Fairlight Asset Management has joined forces with Perennial’s founders to expand their presence in the global small and mid-cap range, offering a new global small and mid-cap equities fund which will provide Australian investors with more opportunities offshore.
The move, which would see the new fund complement Perennial’s Australian small and micro-cap strategies, was driven by the outperformance of smaller businesses compared to the wider index over the long term.
“We believe a portfolio of the highest quality small and mid-cap businesses, purchased with valuation discipline will outperform over the long term whilst protecting and preserving client capital,” Fairlight’s portfolio manager and co-founder, Nicholas Cregan, said.
Under the terms of the partnership, Fairlight would join Daintree Capital and Perennial Smaller Companies as specialist boutiques while Perennial would focus on providing the fund with the required back-office support along with distribution functions.
Fairlight was founded by Cregan, Ian Carmiachael and Will Dowd and typically employed a concentrated, long only strategy invested in 30-40 businesses in markets outside of Australia.
“We look forward to supporting Nicholas, Ian and Will in building their businesses and running a successful international small and mid-cap portfolio with a quality focus. This will complement our existing offerings,” Perennial founder, John Murray, said.