International asset management group Forsyth Partners is adding a new wrinkle to its private equity business. The firm recently launched a private equity fund of funds, the Forsyth Global Private Equity Fund, which invests in listed p.e. firms and in p.e.-related securities through a combination of open ended funds and also through direct investments and private equity investment trusts.
The fund’s open-ended/closed-ended approach is combined with a core/satellite strategy: The core is invested across buyout, venture and mezzanine debt sectors in developed regions, while the satellite offers exposure to particular markets, themes or sectors.
Henry Freeman, principle fund manager at Forsyth, said, “The fund has been developed to meet the demand of investors who are seeking long-term asset growth in private equity without the higher levels of risk often associated with the sector.”
The fund of funds, which launched in December, is traded daily and offers both U.S. dollar and euro share classes. Since inception, it has returned 5.9% and is currently managing some $13 million. The co-manager for the vehicle is Dean Cheeseman.
Last month, holdings such as Duemme SICAV Private Equity Strategies and SVG Capital (a private equity investor and fund management business listed on the London Stock Exchange), contributed to the fund’s net return of 0.96% (U.S. dollar share class) and 1.45% (euro share class), according to its March investor letter. In February, the fund of funds allocated to Evolvence India Holdings, a listed India-focused special purpose vehicle, which currently sits in the satellite segment of vehicle’s portfolio.
The minimum investment for the new offering is US$10,000 with subsequent investments of US$5,000. The annual management fee is 1.5%.
Forsyth was established in 1991 and manages some $1.2 billion in 39 funds with mandates across equities, bonds and alternative strategies.