VGI Partners’ IPO exceeds target of $100m
VGI Partners’ initial public offering (IPO) has managed to exceed the minimum raising target of $100 million, in less than a week after the offer opened, thanks to interest from a number of large financial planning groups.
The company said its focus was on delivering capital growth over the long-term through investments in a concentrated portfolio of global listed securities and with a strong bias to capital preservation.
According to VGI, the initial demand was driven by the syndicate and was supported by a number of large financial planning groups which also expressed support for the manager as well as the relationship between the company and the manager.
VGI Partners’ executive chairman, David Jones, said: “We are delighted to have received such strong initial demand”.
“We view these substantial initial commitments as extremely encouraging, and a reflection of the high quality of the distribution syndicate arranging and managing the offer.
“We look forward to discussing VGI Partners’ investment philosophy and performance with many more brokers, financial planners and investors over the next four weeks,” he said.
The company, which was set up in 2008 and currently hires 16 professionals in Sydney and New York, said that it would not receive any management fees until all the company’s establishment costs were recouped.
Further, it would absorb the majority of the on-going operating costs of the company, with the exception of the independent directors’ costs and each of the partners was committed to reinvest any performance fees earned from the company into its shares.
VGI Partners currently manages $1.1 billion for approximately 250 high-net-worth individuals, families and endowments.
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