Who we are
EGP Capital is a Sydney based private investment company with an unconstrained investment mandate that currently focuses its investments in Australian listed businesses. Formerly known as Eternal Growth Partners, EGP Capital was established in 2011.
According to founder Tony Hansen, the fee structure of the funds management business in Australia (which is accepted as the norm by most investors due to a lack of any real alternative) is fundamentally flawed:
“Most fund management businesses charge their investors a high annual fee for the privilege of managing their money and on top of that they charge a performance fee in the event they actually deliver strong performance. It’s a mistake not to have investor/manager alignment more entwined.”
EGP Capital is different. We charge no management fee and our performance fee is structured so that if our investors don’t make money, then neither do we.
More than 90% of Tony’s family worth outside the family home is invested in EGP Capital. In this regard he likens himself to a Roman arch builder:
“In the building practices of ancient Rome, when the scaffolding was removed from a completed Roman arch, the engineer stood beneath. If the arch came crashing down, he was the first to know. Thus his concern for the quality of the arch was intensely personal, and it is not surprising that so many Roman arches have survived.” (Seth Klarman, 1991,“Margin of Safety”)
Meet the Team
Chief Investment Officer
Tony graduated high school in 1994 and deferred his tertiary studies to run his own construction company. Tony sold this business in 2001 and then completed a Bachelor of Commerce.
Tony went on to work in a variety of areas, predominantly related to the construction and infrastructure industries, however he maintained a keen interest in the Australian and international share markets. After discovering that the fee structure of the Australian funds management business was fundamentally flawed, Tony decided to establish his own investment fund to prove things could be done differently and better.
Tony was a Certified Practising Accountant and a member of CPA Australia and the Institute of Public Accountants before running the fund on a full-time basis. He is married to Sue and has three children, Callan, Ryan and Rachael.
This interview explores how Tony thinks about investing in a little more depth.