Aura Private Equity Back to the Future Fund 2
The Fund aims to generate a target return of 20% p.a. (net of fees and expenses) by investing in private equity within Southeast Asia’s emerging economies. We leverage a proprietary data-driven “Time Machine” methodology to identify strategically investible sectors and business models, prioritising industries and sectors that are aligned to ESG-led priorities and the UN Sustainable Development Goals.
About the Fund
The Aura Private Equity Back to the Future Fund 2 (the Fund) is Aura Private Equity’s inaugural blind-pool fund, marking an evolution in investment strategy from single-asset dealmaking to blind-pool deployment.
With a targeted corpus of US$100–200m, the Fund will deploy into mid-market private equity opportunities with a focus on investing into market leaders and challengers in emerging Southeast Asia. Aura Private Equity aims to leverage the use of a proprietary data-driven “Time Machine” methodology. This process identifies strategically investible sectors and business models by investigating strong “time-lag” effects between Southeast Asian markets and more advanced Asian private equity markets like Singapore, China, India and South Korea. Industries and sectors that are aligned to the UN Sustainable Development goals are prioritised.
Fund Strategy
Aura Private Equity’s proprietary Time Machine methodology reviews historical data sets of economic, IPO, M&A and private funding from advanced Asian PE markets, such as Singapore, China, South Korea, and India. It aims to identify high-potential sectors with attractive dynamics and determine patterns for winning formulas within company-specific variables, like business models and customer segments. Using this overlay, the team executes deep research to originate opportunities that identify leading companies and teams to invest in.
Post-investment, Aura Private Equity’s approach centres on asset-level transformative change through strategic support, M&A, access to capital, exit timing and facilitating stronger alignment to ESG standards at the asset level.
32%
2.03x
US$54m
0.92
1,2,3,4 Based on Capital deployed across all APE investments (incl. funds raised for Aura Group’s SPAC sponsorship); Gross IRR and Net IRR based on performance of all APE investments as of December 2022 (current and exited) (excl. the SPAC fund) based on internal valuations, Gross realization includes total distributions and performance fees. Past performance is not a reliable indicator of future performance. DPI is0.98 including distribution from AVDF-1 exit expected to crystallise in June 2023.
3 Includes US$7m co-investment amount into 1300 Australia. FUM as of 31 December 2022.
Access to a proprietary data-driven “Time Machine” investment strategy
A robust track record in value Creation and Returns generation
An attractive growth opportunity in Southeast Asia
Strong LP alignment with significant GP commitment
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Eligible Investors
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Type, Frequency & Target Return
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Minimum Funds & Investment Period
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Fees
Wholesale clients as defined by the Corporations Act who have an accountant’s certificate confirming a gross income of over $250,000 p.a. in each of the previous two years and or net assets of at least $2.5 million. Alternatively, you may qualify without an accountant’s certificate if you invest $500,000 or more.
• The Aura Private Equity Back to the Future Fund II is a closed-ended fund targeting a return of 20% IRR (net of fees)
• Terms: 8 years from final close (two yearly extensions, second year with LP consent)
• Target fund size: US$100m–200m
• First close: US$20–30m, final close within 12–18 months from first close
• Investment period: Shall commence on the initial closing date until the second anniversary of the final closing date
- 2% per annum of total capital commitments as management fees
- 20% carried interest with GP catch-up over 8% hurdle
- Benchmark – not applicable
Is this Fund suitable for me?
The Fund is suitable for investors seeking exposure to an alternative asset class comprising investments in privately held companies structured via equity or equity-linked instruments. Such investors should be comfortable with the risks associated with investments into private companies (as outlined in the Fund’s Information Memorandum and Supplemental Memorandum) and the illiquid nature of the investment.
What is the Fund's investment objective?
The Fund’s objective is to achieve a 20% IRR (net of fees and expenses) via minority and/or majority investments in privately held middle-market companies in Southeast Asia. We will aim to leverage our proprietary “Time Machine” investment strategy to identify key industries within emerging Southeast Asia with high growth potential based on historical trends in advanced Asian markets (e.g Korea, China, India, Singapore), and target suitable companies for investment.
Where does the Fund invest?
The Fund will primarily be focused on privately held companies with their core business located within emerging markets in Southeast Asia (i.e Indonesia, Philippines and Vietnam) and opportunistically in developing Southeast Asian markets (i.e Thailand and Malaysia).
What is the minimum initial investment?
The minimum initial investment is US$500,000 or lower at the fund manager’s discretion.
How often is income paid?
The Fund is not envisioned to make regular distributions prior to the end of its charter, but may make such distributions from time to time at the advice of the fund manager , depending on availability of income from sources, such as portfolio company dividends or exits.
Important Information
This information is for qualified, institutional, wholesale or sophisticated investors only. Any financial product advice given in this report is of a general nature only. The information has been provided without taking into account the investment objectives, financial situation or needs of any particular investor. Therefore, before acting on the information contained in this report you should seek professional advice and consider whether the information is appropriate in light of your objectives, financial situation and needs. Aura does not guarantee the performance of its funds, the repayment of any capital or any rate of return. Investing in any financial product is subject to investment risk including possible loss. Past performance is not a reliable indicator of future performance. Information in this report is based on the information provided to Aura by third parties that may not have been verified. Aura believes that the information is reliable but does not guarantee its accuracy or completeness. Aura is not able to give tax advice and accordingly investors should obtain independent advice from an accountant and/or lawyer before making any decision based on the tax treatment of its investors. You must read the Aura Master Fund VCC Information Memorandum, Supplemental Memorandum and Subscription Agreement and seek professional advice before making a decision to invest in any of the funds.
Aura Group subsidiaries issuing this information include Aura Group (Singapore) Pte Ltd (Registration No. 201537140R) which is regulated by the Monetary Authority of Singapore as a holder of a Capital Markets Services Licence, and Aura Capital Pty Ltd (ACN 143 700 887) Australian Financial Services Licence 366230 holder in Australia and is issued to accredited, qualified, wholesale, sophisticated and institutional investors only. This email only relates to general news and information only and should not be construed as an offer. View our Privacy Policy here.