Big Western Australian family investment player Wyllie Group has joined the growing local fund management sector with the launch of plans to develop a $100 million private equity vehicle.
Big Western Australian family investment player Wyllie Group has joined the growing local fund management sector with the launch of plans to develop a $100 million private equity vehicle.
The group has created its own funds manager, Viburnum, recruiting former ANZ Capital Perth head Marshall Allen as investment director for new business which will start with fund focused on small-cap Western Australian-linked industrial companies.
Wyllie Group, which has a public asset base estimated to worth around $600 million, will seed the first fund with $30 million and own 50 per cent of Viburnum which will operate as a division of the St Georges Terrace-based group.
The fund manager's management will have a strong banking background, with Craig Coleman and Tony Howarth both joining Mr Allen in sharing the remaining 50 per cent equity.
Wyllie Group managing director Melissa Karlson will also sit on the board of Viburnum.
Mr Coleman said the Viburnum strategy was occupy ground the which big private equity players, by virtue of their size and funding pressure, could not consider.
"The positioning of our fund is under the mushroom cloud," Mr Coleman said.
"The overflow of money going into private equity funds is forcing those deals to go bigger in size.
"We want to avoid the fly-in operators.
"We have picked the size and the segment that is a bit of a niche."
Mr Allen said the first fund will seek funding from wholesale or professional investors but was unlikely to go to the market until the end of the year. It would cap the first fund at $100 million and look to invest between $5 million and $15 million in established companies worth $50million to $100 million.
The full text of a company announcement is pasted below:
Wyllie Group is pleased to announce the formation of a new boutique funds management group, Viburnum.
Viburnum will offer niche funds products to professional investors seeking exposure to investment opportunities usually dominated by international private equity groups and the major banks.
The first fund to be launched by Viburnum will be the $100 million Private Equity Fund No 1, which will target small to medium industrial opportunities with a West Australian nexus.
Viburnum will operate as a division of Wyllie Group and be 50% owned by the company. The balance of the equity is held by directors of the fund manager.
These include Viburnum Chairman and Wyllie Group Senior Advisor and Director Craig Coleman, leading company director Tony Howarth and Viburnum Investment Director and private equity investment specialist Marshall Allen.
Mr Allen is the former Perth head of private equity group ANZ Capital and previously held Director roles with Deutsche Bank, Societe Generale and Credit Agricole Lazard across Singapore, Hong Kong and London.
Wyllie Group Managing Director Melissa Karlson will also sit on the board of Viburnum.
Ms Karlson said the funds management initiative was an outstanding opportunity for Wyllie Group to build an exciting new business division.
"We know from our own experience there is very strong demand for this style of investment product and we believe we have assembled a very strong team to build the business and deliver results for investors," said Ms Karlson.
"Wyllie Group will also participate in the funds alongside other investors and will be a significant investor in the Private Equity Fund No 1."
Mr Coleman said Viburnum would operate as a wholesale manager, seeking funds from the professional and sophisticated investor market.
"Viburnum Private Equity Fund No 1 is a tax efficient fund targeting internal rate of returns of 20-30%. It will undertake active equity and quasi equity investments in latter stage enterprises with valuations below $100 million," said Mr Coleman.
"There are some very good opportunities for this type of investment within our local West Australian market and the Viburnum investment style is to place the investment team at the site of the investments rather than the site of the capital thereby facilitating a closer relationship with investee companies."
Mr Coleman said Viburnum planned to launch other funds with a similar niche focus and an ability to offer an alternative investment exposure with an absolute return focus.
