Private equity firm Blue Sky has established a fund to attract institutional investors, with $40 million already raised.
"Previously our fundraising has been done on a transaction-by-transaction basis. We wanted to formalise the process by developing a structure," Blue Sky investment director Rob Brooks said.
The fund will invest in small to medium-sized businesses with a value of up to $50 million.
"We are looking for well-run family businesses that are looking to grow," Brooks said.
The firm has already invested in Queensland-based portable toilet hire company Viking Rentals and cafe concept Beach Burrito Company.
