Blue Sky Alternative Investments saw a 130 per cent jump in underlying net profit after tax (NPAT) to $10.1 million, driven by increased investments from institutional investors from Australia and overseas, during the half year ending in December, 2016.
The company also said it benefited from long-term trends indicating investors were increasing their allocation to alternatives.
According to Blue Sky, investments from institutional investors increased from 25 per cent to 37 per cent of its free-earning assets under management (AUM) during that period and the AUM was expected to be between $3.1 billion and $3.3 billion by June, 2017.
The company also confirmed it was on track to meet its longer term target of $5 billion by June, 2019.
Blue Sky’s managing director, Robert Shand, said that the company’s performance during this period also benefitted from the “mainstreaming of alternatives”.
“Long-term trends have seen investors increase their allocation to alternatives and we are benefiting from the same structural tailwinds as global alternative asset managers such as Blackstone and Partners Group,” he said.
“Australia’s fund management industry has $2.8 trillion under management, and with alternatives forecast to be our largest class in the next decade, the opportunity in front of us is enormous.”
