Yarra Capital Management has introduced its first private market equity offering with the launch of the new Yarra Private Capital Discovery Fund.
According to Yarra, the fund will look to invest in the equity or convertible notes of unlisted companies which have clear plans to IPO or trade sale within a three-year time frame.
The Australian fund manager is aiming to raise at least $100 million from institutional and wholesale investors before applications to invest in the fund close in December.
The Yarra Private Capital Discovery Fund will comprise a diversified portfolio of 10 to 20 companies varied by sector, size and duration to exit across Australia and New Zealand.
“We are delighted to be bringing a private capital capability to market at such an interesting time in unlisted markets,” said Yarra chairman and head of Australian equities, Dion Hershan.
“It is a natural extension for our existing Australian equities franchise and is consistent with our focused approach to bringing the very best solutions to our clients.”
The new fund will be led by David Acton, who has now commenced working in Yarra’s Australian equities team as portfolio manager.
Mr Acton has more than 30 years of experience, including 17 years at Goldman Sachs, and joins Yarra from Rothschild & Co. where he served as a senior adviser.
“We are delighted to be bringing David — our former Goldman Sachs colleague — into the business as Portfolio Manager. He is an outstanding hire for our growing business, and the right person to lead this new capability,” Mr Hershan said.
Yarra said that the fund will benefit from the expertise of an investment panel made up of Mr Hershan and Mr Acton, along with the head of Australian equities research and small cap portfolio manager, Katie Hudson; microcap portfolio manager, Joel Fleming; and managing director, Edward Eason.
Commenting on his own appointment, Mr Acton said that he was excited to be joining Yarra’s Australian equity franchise.
“With IPO markets effectively closed, and businesses staying private for longer, I am looking forward to investing in high-quality private businesses that require patient capital to help achieve their growth ambitions at a compelling point in the cycle,” he said.
