Macquarie AM launches venture growth fund

Macquarie Asset Management (MAM) has launched a new venture growth fund for local wholesale investors, leveraging an evergreen strategy originating from a foreign jurisdiction.

The Macquarie Wellington Venture Growth Fund offers wholesale investors access to "institutional-quality" private companies, with a focus on late-stage growth or pre-IPO phase and is developed in partnership with Wellington Management.

MAM's external manager business Macquarie Professional Series has made the fund available as an Australian unit trust. The fund invests "almost all" of its assets in the Wellington Venture Growth Evergreen Fund, a sub-fund of the Wellington Management Funds from Luxembourg.

The new fund requires a minimum investment of $25,000 and targets to generate 13-15% p.a. in net return through investments in global private markets with a focus on growth and venture sectors. Redemption is available quarterly from 1 January 2030, subject to liquidity.

Commenting, head of Macquarie Professional Series Luke Crozier explained the strategy allows investors to capitalise in companies during their growth phase prior to an IPO.

"Some of the most exciting growth opportunities occur well before companies ever reach a stock exchange, and an evergreen structure lets our wholesale clients participate in that growth as it happens," Crozier said.

"Macquarie Professional Series is committed to providing investors with greater investment choice and access to world class fund managers, and we are excited to add this complimentary strategy to our existing partnership suite."

MAM head of ANZ wealth Brent Andal said the launch expands its offering through innovative investment solutions managed by institutional-quality managers.

"Private wealth clients are increasingly seeking access to private markets, and our focus is on delivering innovative investment solutions that meet their evolving needs," Andal said.

"Partnering with Wellington Management to launch this fund strengthens our offering for advisers and their clients, while broadening access to institutional-quality private markets capabilities."

Wellington Management head of Australia Caitlin Hollebone highlighted the new fund leverages Wellington's private markets platform, which boasts about two decades of track record in overseeing more than 130 IPOs, M&As and other liquidity events.

"The timing and scale of companies transitioning from private to public markets has changed. Companies are staying private for longer and opportunities exist to invest in their growth before they reach the public markets," Hollebone said.

"Wellington's 'Full Picture' approach brings public and private market perspectives together to provide a broader view of opportunities and risks across a company's lifecycle.

"We look forward to partnering with Macquarie Asset Management to broaden access to Wellington's private markets capabilities across the Australian wealth market, including through advisers, platforms, private banks and other intermediaries."

MAM also debuted its 10^th ETF in September, focused on fixed income and charging a management fee of 0.09% per annum.