BLUE Sky Alternatives Access Fund Limited (ASX:BAF) is set to explore new investment opportunities after raising $20 million in a one for three rights issue.
The capital will be used to build on the listed investment company's (LIC) managed portfolio of alternatives across private equity and venture capital, water and agriculture, hedge funds and private real estate.
Blue Sky chief investment officer Alexander McNab (pictured) says alternatives enhance the risk and return characteristics of a portfolio.
"Alternative assets have the potential to enhance returns, and with the share market and property valuation looking stretched, the diversification alternative assets provides is key to reducing a portfolio's volatility and correlation to traditional markets," McNab says.
"The LIC gives investors the opportunity to invest in alternative assets through an ASX-listed structure that is more readily accessible and liquid than typical alternative assets.
"We have a strong pipeline of investment opportunities across a wide variety of alternative assets."
The new shares will be eligible to receive any dividends announced in the remainder of FY15. The board anticipates a partially franked two to three per cent per unit dividend, subject to investment performance.
Ord Minnett Limited and Morgans Corporate Limited acted as joint lead managers for the non-renounceable entitlement offer.
The capital is expected to be fully deployed in the next three months.
Blue Sky Alternatives Access Fund Limited is managed by a wholly-owned subsidiary of Blue Sky Alternative Investments Limited (ASX:BLA).
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