious businesses and investments in this slide should
not be viewed as a r eliable indicator of futur e performance of the Fund.

33.

C O R P O R A T E D I R E C T O R YO u r P r o f e s s i o n a l T e a mCORPORA TE LA WYER
SUNDARAJ & KER+61 2 8880 5130
Level 31, Australia Squar e
264 Geor ge Str eet, Sydney NSW 2000
CORPORA TE ADVISOR
TIP GROUP+61 2 9955 9540
Level 3, 80 Mount Str eet,
North Sydney NSW 2060, AustraliaFUND ADMINISTRA TOR
GXE+61 401 772 859
Level 15, 500 Bourke Str eet
Melbour ne, V ictoria 3000
TRUSTEE
TRUE OAK INVESTMENTS+61 412 129 19194
Saleyar ds Lane Braidwood,
NSW 2622 Australia
CORPORA TE RISK & INSURANCE
THRISK+61 8 9288 179 5
Level 28, 140 St Geor ges T errace,
Perth, W A 6000ACCOUNTIN G
PITCHER P AR TNERS+61 2 8236 772 5
Level 16, T ower 2 D arling Par k
201 Susse x Str eet Sydney NSW 2000

34.

The Magnetic Alliance Gr owth
Fund is a specialist investment
vehicle designed to unlock
value in overlooked Australian
businesses._x000D_I N V E S T M E N T T H E S I S
W e know the trade-off: high-gr owth, volatile investments offer big
potential but carry high risk, while low-gr owth, stable assets ar e safe
but deliver modest r etur ns._x000D_W e focus on two
key opportunities:_x000D_Lar ger , well-run businesses
with owners seeking an exit
(ageing founders, succession
gaps, health or life events) —
ideal for platform
acquisitions._x000D_Str ong businesses with
gr owth potential capped by
poor leadership or plateaued
management — suited for
bolt-on acquisitions._x000D_By concentrating in high-gr owth,
r esilient, and fragmented
industries,w e apply our expertise in funds management,
r evenue expansion, and pr ofit impr ovement to
systematically 2x to 5x pr ofit, incr ease valuation
multiples, and cr eate investments with high gr owth
potential at low risk._x000D_This strategy gives investors the rar e opportunity
to achieve exceptional r etur ns fr om assets that
others have overlooked.Our appr oach is dif fer ent. W e tar get underperforming and

35.

A LETTER FROM OUR SEOAs an investor , you’ve built wealth, but you’r e stuck in a dilemma: safe
investments pr otect capital but bar ely
gr ow it, while volatile markets tempt with high r etur ns but expose you to sleepless nights. It
feels like you
always have to choose between gr owth and safety ._x000D_What if ther e was another path one
that delivers the gr owth of high-risk ventur es, but with the stability
of pr oven industries?_x000D_By joining The Magnetic Alliance Gr owth Fund, you step into a
world wher e overlooked,
underperforming Australian businesses ar e transformed into pr ofitable, high-performing
enterprises.
These ar e companies with sound pr oducts and r esilient industries but trapped by poor
management
or owners who can’ t exit.T ogether , we acquir e these businesses and apply our expertise in r
evenue expansion and pr ofit
impr ovement. Y ou witness pr ofit double. Multiples expand. Risk declines. V alue compounds.
What
once looked like a flat line becomes a steep climb._x000D_Y ou don’ t just gain superior financial r
etur ns. Y ou become part of something bigger the r evival of
businesses that would otherwise fade. Y ou’r e funding transformation, not speculation._x000D_Y
ou r etur n with mor e than wealth. Unlike other private investment funds, we ar e not tearing
apart good
businesses to extract the highest r etur ns. W e ar e saving them. Saving them fr om closur e when
ageing
owners can’ t sell. Saving them fr om decline when leadership has plateaued. And that happens
only
because of your partnership._x000D_Y ou ar e not just an investor . Y ou ar e a visionary who saw

36.

T H A N K Y O UF o r a n y f u r t h e r d e t a i l s c o n t a c t u s+61 7071 3000CONT ACT COMP
ANYfund@magneticalliance.com.auEMAIL70 Pirie Str eet AdelaideADDRESSwww
.magneticalliance.com.auWEBSITE

37.

DISCLAIMER
Issue of this document. This pr esentation dated [insert] (Pr esentation) has been pr epar ed by
Magnetic
Alliance Capital (ACN XXX XXX XXX) (MAC) in r elation to the pr oposed MAC T ur nar ound T rading
Fund (Fund).
The trustee of the Fund will be [TIP T rustees Limited (ACN 094 107 034, AFSL 246621)] (T rustee).
MAC is the
investment manager of the Fund and is a corporate authorised r epr esentative [(AR XXXXXX) of
AFS Licensee
XXXXXX]. MAC is the issuer of this Pr esentation and the issuer of the Information
Memorandum.Confidentiality . This Pr esentation is strictly confidential and may not be r epr
oduced or r edistributed,
in whole or in part, and its contents may not be disclosed to any person other than your legal,
financial or other pr ofessional advisors in connection with your potential investment in the Fund,
without the expr ess permission of MAC.Risks. An investment in the Fund should be consider ed
speculative and is subject to investment risks,
including the risk income will not be ear ned and invested capital will be lost. Neither MAC, the T
rustee nor
any of their r espective associates, r elated parties, officers, employees, advisors (including
financial,
accounting and legal advisors) or r epr esentatives (together , the Fund Persons) guarantee the
performance
of an investment in the Fund, any rate of r etur n fr om an investment in the Fund or any taxation
outcome in
r espect of an investment in the Fund. Recipients should consider the risks described in this Pr
esentation