Zurich-based Bank Julius Baer is making its fund-of-funds debut. The new investment company, shaPE Capital will be listed on the Swiss Exchange on November 27 and hopes to raise between CHF100 million and CHF400 million.
Holger Hohgardt, head of private equity with the bank and CEO of ShaPE Capital, said the size of the fund will depend on the success of its listing. “On a realistic level, we are hoping to raise between CHF100 million and CHF200 million. But to achieve CHF200 million would be a mega success,” he said.
ShaPE will be listed on the Swiss stock exchange at CHF200 per share, with a minimum subscription of 50 shares.
Fund raising is limited to three weeks, says Hohgardt and will be a big challenge given the current climate.
The fund-of-funds will be committing to both primary and secondary funds and will also be allocating capital to direct investments in companies.
The amount and number of secondary fund investments will depend on market opportunities and the attractiveness of deal flow. Typical size of investments will be around ten per cent of the total fund size.
ShaPE aims to provide investors with a balanced private equity portfolio. The biggest emphasis will be on buyout funds in the US and Europe. It is anticipated that around 30 per cent to 50 per cent of the fund will be committed to development capital and small buyouts and between 20 per cent and 50 per cent will be allocated to larger buyouts. Venture capital funds will account for up to 35 per cent of allocations.
The fund is being advised by Dutch asset manager Robeco, which is owned by the Rabobank group. The use of an external investment advisor avoids potential conflicts of interest, which might be detrimental to investors.