In an ASX announcement, the $18.5 billion alternative investment manager said it plans to launch HMC Capital Partners Fund II following a strategic review of HMCCP Fund I, which has delivered a 32 per cent annualised return since inception.
The second iteration of the fund will shift towards high-conviction investments in both listed and unlisted assets, requiring structural changes, including a move to a closed-end private equity model and an increased performance fee hurdle, HMC Capital explained.
Unitholder approval will be sought for these changes, with Fund II targeting opportunities such as the potential acquisition of Healthscope.
David Di Pilla, HMC’s managing director and chief executive, said: “HMC Capital Partners Fund I has proven our ability to deliver outsized and uncorrelated returns for investors by applying a private equity mindset to investing in listed equities.
“We are excited about the upcoming launch of our second private equity vehicle which will target both listed and unlisted opportunities. We have refined the strategy and structure of Fund II to maximise potential returns for investors. HMCCP Fund II will target our highest conviction investments in a more traditional closed-end private equity fund structure.”
HMC Capital also advised on Tuesday, its HMCCP Fund I has declared an interim FY25 distribution totalling $300 million.
As the largest investor in HMCCP Fund I, HMC said it will receive a distribution of $150 million in mid-April, and will retain an ongoing investment valued at $230 million.
The fund’s distribution reflects the “significant realised gains” driven by investments in Sigma Healthcare and Ingenia Communities, according to the firm.
Besides delivering an annualised return of 32 per cent, net of fees, from inception to 31 March, the HMCCP Fund also performed 55 per cent in net returns for the 2024 calendar year.
Earlier this year, the alternative asset manager reported strong growth in its assets under management (AUM), which rose by 45 per cent to $18.5 billion. The largest of these was $9.8 billion in its real estate, followed by $5 billion in digital infrastructure.
The firm previously stated that it is looking to target $50 billion in AUM over the next three to five years, underpinned by a diversified business model with multiple growth drivers.
