BLUE Sky Alternative Access Fund (ASX: BAF) has raised $47 million through an ASX share offer, the company announced today.
The capital was raised through existing investors and a shortfall offer to new investors, opened on 10 November, that was heavily oversubscribed.
Blue Sky Alternatives Access Fund director Andrew Champion (pictured) says the strong support for the raise was due to a growing awareness around the benefits of alternatives as well as the unique nature of the fund's product offering.
"Financial planners nationally are increasingly looking for attractive opportunities to diversify their client's portfolios into alternative asset classes," says Champion.
"The Blue Sky Alternatives Access Fund is Australia's only LIC that allows investors to make a strategic allocation to a diverse portfolio of directly managed alternative assets, making it more accessible and liquid than typical alternative asset investments."
The Alternatives Fund is a wholly-owned subsidiary of Brisbane-based Blue Sky Alternative Investments (ASX: BLA).
The company says that the funds raised will be used to continue to grow a diversified and actively managed portfolio of alternative investments through a Listed Investment Company (LIC) structure.
"The strong demand for this offer, including the support across a wide range of investors and financial planners nationally, reflects the continued structural shift in allocations towards alternative assets, which is the fastest growing asset class in Australia," says the company in a statement to the ASX.
"Funds under management allocated to alternatives increased seven per cent to $422 billion in the last financial year."
It is the first significant move by the company since Robert Shand has taken over as managing director from company founder Mark Sowerby and its success is a strong indication of the confidence shareholders have in the new boss.
"The demand for the fund is also a validation of Blue Sky's strategy to provide access to alternative assets to all investors, including institutional investors, high net worth individuals, family offices and retail investors," says Blue Sky.
The Alternative Fund's assets include Australian water entitlements, agricultural and water infrastructure assets, purpose-built student accommodation and medium density retirement living as well as private equity investments into Australian growth companies.
Blue Sky's annual general meeting will be held next Friday 18 November 2016.
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