SEEK updates terms for growth fund stage two

• SEEK unitholders approved revised terms for Stage 2 of the SEEK Growth Fund, establishing a target to deliver at least $840 million in liquidity.
• The annual management fees paid by the company will drop to approximately $17 million, down from $18 million previously.
• Incentive payouts for the fund manager are now tied to returning substantial capital, aligning with Seek's strategy to lower its 83.8% stake over time.

SEEK (ASX:SEK) announced updated terms for the second five-year phase of the SEEK Growth Fund, introducing an $840 million liquidity threshold required before performance incentives are paid.

The revised framework splits assets into Core Assets valued at $1.25 billion and non-core assets valued at $499 million based on September valuations.

"Our priority is, and has always been, to maximise the value of our investment in the Fund and receive liquidity over time," said SEEK Managing Director and CEO Ian Narev.

Management fees paid by the company will fall to around $17 million annually, while $5 million in fees for internal assets like Zhaopin and JobAdder were removed as SEEK took over direct management.

The business stated it will make no further capital contributions to the fund, expecting its 83.8% ownership stake to decline over time.

Following the announcement the SEEK share price was up at $13.12.

Since the fund's establishment in 2021, it has generated a 12% return on investment and returned $233 million to unitholders.

The business continues to evaluate the potential near-term sale of assets valued at over $1 billion to support its liquidity targets.