- Powerhouse Ventures (PVL) and Capital H Management have signed a deal to form a 50:50 joint venture to establish a new funds management strategy
- As part of this strategy, the companies will launch an investment manager of a wholesale unlisted managed fund, tentatively named NewCo
- The fund will invest in technology and innovation companies, with a particular focus on ASX mlisters
- Before the fund can be officially launched, Powerhouse and Capital will each have to invest up to $2 million in the fund once NewCo launches it
- Company shares have dropped 3.45 per cent to trade at 14 cents
Powerhouse Ventures (PVL) and Capital H Management have reached a binding agreement to incorporate a 50:50 joint venture.
The equally split joint venture will establish a new funds management strategy, tentatively named”NewCo”.
NewCo will be the investment manager of a newly launched wholesale unlisted managed fund which will invest in leading technology and innovation companies. In particular, it will focus on emerging ASX-listed tech stocks and the ability to invest in global stocks and pre-initial public offering (IPO) opportunities.
The investment fund will leverage Capital H Management’s listed market and investment expertise and PVL’s market-leading insights and network.
“Capital H Management is pleased to be able to work with PVL in creating this new funds management strategy and to leverage the decade plus experience that the company has in investing in the early stage commercialisation space,” Capital H Management Founder and CEO Harley Grosser said.
The agreement is conditional on both companies each investing up to $2 million at the time of NewCo launching the fund and all binding resolutions put to shareholders at PVL’s shareholder meeting which will be held on May 19.
“PVL is delighted to have reached this in principle agreement with Capital H Management. The PVL Board hopes this will be the first of a number of funds management initiatives established over the coming years,” PVL Executive Chairman Russell Yardley said.
NewCo is expected to be established in the next few weeks and the companies will soon release a presentation to provide shareholders with a rationale surrounding this launch.
Company shares have dropped 3.45 per cent to trade at 14 cents at 2:24 pm AEST.