Australia’s Hyperion to enter the private equity space

Hyperion, which has more than A$3.2 billion in assets under management, will begin fundraising in May, The Wall Street Journal reported. Emmanuel Pohl, the company's founder, will lead the private equity project, handing over some of his other responsibilities to Tim Samway, institutional business director.

Pohl said there are considerable opportunities in Australia's small-cap space because banks are unwilling to lend to such companies while listing costs are too high.

This confirms observations made by John Story, managing director of Catalyst Investment Managers, speaking to AVCJ in February. Citing Catalyst's investment in mining services provider Morris Corporation as an example, Story said that banks are increasingly wary about the amount of leverage they are willing to grant privately-owned companies. Private equity is a good antidote, offering capital, expertise and established relationships with the major domestic banks that dominate mid-market financing.

Hyperion has a strong track record in the listed small-cap space, with the Hyperion Small Growth Companies Fund delivering annual returns of 24.9% since its inception in 2002, compared to a 9.37% gain in the ASX Small Ordinaries Accumulation Index over the same period.

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• Topics
• Australasia
• Fundraising
• Expansion
• Australia
• Fundraising
• Growth capital
• Catalyst Investment Managers