Blue Sky Alternative Investments division, Blue Sky Venture Capital has announced a capital raising.
The fund manager announced this week that it was aiming to raise $30 million for a new fund in a bid to capitalise on Australia’s underpenetrated venture capital (VC) asset class and bring funds to the cash-starved sector.
It said the new found would target a 30 per cent internal rate of return net of fees, and would have its first close on 22 August, with Blue Sky applying for registration as an Early Stage Venture Capital Limited Partnership, meaning returns to investors would be tax exempt.
Commenting on the move, Blue Sky Venture Capital investment director Dr Elaine Stead said competition for high quality VC deals in Australia was at an 11 year low, with a mere $100 million of capital invested in 2013, compared to $29 billion in the US.
“There has been no better time to invest in the Australian VC market,” she said.
“Our new fund is aiming to raise $30 million, almost a third of what was invested in Australia last year alone. This places Blue Sky in a strong position to take the pick of the best opportunities in an asset class with the potential to generate very high levels of capital growth.”
Stead said Blue Sky would invest across a diverse and balanced portfolio of deals.
“We look for validated, game changing products or technologies, which offer a global reach, rapid scalability or growth, established, experienced management teams and businesses where we believe we can genuinely add value,” she said.