Investment Strategy
The Company's investment strategy will evolve as follows:
Initially the Company will invest a portion of its Net Investment Portfolio in a combination of high yielding “cash at call” and rolling term deposits with ANZ Banking Group Ltd. The objective of these Fixed Interest investments is to provide the Company with high income and capital stability without sacrificing liquidity.
Commencing at the same time, Commitments will be made to a selection of Private Equity funds, or interests in existing Private Equity funds, which meet the investment criteria will be acquired, in order to build the Company's exposure to Private Equity investments.
The Company will focus on providing the majority of its commitments and investments to underlying funds that invest in businesses that are at a more mature stage of development, and in particular the Later Expansion and Buyout stages of Private Equity investment.
To fund these investments, the level of the Company’s Fixed Interest investments will be reduced, ultimately resulting in a significant majority of the Company's Net Investment Portfolio invested in Private Equity assets;
To maintain the integrity of the underlying fund selection criteria and to provide additional diversification, the Company will seek to commit a maximum of 30% of the Private Equity Allocation to European based Private Equity funds focussed on investing in the Later Expansion and Buyout stages of Private Equity;
The Company will aim to have made Commitments and investments in up to 12 Private Equity funds within three years, which could result in a portfolio of more than 70 underlying investments when fully invested;
To further enhance Investor returns, the Company may also directly invest in underlying investments by co-investing alongside underlying funds up to a maximum of 10% of its Private Equity Allocation.