Australia’s first dedicated investment fund specifically focused on Artificial Intelligence Technology investments
Investment Focus Industries
“AI represents a significant new opportunity to boost productivity and enhance economies..”
In the past 10 years, Australia’s productivity growth rate has stagnated to roughly half that of the long-term 30 year average.
As a general-purpose technology, AI emerges as the missing ingredient in the productivity equation which has the ability to turn things around and return the world’s advanced economies to stronger growth.
Recent times have seen an unprecedented level of global activity and investment in AI – in the past few years, 14 of the world’s advanced economies have announced a total of $86 billion in AI programs and activity.
The information technology sector currently contributes $122 billion to the Australian economy, employing 580,000 workers. If the Australian technology sector grows on par with global leaders, it has the potential to boost Australia’s GDP by $207 billion/year.
“AI applications have recently driven a surge of private capital into this sector, as more start-ups seek to push the boundaries of this emerging technology”
NextGen believes that Artificial Intelligence (AI) will be the defining technology of our time and have positioned ourselves to be key contributors to the rapid advancements in technology, which will transform our way of life in the years ahead.
Our experience, knowledge and network throughout the AI technology, cloud infrastructure, and cybersecurity sectors allow us to offer a unique mix of exciting investment opportunities that are unavailable to public markets.
Competition & Positioning
With a focus on Growth Capital investments (comprising elements of both PE and VC), our Fund is the first of its kind in the Australian market to apply a specific focus to the investment thematic of Artificial Intelligence.
Offering an opportunity for diversification from traditional investment markets and employing a strict,
managed investment risk profile, our Fund presents investors with an amazing chance to participate in the
advancements, growth and technological innovations occurring within this sector.
The Fund will invest directly into the AI sector by way of debt and/or equity placements in various
technology businesses – both domestically and internationally, offering our investors exposure to the
latest Artificial Intelligence technologies and service solutions.
Our investments will focus on positive innovation through companies looking to solve environmental,
societal and industrial challenges on a global scale.
The core segment of our portfolio will be invested in expanding, growth staged companies,
with the remaining allocation being stage-agnostic, investing in companies at any stage (Series A,
Seed/Early Venture, Growth or pre-IPO). Along with its active support and mentorship,
the Investment Committee will look to benefit from any synergies or scale opportunities presented
within our portfolio.
This investment strategy formulates our active portfolio risk management framework, enabling us to
provide investors exposure to a diversified, future-proof investment portfolio.
* Source: PREQIN MARKETS IN FOCUS: PRIVATE EQUITY & VENTURE CAPITAL DRIVING INNOVATION IN ASIA-PACIFIC
The NextGen Artificial Intelligence Technology Fund is designed for investors seeking exposure to emerging technologies in a rapidly expanding sector, a sector that few fund managers have the research capabilities and industry expertise to invest in successfully.
Name of Fund
NextGen Artificial Intelligence Technology Fund
Wholesale Unregistered Managed Investment Scheme
24 month initial lock-up period
Total return objective of the Fund is 13–15% per annum on an internal rate of return (IRR) basis
Income Yield Objective
Income yield objective of 5% per annum
Quarterly following the initial lockup period
20% subject to the performance hurdle of 7%
Why invest in the NextGen AI Technology Fund?
- Direct exposure to an otherwise hard to access market, backed by leading AI technology
- Access to targeted investments in the sector driven by NextGen’s proprietary research
- Diversification via investment in a sector that is highly underrepresented in the Australian domestic market; with
Both low volatility & correlation to traditional markets & asset classes.
The Future of Technology
Artificial intelligence technology promises to transform our way of life dramatically over the years ahead. Many C-suite executives believe that if they do not scale artificial intelligence in the next five years, they risk going out of business entirely.
“AI is the defining technology of our time and has the potential to significantly accelerate business transformation, enable innovation, boost employee productivity and ensure future growth.”
— Steven Worrall, Microsoft Australia Managing Director
Deep Knowledge of AI TechnologyOur Investment team understands the complexities of the extensive universe of AI Technology both as an investor and a manager. Our many years of experience combined with our thorough and detailed investment and operational risk due diligence helps ensure we can continue to identify what we believe to be high quality AI Technology opportunities for our investors to access.
Detailed Understanding of RisksAs a specialist AI Technology investment manager, we have a detailed and thorough understanding of all risks at both an investment and operational perspective.
Access to Unique Investment Technologies
NextGen’s extensive network and experience throughout the AI technology, cloud infrastructure, and cybersecurity opens exclusive investment opportunities not available in public markets.
The Fund provides investors with unique mix of attractive, predictable returns paired with capital growth and low volatility and a low correlation to other asset classes.