The Yarra Private Capital Discovery Fund provides investors with access to a diversified portfolio of holdings in unlisted companies.
Access unlisted companies with outstanding growth potential
The Yarra Private Capital Discovery Fund invests in a diversified portfolio of holdings that have an intention to go public or conduct a sales process within a three-year time horizon. The Fund benefits from the governance, research , investment and capital markets expertise of Yarra’s Australian equities investment team and leverages the experience of its analysts, industry experts and board of advisors.
A broad opportunity set with a limited number of institutional grade peers
Globally and domestically there has been a substantial increase in the number of fast growing, profitable unlisted companies raising late-stage equity prior to listing on public markets. These companies are choosing to grow privately for longer and often becoming public as larger more established businesses. Investing and partnering with selected private companies as they grow and prepare for public markets can provide an attractive return profile for the Fund’s investors.
An attractive market structure
In our view, a volatile Initial Public Offer (IPO) market is creating investment opportunities in private markets where there is relatively little competition in the pricing of these opportunities.
An investment philosophy that is well suited to private market investing
Our six pillar investment philosophy approach is well suited to investing in unlisted companies:
Quality businesses with attractive industry dynamics: seeking only high quality private companies with a proven business model and value proposition targeting large addressable end markets
Compelling risk / reward: investments are selected with the intention of offering clear value creation (revenue growth, margin expansion and multiple uplift), with the view of achieving reasonable absolute and relative entry prices
Quality and aligned executive teams and boards: investing in companies with experienced and credible executives and governance-focused boards
Attractive financial profiles: businesses with strong unit economics delivering current or near term profitability
Commitment to sustainability: companies behaving in a sustainable way with Boards and CEO’s who are considerate of ESG factors
Clear parth to liquidity event: opportunity to realise value via IPO or trade sale within the Fund’s target timeframe
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To provide returns to investors above 6% p.a. (after fees and costs)
Minimum portfolio return of 15% p.a. (after fees) over the Fund's life
To identify and invest in the equity or convertible notes of unlisted companies with clear executable plans to IPO or trade sale within a 3-year time horizon
Late-stage growth capital (30-50%), Pre-IPO (40-60%), IPO and discounted placements (0-20%), and Cash (0-20%)
Management fees (p.a.): 1.50% (excluding GST) of the Net Trust Value
Performance fees: 20% of returns that exceed the hurdle rate of 6% per annum (after fees). Performance fee is deferred and accrued for the first two years
Distributions: capital returns considered from year three onwards
How to Invest
Applications to invest have now closed. Prospective Qualified Investors – for example Wholesale Clients as defined in the Corporations Act 2001 (Cth) – wanting further information on the Yarra Private Capital Discovery Strategy should contact a member of the Firm’s Client Team.
General Advice Disclaimer
This webpage has been prepared by Yarra Capital Management Limited (ABN 99 003 376 252). Yarra Funds Management Limited (ABN 63 005 885 567, AFSL 230 251) (‘YFML’) is the issuer and responsible entity of the range of registered managed investment schemes described on this website (‘Funds’). Perpetual Trust Services Limited (ABN 48 000 142 049 AFSL No. 236 648) is the Trustee of and issuer of units in the Yarra Private Capital Discovery Fund (Fund). YFML is not licensed to provide personal financial product advice to retail clients. The information provided on this website contains general financial product advice only. The advice has been prepared without taking into account your personal objectives, financial situation or particular needs. Therefore, before acting on any advice, you should consider the appropriateness of the advice in light of your own or your client’s objectives, financial situation or needs. Prior to investing in any of the Funds, you should obtain and consider the Information Memorandum for the relevant Fund from our website at www.yarracm.com/pdsupdates. The information set out in this website has been prepared in good faith and while YFML and its related bodies corporate (together, the “Yarra Capital Management Group”) reasonably believe the information and opinions to be current, accurate, or reasonably held at the time of publication, to the maximum extent permitted by law, the Yarra Capital Management Group: (a) makes no warranty as to the content’s accuracy or reliability; and (b) accepts no liability for any direct or indirect loss or damage arising from any errors, omissions, or information that is not up to date. Past performance is not indicative of future performance.
Before using any of the financial services offered by Yarra Funds Management Limited, you should read our Financial Services Guide (FSG). This has been prepared to assist you in deciding to use any of the financial services offered by us. We are required to provide you with an FSG if we provide certain financial services to you as a retail client.