David French | 16/11/2012 9:17:46 AM

This article was originally published as 'Rundown on CIPL' in http://www.themorningbulletin.com.au/ on 21 July 2012.

Capricorn Investment Partners Limited began in 2001, as part of The Rock Building Society. At that time it was just me and a desk, but after getting our own Australian Financial Services Licence it grew, and in 2006 we undertook a buy-out. Most of the current shareholders of our business are based in Central Queensland and Mick Cranny, a well-known local businessman and past Livingston Shire Councillor, is a director.

Of the $150 million or so our business looks after, about $90 million originates from Central Queensland. That’s a lot of money, but think about it this way – that’s only money entrusted to our firm - one of probably 30 financial services firms in the area. Further, in an environment where most financial planners have operated on commissions, its money invested by people who have been prepared to pay for our services. The conclusion is that the money looked after by CIPL is probably a microcosm of the total wealth of the area.

How did people come by such a lot of money? Well typically, our clients are just normal people – these days it doesn’t really matter whether you are a professional, a tradesperson, a railway employee or a small business person, it is common to have $0.5 million to $1 million in superannuation. If you have that amount of money it has to be looked after. The interaction of investment considerations, superannuation, Centrelink (you can still have $1 million and get the age pension) and tax, makes it quite difficult without proper advice.

On top of this we have experienced increasing interest in our services to small business. Many businesses are finding it difficult to withstand the current economic conditions, and others, particularly those benefitting from the mining boom, need strategies to cope with rapid growth. That might include developing and funding business plans, budgeting, or designing and implementing staff share plans for example. This sort of work is as challenging as it is rewarding, and it seems more and more businesses are recognising they need appropriate, reasonably priced advice.

Finally there is the traditional banking and insurance sector, both of which typically get a bad wrap. The fact is though, that simple debt finance is the lifeblood of many small businesses, and insurance is a necessity to protect the assets that have been built in a business.

Is it any wonder that finance is a growth sector in the economy?

The Investment Collective (AFSL 471728) is a non-aligned financial planning and investment firm specialising in providing tailored financial and investment advice for individuals and small business. Capricorn Investment Partners Limited's services include financial planning, share trading, portfolio management, insurance broking and self managed super fund administration. Additional information on services provided by The Investment Collective Limited can be found by following this link. Readers are reminded that this document has been prepared for general information purposes only, and any advice contained herein has been prepared without taking into account your financial objectives, situation or needs. Readers are advised to see their financial advisor prior to acting on any general advice.

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