Kristian Zimmermann

MLC Asset Management has launched its first retail private equity fund, the MLC Global Private Equity Fund (the ‘Fund’), providing retail investors with concentrated exposure to global private equity investments previously only available to institutional investors.

MLC Asset Management is one of Australia’s largest investment managers with over $149 billion in assets under management^[1]. Designed by the MLC Private Equity team to meet the growing demand from retail investors for this asset class, the Fund offers retail investors a diversified portfolio including carefully selected private equity opportunities, with a minimum investment of $20,000.

Kristian Zimmermann, Co-Head Private Equity (Australia) at MLC Asset Management, said: “We have been investing in the private equity asset class on behalf of institutional investors for 25 years and we’re very pleased to now offer the retail market rare access to private equity investments. Our new Global Private Equity Fund aims to provide long-term capital growth, by investing in a diverse range of global equity assets, for retail investors.

“Through close relationships developed with specialist private equity managers, we aim to secure access to global and diversified private equity investment opportunities. The Fund is designed for investors with a higher risk-return appetite who want to diversify their portfolio by investing into private equity and are comfortable with limited liquidity.

“Private equity provides additional portfolio diversification as it allows investors to gain a different return and risk profile relative to traditional asset classes over the long term. Against the current macroeconomic backdrop and rising inflationary pressures, we continue to witness the resilience of private equity as an asset class and the creation of new opportunities for retail investors. This goes without saying investors need to be aware of the risks when investing in private equity, which, amongst other things include limited liquidity and the risk of a loss of capital,” said Mr Zimmermann.

MLC Private Equity, a division of MLC Asset Management Pty Limited, is one of the most experienced global private equity managers in Australia with over 25 years’ experience investing in private equity. The team, which currently manages $4 billion in funds^[2], has delivered financial returns to investors over the life of the program, through differing market cycles.

The Fund is a mature portfolio of assets, providing exposure across geographic regions, strategies, and industry sectors, including healthcare, technology, and consumer focused industries. With investments in private equity funds and co-investments, the portfolio also includes a listed private equity-related exchange traded fund (ETF) and cash to assist in managing liquidity.

Mr Zimmermann said: “The Fund is diversified across several private equity strategies, including growth and buy-out strategies, enriching the potential for significant returns through opportunities to improve businesses’ performance and valuation.

“We’ve developed deep relationships with specialist private equity managers globally, giving us access to investment opportunities that provide exposure to the returns of private companies with the potential for strong and sustained transformation and growth.”

“Our global team takes a research-driven approach to discovering, selecting and investing in private equity opportunities with high potential for delivering returns to our investors, while focusing on managing risks,” Mr Zimmermann concluded.

The MLC Global Private Equity Fund is available via its Product Disclosure Statement (PDS) and will become available on investment platforms in the future.

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[1] As at 30 June 2022.
[2] Insignia Financial Ltd FY22 ASX Results Presentation, 25 August 2022.

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