Yarra seeks $100m for private capital fund

28 November 2022
| By Laura Dew |
image
image
expand image

Yarra Capital Management is looking to raise $100 million for its Yarra Private Capital Discovery fund which will invest in companies prior to their IPO.

The fund would invest in a diversified portfolio of holdings that have an intention to go public or conduct a trade sales process within three years. It would seek to provide returns of 6% per annum.

Yarra was seeking to raise $100 million and had capped it at $200 million, the fundraising would close on 1 December.

Speaking to Money Management, portfolio manager, David Acton, who joined the fund from Goldman Sachs last month, said this was the right time to launch from a structural and a tactical perspective.

“This is a great opportunity for investors who can invest in companies one, two, three years before they IPO as they growing businesses which are increasing their market share. Businesses are staying private for longer and that’s a trend that’s been going on for a decade.”

He said the firm was looking for companies which were seeking to list in the next few years and were already proven businesses, rather than early-stage businesses. It expected to review around 250-300 businesses each year and invest in around 2% of them.

“We want companies that have the intention to list in the next three or four years and we want to help bring our knowledge and expertise to help them on that journey,” Acton said.

“We are looking for proven established businesses with an established track record, at least three years, which are profitable or close to profitability. We don’t want those who are not early-stage companies or are loss-making.

“This could be companies in commodities, resources, industrials and consumers or in technology which is where we have seen the most notable contraction in multiples.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago