Australian Rural Capital Limited (ASX: ARC) has entered into a binding agreement to acquire 40% of the issued share capital of Merewether Capital Management Pty Ltd – a newly established boutique micro and small cap funds management company based in Newcastle, NSW.
It is intended Merewether Capital Management will be appointed as the Investment Manager of the Merewether Capital Inception Fund, which will be established as a wholesale managed fund and is intended to be launched in 2H2021.
Merewether Capital Management will be managed and operated, by Luke Winchester as Managing Director and CEO. Mr Winchester is a well-regarded investor and portfolio manager with experience and expertise in the funds management industry with a focus on investments in ASX listed micro and small cap stocks. Mr Winchester (through his related entities) own the remaining 60% of the issued share capital in Merewether Capital Management.
ARC Managing Director Harley Grosser said his company was delighted to be working with a portfolio manager of Luke’s calibre and look forward to working with him to establish and grow Merewether Capital Management into a successful boutique funds management firm.
The Merewether Capital Management deal represents an important investment consistent with the company’s refined strategic initiatives,” Mr Grosser said.
This transaction will be funded from existing cash reserves of the company.
Australian Rural Capital Limited is an ASX listed public investment and investment management company. It is a principal investor and is now seeking to manage external funds for wholesale and sophisticated investors in this asset class.
The company takes a private equity approach to our investment activity with a long- term time horizon.
Its aim is to acquire, partner or inject equity capital to fund growth or to recapitalise existing operations.