HMC Capital slips on plans for new PE fund
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More news: Shares in HMC Capital are down 2.5% to $6.07 after the investment manager said it will transition the successful HMCCP Fund I into a closed-end private equity fund to reflect the changing nature of the underlying investments over time.
HMC said it has a pipeline of unlisted opportunities under review for Fund II, including participation in the potential opportunity to acquire and recapitalise Healthscope.
HMC Capital to pocket $150m from fund payout, eyes new PE fund
The news: Investment manager HMC Capital expects to receive a $150 million distribution from its HMCCP Fund I and has outlined plans to launch a closed-end private equity fund.
The numbers: HMC said its HMC Capital Partners Fund I (HMCCP Fund I) has declared an interim FY25 distribution totalling $300 million. As the largest investor in the fund, HMC will receive a distribution of $150 million in mid-April.
Based on its year-to-date performance, HMC also said annualised FY25 operating EPS is currently tracking at 70 cents per security and reaffirmed distribution per share guidance of 12.0 cents.
The context: HMC said the interim distribution payable to HMCCP Fund I unitholders reflects the significant realised gains on the HMCCP Fund I investments in Sigma Healthcare, which recently merged with Chemist Warehouse, and aged care operator Ingenia Communities.
It said HMCCP Fund I trustees have determined to re-weight future investments towards unlisted opportunities and the highest conviction strategic stakes in listed entities where they see material upside and/or the potential for corporate M&A activity.
As a result, it will seek unitholder approval to amend the trust deed to reflect a more traditional private equity fund structure to change from an open-ended structure to a closed-end structure, aligning with a more traditional private equity model and the evolving nature of its investments. It will also change the fund name to HMC Capital Partners Fund II.
The investment manager said it has a pipeline of unlisted opportunities under review for Fund II, including participation in the potential opportunity to acquire and recapitalise Healthscope.
The source: ASX
