Merc Mut's private capital success
Mercantile Mutual has closed the capital raising a new private capital fund with total subscribed capital of $80.4 million.
Mercantile Mutual has closed the capital raising a new private capital fund with total subscribed capital of $80.4 million.
Mercantile Mutual says superannuation funds have been attracted to the fund, which is aimed at providing streamlined access to a diversified pool of unlisted equity investments.
The fund's manager Jon Schahinger said the successful closing was indicative of the growing recognition of the benefits that the private capital asset class could generate.
"More and more investors are seeking alternatives to achieve superior performance and private capital is now under increasing consideration," he says.
Mercantile Mutual said the fund had committed 75 per cent of its subscribed capital to a portfolio of ten trusts. The most recent commitments were to the Fourth Catalyst Management Buy-Out Fund and the Deutsche Private Equity Fund, which were launched in December 1999.
"There are a number of other promising opportunities currently being assessed and we expect that the fund will be fully committed by the middle of this year," Schahinger says.
He says the portfolio provides exposure to more than 40 unlisted companies across 13 different industry sectors. The final portfolio is expected to provide investors with exposure to more than 100 different companies at varying stages of development.
Mercantile Mutual is planning to launch another fund by the middle of this year to meet an ex-pected increase in demand.
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