Odyssey Private Equity Fund 1
Fund background
The Fund has been established to provide sophisticated investors with a private equity investment exposure with a targeted compound return over the life of the Fund of 20%+
The target fund size is $50m, with a minimum size of $30m. It is envisaged that the Fund, having achieved its target size of $50m, will be invested across 6 to 8 companies
The Fund is expected to have a first close in the 4th quarter 2011 and will then be in a position to make investments. The Odyssey Capital investment team are already considering prospective investments for the Fund
Investment focus
The Fund will invest in privately owned Australian based companies that provide exceptional prospect for earnings growth in the 3 to 5 year time horizon. Allowable investment categories are:
Growth capital – companies requiring additional funding to pursue their business plan
Management buy-outs – investments that involve acquiring a company where its management participate in the acquisition
Cash-out deals – essentially transactions that provide for a partial sell-down of a major shareholder’s stake – and combined with additional growth capital for the business
Turnaround investments – the Fund will consider turnaround opportunities where businesses have experienced a period of under-performance and where additional capital is sought to help ‘fix’ the company
There is no minimum size criteria for investments, however there is a requirement that investee companies can realistically achieve an enterprise value on exit of more than$20m
The Fund is not industry focused but a sector outlook will be an important aspect of investment appraisal. The Fund will not invest in start-ups
Investor information
Investors should refer to the Information Memorandum for detailed information about the Fund. Key points to note are:
- The Fund has been established and will be registered as a Venture Capital Limited Partnership, a common industry structure administered by the ATO and Innovation Australia, providing ‘flow through’ treatment for tax purposes
- The minimum subscription for the Fund is $2m. OC has the discretion to accept smaller subscription amounts
- 5% of the capital committed will be payable as a first installment on the inception of the Fund. The balance of committed funds will be drawdown in tranches as required to make investments prior to the 5th anniversary of the Fund’s inception, with a month’s notice
- The term of the Fund is 10 years
- The proceeds of investment realisations, after deductions for fees and expenses, will be distributed when received by the Fund
Odyssey Capital Funds Management Ltd will be paid an annual management fee of 1.79% of the Fund’s committed capital, less any capital already returned. A performance fee is payable, calculated as 20% of the excess return of the Fund over a benchmark of 12% compound
