The Vgi Partners Ltd (ASX: VGI) share price went up over 5% today, here’s why.
VGI Partners is a high conviction global equity manager. VGI manages capital for high net worth individuals, family offices and consists of a compact team of investment professionals based in Sydney, New York and Tokyo. VGI Partners was founded in 2008 and according to its prospectus, it manages funds of more than $2.1 billion, including $1.5 billion for approximately 250 high-net-worth individuals and families. VGI’s flagship fund is the VGI Master Fund. The fund was established in 2009. Another strategy they manage is the ASX listed VGI Partners Global Investments Limited (ASX:VG1).
What’s Going On With VGI Partners?
VGI Partners is launching VGI Partners Asian Investments Limited (ASX: VG8), a fund that will be looking to invest across Asia. These types of large funds can mean big business for fund managers because it locks in attractive management fees for the foreseeable future.
It will be looking to make long term ‘buy and hold’ investments as well as utilising short selling to profit from falling share prices.
The fund will be looking at investments in Japan, South Korea, Singapore, Hong Kong, Taiwan and Australia. It will be looking at India, mainland China, Thailand and the Philippines but won’t be investing there for the foreseeable future.
VGI Partners intends to take up a $20 million investment in VGI Partners Asian and will also meet all of the costs of the offer. It is also be giving out shares of VGI Partners.
What Happened Today?
VGI Partners said that it wasn’t looking to raise more than $1 billion and today it announced that it reached the minimum subscription of the offer by the end of the first day of $250 million.
In-fact, total applications under the offer currently exceed $485 million, so investors are probably already pencilling in the fees that VGI Partners will be earning.
VGI isn’t the only investor looking for good growth shares, the best Rask analysts have identified some growth shares in the free report below.
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