Macquarie rolls out retail private equity fund
Macquarie Investment Managementhas launched a private equity fund-of-funds targeting the retail investor who wishes to invest in the wholesale private equity market.
The fund, called the Macquarie Diversified Private Equity Fund will be available to retail investors via master trust and wrap account platforms.
The fund invests in a wholesale fund of private equity funds (Macquarie Alternative Investment Trust II) as well as directly into other wholesale private equity funds. Investment in private equity enterprises will be determined by calls made by the private equities, and any unused cash that has not been called up will be held in the Macquarie Treasury Fund.
The term of the fund is 12 years which Macquarie says positions it ideally as a superannuation investment, while investors will be able to invest in wholesale private equity funds with a minimum of $5000. For self managed super investors investing in the fund directly, the minimum will be $100,000.
Macquarie Financial Services group head of wealth management solutions Cathy Hales says the fund gives financial advisers the chance to get clients interested in private equity investment in from the retail level.
“There has never been an open ended private equity fund available which takes advantage of such a spread of expertise in so many diverse funds,” she says.
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.
