Alternative alpha fund makes Australian debut

Patrick Bunsci

21 April 2023

Isola Capital have announced the launch of a new Global Private Alpha Fund for Australian investors, enabling private investors to get a foothold in the alternative and VC investment space.

Partnering with boutique alternative investment manager, Mantis Funds, with Fullerton to serve as sub-adviser, Isola’s newest fund promises a diversified portfolio of “leading global private equity, venture capital and private credit strategies”.

Mantis said it will work with Isola Capital to build a feeder fund for Australian investors.

Damien Hatfield, partner and head of distribution at Mantis Funds, said the new fund opens the door for private investors to access once inaccessible alternative investments.

“There is strong and growing interest from private clients and their advisers in alternative investments. However, accessing the best private alternative fund managers globally has been challenging,” Hatfield said.

“Prohibitive minimum investment sizes, key vintage and strategy scarcity and even administrative challenges around managing multiple capital call processes have meant that all but the largest institutions in Australia are locked out of the space.”

He added: “We are privileged to be working with Isola Capital and Fullerton Fund Management to bring their market leading fund-of-funds capability to our clients. Based in Hong and Singapore respectively, both firms have outstanding track records in the alternative investment space.”

Anthony Chan, chief executive of Isola Capital, said “patient investors” have much to gain in the current macroeconomic environment.

“Against a volatile macroeconomic backdrop, the return premium to patient investors has never been higher. Private markets can balance portfolio volatility while delivering alpha and balancing potential risk in a less correlated way than traditional asset classes.

“In building private market exposure, we believe it is critical that investors construct a diversified portfolio across strategies and vintages of best-in-class fund managers. Even for large institutions, accessing the top tier of investment managers can be challenging.”