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WAM makes alternatives play

Geoff Wilson's $3 billion Wilson Asset Management has acquired the management rights for embattled alternatives investment company Blue Sky.

On May 20 last year, Blue Sky Alternative Investments announced it had been forced into receivership, with Oaktree Capital Partners appointing KordaMentha as receivers and managers of the company.

It came after the investment company breached the covenant on a $50 million convertible note from Oaktree Capital, bleeding $25.7 million (after tax) during Q1 2019, with $36.8 million in expenses and $82.4 million in liabilities.

Blue Sky has entered into a deed of termination with BSAAF Management, its existing manager, and will transition to WAM subject to shareholder approval. The investment company will hold an EGM for its approximately 3300 shareholders to vote on the termination and transition arrangements in September this year.

If approved, Blue Sky will be rebranded as WAM Alternative Assets.

Blue Sky chair Michael Cottier said the agreement signalled the beginning of a brighter future for the investment company's shareholders.

"The BAF board once again thanks shareholders for their patience," he said.

"The directors are delighted to have commenced this important transition, which, if approved by shareholders, will provide new and existing investors with access to a high-quality investment manager with significant expertise in managing listed investment companies (LICS)."

WAM chair Geoff Wilson welcomed the company's shareholders to a new era of management.

"We believe the renewed alternative asset-focused LIC has great potential in the Australian market and we look forward to welcoming over 3300 BAF shareholders into the Wilson Asset Management family."

Read more: Geoff WilsonWilson Asset ManagementBlue Sky Alternative InvestmentsOaktree Capital PartnersWAM Alternative AssetsBSAAF ManagementKordaMenthaMichael Cottier
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