GSFM debuts Euro small, mid caps fund for Aussie investors

Australian fund manager GSFM has confirmed a new partnership with European investment firm Alantra to distribute its small and medium-cap listed strategy locally.

The fund, known as EQMC, invests in publicly listed European small and mid-cap companies (with a market cap of up to €2 billion, or AU$3.3 billion).

According to GSFM, this asset class is rarely available to Australian investors. It also offers GSFM clients for the first time exposure to a European market asset class.

The fund will be made available to institutional, wholesale and family office investors, and holds around €1.3 billion (AU$2.12 billion) in assets under management.

The fund is one of the best performing of its kind, GSFM boasts, targeting companies that apply “a hands-on, active ownership approach with a long-term focus of between three to five years”, added GSFM chief executive Damien McIntyre.

Launched in early 2010, the actively managed fund, which is overseen by a 14-member investment team, has achieved 11% net annualised returns since inception, outperforming the index by more than 90% to 190%.

The fund has thus effectively “outperformed most hedge funds”, Alantra notes, providing “controlled risk while typically holding a small net cash position with no leverage”.

The EQMC holds a concentrated portfolio of between 12 to 16 companies, with a bias towards export-oriented pan-European businesses.

“The investment philosophy behind this strategy is appealing, with its strict value metrics, focus on active engagement and exposure to high-quality assets in global markets,” said McIntyre.

The fund is headed by Jacobo Llanza, executive chair of Alantra, and Francisco De Juan, managing partner and chief investment officer of the EQMC.

Alantra is an independent global mid-market-focused financial services firm providing investment banking, asset management, and private capital services that cover Europe, the US, Latin America, and Asia.

As of 31 March 2024, Alantra’s assets under management from consolidated and strategic businesses totalled more than €16.6 billion.

GSFM’s Alantra deal follows recently secured partnerships with Eastspring Investment Partners to distribute the GEM Dynamic Strategy in April of this year, and with Access Capital Partners to distribute the Access European Smaller Buy-outs and Access European Infrastructure strategies in December 2023.

GFSM currently has nine separate distribution deals with specialist investment managers globally.