- Fund to target returns of 15%+ per annum
- Will also target medium-term distribution yield of 2% to 4% per annum
- Interest in Sigma Healthcare (ASX: SIG) is being acquired as a seed asset for the fund
Home Consortium, also known as HMC Capital (ASX: HMC) announced this morning the company has launched a new fund.
Named HMC Capital Partners Fund I, HMC said it is “… an Australian-domiciled unlisted wholesale fund providing exposure to a high-conviction investment strategy seeking to generate superior risk-adjusted returns.”
The company said the fund will target both public and private companies across Australia and New Zealand, and target returns of 15%+ per annum with a medium-term distribution yield of 2% to 4% per annum – both are net of base management fees and costs but before tax (if applicable) and performance fees.
“The establishment of HMC Capital Partners Fund I is another important milestone in our mission to become Australia’s leading diversified alternative asset manager,” said HMC Capital CEO and Managing Director, David Di Pilla.
“Our prediction that 2022 would present a challenging investment environment has been realised in recent months. Economies and markets are moving into a new phase which is highly uncertain.
“While a natural instinct in this environment is to allocate to cash or do nothing, we believe that attractive opportunities are now emerging and that a portfolio allocation to the Fund will allow investors to benefit from exposure to these opportunities.”
Managed by the team that led the real estate acquisition of Masters from Woolworths in 2017 and who founded HMC Capital, the fund is targeting a $500 million first close and HMC Capital will commit $150 million to the fund via one or more fund vehicles.
HMC recently lodged a substantial holding notice in Sigma Healthcare (ASX: SIG) and currently holds a 13.5% relevant and economic interest. As disclosed in the notice, the interest in SIG is being acquired as a seed asset for the Fund.
The company also noted two benefits of making a commitment to the fund on or before first close, including being rebated the management fees paid in respect of units issued at first close for the period to the end of the sixth months following first close, and eligibility to subscribe for one option in HMC Capital for each 50 units allocated at first close; for further details, please refer to HMC Capital’s website.
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