The House View
Our family established Victor Smorgon Group in 1995 following the divestment of Smorgon Consolidated Industries. Formation of Victor Smorgon Group was based on our aspiration to grow and develop diversified activity needed to build generational wealth and look after the family for years to come. Whilst this mandate has remained unchanged, we have needed to adapt, expand and professionalise as both markets and our family have evolved.
These factors have had a significant impact on both the shape of Victor Smorgon Group and our family.
We’ve achieved steady growth over the last 28 years and the change we’ve seen in markets and in cycles has added depth to our understanding. Our appreciation of the opportunity presented by different market cycles means we are investment agnostic, we pursue investments which reflect the best risk and return prospects for the time.
Our approach is based on an operator’s mindset - we invest in companies and opportunities that:
Have attractive operating margins and demonstrate pricing power
Produce free cash flow and return capital to shareholders
Occupy sectors of the economy that are due to benefit from structural trends
Are well led by experienced and aligned management teams
Can be acquired at a reasonable price.
The Group currently operates across a number of sectors, including commodities, consumer discretionary, property and global equities.
As a business, I’m proud of the significant advances we’ve made in recent times with our systems and processes across governance, management, reporting, communications & technology.
Over the last two years, our family office has entered into in a number of partnerships that we consider critical from a strategic point of view. We believe we now have a unique offering, covering funds management, corporate advisory, corporate debt, family office/business advisory, accounting, taxation and digital assets. You can read more about these partnerships below.
Victor Smorgon Group is now an ecosystem of partnerships – all of which we believe can thrive in a family office environment, creating value and opportunity for both our family and investors into the future.
I welcome you to our new half-yearly “House View”. Our intent is to share key elements in our thinking that inform our decisions, whether it be for our investments, family or business operations - things we are thinking about, planning for or exploring when we develop our approach to various markets over the next 6 months.
Peter Edwards
Executive Chair
December 2023
Prioritising business fundamentals and real assets in unpredictable times
In periods of economic volatility, free cash flow can provide sanity and downside security and protect investors from further significant drawdowns.
A well-defined strategy is keeping family businesses on track
Business families are navigating the current economic climate with caution, emphasising long-term strategies. They are preserving capital, seeking value, and adapting by focusing on sales growth, digital channels, and workforce optimisation.
Private Debt: A prudent choice amidst economic uncertainty
Family office investors are increasingly embracing corporate credit, seeking diversification and stability. The current economic climate, marked by reduced equity valuations, has made private debt solutions more attractive.
Family Offices and business families embrace long-term investment strategies
Focusing on future prospects, family offices and corporations are exploring opportunities within emerging sectors including renewable energy, healthcare, and technology.
Resilient institutional crypto solutions thrive amid market challenges
Amidst recent turbulence in the cryptocurrency market, the global shift away from traditional reserve currencies towards digital alternatives, presents opportunities for cryptocurrencies.