Boutique fund manager Blue Sky Private Equity has launched a new fund enabling investing in Australia’s small to medium enterprise (SME) sector.
The fund — Blue Sky SME Investment Partners Fund — aims to raise $40 million to invest in between eight to 10 SMEs.
Blue Sky investment director Robertson Brooks said the new fund will enable investors to take stakes in companies that have strong economic performance in the future.
“The new SME Fund is one of the first opportunities in Australia for private investors to take advantage of growth companies,” he said.
“Earlier this year, Blue Sky Private Equity acquired a 50 per cent stake in Paradise Motor Homes and we plan to help the Gold Coast-based company increase its output by around 500 per cent during the next three years.”
Brooks said the SMEs that Blue Sky will invest in should deliver returns of about 20 per cent during the life of the fund.
“The opportunity is to create shareholder wealth in partnership with enterprises currently valued between $2 million to $20 million whose experienced business operators are seeking growth strategies,” he said.
“We already have two to four businesses expected to come on line in the first quarter of 2008.”
The investment strategy for the new fund will exclude investments in agricultural, mining and direct property development companies, but Brooks said investments in companies servicing these sectors was possible.
Compliance and reporting for the new SME fund will be handled by Business Management.
“This company is our partner in the fund and has been an ASIC-approved private equity responsible entity since 2000,” he said.
“Business Management has strong skill levels, broad corporate experience, compliance management and an excellent contact base.”
Brooks said the fact Blue Sky had already made investments in this area meant the new fund was actively involved with the sector.
“One of our biggest strengths is that we are on the ground identifying these growth companies with our head office in Brisbane and offices in Adelaide and the Gold Coast,” he said.
