Thinking outside the square

Boutique fund manager Blue Sky Private Equity continues to build an unusual collection of assets with the 50 per cent acquisition of Paradise Motorhomes.

This latest acquisition follows on from acquiring a macadamia farm near Byron Bay, construction services company Viking Rentals and a Bondi café.

Paradise builds luxury motor homes costing up to $1.2 million and Blue Sky will inject capital and management expertise into the company to help it expand.

Blue Sky director Mark Sowerby said the latest acquisition was in line with the manager’s aim of investing in innovative businesses that are in growth sectors.

“Paradise was formed by someone with outstanding skills in the area of motor home design who recognised there was a gap in the market because he could not find the product he wanted,” Sowerby said.

“We believe with the increased capacity this deal will provide, Paradise has the potential to become a great Australian brand name and an export success story.”

Blue Sky hopes to increase production of the homes from 15 a year to more than 40 units in the next 12 months.

Sowerby said the investment in Paradise is a long-term opportunity with growth in both domestic and international markets for the homes.

“We will continue to seek out other innovative growing businesses and plans to launch a series of funds later in the year for investors,” he said.

To date, Blue Sky has sourced funds for investing from high-net-worth individuals investing either through their companies or self-managed superannuation funds as well as fund managers looking for exposure to private equity investments.