Home Consortium’s (ASX:HMC) subsidiary HMC Investment Management has launched HMC Capital Partners Fund I, an Australian-based unlisted wholesale fund.
According to Home Consortium, the fund will target public and private companies in Australia and New Zealand where there is potential to unlock ‘“trapped”’ value through improved capital allocation and portfolio management.
The company said that the fund will target returns of 15 per cent plus per annum with a medium-term distribution yield of 2 per cent to 4 per cent per annum. It also said that the fund will provide liquidity on a quarterly basis, subject to the qualifications set out in the information memorandum.
Home Consortium has recently lodged a substantial holding notice in Sigma Healthcare (ASX:SIG) and currently holds a 13.5 per cent interest. As disclosed in the notice, the interest is being acquired as a seed asset for the fund.
“This fund will leverage our proven investment track record and ability to originate and execute large complex transactions to generate attractive risk-adjusted returns for our investors,” said chief executive officer 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.”
Shares are trading 3 per cent higher at $4.78.