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Auctus Asset Management (ASX:AVC) completes initial Luxury Escapes investment

ASX 200, Finance
ASX:AVC      MCAP $45.35M
22 December 2021 16:15 (AEDT)
Auctus Asset Management (ASX:AVC) - Managing Director, Campbell McComb

Source: Auctus Asset Management

Auctus Asset Management (AVC) has completed the first close on its investment in the Luxury Escapes fund after receiving strong demand from investors.

The investment in Lux Group, via its Luxury Escapes fund, was through Auctus’ wholly-owned subsidiary, Auctus Asset Management (AAM).

The investment was made through a combination of a $32 million convertible note into Lux and the purchase of around $36 million of equity from existing shareholders.

The fund was said to be well received by investors following Luxury Escapes’ record sales result in October, with the online travel agency being one of Australia’s best-performing travel businesses following the re-opening of international borders.  

Altogether, the fund will have a shareholding of approximately 17.8 per cent.

Auctus Asset Management is the manager of the fund and will generate management and performance fees from the fund.

Having closed the Luxury Escapes fund, AAM now has assets under management of over $460 million, an increase of over 30 per cent from June 2021.

The company said it will provide a final half-year assets under management number in its quarterly update in late January 2022.

Auctus Asset Management finished the day of trading at $1.25.

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