Only Private Equity funds whose manager’s or management team’s previous funds have in the past performed within the Top Quartile of returns as measured by the relevant benchmark will be considered for investment by VPEG2.
This selection criterion enhances the likelihood of VPEG2’s Investment Portfolio itself achieving Top Quartile returns. A comprehensive and rigorous system for the screening of fund managers for investment has been developed by the Manager, a summary of which is outlined below.
The Manager makes recommendations to the investment committee of the Fund to make Commitments and invest in unlisted Private Equity funds whose managers and funds typically meet the following criteria.
The underlying fund selection and investment process that the Manager systematically adheres to for its management of VPEG2’s Private Equity portfolio is illustrated in the following figure:
Out of the universe of Australian Private Equity funds, the Manager expects to evaluate a considerable number of investment opportunities that ultimately should result in Commitments and investments in up to 8 Private Equity funds (both Primary & Secondary) within 24 months of the Final Closing Date of VPEG2.
When fully invested VPEG2 will have ultimately had a share in up to 50 underlying private equity company investments, providing a well diversified portfolio across a range of industry sectors.