UBS Investment Bank has partnered with funds management firm Magellan Financial Group to launch a number of new funds that are intended to take advantage of the ongoing debt and equity market dislocations.
Due to be launched in early 2009, the first fund will be an unlisted fund aimed at domestic and international institutional investors and targeting investment opportunities that are unable to access initial public offering (IPO) markets due to market conditions.
A new chief executive will be appointed to head the new initiative shortly.
Magellan chairman Hamish Douglass said the group entered into the strategic alliance with UBS in order to gain access to its expertise, particularly in the pre-IPO investments area through the UBS Alternative Capital Group.
“We believe that the current market dislocation is creating considerable opportunities for disciplined investors. UBS and Magellan both believe that there are few, if any, comparable investment vehicles targeting pre-IPO and follow on private equity opportunities in Australasia,” Douglass said.
“Leveraging the strengths of both Magellan and UBS will enable the fund to access investment opportunities and generate attractive investment returns for investors.”
UBS chief executive officer Mathew Grounds said the ongoing market crisis had created a number of opportunities for patient and flexible capital.
“This strategic relationship leverages UBS’s investment banking services and Magellan’s investment management expertise to take advantage of current and future opportunities for our clients,” he said.
