Stockholm (HedgeNordic) – The opportunity to invest in private, unlisted businesses via a traditional private equity structure generally comes with high fees and long lock-up periods. Swedish asset manager Quartile Fonder, known as Kvartil, is launching a special investment fund that offers targeted exposure to the unlisted companies owned by listed investment companies by neutralizing the exposure to their listed underlying holdings through short selling.
Set to launch in early March, Kvartil Liquid Private Assets will offer exposure to about 70-80 unlisted holdings by investing in listed Swedish investment companies while removing the exposure to the investment companies’ publicly-traded underlying holdings. This long/short approach to investing seeks to create pure exposure to unlisted assets owned by listed Swedish investment companies. The fund, structured as a Swedish special fund, aims to solve two main problems associated with investing in unlisted assets via traditional private equity structures: the long lock-up of capital and high fees.
“Unlisted assets both offer attractive risk-adjusted returns but also have an appealing risk profile, which is to say that they are not highly correlated with the stock market as a whole.”
“Unlisted assets both offer attractive risk-adjusted returns but also have an appealing risk profile, which is to say that they are not highly correlated with the stock market as a whole,” Quartile Fonder’s CEO, Torbjörn Olofsson, tells Bloomberg. Olofsson was a portfolio manager and partner at Brummer & Partners-backed fixed-income relative value boutique Nektar for many years. He was also the CIO and co-founder of the now-closed macro hedge fund Ambrosia. Olofsson founded Stockholm-based asset manager Kvartil in September 2018.
The open-ended Swedish special fund will cater to both institutional and retail investors, representing an inexpensive alternative to those who do not have the opportunity to invest in private equity funds. The institutional share class charges an annual management fee of 0.8 percent and requires a minimum investment of SEK 10 million, while the general share class charges a management fee of 1.5 percent and requires a minimum investment of SEK 100.000. Kvartil Liquid Private Assets will offer quarterly subscriptionsand redemptions.
