Macquarie Diversified Private Equity Fund

Thank you for your interest in the Macquarie Diversified Private Equity Fund. This offer is now closed. If you have any questions or require additional information, please contact us on 1800 814 523.

Macquarie’s Diversified Private Equity Fund (MDPEF) offers your clients the portfolio enhancing benefits of private equity with the simplicity of a managed fund.

MDPEF makes private equity simple for a broad range of clients, offering:

• enhanced risk adjusted returns for a balanced portfolio,
• access through master trust and wrap platforms at the platform's minimum investment amount,
• direct investments of $20,000 or more for self-managed super funds,
• managed fund simplicity.

the prospectus (pdf 522KB)

What is Private Equity ?

Private equity is an investment in companies at an early stage or key point in their business life. Typically not listed on a stock exchange, these private companies offer exciting opportunities for growth as they expand and progress to being listed or are bought by larger companies.

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Boost your clients’ returns

Investors have been attracted to private equity due to the potential for returns.

Private equity can offer these returns because

• private companies are less researched than listed companies and therefore it is possible for quality managers to identify companies with unrecognised potential,
• it is a long term investment, with a 12 year term (limited liquidity is available from year 7)
• there are increased risks involved,
• the companies are expertly managed for growth.

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Diversify your clients’ portfolios

Private equity may add powerful diversification to your client’s portfolio. As returns from private companies tend to move in different cycles to traditional investments, an allocation to private equity has the potential to improve your client’s return while reducing portfolio volatility.

Diversification benefits can be further enhanced by investing in more than one private equity fund, taking a “fund of funds” approach.

By adding a diversified private equity fund to a typical balanced superannuation portfolio an investor would have increased their portfolio return and reduced volatility, a measure of risk, over the past six years. The Private equity returns are those of the Macquarie Alternative Investment Trust 1. A 10% private equity exposure is included in the balanced portfolio, replacing the equivalent Australian equities exposure.

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Manager selection matters

There are a wide range of experienced investment managers in the private equity industry. The manager’s skill in selecting and steering the underlying investments is the single most important driver of returns.

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The Macquarie Diversified Private Equity Fund - a simple solution

Macquarie’s Diversified Private Equity Fund has an innovative structure that makes private equity investing simple.

By investing across all stages of private equity, you have exposure to the high return, high risk seed or early stages of private equity, balanced by exposure to the less risky expansion and buyout stages.

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An expertly managed portfolio of leading private equity funds

The Fund’s portfolio diversification is managed across multiple levels including:

• manager - we target 8 to 12 managers, spreading the risk of manager selection,
• specialisation - Macquarie’s experts ensure that specialist private equity fund managers fit into a carefully structured and coherent portfolio,
• time - by making investments over five years, Macquarie smooths out the volatility of investing over a shorter period.

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Who should invest ?

This Fund is a tax-paid pooled superannuation trust offered by Macquarie Investment Management Limited. It is open to complying superannuation funds where your clients are more likely to be investing for growth over 7 to 12 years.

The Fund is illiquid until the end of year 7, when clients may be able to access their investment subject to the liquidity available in the Fund. From the end of year 7, access will be available annually subject to the available liquidity.

This investment may be of particular interest to investors who:

• want to increase their exposure to private equity through the simplicity and convenience of a master trust or wrap,
• are looking for long term capital growth,
• want to diversify their investments beyond the traditional asset classes,
• are comfortable with the long term, illiquid nature of private equity,
• are comfortable with the risks of private equity investing.

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Resources and how to invest

For more information download any of the following, or contact Matthew Low on 61 2 8232 8195 or by email to mfm.privateequity@macquarie.com for an update of which platforms are offering the fund.

	Download	Description
	Product sales flyer  (pdf 54.2KB)	Read about the Macquarie Diversified Private Equity Fund
	Educational booklet - 'Capital Ideas'  (pdf 175KB)	Understanding private equity investing
	PDS  (pdf 522KB)	Investments are through a master trust or wrap platform. Self-managed super investors can directly access at a $20,000 minimum

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