MELBOURNE (Reuters) - London-based Kimura Capital and global asset manager GAM Investments are raising capital for a fund in Australia that will comprise loans backed by physical commodity assets.
The fund's target return is between 6%-8% percent per annum to investors, and expects to raise "significantly more" than A$100 million from the region, Kimura Capital Chief Executive Kristofer Tremaine told Reuters.
Funds will be deployed as working capital finance to small- and medium-sized enterprises, which have suffered in recent years as large global banks have curbed credit lines partly to comply with tougher capital holding regulations.
Kimura is targeting companies with $50 million-$500 million balance sheets, across Europe, Asia and the Americas along the producer to consumer supply chain.
As returns have been more predictable than other assets, Kimura has found significant interest from Australian superannuation funds and insurers, Tremaine said.
"What we are beginning to see now is much more institutional money wanting to come into the space," he told Reuters.
(Reporting by Melanie Burton, Editing by Sherry Jacob-Phillips)
