Ord Minnett hits venture trail
Ord Minnett has brushed aside the wreckage of last month's tech stock shakeup to emerge with Australia's first big technology venture capital fund for retail investors.
Ord Minnett has brushed aside the wreckage of last month's tech stock shakeup to emerge with Australia's first big technology venture capital fund for retail investors.
The $84 million BluePeak Fund is designed to give do-it-yourself superannuation funds and other retail investors access to early-stage venture capital opportunities, typically enjoyed by large investors and institutions.
The fund, with a minimum entry requirement of only $5,000, will invest in the companies backed by the latest institutional fund of venture capital company Allen & Buckeridge Asset Management, which will also manage BluePeak.
Allen & Buckeridge expect the returns to come in at about an average of 25 per cent per year over ten years, in line with the experience of US venture capital funds.
Ord Minnett expects the majority of investments in the fund to be sold or floated on a stock ex-change after three to six years. But the timing will depend on the pace of the company's devel-opment and the market at the time, with some companies remaining on board for as long as ten years.
BluePeak will channel investor funds into between 15 and 25 early-stage emerging companies here and overseas in a range of technology sectors including the Internet, software, electronics and ecommerce. The fund also provides the potential for a priority allocation of shares in any companies floated on an Australian stock exchange.
Subscriptions for the BluePeak fund are available until June 9 or until filled.
AUTHOR
Jason Spits
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