TIP Group launches specialist fund for not-for-profits, secures anchor investment

ASX-listed Teaminvest Private Group secures a $70m anchor investment from Masonic Charities for a newly launched fund dedicated to not-for-profit organisations.

TIP Group head of wealth and investment Michael Baragwanath at Freemasons Hall on North Tce, Adelaide. Picture: Supplied by TIP Group

Specialist financial services company Teaminvest Private (TIP) Group has secured a $70m anchor investment for a newly launched fund dedicated to not-for-profit organisations.

Masonic Charities – the benevolent arm of Freemasons SA & NT – is the first investor in the Corinthian Balanced Fund, which has been specifically designed for charities and not-for-profits.

The fund is open to listed investments, property and other unlisted assets, and most management fees are waived, aside from operating costs and a performance fee paid only when a target return is achieved.

ASX-listed TIP Group was borne out of Teaminvest, a member-based organisation established by investors Howard Coleman, John Price and Mark Moreland in 2008 as a forum for investors to discuss investment ideas and approaches to managing their wealth and incomes.

Since its 2019 float, TIP Group has expanded its private equity and funds management arms, launched its first UK fund and established a suite of financial services including insurance broking, corporate advisory, trustee and licensing services.

The original ‘Teaminvest’ network has also grown to 540 members who regularly meet in cities across the country to share investment ideas, inspect companies and analyse the share market.

Michael Baragwanath, TIP Group’s head of wealth and investment who joined the firm last year, said the new fund would balance financial returns with charitable objectives, and reflected the company’s primary purpose of “transferring knowledge and wealth between generations”.

He said there was currently a disconnect between the motivations of the financial services industry and the needs of the not-for-profit and charities sectors in Australia.

“TIP Group’s noble purpose is to create, manage, and transfer wealth by creating opportunities, funding transactions, raising capital, offering unique investment products and advice, and delivering investor education and other services,” he said.

“We recognise that charities have a tremendous economic impact. We put the charity first by ensuring their requirements are met before our fund manager gets paid.

“By managing this fund ourselves, we can make a greater impact than a simple cash donation. We estimate Masonic Charities will save over $500,000 a year by using our services, but it’s not just about the money.

“Supporting philanthropy unlocks future potential by helping people break out of intergenerational poverty, reducing the impact of trauma, connecting talent with opportunity, and retaining and strengthening culture and knowledge.”

ASX-listed financial services companies including Equity Trustees and Perpetual operate similar funds to the one launched by TIP Group, in what is becoming a common way for charitable organisations and not-for-profit organisations to protect and grow their pools of capital.

Masonic Charities donates more than $2m a year to health research and community groups.

Its initial corpus of $50m came from the sale of not-for-profit retirement village operator Masonic Homes in 2015, and that figure has since grown to $70m through ongoing donations and fundraising activities.

The funds were previously managed by Morgan Stanley.

Masonic Charities Trust chairman David Booker welcomed new innovations that supported the financial needs of charities like his.

“As a governing body of a charity, it is our responsibility to ensure that our organisation has the necessary resources to fulfil its charitable mission,” he said.

“This involves not only acquiring the resources but also safeguarding them.”

TIP Group, which has a market capitalisation of close to $60m, reported a $1.9m profit in the six months to December, up from $1.7m in the previous corresponding period. The first half result was boosted by a 10 per cent increase in proportional revenue to $83m.

Originally published as TIP Group launches specialist fund for not-for-profits, secures anchor investment