SYDNEY–(BUSINESS WIRE)–Australian boutique fund manager Tribeca Investment Partners (Tribeca) today opened its initial public offer (“IPO”) for a new listed investment company, Tribeca Global Natural Resources Ltd (the “Company” or “LIC”). The Company seeks to raise up to $250 million and aims to deliver investors a compound annual return in excess of 15 per cent.
The LIC intends to take advantage of the volatility in the natural resources sector by adopting a long/short strategy, investing along the value chain and through capital structures – equities, commodities and credit – to take advantage of relative value and valuation mispricing.
“The natural resources sector is inherently volatile. Consequently, we believe there is an opportunity to deliver positive absolute returns over the long term using our active and global strategy, regardless of macro conditions,” said Ben Cleary, Portfolio Manager of the Company.
“Central to our investment thesis is that the cyclical nature of the demand in natural resources means investors must be active. The high degree of volatility in the natural resources sector means some assets will be mispriced, which creates investment opportunities for investors who have the research capability and deep industry knowledge.”
The Company’s investment strategy will be similar to Tribeca’s existing Global Natural Resources Fund (Fund), which has delivered a cumulative net return of 233.75% since inception at an average compound annual return of 57.21% after fees since it was established in October 2015.
The LIC will invest across the natural resources value chain ranging from exploration and feasibility operations, mining projects, engineering and design businesses, transport and logistics, end-customers and service providers.
“We believe the ability and flexibility to invest both long and short, and across the capital structure of companies, while also being able to use direct commodity exposures to hedge our portfolio has been invaluable to deliver returns in both good and bad markets for the natural resources sector,” added Ben Cleary.
The Company seeks to generate a compound annual return in excess of 15 per cent after fees and expenses whilst preserving capital over the long term (five years-plus).
While the LIC has a global mandate, its initial focus will be on investments in North America, Europe and Asia-Pacific, including Australia.
It is proposed that the Company will list on the Australian Securities Exchange (ASX) under the code “TGF”.
Details of the IPO
The Company is offering up to 100 million new shares at $2.50 per share, to raise up to $250 million, with the ability to accept an additional 20 million shares, representing $50 million, in oversubscriptions. The minimum subscription is $100 million.
To participate in the IPO
The Offer is being made under a prospectus lodged with ASIC on 24 August 2018 (Prospectus) and is available on www.tribecaip.com/lic.
Applications under the general Offer can be made by completing the application form attached to the Prospectus or online through the application form accompanying the Prospectus. Applicants under the broker firm Offer should contact their broker for application details.
Lead Arranger to the Offer is Commonwealth Securities. The Joint Lead Managers are Commonwealth Securities, Morgans, Ord Minnett, Shaw and Partners, and Taylor Collison.
Proposed Key Dates
|Offer Open||3 September 2018|
|Broker firm Offer close||26 September 2018|
General Offer close
|26 September 2018|
|Expected ASX listing||12 October 2018|
Tribeca Global Resources Pty Ltd (the Manager) will manage Tribeca Global Natural Resources Ltd (the Company). The Manager, along with Tribeca Investment Partners (Tribeca IP), comprise the Tribeca Group, which is wholly owned by its employees and was founded in 1997.
The Manager’s investment strategy was established by Co-Portfolio Managers Ben Cleary and Craig Evans, both ex-Macquarie bank, with over 40 years of investing experience in the global natural resources sector.
The Tribeca Group currently manages in excess of $2.3 billion for institutional, high net worth and retail investors across a range of different strategies with 25 employees in offices in Sydney, Singapore and London.