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IPO Wealth Fund passes $75 million in capital raised as investors seek cash alternative

More than $60 million has flowed into the Australian managed investment scheme fund in 2018.
IPO Wealth team members
The team at Melbourne-based IPO Wealth

IPO Wealth Fund has passed the $75 million mark in capital raised as investors seek income-producing cash alternatives amid Australian stock and property market volatility.

The Australian managed, Melbourne-based investment scheme, which started in March 2017, has seen more than $60 million flow into the fund in 2018.

IPO Wealth, a wholly-owned subsidiary of international investment group Mayfair 101, said the fund was attracting a lot of interest and achieving strong growth.

Non-bank alternative

This comes as investors find the non-bank alternative an attractive option due to its exposure to Mayfair 101’s portfolio of growth companies internationally.

This is boosted by the ability to earn rates of return that have consistently outperformed term deposits since inception.

Mayfair 101 managing director James Mawhinney said: “Wholesale and sophisticated investors are becoming increasingly aware that new options are available to decrease their exposure to the Australian property market and volatility of the ASX.

“IPO Wealth is one of those options, and we are delighted to be able to provide investors with the opportunity to earn consistent monthly returns.”

READ: IPO Wealth Fund attracts $50 million in investments and is well on way to $100 million

He said the international investment group’s strategy provided Australian wholesale investors with the opportunity to benefit from cost efficiencies.

These were associated with technology platforms, lower corporate overheads compared to many of its competitors, and a diversified international focus which provided a greater pool of solid investment opportunities.

IPO Wealth Fund provides wholesale investors with an opportunity to achieve investment returns via term-based investment options.

Six investment options

The fund offers six different investment options ranging from terms of three to 60 months.

Most popular with investors is the 12-month investment option offering an annual target income return of 4.45%. Like with all investments, investors should consider the risks outlined prior to making an investment in the fund.

Investment amounts accepted from wholesale and sophisticated investors range from a minimum of $100,000 to a maximum of $20 million. These investment options are not available to retail investors.

Plans for UK fund

Building on the success of IPO Wealth, Mayfair 101 has announced plans to establish an equivalent fund in the UK managed by M12 Global.

This will allow the group to access a larger pool of capital at a lower cost base due to the low-interest environment of the UK and Europe.

Accordingly, M12 Global has appointed former Morgan Stanley executive Charles Grant as its chief executive officer to head up the European structure.

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IPO Wealth Timeline

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September 18 2018

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