The Markets December 10, 2007

Firms Offer Private Equity Mutual Fund

ALPS Fund Services and Red Rocks Capital, a Denver-based investment adviser specializing in products investing in private equity, are together launching a mutual fund that invests in the common stock of publicly-traded private equity companies.
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The Listed Private Equity Fund is advised by Denver-based ALPS Advisers and sub-advised by Red Rocks Capital, according to a news release.

The announcement said the fund has three share classes covering institutional and retail audiences and will be available through financial intermediaries and on most mutual fund platforms. The fund targets institutions, financial advisers, family offices, and individual investors through 401(k) programs and as part of an overall diversified portfolio.

The new offering is comprised of 30 to 50 international and domestic publicly-traded private equity firms that, in turn, have investments in more than 1,500 private businesses. The average market capitalization of the anticipated portfolio is approximately $3 billion.

“Private equity has been the cornerstone of institutional investors’ asset allocation strategies for years but, until now, most other investors haven’t had access to this important asset class because of very high investment minimums and a lack of liquidity since investments are typically tied up for more than seven years,’ said Corey Dillon, Director of Institutional Advisory Services at ALPS, in the news release.

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