Investment manager Global Merces has launched a fund with the purpose of providing venture capital for media-related assets, with a focus on intellectual property relating to creation, distribution and monetisation.
Specifically, the GM Media Ventures Fund will concentrate on investing in content and storytellers and people identified as future broadcasters who will own and monetise their audiences in the future, as well as the supporting technology, GM Media Ventures Fund asset manager Adam Schoff said.
“What we’re looking to do is invest in those early-stage start-up businesses where not only will our money be beneficial to them as they grow their business, but access to the talent that we can provide them through our networks and knowledge to hopefully accelerate that growth,” Schoff said.
Global Merces chief executive Holly Grofski pointed out income generated via royalties will be one of the key characteristics of the offering and the element that will appeal to SMSF investors.
“Probably one of the most powerful areas of media is the royalties. We talk to a lot of mums and dads, particularly self-managed super fund and self-funded retirees, and [for them] it’s all about income,” Grofski noted.
“They’re not too worried about growth. They’re after the income and that’s where the royalties are so powerful.”
The manager is looking to generate a yearly return of 30 per cent from the fund, which operates with a five-year term.
“At the end of the first five years we will probably look to roll [the monies of the fund] across into some sort of fixed income [product] or an annuity,” Grofski revealed.
Global Merces is aiming to raise $80 million to $100 million of capital through the Media Ventures Fund and is targeting allocations from wholesale, sophisticated and retail investors.
The offering is not included on any financial planning dealer group approved product lists, but retail investors can access the Global Merces Media Ventures Fund via the manager’s fund of fund for a minimum amount of $5000.
