In contrast to most Australian LICs, which invest in listed equities and fixed interest, the Blue Sky Alternatives Access Fund LIC will have a diversified alternatives focus and will be directly managed by Blue Sky’s experienced team.

The LIC will co-invest alongside direct investors in Blue Sky’s managed funds across the company’s four alternative asset classes of real assets, private equity and venture capital, private real estate and hedge funds.

According to Blue Sky’s investment director Alexander McNab, overseas investors have long enjoyed the benefits of substantial allocations to alternative asset classes but there have been barriers for Australian investors.

“There is a growing appetite for alternatives in Australia, but access and liquidity have been problematic. Until now, these funds were only targeted at institutional investors,” Mr McNab said.

“The Blue Sky Alternatives Access Fund is removing these barriers and providing financial planning, private wealth, SMSF and retail investors with a simpler way to get exposure to Blue Sky’s managed alternatives.

“Launching a listed diversified investment product has been a long-term strategy for Blue Sky,” he said.

In Australia, allocation to alternatives has almost tripled from five per cent in 1997 to 14 per cent in 2013, and is forecast to rise to nearly 20 per cent by 2033 according to a Rainmaker report from December 2013.

With a low correlation to traditional asset classes such as listed equities and bonds, alternative assets have the potential to reduce volatility and enhance portfolio returns.

Blue Sky, which launched in 2006 and listed in 2012, currently has a market capitalisation of $125 million and more than $550 million in assets under management.

Participants in the IPO will receive one separately listed option (exercisable at $1 for up to 18 months) for every share acquired in the IPO.

Ord Minnett Limited and Morgans Corporate Limited are joint lead managers of the offer, and Shaw Corporate Finance Limited has been appointed co-lead manager.

A prospectus (Prospectus) in respect of the offer has been lodged with the Australian Securities and Investments Commission and is available at blueskyfunds.com.au/accessfund.

The offer of securities by way of issue is contained in the Prospectus and you should consider the Prospectus in its entirety before deciding whether to acquire the securities.

If you wish to acquire securities under the offer you will need to complete the application form that will accompany a copy of the Prospectus once the ASIC exposure period has ended.  You may not apply for securities under the Offer before that time.

The post IPO for Australia’s first diversified alternatives-focused LIC appeared first on AdviserVoice.