Gryphon Capital Investments has launched a A$97.3 million capital raising for its listed securitised asset fund, Gryphon Capital Investment Trust, saying it sees an opportunity to diversify the portfolio and expand the investor base.  The fund currently has a market capitalisation of just over $500 million. The offer, which opens on Thursday, is a one-for-five non-renounceable entitlement offer to existing unitholders at $2 per new unit. New investors will be invited to subscribe for units not taken up under the entitlement offer.  The fund was launched in 2018 and since then has paid an average distribution of 5.5 per cent a year – ahead of its target return of 4.9 per cent (the RBA cash rates plus 3.5 per cent). The portfolio is made up entirely of locally issued residential mortgage-backed securities and asset-backed securities. Last year, Gryphon Capital Partners, which owns Gryphon Capital Investments, was acquired by global investment manager Barings. Gryphon founders and portfolio managers Steven Fleming and Ashley Burtenshaw stayed on as portfolio managers for Gryphon Capital Investments At the time, Barings said it would support Gryphon’s long-term growth strategy. The capital raising shows that it is making good on its commitment.