Three super-rich clients pump $100m into Singapore VCC fund

Singapore’s Kamet Capital Partners said three clients have pumped $100m into a fund it incorporated under the Variable Capital Company (VCC) framework.  

The clients are founders of a Chinese technology unicorn, consumer brand company, and a hospitality services company in Asia, co-founder and CEO Kerry Goh told Citywire Asia.

The Kamet Long Term Capital fund, launched by the multi-family office in January, was only opened to its clients.     

Focusing on the technology, healthcare and consumer sectors, it invests around 70% of its portfolio in public securities, and 30% in alternatives and private investments. 

Although this broad allocation hasn’t changed, Goh said it loaded up on risk and unwound hedges in March. While Kamet Capital actively invests in both public and private markets, the public sector threw out more opportunities with Covid-19. ‘The strategy showcases how a new economy founder invests.

‘Old economy founders like real estate and real assets. New economy founders go for assets in disruptive technology and healthcare sectors, that are very current views,’ he said. The fund is currently underweight on the consumer theme in public and private arenas. ‘Covid was a big disruption to consumption and going online has been enhanced.

‘Digital businesses are picking up, so there has been a shift in consumer behaviour,’ Goh said. 

Over in fixed income, it invests in traditional and alternative credit, including agency and non-agency mortgage-backed securities. 

Kamet Capital’s expertise in multi-asset investing and benchmark-agnostic approach will set the fund apart, Goh believes. 

The multi-family office, which manages over $1bn in assets for four clients, has several investments lined up. This includes backing a Thai healthcare business in the second half of 2020. It is also a shareholder of Singapore telehealth startup Doctor Anywhere, and participated in a $27m Series B funding round for the firm in March.

Looking ahead

Goh has his sights set on expansion. There have been five new starters at Kamet Capital since April. 

Two more will join its administrative team by September, that will bring its headcount to 25. 

‘Mid- and back-office support is what a multi-family needs to grow and scale. We have an approximate ratio of 6:1, in terms of employees to clients,’ he said. 

With a bigger team, the fund could be extended to other investors. ‘This comes back to resources. We currently don’t have a sales team that can focus on opening up the fund,’ Goh quipped.

The Kamet Long Term Capital Fund targets to return 5%-10% net per annum over a market cycle. It has returned 3.1% since its launch to end June.

Other multi-family offices have incorporated funds under Singapore’s VCC framework. Envysion Wealth Management was the latest to start a VCC, amid a clampdown on Covid in April

Last month, it said the Envysion Commodity Strategy fund had raised $3m from accredited and institutional investors. The open-ended fund, which invests in the receivables of nickel trades, accepts subscriptions on a monthly basis.

Citywire Asia 3 July 2020

By Annabelle Liang

Further reading from Kamet capital