St George offers investments in new managers
St Georgewill offer investments in emerging fund managers after rolling out Ascalon Capital Managers, a venture capital vehicle pitched at institutional and high net worth investors.
The vehicle will operate as a pooled development fund and will be offered through the St George distribution channels including Advance Funds Management and St George Private Wealth Management.
The investments will also result in new retail products being made available to St George clients from the emerging managers, and distributed through its retail financial services arms, Asgard and Advance.
Initially, investments in the fund will be offered to institutions such as superannuation funds but St George investment services group executive Richard Cawsey says there are plans for retail investors to invest in the upcoming funds management groups.
Ascalon chief executive Ray De Lucia says St George is offering this type of investment because it feels that the number of funds management houses is shrinking, while investors are also seeking more players that are viable.
“We provide these groups with back office, marketing and financial support and act as a conduit between fund managers and investors and our aim is to invest in the dynamos of the next few years,” De Lucia says.
As part of the process of supplying venture capital to emerging fund managers, St George will also take equity positions in the managers but De Lucia says these stakes are commercially sensitive and will not be revealed.
However, the group says these will range from 15 to 50 per cent and Ascalon will also assume the fiduciary and operational risks associated with managing wholesale funds.
So far, $50 million of seed capital has been raised with $15 million invested, with two fledging funds management houses, Australian Ethical Investment Limited and Investment Management Services, coming on board.
According to Cawsey, two further managers will join in the new year out of an overall target of 15 complimentary managers.
AUTHOR
Jason Spits
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