Auctus Alternative Investments Ltd. agreed to acquire a 10% interest in a fund of New York-based early stage venture capital investment firm Scout Ventures.
Auctus entered into a nonbinding terms sheet with Scout Ventures. The Australian company will invest up to A$1 million to acquire a 10% economic interest in Scout Ventures Fund III.
Auctus proposes making the Scout investment through wholly owned subsidiary High Line Alternative Investments Pty. Ltd. Auctus will receive initial and ongoing fees in respect of funds invested by Scout Fund III or any future special purpose vehicles, in addition to potential returns from its interest in the fund.
In relation to the investment, Auctus will appoint Bradley Harrison, managing partner of Scout Ventures, as a member of its board.
The New York firm will assist Auctus in identifying future investment opportunities in emerging and frontier technology industries, as well as provide strategic advice on its existing investments.