Tapping into Australia's essential water infrastructure pipeline | Johann Kenny
When the government announces infrastructure spend-where does it go? Hear Johann discuss how they help councils deliver for local suburbs.
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In today’s ROCast, Murdoch is joined by Johann Kenny, CFA, Investment Director at Allcap Securities. Johann’s background spans capital markets, structured credit, and private equity—having held senior roles at ANZ, ING, Fitch Ratings, Equifax and Arowana. But what struck me most in this conversation is just how risk-averse and methodical he is—shaped, in part, by his early career navigating capital markets during the Sri Lankan civil war.
In this episode, Johann breaks down the macro environment for construction in Australia—highlighting the difference between private sector development and government-funded infrastructure, particularly essential water projects tied to long-term public service delivery.
And today we’re doing something different. Instead of a managed fund, we’re looking at a special purpose vehicle (SPV)—structured to acquire a Tier 2 builder delivering sewage plants, pump stations, filtration facilities, and stormwater infrastructure for local councils across NSW and QLD.
The deal is:
backed by NAB,
targeting a 10%+ annual cash yield dividend distribution and
target 2.5x return over three years,
$14.5 million FY25 EBITDA forecast
and a 5.0x acquisition multiple.
What I found fascinating is how this ties into those moments where governments announce infrastructure spending to stimulate the economy. Ever wonder where that money actually ends up? Well, it’s firms like this—quietly delivering critical projects that ensure sewage doesn’t flow into rivers and towns have the systems they need to grow.
This conversation covers a lot—from deal structure and risk management, to how Allcap thinks about governance, cashflow timing, and exit pathways.
As always, this ROCast is for entertainment purposes only. Feel free to reach to me by direct message on livewire.
With that being said, I hope you enjoy this conversation as much as I did, so sit back, relax, and enjoy.
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Murdoch Gatti is the founder of York Wealth Management and a private wealth adviser to families, business owners and professionals.
York helps clients make better long-term decisions about how their capital is invested, structured and passed on. That covers portfolio construction, retirement and superannuation strategy, and planning for the transfer of wealth between generations.
Murdoch also hosts The Rate of Change, a podcast where he interviews fund managers, investors and business leaders, then tests what he hears against the data.
Outside work, Murdoch and his wife Yasmin have two young children.
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This article contains general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on it, you should consider whether it is appropriate to you in light of your objectives, financial situation and needs, and seek professional advice where appropriate. If a financial product is referred to, you should obtain and consider the relevant Product Disclosure Statement and Target Market Determination before making any decision about it.
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Murdoch Gatti is the founder of York Wealth Management and a private wealth adviser to families, business owners and professionals. York helps clients make better long-term decisions about how their capital is invested, structured and passed on....
Murdoch Gatti is the founder of York Wealth Management and a private wealth adviser to families, business owners and professionals. York helps clients make better long-term decisions about how their capital is invested, structured and passed on....
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