An ASX-listed alternative investment manager has entered into non-binding term sheet with New York-based early stage venture capital firm Scout Ventures for a stake in a proposed US$50 million fund.

A corporate governance expert believes confidence in Australia's financial institutions will continue to fall while they remain exposed to the pursuit of profit to the detriment of customers.

Pengana's listed investment company posted solid profits for the financial year, springing back from last year's losses of $23 million.

There are signs of life in Fairfax yet but the big banks are less promising, according to Auscap Asset Management.