BORN INTO BUSINESS

James Mawhinney has a vision: to provide an alternative to traditional investment products. And he’s quickly proving the demand for it.

James Mawhinney, who was 25 when he set up investment group Mayfair 101, recalls now how clients’ reactions to such a young managing director ranged from shock to “We have to ride on his coat-tails”.

But even in 2009, he had a lifetime of business behind him. His father, Stephen, who worked for IBM, insisted that – from the age of three – his son pull up a chair whenever colleagues came over and then discuss the conversation afterwards.

Stephen’s career meant the family moved 10 times before Mawhinney turned 12; he “learnt to adapt and build relationships quickly” by attending six schools. “In some ways I may have lacked a childhood,” says Mawhinney, who started working (washing cars and mowing lawns) at seven. “But otherwise I wouldn’t be doing my dream job.”

Melbourne-based Mawhinney, who entered the financial services space with law and commerce degrees and a 40under40 business award before he turned 30, founded a managed investment scheme managed by IPO Wealth in early 2017. With this he taps into “Australia’s $500 billion in cash investment products, including term deposits” to fund Mayfair 101’s 17 investments across 11 countries, rather than dip into the shallower pool of Australian equity funding.

As IPO Wealth’s director, he doesn’t get out on his beloved boat much. “I learnt a lot from my father: your word is your bond. If you say you’ll pay those returns, you pay those returns and you don’t sleep until they’re paid.”

He calls his business-heavy upbringing “old-school” but one that has unexpectedly brought out a creative side. “People say, ‘What’s your passion?’ For me, it’s to sit down with a notepad and sketch out corporate structures... that’s my art.”

“PEOPLE SAY, ‘WHAT’S YOUR PASSION?’ FOR ME, IT’S TO SIT DOWN WITH A NOTEPAD AND SKETCH OUT CORPORATE STRUCTURES... THAT’S MY ART.”

How does IPO Wealth Fund work?

IPO Wealth is the investment manager of the IPO Wealth Fund. The Fund can accept investments only from wholesale and sophisticated investors in Australia – people who have an income of $250,000 a year, assets of $2.5 million or who can invest $500,000 or more. We’ve crafted a term-based investment product, with six options ranging from three months to five years, for people who don’t want the headaches of property investments or the volatility of the stock market. The Fund lends money to a related party owned by our parent company, Mayfair 101, to make investments and pay interest that enables us to pay our investors attractive monthly distributions.

What are the key reasons why IPO Wealth has had so much success to date?

It comes down to doing what we promise and providing a personalised level of service, something which our clients tell us is lacking in the industry. Our team regularly meets face to face with investors around the country and we aren’t afraid to go the extra mile in delivering exceptional customer service. Trust is key when dealing with people’s money and we feel that our clients respond well to the measures we take to ensure a high level of customer satisfaction. Our online reviews are a great testament to this.

What type of investor would IPO Wealth’s products be suited to?

The Fund attracts a lot of wholesale investors seeking an income stream from their investment. Many have sold properties, have spare cash in their business or are simply looking for a better rate of return on their idle money. Our monthly distribution option means investors have the opportunity to receive a regular cash flow from their investment. We can accept investment from individuals, companies, SMSFs and trusts.

How do you manage risk?

Like all investments, there are risks associated with investing in the IPO Wealth Fund. These include risks associated with the structure, the types of investments, legal, regulatory and economic risks. The Fund incorporates a number of mechanisms our team has developed to help reduce its risk profile. In addition to this, we place a high importance on managing liquidity to facilitate interest distributions and redemptions.

How does Mayfair 101 choose where to deploy that capital?

Mayfair 101 provides finance only to businesses that pass our due diligence procedures and we focus on sectors that provide solid rates of growth. When we have the option of putting money into what we consider to be a good investment over one that will generate the same rate of return for the same money and effort but there’s an ethical component, we will always steer towards the latter. Our investments have in some instances had far-reaching social impacts.

Can you give an example?

We have an investment in a fintech company called Accloud, which originated in Australia and is now based in London. Accloud helps empower micro and small businesses in India, Brazil, Turkey and other developing nations to become more competitive globally by providing them with access to online accounting and trading technology, as well as funding. It’s also creating employment and scholarship opportunities through alliances with government organisations.

What have been your greatest successes?

IPO Wealth raised its 50-millionth dollar in September, 18 months after launching, and we have outstanding customer retention, which demonstrates that investors really like IPO Wealth’s approach. That said, I’m most proud of the exceptional team I have around me and our ability to provide investors with the opportunity to get ahead financially. In a time of economic uncertainty, a potential property market crash and a hugely volatile stock market, it’s comforting to have an investment portfolio that focuses on growth sectors.

“OUR INVESTMENTS HAVE IN SOME INSTANCES HAD FAR-REACHING SOCIAL IMPACTS.”