Aura Group launches PE income fund

Aura Group has launched the Aura PE Evergreen Income Fund, an evergreen private markets strategy designed to address the liquidity, income and capital call challenges.

The Singapore domiciled fund targets 12-15% p.a. net returns and a 5% p.a. distribution yield paid semi-annually, with no capital calls and quarterly dealing windows following an initial 12-month lock-up from fund inception.

Aura said for advisers constructing private markets allocations, traditional private equity structures present well-documented challenges: capital call drag, multi-year lock-ups, limited income and difficulty sizing positions within a broader portfolio.

It said the address this, the Aura PE Evergreen Income Fund is structured to address those friction points.

The evergreen structure eliminates capital calls. The 40% private credit liquidity sleeve provides regular distributions and underpins the quarterly liquidity mechanism. The blended portfolio construction targets returns from an earlier stage than a traditional PE fund structure would deliver.

"We designed this fund with the adviser-directed market in mind. We know that private equity exposure is increasingly in demand, but the traditional model creates real implementation challenges at the portfolio level," Aura Group managing director Calvin Ng said.

"Capital calls, extended lock-ups and the absence of income during the investment period make it difficult to size private equity within a managed portfolio. The Aura PE Evergreen Income Fund is built to reduce those barriers without compromising on return potential.

"We feel uniquely positioned with longstanding d private credit and private equity platforms capable of supporting this type of structure. Bringing those capabilities together allowed us to build something we believe better reflects how today's investors want to access private markets."