This post covers the most frequently asked questions regarding Vantage Private Equity Growth 5 (VPEG5 or the Fund).
1. What is the performance objective of the Fund?
VPEG5 is targeting a 20% IRR1 to investors over a four to six-year time frame.
2. What is the minimum investment?
The minimum investment for the Fund is $100,000. Only 5% of committed investment is called on application. Remainder called as investments are sourced.
3. What are ‘progressive calls’?
Vantage have offered all Contango Asset Management Limited (Contango) investors the ability to invest progressively from as little as $100,000, a feature that is typically reserved for applications in excess of $1m. This means that when an investor applies to invest in the Fund, only 5% of the committed capital is required to be paid on application. The remainder of the committed capital is paid across the life of the Fund when a capital call is issued as underlying investments are made. Investors have eight business days to meet a capital call.
4. What does the Fund invest in?
The Fund will invest in top-tier Private Equity funds focused on investing in the growth capital and buyout stages of mid-market Private Equity in Australia, plus co-investments alongside top-tier Private Equity funds. The Fund will provide exposure to a diversified portfolio of profitable Australian private companies.
5. What is the relationship between Vantage and Contango?
Contango is an ASX-listed fund manager with a marketing and distribution platform that partners with, and promotes high-quality fund managers to our audience of investors. Contango is a distribution partner of Vantage Asset Management.
6. How and when can I access my money?
Redemptions will be available quarterly with 60 days’ notice after investment is held for a minimum of four years.
7. How often is income paid?
As investment returns are received by the Fund, they will be distributed to investors within 30 days of receipt by the Fund.
8. What are the fees?
The management fee is 1.25% p.a. There is a performance fee of 10% above a hurdle rate of 15% (after management fee, calculated on a whole of fund basis). While the fees of the underlying funds vary, Vantage have negotiated institutional fee deals with the funds VPEG5 will be investing in.
9. Can I add to my investment later on?
You will be able to top up your investment after the ‘first close’ on 17 December 2021. The final close will be 17 December 2023.
10. What is the benefit of investing in the initial offer?
The benefit of investing prior to the first close on 17 December 2021 is that equalisation interest will not be charged. Equalisation interest is levied on all commitments made after 17 December 2021 at a rate of 8% p.a. based on the called capital, calculated daily.
11. Can an SMSF invest?
Yes, self-managed super funds can invest in VPEG5 provided the beneficial owner(s) qualify as wholesale investors.
12. How do I invest?
To invest, complete an application form via the ‘Invest Now’ button on our website. Payment can be made by electronic funds transfer (EFT) or cheque.
If you have any further questions regarding VPEG5, please don’t hesitate to contact the team on 1300 001 750 or via email at [email protected].
1Internal Rate of Return or IRR. The IRR is the net return earned by investors and is calculated as an annualized effective compounded rate of return using monthly cash flows to and from investors.
DISCLAIMER: This email has been prepared by Contango Asset Management Limited (CGA) ABN 56 080 277 998 and Switzer Asset Management Limited (SAML) ABN 26 123 611 978, AFSL 312247. SAML is a wholly owned subsidiary of CGA, a financial services business listed on the ASX (CGA). SAML and CGA are authorised representatives of ST Funds Management Limited AFSL 416778 to provide general advice. SAML is an adviser of Vantage Asset Management Pty Limited (Vantage) ABN 50 109 671 123, AFSL 279186.
All promotional and offer materials in relation to Vantage Private Equity Growth 5 (VPEG5) are sourced from Vantage. This material has been prepared from what is considered to be reliable information, but the accuracy and integrity of the information is not guaranteed.
An offer or solicitation with respect to VPEG5, if made, will be made only through an Information Memorandum to be issued by Vantage. The Information Memorandum will only be available to qualified investors upon request and will contain, among other things, a description of the risks associated with an investment in VPEG5. Investors should have the financial ability and willingness to accept the risk characteristics of an investment in VPEG5.
Prospective investors must rely on their own examination of the legal, taxation, financial, and other consequences of investing in VPEG5, including the merits of investing and the risks involved. Investors should not treat the content of this webinar and the Information Memorandum as advice relating to legal, taxation or investment matters and are advised to consult their own professional advisers. If a prospective investor is in any doubt as to the suitability of an investment in VPEG5, they should refer this to a suitably qualified adviser.
The information must not be acted on or relied upon by persons who are not wholesale or sophisticated investors as defined by Australian legislation. Any investment or investment activity to which this communication relates to is intended only for qualified investors.
SAML or CGA will receive upfront and trailing referral fees from any investment commitment made to VPEG5.
In reviewing any prior performance information contained herein, or in the Information Memorandum, prospective investors should bear in mind that past performance is not indicative of future results, and there is no guarantee that VPEG5 will achieve comparable results or its investment objectives.
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