Australian financial services firm Barrenjoey will donate the management fees for its latest fund (“net of operating costs”) to philanthropic projects, the firm has announced.
Barrenjoey’s Community Capital Credit Fund has raised $280 million for a fund of funds that will invest in private credit vehicles managed by GPs such as Partners Group, Varde Partners, Hayfin, PAG and Bain Capital. CCCF is expected to make donations of between A$10 million ($6.8 million; €6.4 million) and A$20 million to between 10 and 15 social purpose organisations, Barrenjoey said. Investors in the fund include Australian Retirement Trust, Minderoo Foundation, MLC Asset Management and Legalsuper.
The model is reminiscent of Greater Share, which is raising a fund of funds that gives high-net-worth individuals access to private equity funds managed by Advent, Permira, Bain Capital, Cinven, Hg and Nautic Partners. These fund managers will donate their management fees and carried interest and investors will donate between 50 and 100 percent of their capital gains to educational NGOs selected by Greater Share.