In welcome news for international investors, the Australian Business Growth Fund will base its headquarters in Melbourne, cementing the city's spot as the home of capital funding.
The $520 million Fund will help small to mid-sized firms expand by taking equity stakes of between $5 million to $15 million, with funds to flow from June 2020.
Eligible businesses will need to have annual revenue of $2 million to $100 million, and proof of three years of increasing profitability.
The Fund follows in the footsteps of the $250 million Victorian Business Growth Fund, which was announced earlier this year.
Working with First State Super and VicSuper, the Victorian Fund will also provide small to medium enterprises with the capital they need to grow and create jobs.
Victoria is home to more than 600,000 small businesses that contribute 36 per cent of the state’s output in goods and services and generate almost half of private sector jobs across the state.
The state also has 34 per cent of superannuation funds in Australia, including VicSuper, Hostplus and AustralianSuper.
A competitive process is currently underway to appoint an independent fund manager, while the fund’s investment guidelines and further opportunities will be outlined next year.
