Investec closes emerging companies fund
Global investment bank, Investec, has announced that growing investor interest in pursuing private (unlisted) investment opportunities has led to the close of the Investec Emerging Companies Fund 1.
The $45 million fund led by David Phillips and Hein Vogel would still remain open for further applications while targeting a final close over the next few months, it said.
The fund, which invested in emerging and high growth companies, typically provided between $3 and $5 million of growth capital to individual high growth companies across Australia and New Zealand and partnered with companies’ leaders to help them expand both in Australia and globally.
However, the fund did not invest in start-ups.
Investec was the largest investor in the fund along with high net worth individuals (HNWIs), family offices and other sophisticated investors.
The firm said its international reach was particularly important for the companies at that stage of the lifecycle.
“Investec’s global footprint positions us well to identify companies with global expansion prospects and then help to facilitate this through our international experience and networks,” Phillips said.
Also, Investec Emerging Companies (IEC) viewed this sector as underserviced and a major opportunity to offer funding, advice, connectivity to emerging markets both domestically and globally.
Investec’s IEC division was first piloted in the Australasian market in 2015 and was a part of its global franchise of emerging company team.
“IEC was established to offer a single point of contact for founders and their early stage – what we call emerging – companies looking to access capital, advisory services, or general corporate connectivity,” Phillips added.
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