Investors would be offered an exposure to Federation’s current portfolio while the team said it would expect to commit upwards of $300 million in the short-term given the strength of its existing proprietary investment pipeline.
The company would target an Internal Rate of Return (IRR) of 15 per cent and a three-four per cent dividend yield over the life of the trust and the current offer would be open to institutional investors and family offices who were the traditional private equity trusts.
Ord Minnett was the lead arranger of the offer.
“Making institutional grade investment opportunities available to retail investors is one of the reasons we created Federation. Retail investors are looking for skilled money managers who can identify value in private assets and build portfolios that deliver healthy returns over the medium to long-term. That’s what this offer does,” chief executive of Federation Asset Management, Cameron Brownjohn, said.
“Since opening our doors in September 2018, our team has successfully invested across our private equity and real estate strategies, on behalf of institutional investors.
“With private investments in fintech players RateSetter and Sendle, and the commencement of our childcare REIT, we are on track to deliver strong returns for existing investors.”
