A private investment group has been launched to seek direct and indirect investment opportunities in non-listed and publicly traded international securities.
Cayman Islands based Equity Partners Fund SPC has established both a segregated portfolio company and has several portfolio companies through which it makes investments on a global basis.
The fund generally looks to invest amounts from $5 million up to $100 million in listed companies with consistent trading volumes for a variety of activities including working capital, acquisitions and other growth opportunities.
Fund spokesperson Bruce Nelson says the fund focuses on equity investments in public companies with market capitalizations under $1 billion, as well as private companies that will be listed on a securities exchange within six months of a funding commitment.
“Unlike hedge funds which have significant regulatory burdens exposing their investors to higher risks, Equity Partners Fund SPC is able to act quickly, is more flexible when it comes to structuring an investment and has less regulatory burdens,” Nelson says. “The fund has no outside investors and is considered a private fund run by its principals, similar to a merchant bank that invests its own capital and as such it is seeking capital appreciation through the identification and funding of liquid growth companies.
“To date the fund has been approached by a number of companies with interests as diverse as manufacturing, construction, professional services, healthcare and finance who are all looking for growth or acquisition funding which is difficult to find given current global economic conditions.”
The fund’s investment guidelines, apart from a company’s size and liquidity, require them to have exceptional management and long-term sustainable growth opportunities with the potential to achieve significant milestones over a developmental period.
“While applicants should expect to be able to meet our due diligence program, our funding arrangements are a whole lot simpler than many other avenues such as rights issues and other underwritten issues,” Nelson says.
“Ultimately once a company satisfies our requirements we send proposed investment terms and explain the steps required for the company to ultimately obtain the requested funding. “In volatile and uncertain equity markets this pre-qualification and pre-agreed funding arrangement is superior in most circumstances.”
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