- There is less competition for deals, businesses can be purchased at lower purchase multiples and lower levels of debt are utilised in this segment than the highly competitive, large or mega market private equity fund space, that is dominated by global private equity firms.
- The majority of growth in value of private equity backed businesses in this segment is generated by sustainable earnings enhancement rather than the financial engineering or cost cutting approach that is typical of the larger market space.
- Private Equity executives work more actively in partnership with the management of portfolio companies in this segment and bring deep financial and business skills as well as the broad networks and experience that are essential for transformational business growth.
- This segment also benefits from the ability for Private Equity funds to exit (or sell) portfolio companies by several different methods, including;
- an Initial Public Offer (or listing on a public market),
- a Trade Sale to a larger industry player or
- as a “Secondary Sale” to a larger, often global, private equity fund.
Secondary acquisitions will be achieved by acquiring, at a discount to current valuations, direct secondary positions in private equity funds, interests from existing Vantage Private Equity Growth Fund series (VPEG2, VPEG3 & VPEG4) investors, as well as selectively investing in co-investments, led by specialised private equity
fund managers, into profitable companies.
As VPESO develops its Private Equity portfolio over time, a summary of each underlying fund commitment and investment is provided below.
February 2022
VPESO’s Investment Committee approve a $2 million co-investment alongside Allegro Fund IV into Gull New Zealand, a leading independent fuel distributor and retailer in New Zealand with a prominent challenger brand through its network of 112 fuel sites across the country, regional New South Wales.
September 2022
VPESO’s Investment Committee approve a $2 million co-investment alongside Next Capital Fund IV into Compare Club, one of Australia’s leading personal finance marketplaces, currently offering comparison and brokerage services across health insurance, life insurance and home loan products.
April 2023
VPESO Completes the Secondary acquisition of a $1.0 million investment commitment and underlying investments in Genesis Capital Fund I.
Details of VPESO′s Current Secondary Private Equity Acquisitions:
Acquisition
Fund / Deal Size
Vintage Year
Investment Focus / Type
VPESO Acquired Commitment
Paid-in Capital
Total No. of Investee Companies
No. of Exits
Advent Partners 2
$300m
2017
Lower to Mid Market Growth / Buyout
$10.0m
$9.33m
7
1
Anchorage Capital Partners Fund III
$350m
2017
Mid Market Turnaround / Buyout
$5.0m
$4.94m
5
2
Vantage Private Equity Growth 3 (VPEG3)
$67.5m
2019
Fund of Funds - Lower to Mid Market Growth / Buyout / Turnaround
$6.70m
$5.34m
50
10
The Growth Fund III
$450m
2017
Mid Market Expansion / Buyout
$1.10m
$0.64m
8
0
Vantage Private Equity Growth 4 (VPEG4)
$180m
2021
Fund of Funds - Lower to Mid Market Growth / Buyout / Turnaround
$6.00m
$5.38m
12
1
Co-invest No.1 (Gull New Zealand)
~$500m
2022
Mid Market Special Situations
$1.10m
$0.62m
31
1
Co-invest No.2 (Compare Club)
$110m
2022
Lower to Mid Market Expansion
$2.00m
$2.00m
1
0
Co-invest
No. 3 (Pac Trading)
$71m
2023
Lower to Mid
Market Growth Capital / Buyout
$1.00m
$1.02m
1
0
Totals**
$34.90m
$31.27m
104
12
Acquisition | Fund / Deal Size | Vintage Year | Investment Focus / Type | VPESO Acquired Commitment | Paid-in Capital | Total No. of Investee Companies | No. of Exits |
---|---|---|---|---|---|---|---|
Advent Partners 2 | $300m | 2017 | Lower to Mid Market Growth / Buyout | $10.0m | $9.33m | 7 | 1 |
Anchorage Capital Partners Fund III | $350m | 2017 | Mid Market Turnaround / Buyout | $5.0m | $4.94m | 5 | 2 |
Vantage Private Equity Growth 3 (VPEG3) | $67.5m | 2019 | Fund of Funds - Lower to Mid Market Growth / Buyout / Turnaround | $6.70m | $5.34m | 50 | 10 |
The Growth Fund III | $450m | 2017 | Mid Market Expansion / Buyout | $1.10m | $0.64m | 8 | 0 |
Vantage Private Equity Growth 4 (VPEG4) | $180m | 2021 | Fund of Funds - Lower to Mid Market Growth / Buyout / Turnaround | $6.00m | $5.38m | 12 | 1 |
Co-invest No.1 (Gull New Zealand) | ~$500m | 2022 | Mid Market Special Situations | $1.10m | $0.62m | 31 | 1 |
Co-invest No.2 (Compare Club) | $110m | 2022 | Lower to Mid Market Expansion | $2.00m | $2.00m | 1 | 0 |
Co-invest No. 3 (Pac Trading) | $71m | 2023 | Lower to Mid Market Growth Capital / Buyout | $1.00m | $1.02m | 1 | 0 |
Totals** | $34.90m | $31.27m | 104 | 12 | |||
**Totals include only investments or exits completed as at 31 March 2023 and excludes duplicates