Vantage Private Equity Growth 5 (VPEG5) is an Australian Private Equity Fund of Funds established to provide investors with access to the strong returns generated by the top performing Buyout and Later Expansion Private Equity Funds in Australia.
VPEG5 is also registered with Innovation Australia as a complying investment for the Investor Visa Class 188B (IV) and and Significant Investor Visa Class 188C (SIV), focused on investing in the lowest risk segment, of the mandatory 10% investment required to be made into the VCPE segment, Growth Private Equity.
The Investment Manager of VPEG5 is Vantage Private Equity Management Partnership, LP, an authorised representative of Vantage Asset Management Pty Limited AFSL No.279186 (Vantage). VPEG5 is structured as an Australian Fund of Funds, Incorporated Limited Partnership which is governed by a Partnership Deed.
Vantage has a deep understanding of the Private Equity space, access to quality managers, strong industry relationships and an investment process that selects high performance managers. A significant proportion of Australian investors have historically been unable to gain access to Private Equity. Vantage has developed a fund of funds approach to broaden investor access and participation in the Private Equity asset class.
A key catalyst for successful Private Equity investment is the availability of deal flow, companies or management teams looking to source equity capital to accelerate growth and enhance value. After several quiet years in the post-GFC environment, there is an emergence of opportunities, especially in the lower-mid market segment, that new funds will be best positioned to invest in. Important attributes of investing in this segment, where deal values are typically in the $25m – $250m range, are lower acquisition prices and lower levels of debt.
In this lower-mid market space there is a core of highly professional Private Equity fund managers, several of which consistently achieve outstanding investment returns. With the emergence of a favourable environment for Private Equity investment, VPEG5 is specifically designed for Significant Investor Visa Applicants, lower to mid-size institutions, SMSF’s and sophisticated investors to participate in this opportunity.
Vantage will employ a similar diversification strategy for VPEG5′s Private Equity investments that has been successfully applied with its predecessor fund of funds, Vantage Private Equity Growth Limited (VPEG) (www.vpeg.info), Vantage Private Equity Growth 2 (www.vpeg2.info), Vantage Private Equity Growth 3 (www.vpeg3.info) and Vantage Private Equity Growth 4 (VPEG4) (www.vpeg4.info). This will be achieved by diversifying investments and commitments across fund manager, financing stage, industry sector, geographic region and vintage year. Like its predecessor funds, VPEG5 will have an emphasis on investments into profitable companies, in growth industry sectors including the Healthcare, Consumer Discretionary, Education and Tourism sectors.
VPEG5 will invest in six to eight Australian domiciled Private Equity funds, both new and existing, with a focus on later expansion and buyout funds raised or to be raised from 2021 through to 2023. Further diversification will be achieved by directly co-investing, alongside the best performing private equity managers, into exceptional underlying private company investments.
When fully invested it is envisaged that VPEG5 will ultimately have held a share in up to 50 underlying private company investments, that will be divested over time, delivering investors a targeted net return of 20% p.a. across a 4 to 6 year investment time frame.
The Investment, Audit & Risk Committee, which includes independent members, along with the executives of Vantage will provide a strong and experienced team to manage VPEG5 towards its objectives.