Private Equity Portfolio

VPESO will only make secondary investments into or alongside, later expansion and buyout funds that target the consistently strong performing, lower to mid-market segment of Private Equity in Australia and New Zealand, where businesses typically have an enterprise value of between $25m – $250m at initial investment. This segment of Private Equity is attractive due to the following reasons:

  • 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.

August 2021
VPESO completed the secondary acquisition of a $10m investment commitment and the underlying investments in the Advent Partners 2 Fund.
September 2021
VPESO completed the secondary acquisition of a $5m investment commitment and underlying investments of Anchorage Capital Partners Fund III.
September 2021
VPESO completed an initial secondary acquisition of a $1.5m of commitments and underlying investments of Vantage Private Equity Growth 3 (VPEG3)
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.
September 2023
VPESO completed the secondary acquisition of a $6m investment commitment and underlying investments of The Growth Fund III.
September 2023
VPESO completed an initial secondary acquisition of a $1.1m of commitments and underlying investments of Vantage Private Equity Growth 4 (VPEG4)

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

**Totals include only investments or exits completed as at 31 March 2023 and excludes duplicates