Backing Growth Businesses Beyond Lending | Ben Harrison

In this episode of The Rate of Change, I spoke with Ben Harrison, Co-Founder and Chief Investment Officer of Altor Capital, which was acquired by Prime Financial Group in February 2024. Our conversation covered Ben’s career path, Altor’s investment approach, examples of past transactions, and how the Prime partnership has shaped their strategy.

Background

• Began as an engineer and project manager on large infrastructure and coal projects in Australia and Southeast Asia.

• Transitioned into finance with Wilsons (currently in the process of being acquired by Canaccord), gaining experience in equity research, capital markets, and M&A.

• Co-founded Altor Capital nearly a decade ago with Harley Dalton, focusing on alternative assets.

Altor’s Investment Approach

• Not property lenders: Altor does not finance property development or land banking.

• Collateral: when lending to operating companies, all assets of the business, including property, may be taken into account.

• Senior secured loans: provide a contractual return and security over assets.

• Equity kickers: equity options or free equity positions are commonly attached to loans, giving Altor exposure to business growth alongside its lending.

• Active involvement: Altor often takes board seats and works closely with management on strategy, positioning itself as a partner rather than a passive lender.

Borrower Profile

• Target businesses typically have $20–100 million in revenue and $2–10 million in EBITDA.

• Loan proceeds are generally used for acquisitions, expansion, or other growth initiatives.

• Focus sectors include financial services, infrastructure, and energy transition.

Fund Track Record

• Altor’s flagship Private Credit Fund has operated for more than seven years.

• As of recording, the fund reported a net return of just under 12% per annum over that period, with a cash yield target of 10% distributed quarterly.

• Additional strategies include a Growth Fund and a Social Infrastructure Fund.
  (Performance details are factual, based on Ben’s comments, not an endorsement.)

Deal Examples

• WT Financial (ASX: WTL): Altor provided credit to fund acquisitions in the dealer group sector, refinancing an existing Big Four bank facility.

• OnSpec: oil and gas services business expanding into hydrogen and the US. Revenue grew from ~$5m to ~$30m in two years, with EBITDA tripling. Structure included equity earn-backs allowing founders to repurchase equity upon meeting targets.

• Energybuild: renewables business. Altor exited its equity position while continuing as a lender.

Prime Financial Group Acquisition

• In February 2024, Prime acquired Altor Capital to build a broader alternative asset platform.

• The partnership provides Altor with scale, distribution, and operational infrastructure.

• Prime also brings a sports and entertainment advisory business, leading to transactions such as the acquisition of the Tasmania JackJumpers NBL team.

• Sports investments are viewed as platform-style businesses, with value generated through team operations, branding, and ancillary revenue streams.

Broader Themes

• Growing demand for private credit as banks reduce lending in certain areas.

• Increasing investor preference for multi-manager allocations in credit.

• Portfolio company challenges include labour costs, supply chains, and tariffs.

• Currency risks often managed through “natural hedges” where revenues and costs are aligned.

Key Insight

Altor positions itself differently from traditional private credit managers by combining secured lending with equity participation, and by engaging actively with management teams. The acquisition by Prime expands this model into new sectors, including sports and entertainment.

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