Thank you for standing by, welcome to the HMC Capital Limited FY23 full year results briefing. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference over to Mr. David Di Pilla, Managing Director and CEO. Please go ahead. Good morning, thank you for joining today's call. Joining me on the call today are Will McMicking, Group CFO, and Misha Mohl, Group Head of Strategy and Investor Relations. Before we commence, HMC Capital would like to acknowledge the traditional custodians of country throughout Australia and celebrate their diverse culture and connections to land, sea, and community. We pay our respects to their elders, past, present, and extend that respect to all Aboriginal and Torres Strait Islander people today. As I reflect on the last 12 months, I am incredibly proud of what our business looks like today compared to the same time last year. We've had another active period of fundraising, new product creation, and capital deployment, which is accelerating our evolution towards a high ROE alternative asset manager. HMC today is a significantly stronger business with a deeper and more diversified fundraising capability. I'm proud that this has all been achieved in an environment over the last 12 months of unprecedented interest rate rises, which have caused subdued M&A and capital markets activity across the broader market. Our high-quality management team has adapted to the more challenging environment and continued to grow our funds under management over the last year. Turning now to slide three to provide a brief overview of the group. HMC is today a high-conviction alternative asset manager with AUD 8.1 billion October 19, HMC has organically created five discrete vehicles, which are underpinned by diversified sources of talent strategies exposed to attractive mega trends. Since listing, we've delivered a TSR of 109% and grown funds under management by a compound annual growth rate of 126%. The growth opportunity for the business and our investors is significant. It will expand further as we move into additional alternative asset classes, and will include infrastructure, energy transition, and private credit. Moving now to slide 4, which illustrates our investment track record and our journey to date. I won't go through each transaction on this slide, but it clearly highlights the roadmap behind our successful fundraising and capital deployment track record since the original Masters transaction in 2016. This slide reinforces our point of difference, which is our ability to execute large, complex transactions quickly to generate shareholder value. Moving now to slide 5, or slide 6, I should say, to discuss the key results, highlights of financial year 2023. HMC Capital delivered financial year 2023 operating earnings of $82.1 million or $0.264 per share. Our funds under management increased by 40% to $8.1 billion. Pleasingly, this underpins total funds management revenues of AUD 70 million in FY2023, which was up 72% year-over-year, excluding transaction fees and one-off items. In September 2022, we launched our first private equity vehicle, HMC Capital Partners Fund I. The fund currently manages AUD 400 million of assets, and the investment performance has been strong, with the fund up 19% since its inception. In June 2023, we announced a successful first close for a new AUD 800 million institutional investment strategy targeting last-mile retail logistics assets. We are delighted to have partnered with Funds SA and look forward to actively growing this strategy with them in the future. Finally, in May 2023, we announced an unlisted institutional healthcare and life sciences fund, seated with seven hospitals leased to Healthscope. Over the last three months, the fundraising has progressed well and is on track for first close in late September 2023 to coincide with settlement of the third and final tranche of the Healthscope portfolio. We have three global and domestic investors representing $250 million plus of demand that have completed DD, have obtained IC approvals, and are now working through final documentation. In addition, we have further investors working through their DD and IC process at present. Pleasingly, investor demand is now likely to exceed supply exceed available supply for this strategy with a potential need to scale back, which is extremely pleasing given the market backdrop. This also highlights the quality of the assets and the attractive transactions structured and negotiated by HMC. Today, HMC's balance sheet is in strong shape, with AUD 1.1 billion of liquid, tangible assets and undrawn debt capacities to support our significant growth ambitions. I'll now turn to slide 8 and highlight our funds management strategy. HMC's strategy is to be a diversified, large-scale alternative asset manager. Our long-term growth aspirations are significant. This is demonstrated by business models we admire and aspire to move toward over the longer term. We are realistic that our business today is young and a long way from the entities identified on this page. We recognized a few years ago, that if we continue to deliver sustainable returns for our investors, our growth runway can be long and potentially uncapped. Six months ago, we stated our ambition to target return on equity of 20% over the medium term. This remains a key focus for the group. Moving now to slide 9, our HMC Capital economic flywheel. The flywheel illustrates HMC's successful transition to a more capital efficient and higher ROE business model. We expect this to continue as we actively manage our AUD 1.1 billion capital base to support new growth initiatives, which will accelerate and diversify our funds under management. The evolution of our business model will also see HMC generate meaningful profits from activities such as transaction underwriting fees, asset warehousing, and investments going forward. We've made several key strategic hires in recent months, which further add to our internal capability in this area. As such, HMC is well positioned to organically grow funds under management beyond AUD 10 billion in the short term. We are now setting our sights on the pathway to AUD 20 billion and beyond. As I've previously stated, HMC's cost base can support significant growth in our existing platforms, but you should expect our flywheel to continue to evolve as we use our balance sheet to diversify into other sectors. This is now a good segue to discuss the recent AUD 1.2 billion Healthscope transaction on slide 10. In March this year, we acquired 11 private hospitals leased to Healthscope. This was the largest healthcare real estate transaction in Australia since 2019. Importantly, we avoided a competitive auction process by partnering with Brookfield Private Equity on a highly structured proposal, which gave the vendor certainty. As a result, we secured the portfolio on highly attractive terms, with the purchase price implying an NOI yield of 5.8% and unlevered IRR of over 9%. This transaction has propelled the scale of our healthcare platform and accelerated our plans to establish an unlisted healthcare and life sciences vehicle. Importantly, HMC used its balance sheet to underwrite a meaningful portion of the transaction, including the equity raising for HCW and the unlisted institutional fund. This will be a high ROE transaction and will generate over AUD 23 million of fees in the first full year. We expect to fully recycle the capital used to support this transaction before year-end. Accordingly, reallocating the capital into higher ROE opportunities, the flywheel spins again. Moving now to slide 11 of the presentation, our new growth frontiers. In real estate, our business today manages $7.8 billion of assets. As I said earlier, HMC is transitioning into a much higher ROE business and over time, towards our 20% target as we continue to scale and use existing capital base to more our existing capital base more efficiently. Our real estate platform has a number of embedded growth drivers. For example, HMC's Last Mile Logistics retail fund strategy represents an attractive organic growth opportunity, which could evolve into a series of fund vintages of up to $1 billion per annum being raised in the future. Our confidence in growing this platform is well-founded. We have an emerging pipeline of attractive opportunities. Our group has strong core relationships with retailers and a well-established track record in repositioning these assets. Finally, we are investing against a growing mega trend of demand for last mile retail logistics assets. We also see a major opportunity to organically grow our healthcare exposure in Australia through new greenfield developments. We've already secured a number of strategic sites for future private hospital and healthcare developments, which could add another AUD 1 billion of funds under management in our unlisted healthcare fund. The institutional investors for the unlisted healthcare fund we are currently raising, have expressed interest in funding the healthcare development pipeline and will be granted a first right of refusal over the development opportunities. Today, we are highlighting a new potential growth frontier. We've identified an opportunity to grow our healthcare and life sciences platform into a global strategy over time. Our confidence in being able to build out this strategy globally, stems from a number of factors. The significant and growing institutional investor demand from both Australian and global investors, as they actively downweight from structurally challenged sub-sectors such as office. Secondly, the limited opportunity for these investors to access quality global healthcare assets with a dearth of large-scale managers focused on this sector globally. Importantly, this strategy will be executed in a low-risk and conservative manner, either by onboarding an experienced management team or alternatively, by an attractively priced asset base with an embedded platform. With With this will only be undertaken in a capital-light manner in partnership with institutional investors. We are hoping to announce more details around our thinking on this strategy before the end of this calendar year. In private equity, we are focused on building a track record for HMC Capital Partners Fund I. By the end of this month, the fund will have been active for a full 12 months. This will support the fund in securing additional ratings and broaden distribution through more platforms and private wealth channels. We're also having discussions with institutional investors in relation to co-investment opportunities with the Capital Partners Fund. They view the strategy as a highly differentiated product, which can generate alpha for their portfolios. Finally, we are actively assessing attractive corporate private equity M&A opportunities, which could be executed with institutional capital partners. However, this will only be opportunistically considered when the right opportunity arises. Moving now to energy transition and infrastructure. We've done a lot of work, been very patient and disciplined to date. We're getting closer on a number of opportunities, which include hiring, hiring some highly credentialed sector specialists that will form the basis for HMC to launch an energy transition fund later this year. In this space, we will be focused on generating organic FUM growth via capital partnerships. Finally, private credit is a major asset class, which is attracting significant investor interest at the moment, particularly in the commercial real estate segment. We are thinking about how we can build a large-scale private credit business over time, which can play across multiple credit strategies. We are looking at some interesting opportunities, but we remain very cautious at this point in the credit cycle. Whilst HMC is well capitalized, we will remain disciplined with deploying our capital into only the very best opportunities for our investors. Moving now to Slide 12, I'll provide an update for each of our funds, starting with our ASX-listed HomeCo Daily Needs REIT. Today, HDN manages AUD 4.8 billion of assets, which represents strategic last mile infrastructure for Australia's leading daily need and omni-channel retailers. The pricing power of HDN's strategically located metropolitan real estate is only increasing, as demonstrated by its recently announced sector-leading re-leasing spreads of over 6% in FY23. This strategy has been highly scalable, with HDN's asset base increasing by 94% per annum since listing in November 2020. Pleasingly, HDN delivered a solid FY23 financial result, which was achieved despite significantly higher interest and property costs, which were successfully offset by strong top-line rental growth. HDN's balance sheet is in a strong position, with gearing now towards the bottom end of the 30%-40% target range, interest rate hedging at above 90%, which we think will contribute to enabling it to internally fund its AUD 600 million development pipeline. With a more stable interest rate outlook, HDN is well positioned to resume its strong growth trajectory and remain disciplined with respect to future investment opportunities. Moving to Slide 13. HealthCo, our healthcare REIT. HealthCo is our second ASX-listed REIT, which listed in September 2021 and owns AUD 1.7 billion of healthcare real estate, spanning private hospitals, life sciences, primary medical, childcare, and aged care. Like our daily needs strategy, healthcare is a highly attractive and scalable opportunity, with the REIT growing FUM by 87% per annum since IPO. The mega trends underpinning the healthcare industry in Australia are significant, and this will continue to drive strong demand for both existing and new healthcare infrastructure. HealthCo has materially evolved from the time of the IPO, with the recent Healthscope transaction transforming the entity's scale and portfolio quality. The REIT recently joined two new FTSE indices and is well positioned for ASX 300 inclusion, which will be announced next week. HealthCo delivered on its upgraded financial year 2023 FFO and DPU guidance last week, and the management team is making strong progress on three key initiatives we highlighted in the results, including: unlocking the embedded value in the Healthscope portfolio, completing the institutional fundraising for the new unlisted fund, and finally, executing the REIT's AUD 200 million asset sale program to further strengthen the balance sheet. Turning now to Slide 14. The LML Fund reached a $800 million final close in June this year and represents our first unlisted institutional vehicle, a huge milestone for the group and the beginning of our strategy to build large-scale institutional platforms. We're delighted to be partnering with Funds SA and HBN on the first vintage of the fund, of this fund series. The acquisition strategy for the LML Fund is differentiated to our HomeCo Daily Needs REIT. The fund will target larger retail properties, which can be actively repositioned into core daily needs assets with higher quality and more defensive income streams. Our track records, scale, and tenant relationships give us real competitive advantage to execute this strategy and generate attractive returns for our investors. In addition, the capital markets environment is creating attractive buying opportunities, as we demonstrated with the acquisition of seed asset Menai Marketplace earlier this year. This property was recently revalued up by 17% above the fund's acquisition price. Looking ahead, we expect to launch additional LML fund vintages once we've deployed the fund's committed equity, with plans to turn this into a multi-billion dollar strategy over the next few years. Turning now to Slide 15. As I highlighted in my earlier remarks, our recently established unlisted healthcare fund was seeded with seven hospitals from the Healthscope hospital portfolio. The transaction was structured across three separate tranches. The first two tranches settled up front, with equity support from Healthscope, and the final tranche is on track to settle in late September. Importantly, this enabled HMC to undertake an institutional fundraising process over recent months. Pleasingly, institutional investor demand for the fundraising has been strong, with HMC receiving AUD 250 million of equity commitments from three high-quality domestic and global institutional investors. HMC will likely fund the remaining equity commitment of AUD 75 million in the short term. As I mentioned earlier, we are in advanced discussions with multiple domestic investors to acquire the balance of this position. At financial close, the unlisted fund will own AUD 1.1 billion of Healthscope hospitals, with a brownfield development pipeline of approximately AUD 340 million. Our intention is to grow this vehicle to over AUD 2 billion over the medium term through strategic acquisitions and development opportunities. Moving now to Slide 16. HMC Capital Partners Fund I was established in September 2022, with a AUD 300 million initial equity raising from predominantly high-net-worth investors and family offices. The fund currently manages $400 million across three high-conviction investments. Pleasingly, investment performance has been strong since inception, with the fund NAV up 19% post-fee, which has outperformed the S&P/ASX 300 Accumulation Index by approximately 10% over the period. A key driver of this outperformance is the fund's investment in Sigma, which is up over 20% since announcing a $3 billion contract from Chemist Warehouse in June. The fund has also deployed into two other high-conviction opportunities, including Lendlease and another opportunity, which is confidential at this stage. Our strategy is to grow the fund to $1.5 billion over the medium term, and we believe the fund is well positioned to secure institutional mandates as we continue to build our track record. Turning now to Slide 17 to discuss our progress on sustainability. This slide highlights our HMC Capital sustainability framework, which was designed around our objective to create healthy communities. I'm pleased to report on the following initiatives we delivered over the half, which demonstrate the progress we are driving across our entire platform. Environmental. Our two REITs are on track to achieve net zero by 2028 and on track with our net zero energy roadmap, with a 15% reduction in Scope 1 and Scope 2 carbon emissions in FY23. Our energy management system rollout has now been made to 29 sites. This has achieved a 23% reduction in consumption. Our solar installations are progressing well across the REITs, with over 15 installations either underway or installed. On social, HMC's social impact strategy is supported by the establishment of the HMC Capital Foundation and through CommunityCo, which will support the delivery of our social impact commitments, including our first grant in financial year 2023. On governance, we always strive to implement best practice in everything we do. Over the year, we have achieved our 50% gender diversity target across the whole organization. Our fund boards have a majority independent directors and 50% gender diversity, and our HMC Group board is focused on achieving its stated gender diversity ambition ahead of our financial year 2025 targets. HMC received a double A rating in the MSCI ESG rating assessment this year. HDN released its Modern Slavery Statement and was awarded 2023 ESG regional top-rated company status with Morningstar Sustainalytics. We're making good, tangible progress on our sustainability strategy. I will now hand to Will McMicking to discuss our financial results. Thanks, David. Turning now to Slide 19 with the earnings summary. HMC recorded operating earnings for FY23 of AUD 82 million, or AUD 0.264 per share, driven by strong growth in investment income and funds management revenue. Investment income increased by AUD 26 million to AUD 59 million, driven by a 19% gain in the carrying value of the HMC Capital Partners Fund investment. Funds management revenue increased 9% to AUD 70 million, which was driven by a 72% increase in non-transactional fee revenue, reflecting the significant growth in funds under management. Corporate expenses increased to AUD 26 million and grew well below the rate of fund growth. Property funds management expense increases were offset by the corresponding property funds management revenue, as detailed on the following slide. This reflects the pass-through nature of these expenses. HMC also recorded trading profits of AUD 5 million, including a cash gain from the establishment of the HMC Last Mile Logistics Fund. A final dividend of AUD 0.06 per share has also been announced, taking full year FY23 dividends to AUD 0.12 per share, which is in line with guidance. Moving now to the balance sheet on slide 21. HMC continues to leverage its balance sheet to support existing and new fund initiatives. Overall, net tangible assets have increased to AUD 883 million, or AUD 2.54 per share versus June. Major FY23 transactions included the March 2023 equity raising to provide underwriting support to HealthCo and the new unlisted healthcare REIT in acquiring a AUD 1.2 billion hospital portfolio. To support the transaction, HMC invested AUD 75 million into HealthCo and has funded property deposits of AUD 38 million at June. The other key movement on the balance sheet is HMC's AUD 150 million investment into the Capital Partners Fund, which recorded a 19% gain to June. Turning now to slide 22. HMC at June 2023 is in a strong position to continue to support funds management initiatives, with low balance sheet gearing and undrawn debt and net tangible assets of over AUD 1.1 billion. Post balance date, HMC also extended the term of its AUD 275 million debt facility to November 2024, which remains largely undrawn at June. Combined with the strong progress of the unlisted healthcare fundraising, HMC is well-positioned to maintain its strong liquidity position into FY24. I'll now hand it back to David. Now, thanks, William. Now turning to our outlook and guidance for financial year 2024. HMC has strong momentum and a high level of conviction about the potential to significantly grow funds under management over the next 12 months and beyond. We expect our existing real estate and private equity platform to generate strong organic growth with minimal incremental cost to manage additional funds under management. As discussed on the call this morning, we are actively exploring a range of growth opportunities, which could materially grow and diversify our platform into new alternative asset classes. HMC is positioned to achieve strong underlying earnings growth in financial year 2024. The business is also well-positioned to generate meaningful transaction fees, trading profits, and investment gains, which are more difficult to predict at this point in the year. HMC provides financial year 2024 DPS guidance of AUD 0.12, which is consistent with financial year 2023. Our strategy is to maintain this dividend, which will result in a declining payout ratio over time. This will enable HMC to reinvest retained earnings into high return on equity opportunities. Thank you. I'll now hand the call back to the operator for Q&A. Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Solomon Zhang with J.P. Morgan. Please go ahead. Morning, David, Will, Misha. First question from me was just on guidance. I just noted that, you know, you haven't provided quantitative EPS guidance for 2024, but you've guided to, I guess, strong underlying earnings growth. Just noting the underlying earnings, I guess, is slightly different to your operating earnings definition. Just wanted to gauge whether, you know, that growth is inclusive of trading profits and capital partners' profits? I think the point we would make is that year-on-year, between 22 and 23, the amount of underlying fund management growth contribution and the baseline that is coming through there is growing each year. We anticipate that with the new funds that have been raised will again steadily grow, or not steadily, but strongly grow again in 24. What we're really saying here is that the, the sort of, part of that, that you need to estimate is really the one-off items. That's things like trading profits, underwriting fees, and any capital gains that we may make from warehousing assets. The baseline is growing strongly in line with our funds under management growth. We're confident in the outlook. We're confident in the, in the positioning of the business. The balance sheet's in strong shape, so we remain very confident. This is the same strategy we used last year, and we'll continue to use this kind of mechanism for providing our outlook statements in the future. Yeah, that's clear. Second question from me is just the genesis of the global healthcare fund strategy. Was this the product of, I guess, advanced discussions with institutional and wholesale capital, or was that more of perceiving a gap given the strong response to the unlisted healthcare fundraising process? It's been investor driven. It's a function of the fact that we've been speaking to a number of domestic and global investors off the back of the current unlisted fund that we're raising. As I said at the outset of the call, it's likely we'll end up with more demand than we have supply for that unlisted institutional fund. Ironically, some of the conversations have been around major global investors saying to us, "Unless we can deploy $1 billion into a strategy like this, it's going to be hard." What we're doing is we're lifting our sights to say, "Well, can we take this capability?" into a global forum and potentially do it in a way where it's risk-controlled. That would mean building a platform through people first and doing it in a capital efficient, capital-light manner. We do see a major gap. We see a major opportunity there, and, it's very much investor-led. It's been investor-driven, and, it's in response to the very strong, level of demand that we've had for, for the unlisted domestic funds. Yeah, that makes sense. Final one, just on the Last Mile Logistics strategy, just curious how you're viewing current deployment conditions. Do you feel the bid-ask spread is narrowed, and, you know, or do you still think there's some way to go? I think the one thing I want everyone to take away is tough market conditions play into our hands. We love tough market conditions because this group does great deals in tough markets. Menai Marketplace is an example of that. The Healthscope acquisition is an example of that. We expect the back half of this year will throw up a lot of very interesting opportunities for the LML strategy. Thanks, appreciate it. Thank you. Your next question comes from Sholto Maconochie with Jefferies. Please go ahead. Hi, everyone. Just a bit on the result, on the financials. If you back out the non-cash profit in, which is fair value in commercial, in HMCCP, it was still AUD 50 odd million, but why was the cash flow so weak at AUD 361,000? This is almost nonexistent. Just trying to understand what was going on with cash flow during the years of timing or what were the moving items. Hey, Sholto, it's Will. I mean, we've talked about this before. I mean, a big part of the earnings is, is coming from the co-investments, so, it's not just HMC. You've got, share of associate income of about AUD 30 million, that comes through the investing cash flow. The other thing was, we took the Milano, Healthscope acquisition fee, we took in scrip, so that's, that's not cash. Okay. Yeah, it's the function of the investing, looking at both the investing and the operating cash flow. That makes sense. Thanks for the clarification on that. Just on the... I know, David, that there's so much demand, but you're still tipping in AUD 75 million. Is that just to the unlisted fund? Is that just to get co-alignment of 14% rather than you don't need to, but you just want to have a, an investment in that vehicle? No, it's just a timing issue. It's basically, we're talking about raising an unlisted institutional fund from go to whoa in 3 months. That doesn't happen very often. It's really just that, the remaining investors are just moving through their process as we speak. What we'll do is, we said at the time of announcing the transaction, that we'd sub-underwrite that, but we're, we expect that all the HMC Capital will be released out of that fund before the end of this calendar year. Your stake would just be indirectly held through your stake in. Correct. -Healthscope? Correct. Okay. Yeah, we won't have. Thanks for the clarification. any investment in that fund. Thank you. Then just on the opportunities, obviously, you've got, you've got a lot of things on. I know you say growth, not linear. It seems like you've got, per Solomon's question, strong underlying growth coming through in the farm business because of the transactions that back-ended at this financial year. That's growing. Is the delta really just those one-off transaction and, you know, what opportunities present themselves that will drive the additional growth above what you're sort of expecting? Then I know it's hard to comment, but is that just from new funds and new verticals? Can you talk about how close you are on those verticals that you described, of infra and energy and, and credit? Two messages I wanted want you to take away is, one, we're going to be very disciplined, and we're going to do it in a capital light way with capital partnerships when we move into those new areas. I think the second point I want to make is growing funds under management is lumpy, that if you want to do it in an organic way. We're not buying it, we're bringing it on organically, and we're creating it organically. The one thing I'm extremely proud of, and we don't, you know, we haven't banged on about it much this morning, but we've grown our funds under management since we sat here this time last year by two-- over AUD 2.5 billion. That's a step change event for the group. The income coming through from that, the funds management fees coming through from that are lumpy, they're not linear. You've got to basically take all that into account when you, when you project the group. There is a little bit of a lag effect, because of the way we do it, but importantly, it's the most capital efficient way to do it, and it's the way that rewards our shareholders in terms of long-term value creation. Just on the FUM target. If you look at the committed, the AUD 8.1 billion of FUM, if you take out the AUD 500 million undrawn in LML, AUD 7.6 billion, of the AUD 10 billion, that target by the end of the year, what's actually in the bank or sort of, and what do you think will be uncommitted of that AUD 10 billion by the end of the year, sort of, in the bag and what's not fully drawn, I should say? Sholto, I don't get that wrapped up about those sorts of targets, we put them out there to create, sort of beachheads and anchor points for analysts in the market to, to work around. If you just stop and pause and you, you start with your 7.6, I talked a lot about the embedded organic growth in the business that will come through. If you stop and think that HDN has a AUD 600 million development pipeline, that it can now fund organically. You could add that on. Now, we're that won't happen next year, but that's embedded, that's there. We've got also a very deep development pipeline coming together at Healthscope. Again, we've got institutional partners now that will want to help us deploy that. That will actually be deployed over the next little while. LML, the opportunity universe is deep and rich. We think the rising interest rate environment, as we've been saying for years now, is gonna cause some of these highly geared, unlisted syndicate vehicles to crack. We could see ourselves deploying that very quickly in the back half of the year and very opportunistically. Again, AUD 10 billion feels like it's, you know, within our grasp here, just organically rolling through that. What we're throwing out there is we're saying, this time last year, or even at the half year result, we weren't talking about Healthscope, we weren't talking about the AUD 1.2 billion chain that that created. The year before, we weren't talking about Aventus. Those events also come along. Bringing teams on to organically grow into some of the other sectors will also happen. It's really a matter for you and the market to basically work through that. We're not gonna basically pin ourselves down to absolute precise numbers, but we are very, very confident that we'll be able to be sitting here at the end of this year with at least $10 billion under management, committed. Okay. Okay, just, just finally, in the Capital Partners, you've got a third investment. I think the press said it was in a manufactured housing operator, a couple of weeks ago. What's the sort of strategy, if that is correct, in that, in that vehicle to, to unlock value? I said we've got a third confidential investment. I'll leave it at that. All right. Thanks, David. Thanks, team. Cheers. Thank you. Your next question comes from Simon Chan with Morgan Stanley. Please go ahead. Hey, good morning, guys. Just, David, wondering if you could elaborate on slide 11. You talk a lot to the right-hand side of that slide, but just on the left-hand side, you talk about opportunities under review include complementary platforms, which expand our funds management capability. Can you perhaps double click on that, that line and, yeah, elaborate on what you have in mind there, you know, in terms of skill sets that you're after, and, and, and were you referring to, you know, global healthcare in that, in that bullet point? Yes, that's a good point, Simon. I touched on it in the call. If we're gonna go into energy transition, we're not just gonna announce that we're raising an energy transition fund. We need people, we need capability. When we talk platforms, it's really a shortcut for people. Real estate, again, if we want to go into the global space, we do need people, so we need capability. What I would say is the one thing that gets reminded to me continually by our analysts and the team internally is, yes, the Aventus transaction was great, yeah, we slapped AUD 180 million of goodwill on the balance sheet. We don't like putting goodwill on the balance sheet. We'd be looking to try and go into these areas organically. We'd be trying to do it through hiring people and capability, rather than paying for goodwill. We are exploring lots, many and varied ideas. We turn over a lot of rocks here, and as I said on the call, we're only gonna execute on the very best opportunities that come across our desk. By not, not paying for, for goodwill on balance sheet, you're, you're essentially ruling out buying an existing fund manager in, in infrastructure or healthcare then. Would that be fair? Correct. Correct. Terrific. My second question, as you guys, as your stake in CP1 declines to below 50%, can I assume that FY2024, you won't have the, you know, that, that consolidation of, CP1 won't happen? Because, I mean, slide, slide 21 says it's consolidated due to your 52% interest. Yeah. consolidation will be, you know, deleted next year. Is that fair? Yeah, I mean, we, we can't say it'll happen, but it's, it's likely to happen in the near term, Simon. It's really just accounting treatment, the way we see it, equity accounting, backing out associates or not, like, it ultimately ends in a pretty similar outcome. Will that, will that then, instigate you guys, you know, booking distribution in your P&L, those distributions from CP1 in your P&L, rather than mark-to-market losses or gains? On, on a statutory basis, yeah, that's right. All right. Thanks, guys. Thank you. Your next question comes from Ben Brayshaw with Barrenjoey. Please go ahead. Oh, good morning. I was just wondering if you could clarify with the equity underwrite for the third tranche of the unlisted fund, has the equity required to settle that, has that changed since acquisition? I thought you were broadly seeking AUD 259 million at the acquisition presentation, and if I heard correctly on the call, you're saying you secured AUD 250 million from 3 investors. I'm just wondering if it's AUD 75 million in addition to the AUD 250 million, or is there a timing issue around the allotment of the AUD 250 million? I'll get Will to answer that. Yeah, so the, the AUD 260 quoted in the, the March presentation was pre-transaction costs, which I think we flagged in the notes. Including transaction costs, mainly stamp duty, it's, it's AUD 325, Ben. Okay, thank you. Just on Capital Partners Fund number one, I appreciate this is not the easiest environment to raise capital in, but I think you're broadly talking to around AUD 300 million as having been committed at February. Are you able to just give an update on inflows in recent months and just how that capital raising process is tracking? Look, what we'd say is that it's positive and the inflows are stepping up every, every day. There's a little bit of inflow trickling in. We remain extremely confident that we'll sort of directionally be with, with investment gains, and inflows at around AUD 400 over the next month or so. Maybe it might be next month. That's directionally where we're, we're at. What we would say to you is, we'll then look for 12 months of performance to click over. We're waiting on a second rating to come in, which then means we can go into some model portfolios. We think just as the entity starts to prove itself up and so on, there'll be natural inflow there. What I'm talking about inflow, I'm talking retail, high net worth, wholesale. Then when we talk institutional, what we're talking about there is really more, bespoke, SMA type arrangements around specific opportunities. So that's where we can see the step change coming towards that sort of AUD 1.5 billion number. Now, that, we can't predict when that'll happen. We're not going to flag and telegraph our punches here, but that could be just, you'll pick up the paper one day and bang, there's another AUD 1 billion in there. You know, we're, we're working hard, we're focused, and that's the strategy at this point. Yep. Okay, great. Thanks, David. Just 1 final question on global healthcare. I mean, just conceptually, how should we be thinking about the potential strategy for that vehicle? I mean, the obvious question is, which jurisdictions, you know, broadly, would you be looking to deploy capital, you know, into? Presumably, you know, with HCW and unlisted fund in Australia, it would be, you know, international. Yeah, it's outside of Australia, obviously. It's going to be rule of law, OECD countries, where we believe we can bring some value add. We're not going to do anything crazy. We're not going to blow ourselves up. It's going to be very considered, it's going to be very cautious. We do see a big scalable opportunity there that will set us apart. You know, we don't, as an organization, go and make statements unless we're confident we can deliver. I remember sitting on a call, probably not too similar to this, 2 years ago, where we said we're going to go and build a healthcare REIT, and we're going to be an investor in the healthcare real estate space in Australia. Proud to say, 2 years later, we're now the biggest investor in Australian healthcare real estate. If we do this, we're going to be considered, we're going to be cautious, and we're going to be prudent, but we do see the opportunity being very real and very executable. Okay. Thanks, guys. Thank you. Your next question comes from James Druce with CLSA. Please go ahead. Pardon me, James, your line is now live. Please go ahead. Here we go. Good morning, David, Will, Mish. Yeah, just wanted to clarify one of Sholto's questions, just looking at capital deployed today. Is it right in saying that today you've deployed AUD 7.6 at the moment? What do you have sort of visibility on for the next, six months? I think Sholto's point is that if you look at the LML strategy, we've got AUD 8.1 billion of committed funds under management. LML is about 200 of the 800 deployed, so that's obviously part of the difference. What we're saying there is we've got dry powder at LML. If the opportunities present between now and the end of the year, we'll execute quickly, and we'll be in a position to deploy. That's just a question of opportunity. That'll be opportunity-driven. Again, as I said earlier, we're just not in a position to telegraph our punches to people. The second thing I would say to you is that in terms of the rest of it, there's dry powder within both of the REITs now. They've now got themselves into a position where they've got very strong balance sheets and, the ability to undertake organically driven acquisitions within the resources and the capital base that they both, manage today. We've got partners coming into our unlisted healthcare platform that are all hungry to deploy more, all hungry to look at other opportunities. These are very deep-pocketed type investors. We're talking global sovereign wealth funds. We're talking a global multinational pension fund. We're talking, a multi-manager of global scale, one of the biggest in the world. We're talking about domestic Aussie super funds. The opportunity, you know, the, the capital, there's no shortage of capital. Our job is to match great opportunities with capital. In order to do that, and in order to continue the track record of the group, which I talked about on the second slide this morning, it's about being disciplined and patient and having the capital ready to deploy when the opportunities arise. That's what we're good at as an organization, in my view. All right. That's clear. Just roughly, how much cash is coming back to HMC in the next six months for, for the balance sheet? The way I would describe that is the underwrite in for the unlisted healthcare fund, it was an underwrite. We didn't actually have to fund anything there. Effectively, when, when that settles, we'll simultaneously close the fund, so investors will simultaneously come into that fund as we go to financial close on tranche 3. In terms of HMC, today, we have no effective drawn debt or very minimal drawn debt. We have AUD 275 million of committed funding lines that are that are not drawn as well. Then we have liquid investments in our REITs, and net tangible assets that are sort of in the order of another AUD 800 million. If you add all that up, we've got dry powder and liquidity within the group of about AUD 1.1 billion. We'll be opportunistic in terms of when we release that capital out of our underlying investments. Yeah, okay, that's great. One, one more, if I may. Only when there's real opportunities to release it into. Yep. Okay, Okay, that makes sense. Then, and just on transaction fees and underwrites and capital gains, what have you already booked for FY24? What are you sitting here with today? In terms of the unlisted healthcare opportunity, we only booked the proportion of the fee related to the amount of assets that were taken by HealthCo in tranches 1 and 2. Tranche 3 has not been booked, that's sort of sitting. That'll roll into 2024. In terms of other transactional fees that are out there, I think there's obviously, we're sitting on mark-to-market gains in terms of some of the underwriting positions that we put into HealthCo. Asset recycling. We've got asset recycling in the REITs and so forth. Probably the other one to call out is the Capital Partners Fund. We haven't booked a performance fee in year 1, so that performance fee comes up at the end of this financial year. We start the 2024 year in a pretty strong position with good, good one-off clarity out there. That gives us confidence in making some of the statements we've made today, but why cap ourselves? No, that's clear. Can, can you provide a number for tranche 3 and, and, potentially the performance fee for HMC Capital one- I won't- Today. I won't provide a number. What I'll say is you can just pro rata it and just look at what assets of the AUD 1.2 billion were taken by HealthCo and what were not. That will give you the answer. Same economics. AUD 4.7 mil. That's roughly. All right, thanks. Thank you. Your next question comes from David Pobucky with Macquarie Group. Please go ahead. Good morning, David, William, and Misha. Congratulations on the result. Just in terms of the AUD 250 million of equity commitments from the three insto investors, you know, a good result in this environment. You touched a bit on how the capital raising environment is looking. What's the feedback been like for investors, and how have those sorts of conversations shifted over the last six months, please? Well, look, you're all research analysts. You'll be speaking to other companies. You can see what they're doing, not raising much money. We're raising money, and we're raising money because of the quality of the deal we did in putting that portfolio together. The fact that we bought that Healthscope portfolio so well is what actually brought investors to the table. The fact that we've already written those assets up, and you would have seen some of the beginning of that in the Healthco result last week, was very interesting to investors. They kind of want to align themselves with a capital partner and a partner manager like ourselves that can find that mispriced opportunity out there. That's why the capital's coming to us. It's also why Funds SA came into LML because of the embedded uplift in the Menai transaction. I think, yeah, most other managers will be struggling to raise capital in this environment, but we love tough markets because it gives us an opportunity to differentiate our business and our team. Thanks, David. One for William. Just in terms of the utilization of historical tax losses, can you please remind me what the quantum of that is, in terms of, what's remaining and, and the timeframe it'll get worked through, please? Yeah. I guess in terms of assumption, we're still utilizing historical losses for the first half of FY2024. You know, we hope to provide a, you know, positive update at the half year results in terms of the go-forward. Great. Thank you. Good luck in the next four months, guys. Thank you. There are no further questions at this time. I'll now hand back to Mr. Di Pilla for closing remarks. I just want to thank everyone for joining the call. Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.