Datt Capital gets $25m seed money for new fund
Melbourne-based fund manager Datt Capital is initiating a wider raise for its freshly minted Small Companies fund, after securing $25 million in early commitments from a mix of existing and new investors.
Emanuel Datt is raising for a new fund. Tash Sorensen
The new strategy would hold 15 to 20 long positions, taking its picks from companies outside the ASX 100. It would also look at pre-IPO opportunities.
It wouldn’t be surprising to see some old names from the firm’s Absolute Return Fund pop up in the portfolio. The original fund, whose mandate allowed it to invest in a wide range of assets including fixed income, ended up building a substantial stake in trading platform SelfWealth.
Another big position has been WA1 Resources, where it is sitting just under the substantial mark. Founder Emmanuel Datt said he liked WA1 for its niobium discovery in Arunta, Western Australia – a much safer jurisdiction than Brazil and China, which currently control the global supply.
“WA1 has the potential to be a billion-dollar company one day,” Datt said.
The seed capital means the new fund can start putting money to work, while rounding up investors for the broader raise. It expects to find investments in resources, financials and beaten down technology names, but the central theme – as Datt put it – is to find the “blue-chips” of tomorrow.
“The value proposition for small caps is as compelling as I’ve seen as anytime I’ve seen during my time in markets. We are aiming to capture this on behalf of our investors, using our proven investment process to discover compelling growth opportunities amongst a very much ignored part of the market,” he said.
The firm manages about $100 million for wealthy individuals and financial advisers.
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