Macquarie to list new private equity arm

Macquarie Funds Management today launched a new private equity arm which it intends to list on the Australian Stock Exchange (ASX) , providing investors with exposure to unlisted companies and assets.

The Macquarie Private Capital Group (MPCG) will give investors the option to buy into more than 200 investments through more than 20 specialist managers in both traditional private equity sectors such as venture capital, expansion capital and buy-outs and other sectors such as property, resources, infrastructure and mezzanine and distressed debt.

MPCG has been seeded with $51 million of assets from a Macquarie Managed wholesale Trust which the bank said will become a cornerstone investor in MPCG.

“What we see as being the real key attraction for this vehicle is the fact that it’s a highly diversified private equity exposure and the fact the investment is already half seeded; there’s around $51 million out of $106 million already invested and identified,” said Macquarie Funds Management group head Ben Bruck.

“We see that as being very important because unlike other private equity investments where it takes some time to draw down the money and get investment, in this instance, investors will be able to get access to those companies conveniently.”

He added that the listing of MPCG will provide investors with the scope to trade their investment. He said that most other private equity investors are usually locked into their investments for periods up to ten years because these funds are illiquid.

“Another advantage is the time at which [the investments] have been invested. Some of these investments date back to 1996 all the way through to 2005. In private equity it’s a little bit like vintages where you get strong vintage years from time to time so you want exposure to as many years as you can across time.”

Macquarie deputy managing director Richard Sheppard has been appointed chairman of the MPCG companies.