Former Churchill Capital managing director Patrick O'Connor is planning to raise $50 million via St George Growth Equities, a newly established investment company, spun out of the O'Connor-led St George Capital.
SG Growth Equities plan to use the funds to develop a portfolio of high growth potential, small cap companies.
The offer, of shares at an issues price of one dollar, opens this Thursday and is scheduled to close on June 30.
SG Growth Equities is a private equity fund, which will be managed by SG Capital, and will seek to build substantial shareholdings in undervalued small cap companies needing strategic leadership and capital market support.
SG Capital is currently acting as an authorised representative of Churchill Capital Services, utilising Churchill's Australian Financial Services Licence.
The manager has a preference for the life sciences, energy and resources, and clean technologies and environmental infrastructure sectors.
The SG Growth Equities portfolio has two initial targets in mind; listed Western Australian-based petroleum exploration group Adelphi Energy, and Melbourne-headquartered biotech player, Xceed Biotechnology.
SG Growth Equities will be headed by Water Corporation of WA director Patrick O'Connor, who has links to both of the portfolio's initial target companies. He will be executive chairman and will preside over the portfolio and manager on a full time basis.
He is non-executive chairman of Xceed Biotechnology, and non-executive director of Adelphi Energy.
Dr John White, chairman of GRD subsidiary Global Renewables Ltd, is a non-executive director of SG Growth Equities. He is also a director of GRD. The other director of SG Growth Equities is former WA Australian Medical Association president Dr Brent Donovan.
The minimum subscription amount under the prospectus is $5 million.
SG Growth Equities will pay the SG Capital a fee of five per cent of the issued share capital for its role as the manager.
An additional portion of funds raised will be retained for general operating expenses, while the bulk of issued capital will be used to pursue the fund's actively managed small cap investment strategy.
