TORONTO, Oct. 10, 2017 /CNW/ - Qualified investors looking for highly sought-after investments in the growing Private Equity (PE) secondary market can now take advantage of a unique new Cygnus fund that will provide them with access to top-tier PE strategies starting as low as US$250,0001.
Cygnus Investment Partners LP announced today that it is rolling out Cygnus Secondary Focus Fund LP. As an extension of its proprietary relationship with a leading global private equity firm, Cygnus is expanding its investment solutions into the secondary market. Cygnus will acquire secondary private equity assets via negotiated secondary market transactions.
"This new Cygnus fund is a natural evolution of our business model, built on innovation and access to what we call "Tier 1" global alternative investment management," said Dan Geraci, managing partner at Cygnus. "We've identified both a unique opportunity and a demand in the marketplace for secondary investments, which are in lesser supply and are more difficult to access than primary investments for many investors." The fund is being offered to institutions, family offices and financial intermediaries1.
The secondary market, part of the expanding alternative investment sector, has seen rapid growth in recent years. Secondary investments provide investors with the opportunity to purchase mature private equity assets with greater visibility into underlying fund holdings and performance, a shorter duration investment horizon, typically accelerated distributions, and enhanced diversification of investment portfolio by type, size and geography2.
"Secondaries are a great way for investors to bypass the initial investment period of a primary fund, investing when the portfolio is between 50-100% invested and performance can be better measured," said Geraci. The innovative Cygnus Fund provides access for accredited and permitted clients with investments as low as US$250,000 versus the much higher minimums for the same strategies on a direct basis. Core investments in the fund are acquisitions of top-tier private and growth equity assets. The fund has a term of seven years and is targeting its first close in the fall of 2017.
Cygnus has tapped the secondary market experience and expertise of Toronto-based Morningside Capital Management Inc. to consult on the implementation of Cygnus' secondary investment strategy. "Cygnus' innovative entry in the secondaries market is both timely and on target. Bringing these opportunities to a much broader market provides access to this kind of performance opportunity we know exists in secondaries," said Henry Zhang, Founding Partner of Morningside.
Cygnus Investment Partners LP (Cygnus) is an alternative investment firm that delivers proprietary Canadian access to the investment strategies of one of the world's pre-eminent private equity firms. Through Cygnus, Canadian institutional investors and qualified private investors, can access first-quartile track record and global diversification, within innovative Canadian product structures. www.cygnusinvestmentpartners.com
1 Cygnus Secondary Focus Fund LP is restricted to Canadian residents who are accredited investors (as defined in NI 45-106), permitted clients (as defined in NI 31-103) and/or professional advisors serving same.
2 Past performance is not indicative of future returns.
SOURCE Cygnus Investment Partners
For further information: Dan Geraci, Managing Partner, Cygnus at 416-583-5585