GAM LSA Private Shares AU Fund

GAM LSA Private Shares AU Fund is a late-stage venture capital strategy, managed by established US private markets group, Liberty Street Advisors. The fund provides access to a diversified portfolio of leading privately-owned companies that are in the final non-public funding rounds.

With a focus on late-stage high-growth innovation companies, the fund aims to back already-successful companies with established market share, strong management boards and proven products. Investors aim to participate in the potential appreciation of these dynamic private companies whilst they are under private ownership.

The attractive long-term target performance coupled with historically lower volatility and low correlation compared to public equities, plus historical resilience through market cycles, makes this once hard-to access asset class increasingly attractive for inclusion in portfolios.¹

¹ Compared to Russell 2000 Index for the period of 1 April 2014 to 31 March 2024.

Deep Industry Experience

The fund is managed by a seasoned team with multi-decade investing experience and deep relationships with those in key areas of deal flow - entrepreneurs, venture capital experts, private equity firms and professionals in technology industry networks.

Attractive Structure

An Evergreen structure enables strong investor alignment with immediate deployment of funds across a diversified portfolio, thus avoiding negative ‘J-curve’ impacts. In a traditional PE fund, capital is invested into a more concentrated portfolio over a 3-4 year investment time period and typically requires allocations to new ‘vintages’.

Liquidity Profile 

The fund’s daily application and quarterly redemption program allows for up to 5% of the fund to be redeemed each quarter, giving it a more liquid profile than investing directly or through traditional VC funds.

Longstanding, Proven Process

The team utilises a proprietary, multi-factor ranking process that incorporates criteria such as revenue growth, market potential and investor quality, to establish a portfolio of some of the world’s most innovative and compelling private companies.

Investment Philosophy and Approach

The team believes that late-stage, private growth companies can present an attractive balance of risk and return for investors, compared to early-stage venture investments and public equities. The team seeks to exploit this opportunity using a rigorous investment process, focused on intensive due diligence of companies and stringent investments criteria. Their long-term track record in the industry enables them to make both primary and secondary investments into private companies and offer risk-adjusted returns for clients.

Investment Process 

The team’s investment process focuses on the stringent due diligence of VC-backed companies, firstly monitoring an extensive universe of private technology and innovation companies across multiple sectors. Their use of proprietary databases and extensive network of relationships across the VC ecosystem enable them to identify high-performing companies, using direct and indirect origination channels to identify investment opportunities.  Their in-depth due diligence focuses on qualitative and quantitative data, confidential public and private information and meetings with management, key investors and domain experts. After unanimous Investment Committee (IC) approval, investments are made to build a diversified portfolio of companies that are actively monitored and expected to generate capital appreciation through exits such as IPOs, M&A activity, secondary sales and direct listings.

Private Market Access

Investors can gain access to a portfolio of unique, privately-owned companies that were historically reserved for institutions and endowments. The fund is a direct access point to the private market for all types of investors.

Sharp Increase in 'Unicorns'

Growth equity companies are benefiting from an innovation ‘super cycle’ with disruptive technology-driven growth across all sectors and industries. This growth has led to a proliferation of ‘unicorns’, with over 800 venture capital backed companies currently valued at over USD 1 billion. 

Expanding Market

Companies are staying private for longer, driven primarily by regulatory changes, ease of business model development in the private sphere and a surge of private capital. A significant portion of these companies’ value appreciation occurs prior to entry into the public markets, at mid or large-cap size. Many of the world’s most innovative private companies may never be available for public market investment.

Portfolio Diversifier

Strong long-term performance expectations, with historical downside resilience and low correlation to public equities, make the asset class attractive for portfolio diversification. From an asset allocation perspective, investors are increasingly turning to alternatives to fill the void that traditional assets once provided for return enhancement, risk minimisation or diversification.

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Source: GAM International Management Limited (“GIML”) unless otherwise stated (performance is shown net of fees, on a NAV to NAV basis). Allocations and holdings are subject to change. Prices quoted refer to accumulation shares unless otherwise stated. Historical data may be subject to restatement from time to time. Equity Trustees Limited (“Equity Trustees”) ABN 46 004 031 298 | AFSL 240975 is the Responsible Entity for GAM LSA Private Shares AU (“the Fund”). Equity Trustees is a subsidiary of EQT Holdings Limited ABN 22 607 797 615, a publicly listed company on the Australian Securities Exchange (ASX: EQT). GIML is the investment manager of the Fund and financial services are provided to Australian wholesale clients by GIML and its representatives. GIML is exempt from the requirement to hold an Australian financial services licence under the Corporations Act 2001 (Cth) in respect of the financial services it provides to wholesale clients, and is not authorised to provide financial services to retail clients in Australia. GIML is regulated by the Financial Conduct Authority (FCA No. 122331) under the laws of the United Kingdom, which differ from Australian laws. GIML has filed a notice pursuant to ASIC Class Order CO 03/1099 and is exempt from registration in Australia in respect of the financial services it provides to Wholesale Clients in Australia. This publication has been prepared to provide you with general information only. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Neither GIML, Equity Trustees nor any of their related parties, their employees or directors, provide any warranty of accuracy or reliability in relation to such information or accept any liability to any person who relies on it. To the extent permitted by law, no responsibility is accepted by GIML, Equity Trustees or any associate or related companies, their directors, employees, representatives, or agents for any information herein, or for any action taken by you. Neither the performance of the Fund nor the return of the capital is guaranteed by EQT, GIML or any other party. Past performance should not be taken as an indicator of future performance. You should obtain a copy of the Product Disclosure Statement (PDS) (available from Equity Trustees) before making a decision about whether to invest in this product. This document is for distribution only in Australia to Wholesale Clients as defined in section 761G of the Corporations Act 2001 (Cth) and the Corporations Regulations 2001 (Cth). It is confidential and intended solely for the use of the person or persons to whom it is given or sent and may not be reproduced, copied or given, in whole or in part, to any other person. It is aimed at sophisticated, professional, eligible, institutional and/or qualified investors who have the knowledge and financial sophistication to understand and bear the risks associated with the investments described herein. Nothing contained herein constitutes investment, legal, tax or other advice nor is it to be solely relied on in making an investment or other decision. It is not an invitation to subscribe and is by way of information only. Before making an investment decision, prospective investors should make their own enquiries and evaluations they consider to be appropriate to determine the suitability of any investments and should seek all necessary financial, legal, tax and investment advice. Units in the Fund described in these materials are not available for sale in any jurisdiction in which such sale would be prohibited. This document does not constitute an offer, solicitation or recommendation to subscribe for units in the Fund described herein and is by way of information only. Subscriptions will only be received and units issued on the basis of the current PDS or other related offering documentation. All investments carry risk. The price of units and any income from the Fund can go down as well as up and may be affected by changes in rates of exchange. An investor may not get back the amount invested. The Fund does not include the security of capital which is characteristic of a deposit with a bank or building society. All views, opinions and estimates in this information are subject to change without notice. Any references to a security is not a recommendation to buy or sell that security. Commodity trading involves substantial risk of loss. Changes in rates of exchange between the US Dollar and the currencies in which the investments of the fund(s) are denominated may cause the value of Shares to go up or down. The high degree of leverage that is often obtainable in commodity trading can work against the fund(s). The use of leverage can lead to large losses as well as gains. Use of derivatives may involve certain costs and risks such as liquidity risk, interest rate risk, market risk, credit risk, management risk and the risk that a portfolio could not close out a position which it would be most advantageous to do so. Portfolios investing in derivatives could lose more than the principal amount invested.