SYDNEY (HedgeWorld.com)–Pengana Capital Ltd. is making its strategy available on the Australian Stock Exchange, expecting to gather up to US$100 million to invest in boutique hedge fund managers.
The new Pengana Managers Ltd. fund will be listed on the Australian Stock Exchange, where investors will be able to buy a share in the fund and an equity stake in the underlying fund management companies in a separate vehicle, the Pengana Managers Trust.
The equity stakes in the firms will range from 18% to 30% and will allow investors the opportunity to participate in the capital growth of the managers themselves, according to Pengana officials. They are billing the new securities offering as a “new concept in Australian financial services.”
The offering is scheduled to begin on April 13 and begin trading on June 16. Pengana is charging investors a fee of 1% of net asset value. The NAV will not include the equity stakes the fund takes in the underlying managers, though.
“This new structure allows investors not only to benefit from the hedge funds’ performance, but potentially to enjoy enhanced returns as the businesses of the boutique managers grow over time,” said Malcolm Turnbull, co-founder and chairman of Pengana, in a statement.
Pengana seeks to be a pioneering force in the Australian hedge fund community, which is growing in assets as retirement funds and other institutions start to take notice of alternative investments. Officials launched their hedge fund incubation strategy last year (see ).