Blue Sky Alternative Investments has completed an independent revaluation for 25% of its fee-earning assets under management, and it is expected to reduce FY18 net profit after tax by $7 million.
The first phase of Blue Sky's total portfolio revaluation included 12 of 93 assets, including assets within funds with a unit price greater than $1.20 in which the Blue Sky Alternatives Access Fund is invested.
In an update to the ASX, Blue Sky said the first revaluation included its entire portfolio of student accommodation (SAC), three private equity assets including Wild Breads, Sunfresh Salads and Foundation Early Learning (for which a sale of the asset has been announced), and a retirement living project in Corinda, Brisbane.
The asset manager said the revaluations included 12 of 28 assets in which Blue Sky had accrued performance fees at 31 December 2017.
"As a result of the above reviews, certain SAC assets and private equity assets have reduced in value. These asset revaluations are expected to lower Blue Sky's net profit after tax for the year 30 June 2018 by approximately $7 million," Blue Sky said.
It went on to say "there is no material impact on its fee-earning assets under management announced on 7 May 2018."
Yesterday, Blue Sky non-executive director Michael Gordon resigned from the board for health reasons.
Blue Sky Alternative Investments' chair will step down at the annual general meeting and the group chief investment officer role will be made redundant as part of an overhaul of the company's business model and structure.
In April, then-Blue Sky managing director Robert Shand resigned so as to "rebuild market confidence." At the time US hedge fund Glaucus Research had published a scathing opinion piece explaining why it was shorting the company.