Singapore-based Blackhorse Asset Management is launching a long/short Asian technology fund on July 1 with some $20 million in initial equity. Dubbed the Blackhorse Early-Stage Technology fund, the fund will invest in small-to-mid cap Asian tech companies, as well as illiquid pre-IPO candidates via a side pocket.
According to fund documents, the Asian tech industry has underperformed its non-tech counterparts for the past three years and Asian tech valuations are currently low in relative and absolute terms. The pre-IPO Asian market is becoming active as liquidity events such as listings, M&A and buy-out activity become more prevalent across the region and better liquidity and transparency in pre-IPO markets helps “to create a virtuous circle with respect to pre-IPO value realization.”
The fund has a gross limit exposure of 180% and the target net range is –20/+120%. Its target return is more than 25% per year, with volatility of 10% to 15%. It will hold 25 to 40 positions in its portfolio.
The fund comes in two share classes: A shares (no side pockets) and B shares (with side pockets). It charges fees of 1.74% for management and 20% for performance, with a minimum investment requirement of US$100,000. There is monthly liquidity with 30-days notice and there is a one-year lockup.
Blackhorse was founded in October 2001 and currently manages some US$500 million. The firm currently manages an Asia ex-Japan long/short fund, an Asian long-only fund and a Vietnam-focused long-only fund.