Perennial Private to Public Opportunities fund no.2 closes fully subscribed

From

Andrew Smith

Perennial’s Private to Public Opportunities Fund No.2 (PPP2, the Fund) has closed its capital raising fully subscribed – attracting $125 million from a wide range of wholesale investors.

PPP2 will invest in high-growth equity opportunities through an actively managed portfolio of 30-45 unlisted, pre-IPO and listed Australian companies.

The launch of the second PPP fund by Perennial follows the success of its first private companies fund PPP1, which has delivered a total return of 31.1%[1] net of fees since inception in August 2019 (including a 5% distribution in July 2020).

PPP2 will employ the same investment strategy as its predecessor fund, with the aim to generate superior returns over a five-year period.

Head of Smaller Companies and Microcaps, Andrew Smith, said “We appreciate the support from investors for our initial PPP fund, as well as the strong demand experienced for PPP2. We are very pleased to reach the maximum fund target size of $125 million for our second PPP fund.”

According to Head of Private Investments, Brendan Lyons, investors have been supportive of the Fund’s investment strategy, which focuses on the Last Private Offer (LPO) undertaken by founder-led companies prior to an IPO or other liquidity event. “Our systematic process, coupled with a large and growing pipeline of private opportunities, provides a diversified investment exposure which is otherwise difficult to access. In addition, increased volatility in global equity markets this year has prompted many investors to seek out alternate sources of return,” said Mr Lyons.

The Perennial team has already identified several private and pre-IPO investments for PPP2, with the deployment of capital to commence immediately. Deputy Portfolio Manager Ryan Sohn commented “We are really excited at the prospects of the companies that PPP2 will be invested in. Two of our initial investments include an e-commerce businesses with significant scale as well as a health technology company with unique IP. We have followed the growth of these businesses for a significant period of time and are delighted to now be part of the journey with them”.

Some of the businesses the first PPP fund invested in include soft tissue regeneration business Aroa Biosurgery, diagnostic testing business Atomo Diagnostics and lung imaging technology firm 4D Medical – all of which have successfully listed on ASX this year.

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