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”)