MLC launches retail private equity fund

MLC Asset Management has launched its first retail private equity fund.

The Global Private Equity fund would provide retail investors with concentrated exposure to global private equity investments that were previously only available to institutions.

The fund had a minimum investment of $20,000 for investors with a higher risk-return appetite who were comfortable with limited liquidity.

According to its product disclosure statement, it was suitable for investors with a 7-10 year time horizon and unsuitable for those who required income, liquidity or access to capital as withdrawals were subject to MLC making withdrawal offers when liquidity was available.

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“As private equity investments are usually held for the longer term, typically 5-10 years or longer, the fund may typically use a portion (including all) of the income and gains generated from the private equity investments and liquid investments to help meet the liquidity requirements of the fund.”

It was described by MLC as a mature portfolio of assets which provided exposure across geographic regions, strategies, and industry sectors, including healthcare, technology, and consumer focused industries. With investments in private equity funds and co-investments, the portfolio also includes a listed private equity-related exchange traded fund and cash to assist in managing liquidity.

MLC Private Equity, a division of MLC Asset Management, already managed $4 billion in the asset for institutional investors.

Kristian Zimmermann, co-head of private equity (Australia) at MLC Asset Management, said: “We have been investing in the private equity asset class on behalf of institutional investors for 25 years and we’re very pleased to now offer the retail market rare access to private equity investments. Our new Global Private Equity fund aims to provide long-term capital growth, by investing in a diverse range of global equity assets, for retail investors.”

“Private equity provides additional portfolio diversification as it allows investors to gain a different return and risk profile relative to traditional asset classes over the long term. Against the current macroeconomic backdrop and rising inflationary pressures, we continue to witness the resilience of private equity as an asset class and the creation of new opportunities for retail investors.”