The stake’s said to be indicative of the new fund’s investment mandate. It would shop for strategic stakes in Australia and New Zealand, aiming to make at least 15 per cent a year net of the base fees, over a five year timeframe.
It will scout unlisted and listed investments, according to documents seen by Street Talk, but the strategy was expected to veer towards taking smaller stakes instead of all-in buyouts. The fund would be open-ended.
Investors were told to think of Home Consortium’s $725 million odd acquisition of the Masters property portfolio. HMC said the Masters acquisition had made 37 per cent per annum internal rate of return and five times money multiple on investment capital for De Pilla and his early backers.
HMC has signed up Credit Suisse, Morgan Stanley, National Australia Bank, Morgans, Ord Minnett, Wilsons, Escala and Bell Potter to drum up capital from high-net-worth types.
