Macquarie details private equity play
Days after it received the seal of approval from Standard & Poor’s, Macquarie Investment Management has formally launched its global private equity fund, which will go on wraps and master trusts.
The Macquarie Global Private Equity Securities Fund will invest in the world’s top 10 to 25 private equity funds.
Macquarie Funds Management division director Robert Credaro said the types of private equity would range from venture capital to expansion capital as well as management buy-outs.
“We will look for managers that show a strong level of performance consistency, strategic clarity and team cohesion,” he said.
“The structure of the fund means we can continually review the performance of these managers and adjust our positions according to the assessments of both the quality of the manager and the value of the security.”
Initial minimum investment in the fund will be $50,000, with subsequent investments of $10,000.
The fund has already been reviewed by Standard and Poor’s (four stars) and IWL (buy rating), and has a ‘recommended’ rating from Aegis.
Asgard and the Macquarie wrap have put the product on their respective platforms.
Macquarie Funds Management head of distribution Bruce Murphy said the fund would bridge a critical gap for advisers that haven’t had access to these types of funds in the retail market.
“Advisers will have witnessed the performance achieved by large superannuation funds and institutional investors making meaningful private equity allocations since the late 1990s,” he said.
“Until now, the lack of daily access for private equity investments, as well as the seven to 12 year ‘liquidity lock ups’, prevented mainstream use of private equity by many investors.”
The new fund will have daily unit pricing that will allow investors to reduce or top-up their investment at any time.
Macquarie Bank is a major player in this market with about $2.3 billion of commitments to private equity. Credaro said the fund would have access to the private equity staff at the bank and to research on the sector not easily accessed by Australian investors.
Recommended for you
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.
Commentators have said Australian fund managers are less knowledgeable compared with overseas peers when it comes to expanding their range with ETFs and underestimating the competition from passive strategies.
VanEck is to list two ETFs on the ASX next week, one investing in residential mortgage-backed securities and the other in Indian companies.
