HMC Capital flags upcoming private equity fund
HMC Capital has signalled its intentions to repackage an existing fund into a second private equity vehicle, targeting both listed and unlisted opportunities.
In an ASX announcement, the $18.5 billion alternative investment manager declared an interim FY25 distribution totalling $300 million for its HMC Capital Partners Fund I (HMCCP Fund I).
As the largest investor of HMCCP Fund I, HMC stated it will receive a distribution of $150 million in mid-April this year and will retain an ongoing investment valued at $230 million. The fund’s distribution reflects the “significant realised gains” driven by investments in Sigma Healthcare and Ingenia Communities, according to the firm.
Off the back of the distribution announcement, HMC Capital confirmed it now plans to launch the HMCCP Fund II as a closed-ended, private equity strategy. It will invest in high-conviction listed and unlisted investments, the company said, via a proposal restructure of the HMCCP Fund I.
“HMC Capital has a pipeline of unlisted opportunities under review for Fund II, including participation in the potential opportunity to acquire and recapitalise Healthscope. It is intended that any participation in a Healthscope investment would be conducted through HMCCP Fund II, it stated.
The vehicle will reflect a more traditional private equity fund structure, the firm added. This will include increasing the performance fee hurdle from 7 per cent to 9 per cent and changing from an open-ended structure with limited quarterly liquidity to a closed-end structure.
David Di Pilla, HMC’s managing director and chief executive, described: “HMC Capital Partners Fund I has proven our ability to deliver outsized and uncorrelated returns for investors by applying a private equity mindset to investing in listed equities.
“We are excited about the upcoming launch of our second private equity vehicle which will target both listed and unlisted opportunities. We have refined the strategy and structure of Fund II to maximise potential returns for investors. HMCCP Fund II will target our highest conviction investments in a more traditional closed-end private equity fund structure.”
The HMCCP Fund I delivered an annualised return of 32 per cent, net of fees, from inception to 31 March 2025. It also performed 55 per cent in net returns for the 2024 calendar year.
Earlier this year, the alternative asset manager reported strong growth in its assets under management (AUM) which rose by 45 per cent to $18.5 billion. The largest of these was $9.8 billion in its real estate, followed by $5 billion in digital infrastructure.
The firm previously stated that it is looking to target $50 billion in AUM over the next three to five years, underpinned by a diversified business model with multiple growth drivers.
AUTHOR
Jasmine Siljic
Recommended for you
Negative market movements, coupled with net outflows, have prompted a near $6 billion decline in Challenger’s funds under management for FY25’s third quarter.
The real estate investment manager has positioned the APAC region for future growth with an internal promotion to the newly created role of deputy head of Asia Pacific.
Clime Investment Management has welcomed an independent director to its board, which follows a series of recent appointments at the company.
Ethical investment manager Australian Ethical has cited the ongoing challenging market environment for its modest decrease in assets over the latest quarter.
