Crescent ventures into retail

Crescent Capital Partners (CCP) has entered the retail market with the launch of a venture capital fund.

Crescent's move into the retail market makes it the fifth manager to offer a venture capital fund to retail investors following launches by Colonial, Macquarie, JB Were and Blue Peak.

The CCP fund aims to raise $10 million to invest in a broad range of venture capital opportunities but will focus on providing initial capital for acquisitions. The launch follows the release of an institutional offer in November last year which raised $26.5 million.

The fund has a five to eight year investment horizon and is structured as a tax effective investment vehicle, according to CCP executive director Michael Alscher.

It hopes to hold a portfolio of up to 15 investments with about 80 per cent committed to the development, expansionary stage.

CCP has also established strategic alliances with PricewaterhouseCoopers, Gilbert + Tobin and Gowings Bros. The three groups will provide potential investment opportunities, while Gilbert + Tobin and Gowing Bros have provided $5.5 million in seed funding.

Minimum investment for the fund is $20,000 and the management fee is 2.5 per cent per annum to cover operating expenses. The managers also get 20 per cent of all returns once threshold conditions are satisfied. A trail of 0.35 per cent is payable by CCP to financial planners in the first four years of the fund. The fund opened to retail investors this week and closes in mid August.