Blue Sky Alternative Investments plans to raise $20 million for its listed investment company.
The Blue Sky Alternative Access Fund will raise the money through a one-for-three non-renounceable entitlement issue of new ordinary shares, said the firm.
The LIC is a directly-managed portfolio which invests across private equity and venture capital, water and agriculture, hedge funds and private real estate.
Blue Sky chief investment officer Alexander McNab said there is “significant interest” among financial planners seeking to access alternative investment vehicles.
“Alternatives are becoming mainstream, they are the fastest growing asset class in Australia,” Mr McNab said.
“The market is starting to understand the benefits of diversification and the increased returns an allocation to alternatives can bring to a portfolio.”
The offer is a chance for investors to “increase their exposure to alternatives as value in traditional asset classes becomes increasingly hard to find”, according to Mr McNab.
“The capital raised from the BSAAF IPO nine months ago has been fully deployed and the portfolio is performing well,” he said.
“We continue to see attractive investment opportunities in the alternatives sector and this entitlement issue will help feed this pipeline."
Under the entitlement offer, eligible shareholders have the opportunity to subscribe for new shares at the price of $1.
The offer closes at 5pm AEST on 1 May 2015.