SME-focused private equity fund Blue Sky to pursue sharemarket listing for US growth

Blue Sky Alternative Investments, the fund manager with investments in private equity, real estate, hedge funds and water, is aiming for a sharemarket listing to help fund US expansion.

The Brisbane-based business, which has more than $180 million under investment and around 24 staff members, is only a few years old.

Its private equity business has invested in Lenard’s Chicken, toilet group Viking Rentals, Beach Burrito Co and Paradise Motor Homes.

Last year, Blue Sky Private Equity launched a $50 million fund that attempted to take advantage of a shortage of bank finance by targeting profitable SMEs with solid growth potential. Its model involves injecting “expansion capital” into a business and then working with management to grow the business.

Blue Sky is looking to raise $7.5 million at $1 per share. Blue Sky is selling 22.3% of issued capital, with directors and managers to retain a 65% stake.

Its sharemarket listing, earmarked for December 16, would value the company at around $34 million, and would mark one of the few sharemarket listings of 2011 amid choppy trade.

Blue Sky was contacted for comment this morning but was not available before publication.

Its managing director and founder Mark Sowerby told the AFR that the prime reason for the listing is to “provide investors with access to a fund manager that is listed and transparent.”

Sowerby added it has performed strongly, even during the past few difficult years. “We’ve got a track record of no losses,” he said. “Our philosophy is to preserve capital first and then make money.”

Tim Wilson, managing director of Blue Sky Private Equity, was bullish when speaking with SmartCompany in the middle of the year.

“While the economy is not as strong as I thought it would be by now, it’s still time to be investing money,” Wilson said.

“And if you have a three-to-five year timeframe, you’d be anticipating that things would be better by then.”