GQG raises $145m for first private markets fund
GQG Partners has closed fundraising on its initial private markets fund, having raised $145 million.
In March, the firm acquired stakes in Avante Capital Partners, Proterra Investment Partners and Cordillera Investment Partners from Pacific Current Group.
This was for the intention of launching a private capital solutions (PCS) business within the asset manager given private markets has seen significant investor demand this year which would sit separately from its global equities division.
PCS will be focused on providing a broad range of financing and strategic solutions to mid-market private capital asset management firms, including perpetual equity investments, structured financings, and distribution services across institutional and retail markets.
In an ASX statement, the firm confirmed it has concluded fundraising for its first fund.
“GQG Partners is pleased to announce that its GQG Private Capital Solutions (PCS) business has closed approximately $145 million for its initial private capital fund.
“GQG believes the addition of private markets capabilities is an important step in diversifying GQG’s sources of revenue and bringing additional talent into the business. GQG remains committed to continued growth and development of GQG PCS.”
It added the closing will allow GQG to extinguish debt associated with the three stake purchases and eliminate its financial obligations.
Discussing the deal in August, chief executive Tim Carver said private markets is a “sunrise opportunity” for the asset manager.
“We are always looking for what we call the ‘sunrise’ parts of the market. Where within the asset management industry are we seeing growth? Where are seeing talent flow to and where do we want to position our own business?
“Private markets clearly embody this and in doing the transaction with PAC, we were able to bring on board not only three great investment boutiques but also a team that we know quite well and has one of the longest tenures and deepest track record in the industry.
“We also know that our distribution infrastructure that we invest in can be leveraged to distribute high-quality products to our current investors and future potential investors will find value added in their portfolios.”
As of 30 November, the firm has US$159.4 billion in funds under management across global equities and emerging market equities. Gross flows for the month stood at US$4.2 billion, of which US$744 million occurred in the last week of November.
AUTHOR
Laura Dew
Recommended for you
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
