Melbourne-based Cygnet Funds Management has launched a new fund designed to afford sophisticated and wholesale investors exposure to the Australian microcap market.
Cygnet director Jonathan Rosham said the Cygnet Microcap Opportunity Fund aims for high capital growth over the medium term by creating a portfolio of microcap stocks (companies valued at under $200 million) that are either ASX-listed or planning to list within the next 18 months and have good growth potential.
Cygnet Funds Management is the wealth management arm of four-year-old boutique financial services firm Cygnet Capital Management, which has more than $250 million in funds under management and advice.
Cygnet head of corporate Darien Jagger said the fund is able to access entry-level, wholesale deals such as seed capital, initial public offerings and other capital placements through the company’s corporate division.
“Our business model is to support emerging companies over the medium term and we apply a vigorous screening process to potential clients. We only become involved with companies we are passionate about and prepared to invest in ourselves.”
Rosham said the fund is well-suited to investors seeking to diversify their existing share portfolio.
“[The fund] allows us to share these types of unique wholesale opportunities with investors in a simple, packaged way,” he said.
