Fund information
MLC Private Equity Co-investment Fund III
On 1 November 2019, MLC Private Equity opened for subscription the MLC Private Equity Co-Investment Fund III ("the Fund").
The Fund has been established to continue the MLC Private Equity Co-Investment program in providing prospective investors with the opportunity to invest in a Fund that has access to our investment capability and experience in sourcing co-investment opportunities.
The MLC Private Equity team has successfully launched two co-investment funds that have generated strong returns for investors.1 MLC Private Equity has created an opportunity with a newly created closed-ended fund and a larger fund size to better match the level of potential co-investment opportunities.
The Fund will be underpinned by the same relationships and processes that are the hallmarks of MLC’s successful existing private equity and co-investment programs which includes the same strategy, objective, process, structure and fund parameters as Fund I and II.
Co-Investment Fund III First Close is planned for October 2020 with documents recommended to be submitted by no later than 30 September 2020.
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Asset Class Global Private Equity Structure Closed end; unregistered wholesale unit trust Minimum investment amount A$250,000 Target fund size A$250 million2 Offer document Information Memorandum (IM)
Investment return objective 15% net IRR (pre tax and post fees and expenses) Style Direct private investments alongside General Partners Number of investments 20 to 30 direct investments Horizon
Investment period 5 years. Fund life 10 years, subject to 2 x 1 year extensions or earlier termination approved by special resolution of investors Restrictions - No more than 15% in single investment
- No more than 25% alongside single manager
- No more than 20% in emerging markets
- Fund borrowings not to exceed 25%
Fees - Management Fee 1.5% (plus GST) on invested capital
- Performance Fee up to 15% (plus GST) of returns above the 8% preferred return
- Overhead costs of MLC Private Equity are included in the management fee. Other expenses, eg trustee, custodian, legal, audit, establishment costs (up to a maximum amount), are to be recovered from the Fund. Establishment costs are capped at the greater of $400,000 or 0.30% (plus GST) of the total fund committed capital.
1 MLC Private Equity Co-Investment Fund I has generated an internal rate of return (IRR) of 23.37% per annum since inception (15 November 2013) to 30 September 2019, and MLC Private Equity Co-Investment Fund II, which is still in investment phase, has generated an IRR of 13.71% since inception (16 May 2017). All returns are calculated IRRs based on latest available valuations from MLC’s managers, as at 30 September 2019. Return is pre-tax and post Management Fees, Performance Fees and expenses to investors based on their capital contributions. Past performance is not an indicator of any future performance of the MLC Private Equity Co-Investment Funds I, II and III.
2The Fund may proceed on a smaller amount.
