Contango picks up Olympus stake
John Pereira
Boutique fund manager Contango Capital Partners has bought a 64 per cent stake in Olympus Funds Management.
Neither Melbourne-based fund manager would disclose how much was paid for the stake, although Olympus recently tried a capital raising through the ASX, which was withdrawn due to market volatility.
The fund manager had earlier successfully listed an Indian fund and Contango is also listed on the ASX.
Olympus managing director John Pereira said joining forces with Contango was a positive move for the future of the fund manager.
“Contango has a long track record in the institutional market and the company shares our long-term vision for Olympus,” he said.
“This partnership will allow us to grow the business and enable us to bring a wider range of Indian investment opportunities to Australian investors.”
Contango director David Stevens said Olympus expertise in Indian investing will add to its range of investments, which includes Australian equities for institutional clients.
“The Indian share market has performed extremely well and the Indian economy remains very strong,” he said.
“Although Australian investors are currently underinvested in emerging markets, we expect this situation to change as emerging markets, particularly in Asia, continue to outperform developed economies.”
Stevens said the two fund managers would work together in developing a broader range of Indian investments.
Pereira said through its relationship with Indian financial services provider Kotak Mahindra, future Indian investment opportunities would include a variety of asset classes including infrastructure.
Olympus hopes to raise a further $75 million for its India Equities Fund through a stapled option at $1 a share in September this year.
The fund initially raised $75 million and its net tangible asset had risen from 94.3 cents to $1.47 at December 31.
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