NAOS Asset Management is seeking to raise $35 million for the launch of its new Private Opportunities Fund.
The fund will invest in up to 20 companies that NAOS identifies as having a competitive advantage, a strong track record and long-term growth potential.
“The NAOS Private Opportunities Fund will provide exposure to an asset class that can be difficult to access for individual investors and SMSFs,” said Sebastian Evans, managing director at NAOS.
“The market is witnessing a trend of quality private companies choosing to stay private for longer and we want to take full advantage of this movement,” Mr Evans said.
The fund is available to sophisticated and wholesale investors with a minimum subscription of $100,000. NAOS said the fund is suitable for investors with a long-term investment horizon of at least five years.
Key variables of potential investments identified by NAOS include proven business models with established revenue profiles exceeding $5 million per annum, industries conducive to long term growth as well as structural tailwinds, founders and key executives who are aligned with shareholder interests and a sustainable competitive advantage that is seen as being likely to increase over time.
“There are many companies that do not want traditional private equity investment, do not want to IPO and do not want to cede majority control but have a need for increased capital. This fund will offer these businesses patient capital and access to the NAOS network of business and advisory talent,” Mr Evans said.
The investment manager indicated that it has already identified several companies as likely investments for the fund and noted it will not invest in any companies that do not meet its “stringent” ESG hurdles.
Jon Bragg
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.
