Fund that returned 23pc targets billions in investment

afr.com:

Pacific Equity Partners is eyeing “billions” of dollars for its Gateway fund, which has now attracted about 1000 individual investors.

The fund, which invests individuals’ money in private equity firms’ activities, has logged remarkable returns this year, and granted the country’s richest people and families access to an asset class that has historically been difficult to invest in.

Pacific Equity Partners managing director and co-founder Tim Sims. Michael Quelch

Gateway recorded a net gain of about 23 per cent over the last 12 months, far outpacing the 13 per cent from the ASX200 accumulation index. Such returns opened up avenues for investors increasingly looking for healthy, double-digit returns away from traditional investment tools like stocks and bonds.

“We anticipate this to be a multibillion-dollar strategy over the coming years,” said Cameron Blanks, a managing director at PEP.

“If this was not going to be a multibillion-dollar strategy, we would not have even started it. It would not move the needle. That is absolutely what we are shooting for,” he told The Australian Financial Review.

To date, the open-ended Gateway fund has raised more than $200 million from so-called “family and friends” investors. Alex Ovchar, a managing director and head of PEP’s partner and client group, said demand would build as Gateway expanded beyond PEP’s existing relationships.

“We are continuing to meet new investors, engage with industry conferences, the adviser community, and increase access through platform providers including Netwealth, among others,” Mr Ovchar said.

Investment platforms like Netwealth and Hub24 are critical for PEP’s next steps as it moves beyond its closest investors.

Mr Ovchar said PEP’s Gateway product