Brendan Lyons
Perennial’s Private to Public Opportunities Fund No.3 (PPP3) has closed its capital raising fully subscribed – attracting $200 million from a wide range of wholesale investors.
PPP3 will employ the same investment strategy as Funds 1 and 2. It will target superior returns from an actively managed portfolio of up to 35 positions in private companies and pre-IPOs, plus investments in direct IPOs and discounted placements, over a five-year period. Perennial now manages over $500m in this private investment strategy.
Head of Perennial Private Investments, Brendan Lyons, said: “We appreciate the strong support from investors for PPP3, with many wealth groups, family offices and individuals following on from our earlier PPP funds. We are very pleased to reach the maximum target fund size of $200 million for our third fund in this exciting and expanding sector of the equity market.”
Mr Lyons said investors had been supportive of the fund’s investment process, which focuses on the Last Private Offer (LPO) undertaken by founder-led companies prior to an IPO or other liquidity event.
“Our systematic filtering process, coupled with a large and growing pipeline of private opportunities, provides a diversified investment exposure which is otherwise difficult to access,” he said.
The growing opportunity set has resulted in two new hires into the PPP team. Karen Chan recently joined as Senior Investment Director based in Sydney, with James McQueen adding his legal and execution skills to the PPP team from Melbourne.
Perennial has already identified several private company and pre-IPO investments for PPP3, with the deployment of capital to commence immediately.
Portfolio Manager Ryan Sohn commented: “We are really excited at the prospects of the companies that PPP3 will be invested in. Two of our initial investments are digitised debt collection business Indebted and music platform Songtradr. Both are founder-led global businesses with large markets, fast revenue growth and unique intellectual property.”
Over the past 18 months, the PPP funds have experienced 14 IPOs plus one takeover within the portfolio of private companies. Some of these names include Booktopia, Aussie Broadband, Lumos Diagnostics and Spire Global.