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VGI Partners (ASX: VGI) hopes to raise $500 million for the launch of a new Asian investment strategy and subsequent ASX-listed fund.
Investors will be able to access VGI's latest strategy through a new entity VGI Partners Asian Investments Limited (ASX: VG8).
This latest move comes just four months after the hedge fund launched a $75 million IPO to list its main business on the ASX.
VG8 will be the company's second listed fund on the ASX, joining its global investments fund (ASX: VG1), and third listed entity in addition to the mothership VGI.
VGI says that VG8 will seek "buy and hold" long-term investments in what VGI considers to be businesses that are not fully valued by the market, while also short selling securities which are assessed to be vulnerable to material decline in price.
"We feel it's the right time to be launching a new investment strategy with exposure to the economic dynamics of the Asian region," says executive chairman of VGI Partners Limited Robert Luciano.
"Governance standards in Asia have been improving in recent years, and many higher quality companies are becoming more investor-friendly. As a result, we've been increasing the time and resources we commit to researching the very best businesses in the region and now have four members of the VGI Partners investment team on the ground in our Tokyo representative office."
"VG8 will continue the VGI Partners' tradition of holding a concentrated portfolio of companies that have a business model that is easy to understand and that operate in industries with attractive structures. This means our focus will be on long-term investment in companies in monopoly, duopoly or oligopoly industry structures, or firms that own highly recognisable household brands."
Initially VGI says it is targeting Japan, South Korea, Singapore, Hong Kong, Taiwan and Australia with the fund. India, mainland China, Thailand and the Philippines will be on the group's radar, but investments will not be made in these regions "for the foreseeable future".
VGI will be taking a $20 million shareholding in the new company and will be covering the costs of the raise.
It is indented that the size of the offer to be limited to no more than $1 billion. In addition, VGI says it is committing not to undertake any follow-on raising into VG8 for at least three years provided that the offer raises at least $500 million.
Crestone Wealth Management, Commonwealth Securities, Ord Minnett, Taylor Collison and Wilsons Corporate Finance have all been appointed as joint lead managers for this large-scale offer.
Shares in VGI are up four per cent to $13 per share at 10.50am AEST.
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