Vantage Private Equity Growth 2 (VPEG2) is a Private Equity Fund of Funds established to provide investors with access to the strong returns generated by the top performing Buyout and Later Expansion Private Equity Funds in Australia.
VPEG2 consists of two Australian unit trusts; Vantage Private Equity Growth Trust 2A (VPEG2A) and Vantage Private Equity Growth Trust 2B (VPEG2B).
Vantage Asset Management Pty Limited AFSL No.279186 (Vantage) is the investment manager and trustee of VPEG2A and VPEG2B, each a managed investment scheme and governed by their respective trust deeds. Where the structure and terms of each trust and the profile and location of Investors allow, each trust is intended to qualify as a Managed Investment Trust for Australian taxation purposes.
Vantage has a deep understanding of the Private Equity space, access to quality managers, strong industry relationships and an investment process that selects high performance managers. A significant proportion of Australian investors have historically been unable to gain access to Private Equity. Vantage has developed a fund of funds approach to broaden investor access and participation in the Private Equity asset class.
A key catalyst for successful Private Equity investment is the availability of deal flow, companies or management teams looking to source equity capital to accelerate growth and enhance value. After several quiet years in the post-GFC environment, there is an emergence of opportunities that new funds will be best positioned to invest in.
An important driver of these new opportunities is lower acquisition prices associated with realistic vendor expectations. While it may take some time for the market to re-emerge for the multibillion deals favoured by the International Private Equity firms, the great majority of opportunities in Australia will continue to be transactions with deal values in the $50m – $500 range.
In this small-mid market space there is a core of highly professional Private Equity fund managers, several of which consistently achieve outstanding investment returns. With the emergence of a favourable environment for Private Equity investment, VPEG2 is specifically designed for small to mid-size institutions, SMSF’s and sophisticated investors to participate in this opportunity.
Vantage will employ a similar diversification strategy for VPEG2’s Private Equity investments that has been successfully applied with its predecessor fund of funds, Vantage Private Equity Growth Limited (VPEG) (www.vpeg.info). This will be achieved by diversifying investments and commitments across fund manager, financing stage, industry sector, geographic region and Vintage Year.
VPEG2 will invest in up to eight Australian domiciled Private Equity funds, both new and existing, with a focus on later expansion and buyout funds raised or to be raised from 2011 through 2016.
When fully invested it is envisaged that VPEG2 will ultimately have held a share in up to 50 underlying private company investments, that will be divested over time, delivering investors a targeted net return of 20% p.a. across a 6 to 8 year investment time frame.
The Investment, Audit & Risk Committee, which consists of a majority of independent members, along with the executives of Vantage will provide a strong and experienced team to manage VPEG2 towards its objectives.