Cash & Fixed Interest Investments
Following the First Closing Date the Paid Capital of VPEG2A and the Aggregate Committed Capital of VPEG2B, that is not immediately invested in an Underlying Private Equity Investment is invested into cash & short term deposit investments with one or more of the Big Four Banks (Liquid Investments).
VPEG2’s objective in making these initial Liquid Investments is to obtain income and capital stability without sacrificing liquidity.
Over time and during the term of VPEG2, amounts will be drawn from the Liquid Investments component of the Investment Portfolio and applied towards meeting call payment obligations for each Underlying Private Equity Investment as they occur, or to meet working capital requirements of either VPEG2A or VPEG2B.
Since commencement in 2014, VPEG2 has invested it’s Liquid Investments in a combination of high yielding “cash at call” deposits with as well as rolling term deposits with Westpac Banking Corporation (Westpac).
Westpac was founded in 1817 and was the first bank established in Australia. Westpac has since grown to become one of Australia’s leading financial services organisations with more than 13 million customers. The Westpac Group employs approximately 36,000 people in Australia, New Zealand and around the world, and has global assets of approximately A$812 billion.
Westpac is ranked in the top 5 listed companies by market capitalisation on the Australian Securities Exchange Limited and has a market capitalisation of approximately A$102 billion. Over the past 15 years Westpac has delivered consistent growth and is ranked in the top 20 of banks globally with a credit rating of “AA-” or higher.
Short term cash investments Westpac carry the bank’s credit risk, helping to ensure that VPEG2’s investments are aligned to a capital preservation mindset whilst maintaining a high level of income.
This allows VPEG2 to achieve its objectives of high income and capital stability, without sacrificing liquidity, on those funds yet to be invested in diversified private equity assets.