Vantage private equity growth 6 fund Overview
VPEG6 is an Australian Private Equity Fund of Funds established to provide investors with access to the strong returns generated by the top performing Buyout and Later Expansion Private Equity Funds in Australia.
VPEG6 is also registered with Innovation Australia as a complying investment for the Investor Visa Class 188B (IV) and Significant Investor Visa Class 188C (SIV), focused on investing in the lowest risk segment, of the mandatory 10% investment required to be made into the VCPE segment, Growth Private Equity.
STRONG DIVERSIFICATION AND RISK MANAGEMENT
Vantage will employ a similar diversification strategy for VPEG6′s Private Equity investments that has been successfully applied with its predecessor fund of funds. This will be achieved by diversifying investments and commitments across fund manager, financing stage, industry sector, geographic region and vintage year.
VPEG6 will invest in 8-10 Australian Private Equity funds with a focus on later expansion and buyout funds raised or to be raised from 2024 through to 2026.
When fully invested it is envisaged that VPEG6 will ultimately have held a share in up to 50 underlying private company investments, that will be divested over time, delivering investors a targeted net return of 20% p.a. across a 4 to 6 year investment time frame.
The Investment, Audit & Risk Committee, which includes independent members, along with the executives of Vantage will provide a strong and experienced team to manage VPEG6 towards its objectives.
ALL THE BENEFITS OF AUSTRALIA’S LEADING PRIVATE EQUITY MANAGERS IN A VEHICLE OFFERING MULTI-DIMENSIONAL RISK MANAGEMENT AND DIVERSIFICATION
A Fund of Funds approach to investing offers investors significant advantages with the potential to deliver superior returns with lower risk than direct buyout funds.
Investors get exposure to a diversified portfolio of underlying businesses that reduces the exposure of any one asset or deal underperforming.
Over the last 20 years, Vantage has built long-term relationships with best-in-class Australian mid-market private equity managers. Vantage is a major investor in many of Australia’s leading mid-market private equity funds.
As a significant and long-term investor in these funds, Vantage is in a unique position to develop attractive private equity portfolios with several attributes that benefit investors.
~50 underlying portfolio companies
Diversification across Vintage, Manager, Sector, Geographic region, and Financing Stage
Low investment minimum of A$100,000
Reduced risk and consistent returns
Strong diversification provides investors the best opportunity to generate superior net returns from private equity
A diversified portfolio of profitable private companies that can outperform across a range of economic conditions
VPEG6 INVESTMENT STRATEGY
VPEG6 will make investments directly into 8 – 10 top quartile performing private equity funds in Australia within the lower to mid-market segment, diversified across vintage year, manager style and financing stage. As a result, there will ultimately be between ~50 underlying portfolio company investments across Australia and New Zealand, further diversified across growth and defensive industry sectors including the Healthcare, Consumer Staples, Industrials, Information Technology and Agricultural sectors.
This significant level of diversification reduces the risk of loss and enhances the overall return for investors.
Vantage has entrenched relationships with high quality private equity managers, which also provides the Fund with the ability to make co-investments into the most attractive opportunities in the market managed by the top tier private equity managers.
VANTAGE HAS GENERATED TOP QUARTILE GLOBAL PRIVATE EQUITY RETURNS
Vantage has generated top quartile returns when compared to direct private equity funds, with investors receiving the added benefits of diversification and lower risk through a Fund of Funds approach.
Vantage has generated superior returns in each of its fund vintages compared to global private equity returns on a Total Value Paid In basis. Vantage has generated a 2x platform wide Net Multiple on all funds post GFC, this is top quartile when compared with direct private equity funds globally.