Contango Asset Management, backed by billionaire James Packer, is bringing Laguna Beach California to Australia.
Contango is understood to have partnered with WCM Investment Management for a new listed investment company focussing on global stocks.
Sources told Street Talk that pre-marketing and a non-deal roadshow was underway after a joint venture between Contango and active global growth manager WCM was sealed.
A handful of joint lead managers are expected to get a guernsey on the transaction. The fund appears to be seeking to capitalise on the growth and bumper demand for the global stocks asset class.
WCM is employee owned and based in Laguna Beach, California, according to its website. The firm manages somewhere in the order of US$16 billion.
The manager is said to be highly regarded and its Quality Global Growth Fund has returned 15.7 per cent annualised over a seven year period, net of fees.
Packer and business partner, Robert Rankin, supported a buyout of Contango, which listed on the ASX in 2016. They are also said to want more exposure to the global stocks pie.
While it is unclear how much the new LIC will raise the fund managers typically look to secure several hundreds of millions.
The LIC space does appear to be getting somewhat crowded but demand for global stocks exposure remains strong.
A local comparable, although in a different asset class, is Argo Global Listed Infrastructure which is managed by global investment group Cohen & Steers Capital Management.
It's shares are trading below net tangible assets.
Pinnacle-backed Antipodes Global Investment Partners is also represented in the broader space, which was locally spearheaded by ASX-listed Magellan about a decade ago.
