The new fund is value in style and seeks to take a private equity approach to investing in public companies.
Wylie confirmed the plan to Street Talk on Wednesday.
“We bring the skills of an investment banker, operational executive or management consultant, but the mindset and economic interest of a shareholder,” he said.
The Tanarra team is expected to stay close to its portfolio companies and engage with management teams, similar to offshore funds like Swedish investment firm Cevian Partners (run by Pacific Equity Partners co-founder Rickard Gardell’s brother Christer Gardell) or ValueAct Capital from San Francisco.
Tanarra already has a bunch of listed equity investments, such as a 5 per cent stake in FlexiGroup as disclosed in March, which is one example of the sorts of long-term value plays it’s looking for.
The move sees Tanarra seek to plug a widening gap in equities investment markets caused by money flowing out of active fund managers and into passive investment strategies.