$3bn plus take-private bid
looks well placed
Local firm makes $1bn
take-private bid
Full exit planned in $650m
plus IPO
JUNE 2014 · Year 22 No 242
Image: Peters ice cream
Story page 22
CONTENTS
FEATURES
DATA ANALYSIS POINTS TO OPPORTUNITIES
ACQUIRER WILL NOT LEAVE PETERS IN
DEEP FREEZE
REARVIEW MIRROR
17
22
24
EDITOR’S LETTER
PEOPLE MOVES
INVESTEE NEWS
Medical research fund should include
commercialisation3
Managing director leaves
mid-market firm
15
QIC appoints head of new
multi-asset role
15
Misev rejoins Towers Watson
16
Knights takes chair of tourist app
business16
Global executive joins board of
wireless power company
16
Private equity specialist establishes
advisory business
16
Small business software acquisition
INVESTMENT ACTIVITY
Shares Chart
$3bn plus take-private bid looks
well placed
5
Local firm makes $1bn take-private
bid5
Mid-market firm invests in cancer
care12
Drug developer attracts global
investors and $US45m
12
$50m invested in manufactured
homes estates
13
Hackett invests in new battery
technology15
$2m Chinese investment for solar
start-up15
Micro cap plans to take out US
venture investors 15
Shares Chart
PERFORMANCE
Full exit planned in $650m plus IPO 7
Successful float provides $169m
partial exit
7
$1.75bn investee makes promising
8
ASX return
Private equity investee in receivership 8
New float attempt for hotels
operator9
International trade sale provides
quick exit
9
Global firms pass the baton on local
investment10
Exit to return venture capital
investors $US75m
11
Private equity outperforms ASX
over 12 months
11
Venture firms exit laser optical
company13
NEWS
AVCAL criticises budget’s lack of
planning7
Regulations proposed for crowd
sourced equity funding
8
Access sought to Significant
Investor Visa funding
9
Australian incubator ‘best in the
world’13
Telstra to support projects in
research institutions 14
First space technology accelerator
14
15
CONFERENCES & ROUNDTABLES
Dealing with disruptive technologies 16
Coming Events
Coming Events
27
28
NEW FUNDS & FUNDRAISING
Medical research fund
Australian Private Equity & Venture Capital Journal
6
JUNE 2014 · Year 22 No 242
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2
Editor’s Letter
MEDICAL RESEARCH
FUND SHOULD INCLUDE
COMMERCIALISATION
T
he $20 billion Medical Research Future
Fund announced in the federal budget
received a subdued welcome from the
Australian venture capital community.
This was not surprising in the
circumstances. The outline of the fund
made no mention of commercialisation.
Meanwhile, the budget papers announced
abolition of the Innovation Investment Fund
(IIF) program, Commercialisation Australia,
Enterprise Connect and Industry Innovation
Precincts to save $845.6 million. Funding for
the Cooperative Research Centres and Clean
Technology (Investment and Innovation)
programs are also to be reduced over the next
five years to save $124.7 million.
All of these programs specifically assist
innovation and commercialisation whereas the
Medical Research Future Fund is expected to
be directed solely towards medical research.
Australia has a strong record in medical
research but we have been less successful in
commercialising medical technologies and
other scientific discoveries.
Another reason for concern is that the
process of establishing the Medical Research
Future Fund is likely to become embroiled
in party politics. The fund is to be largely
financed by the proposed Medicare copayment which will require most people to
pay $7 for a visit to a doctor. Labor has said
it will oppose this legislation in the Senate,
a move that the Coalition would no doubt
have anticipated.
So is the Medical Research Future Fund
a real commitment to medical research or
more a political trap set for the Opposition
if it opposes the Medicare co-payment? The
scant details in the budget papers suggest
the latter.
Establishing the fund is tied entirely to the
Coalition getting the most contentious part of
its budget legislation through the Senate.
Politics aside, the fund would be of most
benefit to the economy if it were to finance
commercialisation as well as pure research.
Administration of the fund is to be the
responsibility of the board of guardians of the
Future Fund. The Australian venture capital
sector will be unlikely to receive investment
in the accumulation phase of the fund. Local
venture capital funds are simply too small to
be allocated direct investments from a fund
of the planned scale. But this does not mean
the fund would not be able to assist the local
venture capital sector.
The fund is scheduled to accumulate capital
of $20 billion by 2020 and then distribute $1
billion a year in perpetuity.
These two objectives would be best
served by separate mandates and separate
investment teams. The guardians of the
Future Fund and their investment team
could be given free rein to build capital
through international investment, just as they
are doing for the Future Fund. A separate
team could then be assembled to invest
distributions in Australian research and
commercialisation.
Meanwhile, what was in the budget to
ensure innovation and commercialisation
contribute to building the strong and
prosperous economy the government says it
is targeting?
There is the Entrepreneurs’ Infrastructure
Program to which $484.2 million will be
provided over five years. This is to focus
on “supporting the commercialisation of
good ideas”. Apart from that, it sounds
more like a general assistance program for
small business rather than the targeted
Commercialisation Australia.
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contributions. All opinions are
those of the authors. All material
copyright Australian Private
Equity & Venture Capital Journal
and individual authors.
ISSN number: 1038–4324
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Managing Editor, Australian Private Equity
& Venture Capital Journal
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INVESTMENT ACTIVITY
$3bn plus take-private bid
looks well placed
Kohlberg Kravis Roberts (KKR) appears
well positioned to succeed with a takeprivate bid for Treasury Wine Estates
(ASX: TWE) despite the company rejecting
the offer and announcing an extensive
turnaround strategy.
KKR has submitted an indicative $3.05
billion proposal to Treasury under which
it would acquire all outstanding shares
through a scheme of arrangement for a
cash price of $4.70 a share.
According to KKR the price represents
of premium of:
• 27 per cent of the closing share price
on 15 April of $3.69 per share, the day
prior to KKR approaching Treasury;
• 28 per cent to the one month volume
weighted average share price on 15
April of $3.68 per share; and
• 29 per cent premium to the median
broker consensus target price for
Treasury of $3.64 per share which
remained unchanged since 15 April.
Treasury announced on 20 May that
it had rejected an offer from KKR. Later
that day KKR confirmed details of its offer
which it stated had been made more than
a month earlier on 16 April.
KKR said it had not executed a nondisclosure agreement with Treasury and
its requests for access to the company’s
records had not been provided.
Treasury, however, said that KKR had
requested at the outset that its proposal
be kept confidential. The Treasury board
had then decided that, in order to have
meaningful discussions, it was important to
preserve confidentiality and that premature
disclosure would be contrary to the interests
of shareholders, especially given the highly
conditional nature of the proposal.
Treasury had decided to reveal the bid
after learning, after the ASX market closed
on 19 May, that KKR and its advisors had
spoken to one or more of its shareholders
and therefore there was a risk that the
confidentiality of the offer had been lost.
In its announcement, KKR also confirmed
that its advisors had “held discussions with
certain shareholders of Treasury on a wallcrossed, confidential basis and subject to
appropriate confidentiality protocols”.
This suggests that KKR is seeking at
least in principle backing for its proposal
from international institutional investors
who are likely to look favourably on a
change of control but would probably
want a significantly larger premium than
that currently on offer. News of the offer
quickly sent the share price well above
$5, territory it had not been in since
November. The shares were still trading
around $4.92 on 6 June.
Treasury has performed poorly since it
was spun off from former parent Fosters
Group in May 2011 and has made a number
of management blunders.
Over much the same period, Accolade
Wines has significantly reduced costs
under ownership of CHAMP Private Equity
and is now seeking to shift the balance of
its range toward more expensive, more
profitable brands.
Under CHAMP, Accolade also entered
into cooperative production arrangements
with Treasury which enabled it to cut its
workforce by close to 10 percent.
Last year Treasury wrote down the
value of its US business by more than $150
million. This followed decisions to destroy
six million bottles of unsold wine, some of
which had passed its use by date, and to
heavily discount other low value stock.
Chief executive David Dearie departed
the business after that episode with nonexecutive director Warwick Every-Burns
taking over as interim chief executive.
In January this year the company had
announced a profit downgrade for the
current financial year as a result of wine
sales dropping substantially over the
Christmas period. The full year profit
forecast was reduced from $230 million to
$250 million to $190 million to $210 million.
Current chief executive Michael Clarke
joined Treasury in March and in April stated
that a turnaround strategy was required to
“ build the strength of Treasury’s brands
marketing and sales capabilities while
addressing the company’s cost base”.
In response to KKR’s offer, Clarke
announced a 50 per cent increase in
consumer marketing spending in the
new financial year and $35 million in cost
savings resulting primarily from cutting full
time jobs across the business.
KKR is likely to favour breaking up
Treasury, with Constellation Brands
already reported to have shown interest
Australian Private Equity & Venture Capital Journal
in the US operations which are based
on the low value Beringer brand. This
process could help in boosting the value
of the company’s high value brands such
as Rosemount and jewel in the crown
Penfolds maker of the world famous
Grange Hermitage.
King & Wood Mallesons is KKR’s legal
adviser on the Treasury bid.
INVESTMENT ACTIVITY
Local firm makes $1bn takeprivate bid
Pacific Equity Partners (PEP) has
made a $1billion plus take-private bid
for compliance and risk management
company SAI Global (ASX: SAI).
SAI announced the indicative proposal
on 26 May along with reporting that it was
parting company immediately with chief
executive Stephen Porges who had only
held the position for four months.
On 2 June, the company effectively put
itself up for sale or break up by issuing a
statement that it would conduct “a formal
process to review strategic options”.
SAI said that following the approach from
PEP it had been approached by a number
of other parties expressing interest in the
company and its businesses.
PEP proposes acquiring all outstanding
shares in SAI for $5.10 to $5.25 a share
through a scheme of arrangement.
According to PEP, the range represents
multiples of approximately:
• 1 2.1-12.4 x enterprise value/ earnings
before interest, tax depreciation and
amortisation (EBITDA) estimated for
the current financial year;
• 1 8.4-18.8 x enterprise value/ earnings
before interest and tax (EBIT) estimated
for the current financial year.
In addition, as at 23 May 2014, the price
range represented:
•A
23-27 per cent premium to the 90day volume weighted average price of
the shares;
•A
19-23 per cent premium to the
closing share price prior to the bid
being made ($4.28).
PEP stated that its proposal had been
submitted to SAI on 15 May.
SAI responded saying its board had
not formed a view on the merits of the
proposal but was open to engaging with
JUNE 2014 · Year 22 No 242
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5
PEP to determine whether a binding
proposal could be developed that the
SAI board would be prepared to put to
shareholders.
Macquarie Capital and Gilbert & Tobin
are advising SAI.
Citi and Allen & Overy are advising PEP.
SAI said its prior guidance on
performance for the current financial year
remained unchanged; that underlying
performance would be in line with that of
the previous year. The company noted,
however, that it would have to bear costs
of about $7 million associated with laying
off staff and consolidating some offices;
changes that would lead to cost savings
from 2015.
Costs of terminating the chief executive
would be additional.
The company said its board and
management were continuing to work
on opportunities to improve operational
efficiencies and anticipated announcing
further restructuring costs and benefits at
the time of the full year results in August.
SAI chairman Andrew Dutton has
taken on the role of executive chairman
until a new chief executive is recruited
or, presumably, until the business is sold.
Dutton, who has been on the board for
six years, has held senior executive roles
with multinational companies in IT and
financial services including IBM and Visa
International.
According to SAI’s announcement,
the board decided to terminate the
chief executive a result of fundamental
differences of opinion between it
and Porges. The differences primarily
concerned the detail and pace of
implementation of the company’s strategic
business improvement objectives. The
board had decided these differences
were unresolvable in the week prior to the
announcement.
Citi is financial adviser and Allen & Overy
legal adviser to PEP. Macquarie Capital is
financial adviser and Gilbert & Tobin legal
adviser to SAI Global.
NEW FUNDS & FUNDRAISING
Medical research fund
The Medical Research Future Fund promised
in the federal budget is scheduled to
be established in January 2015 with
Australian Private Equity & Venture Capital Journal
JUNE 2014 · Year 22 No 242
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6
approximately $1 billion in uncommitted
funds from the existing Health and
Hospitals Fund to be transferred to it.
All health reform savings resulting
from the current budget are then to be
channelled into the fund and reinvested
until the fund reaches $20 billion. This
target is estimated to be reached by 2020
after which the capital base is set to be
preserved in perpetuity.
At this scale, the fund would be one of
the largest medical research funds globally.
The net earnings from the fund are to
serve as a permanent revenue stream
primarily to the National Health and
Medical Research Council (NMRC). The
fund is expected to distribute around $1
billion a year into medical research from
2022-23. This will roughly double the
government’s direct funding to medical
research.
The fund is to be managed by the Future
Fund Board of Guardians.
No further details have yet been
provided by the government.
PERFORMANCE
Full exit planned in
$650m plus IPO
Pacific Equity Partners (PEP) is to exit
its entire 50 per cent stake in an IPO of
paper products company SCA Hygiene
Australasia, which is to be floated on the
ASX as Asaleo Care.
A prospectus for the float was lodged
with ASIC on 2 June and the company is
scheduled to be floated on 27 June.
SCA Hygiene Australasia is the
manufacturer of paper products including
Sorbent toilet paper and Libra feminine
hygiene products.
In the IPO, Asaleo is seeking to raise
$650 million to $690 million with the issue
of between 383.8 million and 408.9 million
shares in the range $1.55 to $1.80. The final
price is to be determined by a book build
of institutional investors.
The float will result in the company
having a total of 589.5 million to 614.5
million shares on issue which will give it
a market value of between $952.5 million
and $1.061 billion.
The current holder of the other 50 per
cent of SCA Hygiene Australasia, Swedish
company Svenska Cellulosa Aktiebolaget
(SCA), plans to retain its investment
which will be diluted to around 33 per cent
in the IPO.
SCA Hygiene Australasia’s earnings have
improved over the last three years as
a result of sales growth, investment in
manufacturing plant and cost cutting
including reducing staff levels by about
10 per cent. Pro forma net profit rose to
$61.5 million in the 2013 calendar year from
$47.6 million the previous year.
In its prospectus, Asaleo forecasts a
14.7 per cent rise in pro forma net profit to
$70.6 million in the current year with sales
lifting 2.7 per cent to $642.2 million.
Other products offered by the company
include TENA incontinence pads, Handee
paper towels and Deeko tableware. New
Zealand manufactured Treasures nappies
have recently been introduced to the
Australian market.
A long term agreement with SCA to
continue providing SCA’s Tork brand hand
towels and handwashing dispensers to
commercial users is believed to have also
recently been negotiated.
The company’s New Zealand
manufacturing plant has recently been
expanded and upgraded.
SCA Hygiene Australasia was built up
from a unit of Carter Holt Harvey bought
by SCA for $890 in 2004.
PEP took a half stake in the business for
around $467 million in late 2011 (APE&VCJ,
Nov 11).
PERFORMANCE
Successful float provides
$169m partial exit
Quadrant Private Equity investee iSentia
has successfully floated on the ASX as
iSentia Group Ltd (ASX: ISD).
The shares closed their first day of
trading on 5 June at $2.43, an increase of
19.1 per cent on the issue price of $2.04.
The float followed a successful
institutional investor book build and a
$283.5 million IPO.
A total of 139 million shares were issued
at $2.04 a share to raise $283.5 million. Of
this figure, $169.3 million was to be paid to
Quadrant and other pre-float owners.
The enterprise value to earnings ratio
for the company in the IPO was 11 times
calculated on consolidated 2015 financial
Australian Private Equity & Venture Capital Journal
year forecast earnings before interest, tax,
debt and amortisation (EBITDA).
Quadrant sold down its stake in iSentia
from 86 per cent to 25 per cent (50 million
shares) in the IPO. The private equity firm
has entered into voluntary escrow
arrangements to retain this holding until
the company’s 2015 financial year results
are released. Quadrant is, however,
permitted to exit up to half of this holding
at the end of the first half of the 2015
financial year if the company’s share price
stays at least 20 per cent higher than the
offer price over a specified period.
Chief executive John Croll and other
members of the senior management team
are retaining 9.8 million shares under
similar conditions.
A total of 200 million shares were on
issue following the float.
The offer price capitalised the company
at $408 million and implied an enterprise
value of $456 million. This rose to $486
million at the end of the first day of
trading on the ASX.
iSentia leads the media intelligence
market in the Asia Pacific region with a
28 per cent revenue share which it claims
is almost five times that of its nearest
competitor .
Quadrant acquired 100 per cent of Media
Monitors, as iSentia was then known, in
July 2010. The business has made a number
of acquisitions since then expanding its
coverage across the Asian region. The
latest acquisition was the Australian and
New Zealand media monitoring operations
of news agency Australian Associated
Press (AAP) late last year.
Minter Ellison advised iSentia on all
legal aspects of the IPO and listing. Minter
Ellison also advised Quadrant on the initial
acquisition of Media Monitors and advised
iSentia on the acquisition of AAP’s media
monitoring business.
Macquarie Capital (Australia) and UBS
AG Australia were joint lead managers to
the float.
NEWS
AVCAL criticises budget’s
lack of planning
Industry association AVCAL has focused its
criticism of the Coalition government’s first
federal budget on the fact that no plan to
JUNE 2014 · Year 22 No 242
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7
develop a more internationally competitive
economy was outlined, even as key
innovation programs were being abolished.
“Everyone was expecting to see plenty
of short-term pain for businesses in this
budget – that is exactly what we got,” said
AVCAL chief executive Yasser El-Ansary.
“But what we were also expecting to see
was a plan which set out the longer-term
vision for what the Australian economy
will look like in the next five or ten years
– the short-term strategy of deep cuts to
expenditure only makes sense when you
can line it up against a picture of where we
are trying to get to.”
El-Ansary said abolishing the
Innovation Investment Fund (IIF) program
represented a major set-back to Australia’s
capacity to foster a stronger venture
capital industry which could help develop
businesses in the specific areas identified
as important for future economic growth.
The announced establishment of a new
Medical Research Future Fund could result
in greater investment in biotechnology,
he said, but it would need to be designed
in a way that encompassed a focus on
commercialisation as well as pure research.
Meanwhile, the new Entrepreneurs
Infrastructure program would have to be
framed around backing businesses with
world-class ideas that could be supported
by private sector investment from the
venture capital industry.
El-Ansary said the business community
had regarded this budget as an
opportunity to kick-start a renewed focus
on lifting Australia’s competitive position
in the international race for capital and
skills and while a cut to the corporate
income tax rate was a step in the right
direction there was a lot more that needed
to be done.
PERFORMANCE
$1.75bn investee makes
promising ASX return
Pacific Equity Partners (PEP) investee
Spotless Group made a promising return
to the ASX when it was listed on 23 May
(ASX: SPO).
A pre-float book build with institutional
investors had resulted in shares being
placed in the range $1.60 to $1.75, a little
below the $1.60 to $1.85 which had originally
been sought. The shares were then issued
to retail investors in the IPO at $1.60.
The shares opened on the ASX at $1.75
and closed first day trading at $1.715, up
7.19 per cent on the issue price. More than
87 million shares were traded over the
first day. That gave Spotless a market
capitalisation in excess of $1.75 billion.
On 5 June the shares were trading
around $1.78.
PEP, which took the catering and
cleaning business private just two years
ago, is retaining 49.4 per cent of Spotless.
An eventual complete exit of Spotless
with the share price around the first day
closing price would give PEP about a 2.4
times return on the $720 million it paid for
the business.
NEWS
Regulations proposed for
crowd sourced equity funding
The federal government’s Corporations
and Markets Advisory Committee
(CAMAC) has recommended a special
regulatory structure for crowd sourced
equity funding.
CAMAC has released a report setting
out a detailed blueprint which it says will
balance stimulating internet-based funding
and protecting investors.
CAMAC says its proposals are
deregulatory in that they seek to overcome
current legal impediments to crowd
sourced equity funding but it believes
regulations will provide the best way of
protecting the interests of investors as well
as issuers.
A system of monetary caps is proposed
to limit access to small scale enterprises
such as technology start-ups but CAMAC
says these should be adjustable in the light
of experience.
Initially it is suggested that an offer
-does not exceed $2 million in any
12-month period.
The report suggests that to be able
to access crowd sourced equity funding
businesses should be incorporated as
public rather than private companies. To
make this accessible, it proposes that
a new classification of “exempt public
company” should be created.
The exempt public company status
should automatically expire in certain
Australian Private Equity & Venture Capital Journal
circumstances or at the expiration of a
prescribed maximum period. After this, the
issuer would become a public company,
subject to the normal compliance
obligations of a public company.
CAMAC considers there may be good
reasons for allowing variations on the
one-share one-vote equity structure.
For example, it suggests that having a
separate class of “founder” shares could
ensure control of a company was retained
by those with the original vision. Issuers
should, however, be obliged to clearly set
out the rights, or lack of rights, that attach
to shares. Development of a standard
issuer disclosure template is proposed.
CAMAC suggests that any equity
crowd funding offer should be conducted
through a single licensed intermediary
operating online only. Intermediaries would
be required to take a fully professional
approach to their role including carrying
out due diligence on issuers. They would
also be restricted from offering investment
advice or soliciting for investment.
Investor protections would include risk
warnings and restrictions on investment
of $2,500 per issuer, and $10,000 for all
issuers, in any 12-month period.
Industry association AVCAL has
welcomed CAMAC’s report but has called
for discussion on the proposed investor
cap of $2,500 for investment with any
single issuer.
AVCAL chief executive Yasser El-Ansary
said: “Australia has been lagging behind
other developed economies in setting out
a policy framework to support this new
and evolving approach to raising equity
capital by start-up businesses and because
of that we have some catching up to do.
“This report provides us with a
comprehensive analysis of how we should
move forward with facilitating a market
for equity crowd funding in Australia
while ensuring there are appropriate
safeguards for investors who might not
have significant experience of investing in
high risk ventures.”
PERFORMANCE
Private equity investee in
receivership
Wolseley Private Equity investee Pacific
Services Group (PSG) has been placed
JUNE 2014 · Year 22 No 242
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8
in receivership under insolvency firm
KordaMentha.
Pacific Services Group, which has more
than 600 employees, is an amalgamation
of state-based electrical contracting
companies.
The business was formed on the thesis
that Australia-wide businesses would prefer
to deal with a single national contractor
rather than various contractors in different
states.
The first investments were made from
Wolseley Partners Fund 1 in 2006 and
amalgamated Elecraft in Victoria, RussellSmith in Tasmania, Boffa & Russo in
South Australia and Richard Flanagan &
Co in Queensland. Owner-managers of
the consolidated businesses sold down
their stakes with Wolseley taking majority
holdings.
PM Switchboards of Queensland and
Hawtree Electrical of Tasmania were later
added to the group.
Last year, Wolseley led a $10 million
injection of new capital into the business
by existing investors and negotiated debt
restructuring (APE&VCJ, Oct 13).
PERFORMANCE
New float attempt for
hotels operator
CVC Capital and UBS have launched a
second attempt to float hotels and resorts
operator Mantra Group.
A total of 132,845,911 shares are to be
issued at $1.80 a share to raise more than
$23.9 million.
The issue will be at the same price as the
failed attempt in March.
On completion of the new offer the
total number of shares on issue will be
249,471,229. The company’s market
capitalisation at the offer price will be $449
million and the enterprise value $538.1
million with pro forma debt of $89.1 million
as at 31 December 2013.
This indicates a price multiple of 11.2
on forecast earnings before interest, tax
and amortisation (EBITA) for the 2014
financial year.
Mantra chief executive Bob East is to
retain a substantial holding in the business
after the float.
CVC separated Mantra from Stella Group
after it bought Stella in February 2008
for more than $400 million. The vendor of
Stella was, then ASX-listed, Gold Coastbased financial group MFS which was later
renamed Octaviar.
PERFORMANCE
International trade sale
provides quick exit
Pacific Equity Partners (PEP) has exited
ice cream company Peters Food Group
Limited in an international trade sale less
than two years after acquiring the business.
Peters, one of Australia’s oldest consumer
businesses, has been sold to R&R Ice
Cream plc, an investee of Paris-based
European private equity firm PAI Partners.
Terms have not been disclosed but it has
been reported that the deal values Peters
at close to $450 million.
Under the sale agreement, R&R will
acquire Peters along with its portfolio of
well known ice cream products including
Drumstick, Connoisseur, Peters Original and
Maxibon.
PEP acquired Peters from Nestlé
Australia in mid 2012 (APE&VCJ, Jul 12). The
acquisition value was not disclosed but is
believed to have been around $300 million.
PEP appointed former Breville boss
Stephen Audsley as chief executive of
Peters soon after acquiring the business.
PEP said that during its period of
investment it had transformed Peters
investing in the company’s core brands,
driving substantial new product
development and reducing operating costs.
The company now generates annual sales
of around $269 million. Based in Mulgrave,
Victoria, Peters employs about 500 people
across Australia.
PEP managing director Tony Duthie
said: “The successful transformation of the
Peters business underscores our ability
to combine outstanding management,
operational experience and industry
knowledge to individual companies,
resulting in strong returns for our investors.
We are pleased that a company of
R&R’s pedigree will help drive the future
of the Peters business alongside the
existing skilled and committed Australian
management team.”
R&R said it was fully committed to
continuing to invest in Peters and planned
to retain the existing Australian leadership
Australian Private Equity & Venture Capital Journal
team to continue to develop the business
locally as part of the broader global R&R
business. Combining the two companies
would help R&R further establish its
position as a world leader in the ice cream
market with a unique presence in both
the European and Australian markets
and significantly increased potential for
international expansion.
Audsley said Peters would remain a
proudly Australian company and, with
the backing of R&R, would continue to
invest in its market leading brands such as
Drumstick and Connoisseur.
Chief executive of R&R, Ibrahim Najafi
said Peters was an iconic Australian
business and led the local ice cream
manufacturing market.
“It will be an exciting complement to
R&R’s European presence. We look forward
to working with Stephen and his team and
accelerating our growth as one combined
business,” he said.
Financial advisers to PEP were Morgan
Stanley while Allens provided legal advice
and PWC accounting and tax advice.
Financial advice to R&R was provided by
Rothschild, Allen & Overy provided legal
advice and KPMG accounting and tax advice.
R&R was founded in the UK in 1985 as
Richmond Ice Cream and after a series of
mergers and acquisitions acquired Nestlé’s
UK ice cream business in 2001, giving it
access to Nestlé brands in the UK. In 2006,
the company was acquired by Oaktree
Funds and merged with German ice cream
manufacturer Roncadin to form R&R
Ice Cream. The rate of acquisitions then
accelerated with the company growing to
become Europe’s second largest producer
of ice cream including own label brands as
well as brands owned by companies such
as Mondelez, Nestlé and Disney.
R&R was acquired by PAI in mid-2013.
(See feature article this issue).
NEWS
Access sought to Significant
Investor Visa funding
Venture capital and private equity access to
the Significant Investor Visa (SIV) programs
being sought by industry association AVCAL.
AVCAL has put the industry’s case in a
submission to the federal government’s
review of the program.
JUNE 2014 · Year 22 No 242
|
9
“The Significant Investor Visa program
has proven itself to be an important part
of Australia’s strategy to compete for
global capital from offshore investors,” said
AVCAL chief executive, Yasser El-Ansary.
“But the program should be expanded
in order to allow offshore investors to
allocate capital to other asset classes
that are critical to supporting growth of
Australia’s future such as venture capital
and private equity.”
Since it was introduced in late 2012, the
SIV program has resulted in an additional
$720 million being invested in Australia by
individual investors.
AVCAL’s submission to the review by
the Department of Immigration identifies
the opportunity to deliver a significant
boost to that level of investment through
widening the current narrow band of
“complying investments” to include
venture capital and private equity.
“In the venture capital sector, new
investment from private individuals over
the last three years has averaged $33
million each year and we think that a
more expansive Significant Investor Visa
program could lead to a substantial lift in
that level of investment over the next few
years,” said El-Ansary.
AVCAL notes in its submission that
other developed economies such as the
US, UK, New Zealand and Singapore are
using similar programs to channel offshore
investment into industry sectors capable of
catalysing economic growth.
“There is an intense global race for
capital from investors who are looking
for markets that offer sustainable
growth potential into the future and that’s
where Australia has an opportunity to
seek out investment into venture capital
and private equity which will be critical to
Australia’s future economic prosperity,”
El-Ansary added.
PERFORMANCE
Global firms pass the
baton on local investment
The Riverside Company has exited
its majority stake in Retail Zoo, the
owner of the Boost Juice bars chain,
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Australian Private Equity & Venture Capital Journal
JUNE 2014 · Year 22 No 242
|
10
to Bain Capital, as reported in May
APE&VCJ.
The value of Riverside’s exit is not known
but it had earlier been reported that Bain
Capital was prepared to pay $185 million
for 70 per cent of the business. This
suggests an exit multiple well in excess
of two times with Riverside invested for
about four years.
Founders Janine and Jeff Allis are
retaining a stake in Retail Zoo. Prior to
Riverside’s exit they held 25 per cent and it
is believed they have maintained this level
of investment.
Retail Zoo’s other shareholders, former
Flight Centre executive Geoff Harris, Rod
Young and Marc and Daniel Besen are
believed to have exited their stakes which
totalled around 10 per cent.
In addition to Boost Juice, Chadstone,
Victoria, based Retail Zoo operates three
other quick service restaurant concepts
– Mexican style Salsa’s, coffee bars Cibo
Espresso and recently launched chicken
meals focused Hatch.
Across its four brands, Retail Zoo
has 294 outlets in Australia plus an
additional 100 Boost Juice bars in nine
overseas markets. Boost Juice claims
clear leadership of its market niche in
Australia where it operates 218 juice and
smoothie bars; Salsa’s has 51 outlets and
Cibo Espresso 23, most in its home state of
South Australia.
A 65 per cent investment in Boost
Investment Group, as the business was
then known, was the first investment
made by The Riverside Company after it
opened a Melbourne office in early 2010
(APE&VCJ , May 10). Riverside did not
reveal what it paid for that stake but it
has been speculated to have been around
$65 million. At that time Boost Investment
Group had 240 outlets. In partnership
with Riverside, Retail Zoo opened close to
50 new international outlets and added
another 22 in Australia with the acquisition
of Cibo Espresso in 2012.
Riverside said that during its period of
investment it had helped the company
grow its earnings by more than 150 per cent.
“We’re very pleased with how we were
able to grow Retail Zoo,” said Riverside
managing partner Stu Baxter. “It was a
dynamic company with great managers
when we made the investment and our
franchising expertise and international
experience allowed us to partner with that
team and guide them along their journey
to becoming an even more successful
enterprise.”
According to Baxter, Riverside’s global
presence and transacting experience
helped Retail Zoo successfully expand its
network of stores from 240 at investment
to more than 390 by exit, including almost
50 new overseas Boost Juice bars and 22
existing outlets with the acquisition of Cibo
Espresso in 2012.
“Retail Zoo is the vision of Janine and
Jeff Allis,” said Baxter. “We partnered with
them and together we invested heavily in
systems, processes and talent to further
accelerate the company and position it for
an exciting future beyond our exit.”
Janine Allis said she was grateful for the
support Riverside had provided during its
period of investment.
Riverside’s Melbourne-based partner
Simon Feiglin, Melbourne-based vicepresident Steven Spiteri and Japan-based
vice-president Hiroaki Wakashita worked
with Baxter throughout the investment.
Riverside’s franchising sector under
Jeremy Holland also provided specialised
assistance including indentifying and
vetting add-on acquisitions.
Retail Zoo was advised by UBS, Jones
Day, KPMG and Deloitte on the transaction.
PERFORMANCE
Exit to return venture
capital investors $US75m
Brandon Capital Partners and Uniseed are
to exit their investments in drug developer
Fibrotech Therapeutics through a $US75
million plus sale of the company.
Fibrotech is to be bought by global
specialty pharmaceutical company Shire
plc (LSE: SHP, NASDAQ: SHPG). Shire is to
make an initial upfront payment of $US75
million with contingent payments to follow
based on achievement of development and
regulatory milestones.
Melbourne-based Fibrotech is developing
a new class of drugs to treat fibrosis.
Fibrosis, tissue scarring, is prevalent in
chronic kidney disease, heart failure,
respiratory conditions and arthritis.
Shire plans to undertake further
development of Fibrotech’s lead product
FT011. The drug candidate has completed
Australian Private Equity & Venture Capital Journal
a Phase 1A study in healthy volunteers and
is currently in a Phase 1B study in patients
with diabetic nephropathy.
In addition to FT011, Shire will acquire
Fibrotech’s library of novel molecules
including FT061 which is in pre-clinical
development. FT061 has a similar mode of
action to FT011. A small molecule suitable
for oral medication, FT061 has potential to
address both inflammatory and pro-fibrotic
components of fibrosis.
Closure of the acquisition by Shire will
require Foreign Investment Review Board
approval.
Founding partner of Brandon Capital
and principal executive of the Medical
Research Commercialisation Fund Chris
Nave said: “Fibrotech was the MRCF’s very
first investment so this deal represents a
significant validation of our approach to
commercialise the very best discoveries
from Australia’s leading medical research
institutes. To get such an impressive return
on our investment speaks to the quality of
the science at the University of Melbourne,
St Vincent’s Institute of Medical Research
and Bio21 Institute.”
Uniseed chief executive Peter Devine
said the deal was an endorsement of
his organisation’s concept of facilitating
commercialisation of university intellectual
property.
“Having supported Fibrotech since its
inception, Uniseed is proud to be associated
with such a significant partnership,” he added.
Fibrotech chief executive Professor
Darren Kelly said his team were excited
about the acquisition as Shire was
strategically aligned with their commitment
to renal and fibrotic conditions including
rare diseases which were areas of high
unmet medical need.
PERFORMANCE
Private equity outperforms
ASX over 12 months
Latest statistics from Cambridge
Associates LLC Australia Private Equity
and Venture Capital Index (CA Australia
PE Index) show that private equity and
venture capital funds in Australia posted
returns of 22 per cent in the 12 months
to 31 December. This return outperformed
the ASX 300 Index by more than 200
basis points.
JUNE 2014 · Year 22 No 242
|
11
The quarterly statistics reflect a
over 15-year, 10-year and three-year
Data as of
significant
pick-up
in performance
by the
periods.
The
S&P/ASX
300 Index,December
however,
31, 2013
Australia Private
Equity
& Venture Capital
Index and
Selected
Benchmark
Statistics
asset
class in the final quarter of 2013
outperformed private equity and venture
Australia Private Equity & Venture Capital Fund Index Summary (A$): End-to-End Pooled Return Compared to CA Modified Public Market Equivalent (mPME)
Net to Limited Partners
during
which the CA Australia PE Index
capital over five years by more than 20
gained 9.94 per cent
basis3-Year
points, reflecting
the
much faster
CA Indexcompared to 3.37 per
1-Year
5-Year
10-Year
15-Year
Australia
& Venture Capital
IndexIndex.
(A$)
22.02
11.56
9.89 equities10.03
cent
forPrivate
theEquity
S&P/ASX
300
recovery
of listed
following 10.87
the
Private equitymPME
and
venture capital also
global financial crisis.
Analysis
S&P/ASX 300 Index
8.75
6.60
outperformed
the S&P/ASX 300 Index 19.74
Releasing
the12.01
statistics, 6.57
chief executive
of industry association AVCAL, Yasser
El-Ansary said: “This is a good set of
numbers. The index has shown strong
returns for the last six consecutive
quarters, and the results from this most
recent period are especially positive.
“The 10-15 year returns demonstrate how
investors with long term horizons have
been the big winners from this asset class.”
El-Ansary noted that while private equity
deal activity had picked up significantly,
AVCAL expected firms would maintain
a focus on opportunities where growth
could be unlocked through the injection of
skills as well as capital.
1
2
Value-Add (bps)
228
281
-212
346
Australia
Equity & Venture Capital Index
and Selected
Benchmark
Statistics
S&P/ASX SmallPrivate
Ordinaries Index
-0.97
-5.79
6.49
0.38
427
Data as of
December 31, 2013
0.77
Value-Add (bps)
2,299 Pooled Return
1,735
339
965 Equivalent (mPME)
1,009
Australia
Private Equity & Venture Capital Fund Index Summary (A$): End-to-End
Compared to CA Modified
Public Market
Net UBS
to Limited
Partners
Australia
Bank Bill Index
2.87
3.92
3.99
4.71
4.73
Value-Add (bps)
CA Index
1,915
1-Year
764
3-Year
590
5-Year
531
10-Year
22.02
2,005
11.56
464
9.89
411
10.03
350
UBS Australian Composite Bond Index
1.97 and Selected
6.91
5.77
6.53
Australia
Private Equity & Venture Capital Index
Benchmark
Statistics
Australia Private Equity & Venture Capital Index
Value-Add (bps)
(A$)1
Australia Private EquitymPME
& Venture
Capital Fund Index Summary (A$): End-to-End Pooled Return
Analysis2
Net to Limited Partners
S&P/ASX 300 Index
19.74
Index
Value-Add (bps)
1
Australia
Equity & Venture
S&P/ASXPrivate
Small Ordinaries
Index Capital Index (A$)
Australia Private Equity & Venture Capital Index (US$)1
Value-Add (bps)
S&P/ASX 300 Index
UBS Australia Bank Bill Index
S&P/ASX Small Ordinaries Index
Value-Add (bps)
UBS Australia Bank Bill Index
UBS Australian Composite Bond Index
UBS Australian Composite Bond Index
Value-Add (bps)
228
8.75
1-Quarter
281
9.94
-5.79
-0.97
5.31
1,735
3.37
3.92
-0.15
764
0.65
6.91
0.37
464
2,299
2.87
1,915
1.97
2,005
12.01
613
15-Year
Data as of
6.47
December
31, 2013
10.87
439
6.57
6.60
1-Year
-2123-Year
5-Year
346
22.02
6.49 11.56
9.89
0.38
10.03
10.87
0.77
6.42
14.85
965
12.33
4.71
8.14
531
3.99
6.53
5.70
350
11.73
13.11
1,009
9.02
4.73
5.23
613
5.19
6.47
6.00
439
5.29
19.68
-0.76
2.87
1.99
339
3.99
590
5.77
8.46
-5.98
3.94
6.95
411
10-Year
9.49
5.12
5.16
6.24
15-Year
427
INVESTMENT ACTIVITY
Mid-market firm invests in
cancer care
The Cambridge Associates LLC indices are an end-to-end calculation based on data compiled from 64 private equity and 25 venture capital funds investing in Australia and New
Zealand, including fully liquidated partnerships, formed between 1997 and 2013.
1 Pooled end-to-end return, net of fees, expenses, and carried interest.
2 CA Modified Public Market Equivalent (mPME) replicates private investment performance under public market conditions. The public index’s shares are purchased and sold according
to the private fund cash flow schedule, with distributions calculated in the same proportion as the private fund, and mPME NAV is a function of mPME cash flows and public index
returns. “Value-Add” shows (in basis points) the difference between the actual private investment return and the mPME calculated return. Refer to Methodology page for details.
|3
Sources: Bloomberg L.P. , Cambridge Associates LLC, Standard & Poor's, Thomson Reuters Datastream and UBS Global Asset Management.
Data as of
December 31, 2013
Australia Private Equity & Venture Capital Index and Selected Benchmark Statistics
Australia Private Equity & Venture Capital Fund Index Summary (A$): End-to-End Pooled Return
Net to Limited Partners
Index
1-Quarter
1-Year
3-Year
5-Year
10-Year
15-Year
9.94private equity
22.02and 25 venture
11.56 capital 9.89
10.03in Australia
10.87
Australia
Private
Equity &LLC
Venture
Capital
Index
(A$)1 calculation based on data compiled from 64
The
Cambridge
Associates
indices
are an
end-to-end
funds investing
and New
Zealand, including fully liquidated partnerships, formed between
1997 and 2013.
5.31
5.29
6.42
14.85
11.73
13.11
Private Equity & Venture Capital Index (US$)1
1 Australia
Pooled end-to-end return, net of fees, expenses, and carried interest.
2 CA Modified Public Market Equivalent (mPME) replicates private investment performance under public market conditions. The public index’s shares are purchased and sold according
S&P/ASX 300 Index
3.37
19.68
8.46
12.33
9.49
9.02
to the private fund cash flow schedule, with distributions calculated in the same proportion as the private fund, and mPME NAV is a function of mPME cash flows and public index
S&P/ASX
Small Ordinaries
Index
-0.76
-5.98 Refer to 8.14
5.12 for details.
5.23
returns.
“Value-Add”
shows (in
basis points) the difference between the actual private investment return -0.15
and the mPME
calculated return.
Methodology page
|3
Sources: Bloomberg L.P. , Cambridge Associates LLC, Standard & Poor's, Thomson Reuters Datastream and UBS Global Asset Management.
UBS Australia Bank Bill Index
0.65
2.87
3.94
3.99
5.16
5.19
UBS Australian Composite Bond Index
0.37
1.99
6.95
5.70
6.24
6.00
The Cambridge Associates LLC indices are an end-to-end calculation based on data compiled from 64 private equity and 25 venture capital funds investing in Australia and New
Zealand, including fully liquidated partnerships, formed between 1997 and 2013.
Data as of
1Pooled end-to-end return, net of fees, expenses, and carried interest.
December 31, 2013
|4
Sources: Bloomberg L.P. , Cambridge Associates LLC, Standard & Poor's, Thomson Reuters Datastream and UBS Global Asset Management.
Australia Private Equity & Venture Capital Index and Selected Benchmark Statistics
Australia
Private
Equity & Equity
Venture Fund
Index Summary
(A$): One
Quarter
End-to-End
Pooled
Return
Australia
Private
& Venture
Capital
Index
and
Selected
Benchmark
Net to Limited Partners
Australia Private Equity & Venture Fund Index Summary (A$): One Quarter End-to-End Pooled Return
Quarter Partners
End to End
Quarter
End to End
Net to Limited
Statistics
Quadrant Private Equity has paid
$40 million for a majority stake in Icon
Cancer Care.
The transaction, completed on 19 May,
was the first made from Quadrant’s
seventh fund, Quadrant Private Equity No
4, which raised $850 million earlier this
year (APE&VCJ, Mar 14).
Icon is Australia’s largest private
provider of cancer care employing more
than 350 staff. The company operates day
hospitals in Adelaide, Southport on the
Gold Coast, three locations in Brisbane
and in Townsville.
Data as of
December 31, 2013
Ending
Return
Ending
Return
Quarter
Ending
End to End
Return
INVESTMENT ACTIVITY
1997
Q1
Quarter
Ending
1997
Q2
NAEnd
End to
Return
NA
2003
Q1
Quarter
Ending
2003
Q2
End-0.99
to End
Return
6.36
2009
Q1
Quarter
Ending
2009
Q2
End-5.72
to End
Return
-0.44
Q3
2003 Q1
6.75
-0.99
2009 Q3
Q1
6.59
-5.72
Drug developer attracts
global investors and $US45m
5.94
-0.44
Q3
1997 Q1
NA
1997 Q4
Q2
0.00
NA
2003 Q4
Q2
7.66
6.36
2009 Q4
Q2
1998
1997 Q1
Q3
0.00
NA
2004
2003 Q1
Q3
10.02
6.75
2010
2009 Q1
Q3
1.64
6.59
1998
1997 Q2
Q4
0.00
2004
2003 Q2
Q4
40.02
7.66
2010
2009 Q2
Q4
1.90
5.94
1998 Q3
Q1
-7.29
0.00
2004 Q3
Q1
2.19
10.02
2010 Q3
Q1
4.77
1.64
1998 Q4
Q2
-3.18
0.00
2004 Q4
Q2
9.41
40.02
2010 Q4
Q2
-0.81
1.90
1999
1998 Q1
Q3
-2.37
-7.29
2005
2004 Q1
Q3
2.21
2.19
2011
2010 Q1
Q3
1.33
4.77
1999
1998 Q2
Q4
-3.23
-3.18
2005
2004 Q2
Q4
4.21
9.41
2011
2010 Q2
Q4
3.13
-0.81
1999 Q3
Q1
-0.10
-2.37
2005 Q3
Q1
16.10
2.21
2011 Q3
Q1
0.54
1.33
-1.11
5.95
2.20
1999 Q4
2005 Q4
2011 Q4
-3.23
4.21
3.13
Q2
Q2
Q2
The Cambridge Associates LLC indices are an end-to-end calculation based on data compiled from 64 private equity and 25 venture capital funds investing in Australia and New
110.95
10.13
1.38
2000
2006
2012
-0.10
16.10
0.54
1999 Q1
Q3
2005 Q1
Q3
2011 Q1
Q3
Zealand, including fully liquidated partnerships, formed between 1997 and 2013.
1Pooled end-to-end
2.00
9.97
-0.19
2000
2006
2012
expenses, and carried interest.
-1.11
5.95
2.20
1999 Q2
Q4 return, net of fees,
2005 Q2
Q4
2011 Q2
Q4
|4
Sources: Bloomberg L.P. , Cambridge Associates LLC, Standard & Poor's, Thomson Reuters Datastream and UBS Global Asset Management.
11.27
3.34
2.72
2000 Q3
2006 Q3
2012 Q3
110.95
10.13
1.38
Q1
Q1
Q1
Q4
2000 Q2
-7.14
2.00
2001
2000 Q1
Q3
-1.23
11.27
2007
2006 Q1
Q3
2.35
3.34
2013
2012 Q1
Q3
2.15
2.72
2001
2000 Q2
Q4
1.19
-7.14
2007
2006 Q2
Q4
8.84
9.65
2013
2012 Q2
Q4
5.90
1.68
2001 Q3
Q1
3.03
-1.23
2007 Q3
Q1
-2.69
2.35
2013 Q1
Q3
3.00
2.15
Q4
2001 Q2
6.63
1.19
Q4
2007 Q2
3.07
8.84
Q4
2013 Q2
9.94
5.90
2002 Q3
Q1
2001
2.36
3.03
2008 Q3
Q1
2007
-1.65
-2.69
2013 Q3
3.00
2002
2001 Q2
Q4
0.71
6.63
2008
2007 Q2
Q4
-1.58
3.07
2013 Q4
9.94
2002 Q3
Q1
-0.04
2.36
2008 Q3
Q1
-3.35
-1.65
2002 Q4
Q2
-2.55
0.71
2008 Q4
Q2
-9.09
-1.58
2002 Q3
-0.04
2008 Q3
-3.35
2002 Q4
-2.55
2008 Q4
-9.09
Q4
2006 Q2
9.65
9.97
The Cambridge Associates LLC Australia Private Equity & Venture Capital Index is an end-to-end calculation based on
funds investing in Australia and New Zealand, including fully liquidated partnerships, formed between 1997 and 2013.
Historic quarterly returns are updated in each year-end report to adjust for changes in the index sample.
The Cambridge Associates LLC Australia Private Equity & Venture Capital Index is an end-to-end calculation based on
funds investing in Australia and New Zealand, including fully liquidated partnerships, formed between 1997 and 2013.
Historic quarterly returns are updated in each year-end report to adjust for changes in the index sample.
Australian Private Equity & Venture Capital Journal
Q4
2012 Q2
1.68
-0.19
data compiled from 64 private equity and 25 venture capital
All returns are net of fees, expenses, and carried interest.
data compiled from 64 private equity and 25 venture capital
All returns are net of fees, expenses, and carried interest.
|
5
|
5
Melbourne pain drug development
company Spinifex Pharmaceuticals has
attracted two leading global biotechnology
investors, Novo A/S and Canaan Partners.
Novo A/S is the Denmark-based holding
company for diabetes care business Novo
Nordisk A/S and enzymes business
Novozymes A/S. Canaan Partners, which
specialises in the healthcare sector, is a
global venture capital firm with $US3.5
billion under management. The firm recently
raised $US600 million for its Fund IX.
Novo A/S led Spinifex’s recent $US45
million Series C financing with Canaan
Partners also becoming a new investor
in the company. Existing investors GBS
JUNE 2014 · Year 22 No 242
|
12
Venture Partners, Brandon Capital
Partners, Uniseed and UniQuest also
participated in the round.
The new funds will be used to advance
development of Spinifex’s lead candidate
EMA401, a novel angiotensin II type
2 (AT2) receptor antagonist being
developed as an oral treatment for chronic
pain. Positive results of Spinifex’s Phase 2
clinical trial of EMA401 in post-herpectic
neuralgia (PHN) were recently published
in The Lancet. PHN is a painful condition
developed by some patients after shingles.
As a result of the new funding, Heath
Lukatch and Steve Collins of Novo A/S will
join the Spinifex board along with Brent
Ahrens of Canaan Partners.
Spinifex chief executive Tom McCarthy
said: “To have attracted significant
funding from two of the best-respected
investors in global biotechnology is
testament to the quality of the science
behind Spinifex and our development
work on EMA401 supported by our longterm investors.”
Lukatch said: “Despite its prevalence
and debilitating effect on patients, chronic
pain remains poorly treated. Spinifex is
taking an entirely novel approach and has
delivered excellent clinical results in PHN.”
Ahrens said he was confident EMA401
would also prove effective in a wider range
of diseases including osteoarthritis.”
Alongside the fundraising, Spinifex
has established a US base in Stamford,
Connecticut. McCarthy has transferred to
the US where he is leading an expanded
clinical development and corporate team.
The company is maintaining its Melbourne
operations.
Spinifex was founded in 2005 on
research spun out of the University of
Queensland.
INVESTMENT ACTIVITY
$50m invested in
manufactured homes estates
Tasman Capital has paid more than
$50 million for six manufactured homes
estates and holiday parks in NSW and
Queensland.
The sites include Redbank Palms Resort
in Ipswich and The Retreat in Port Macquarie.
The Sydney-based private equity firm
already owns Lakeland Park Village at
Bluff Point near Budgewoi on the NSW
Central Coast.
Alceon Group is also invested in the
manufactured homes estates sector and
operates a substantial portfolio under the
Gateway Lifestyle Residential Parks brand.
PERFORMANCE
Venture firms exit laser
optical company
Australian venture capital companies
Southern Cross Venture Partners and
Jolimont Capital are to exit Redfern
Integrated Optics Inc as a result of OptaSense
Ltd of the UK acquiring the business.
No value for the transaction has been
released according to Standard & Poor’s
Capital IQ.
OptaSense is part of the global
aerospace, defence and security group
QinetiQ. The company plans to integrate
operations but continue using the RIO
brand name.
Southern Cross managing director
and RIO chairman Dr Larry Marshall
said: “OptaSense has made an excellent
strategic acquisition and will greatly
enhance RIO’s ability to scale their unique
technology across a broader range of
markets and customers than would
normally be accessible to a small start-up.”
Rio was founded in Sydney in 2000 and
moved to San Francisco in 2003. The
company is a world leader in all-solid-state,
single-frequency laser optical transmitters
for fiberoptic and remote sensing.
OptaSense managing director Magnus
McEwen-King said his company had been
working with RIO for many years and was
impressed with the technical capabilities
of its team.
“Their products are ideally suited to the
distributed fibre sensing market especially
within the oil and gas sector where high
performance and high reliability in harsh
environments are essential,” he added.
NEWS
Australian incubator
‘best in the world’
Sydney-based technology business
incubator ATP Innovations has taken top
honours in the 2014 National Business
Australian Private Equity & Venture Capital Journal
Incubator Association awards in the
US, the first Australian incubator to be
recognised as the best in the world.
ATP Innovations was announced as
Randall M Whaley Incubator of the Year at
the International Conference on Business
Incubation in New Orleans, Louisiana, last
month (May).
The National Business Incubator
Association (NBIA) is the peak global
body for business incubation and
entrepreneurship and has more than 2200
members in over 60 countries.
ATP Innovations was selected by
industry peer professionals based on its
overall excellence in delivering business
building services and its successful track
record of building high growth technology
companies with global reach. ATP also
took the Dinah Adkins “Technology Focus”
Incubator of the Year award.
ATP Innovations chief executive Hamish
Hawthorn said the awards were “a credit
both to the hard work done by the team
at ATP Innovations and recognition of the
strength and significance of Australia’s
start-up ecosystem”.
ATP Innovations has assisted more
than 300 software, hardware and life
science start-ups since 2000. Since 2006,
businesses assisted by ATP Innovations
have raised over $113 million in equity
capital. Last year, ATP Innovations-assisted
companies generated combined revenue
of over $45 million, half of which was
export related; they raised $8 million in
equity capital; hired 69 new employees;
launched 80 products and had seven
patents granted.
Since 2006, seven ATP Innovations’
portfolio businesses have been acquired
by larger organisations, most recently
Azalient which was acquired by Autodesk
(NASDAQ: ADSK) in December last year.
Two of the most recent companies to
receive support from ATP Innovations are
Clarity Pharmaceuticals and Elastagen.
Founded in 2010, Clarity recently closed
a seed round of $1.1 million (APE&VCJ,
May 14).
Elastagen is a clincial stage medical
device company which is pioneering
trade-marked Elastatherapy which
involves using the human protein
elastin to naturally repair and augment
skin. Founded in 2005, Elastagen has
attracted $5 million in venture capital
JUNE 2014 · Year 22 No 242
|
13
investment, including investment from
GBS Venture Partners and Brandon
Capital Partners, and $2 million from the
NSW Government Medical Devices Fund.
NEWS
Telstra to support research
institutions projects
Telstra (ASX: TLS) has announced a multimillion dollar program under which it will
work with leading Australian research
institutions on projects of mutual interest.
The telecommunications giant has
already entered into arrangements to
work with National ICT Australia (NICTA)
in a variety of areas including security,
privacy, smart network planning and future
media delivery.
Telstra is also discussing working with
UTS, Deakin University and the George
Institute on a variety of research projects.
Telstra chief operations officer Kate
McKenzie said the program is designed
to explore opportunities flowing from
technology advances and cutting-edge
research that could benefit Telstra and its
customers.
“We’re always striving to find or create
solutions to meet the future needs of our
customers and the wider community and
increased collaboration with the brightest
minds in the country will help us get there,”
she said.
“We want to expand the breadth
and depth of our relationships with
research institutes over time to ensure
INVESTMENT OPPORTUNITY
Self cooling canvas
water backpacks with
water filter attached
The client market is Africa and the
developing world where people carry
plastic water containers on their heads.
The client market is charities and NGOs.
Investment sought $400K, potential
return $40 Million.
Contact: Fraser Swift on 0416 193 183
[email protected]
the highest quality outcomes and I
am very excited that in the first phase
of this program we are working with
NICTA, Australia’s information and
communications technology research
centre of excellence.”
The research partnership will
complement Telstra’s existing innovation
agenda which includes an in-house
platform for crowd-sourced innovation,
the muru-D incubator for technology
start-ups and the corporate venturing
vehicle Telstra Ventures group which takes
a broader, global, view of opportunities in
the communications sector.
NICTA chief executive Professor Hugh
Durrant-Whyte said: “Innovation in
information and communications technology
lies at the heart of Australia’s future
prosperity. The partnership between
Telstra and NICTA is an exciting opportunity
for driving innovation in Australia.”
The NSW government is supporting the
industry-led formation of Australia’s first
space technology accelerator.
State government programs
InnovateNSW and Bridging the Gap are
backing Delta-V In its efforts to develop a
space industry sector in NSW.
Delta-V is linking NSW-based space
technology companies Saber Astronautics
and Launchbox as well as the Centre
for Space Engineering Research at the
University of NSW and SpaceNet at the
University of Sydney.
It is hoped that this industry and research
collaboration will provide a platform for
development and commercialisation in the
space sector.
The NSW government believes the
sector represents significant opportunities
for the state’s world class IP and skills in
areas such as robotics, navigation and
machine learning as well as in software and
system design.
Chief executive of Saber Astronautics
Dr Jason Held believes the establishment
of the Delta-V accelerator will strengthen
his and other companies’ efforts to break
into the highly specialised global space
industry.
“NSW has some fantastic world leading
technology in this sector and a lot to offer
the space sector globally,” he said.
“We are keen to position ourselves as
global leaders in the field and we are
quickly gaining worldwide recognition,
particularly in the US.”
Held said assistance from NSW Trade &
Investment had enabled his company to
accept an invitation from NASA to test its
DragEN tether system on NASA’s zerogravity flight program – a first for an
Australian company. According to Saber,
the tether deployed exactly as expected,
rolling out smoothly, unlike many other
tethers which have been subject to tangling.
In March, Saber Astronautics was
awarded $45,000 in Australian federal
government funding to run a joint
INVESTMENT OPPORTUNITY
INVESTMENT OPPORTUNITY
NEWS
First space technology
accelerator
Online business for sale Software development company
has created a process to
generate revenue from online
purchases through local and
international retailers in support
of charitable pursuits.
Early commercialization, Sydney
located, operates through a website.
Retailers and charities listed.
Please respond to:
[email protected]
Australian Private Equity & Venture Capital Journal
Australian Cloud
Technology BlueCloud is seeking funding to support
rapid international growth in Asia.
Profitable company developing
telephony and productivity solutions
for call centres etc. Scalable cloud
solution gives access to high end tools.
Minimum investment $100,000.
Contact Morten Blomfeldt on
0431 182 881
[email protected]
JUNE 2014 · Year 22 No 242
|
14
Australian-Indian program of space
operations activities. The grant will help
fund use of Saber’s Sydney facilities for
use in projects of interest to Australian and
Indian space researchers.
INVESTEE NEWS
Small business
software acquisition
Bain Capital investee company MYOB has
acquired Adelaide-based start-up Dovetail.
No value for the acquisition has been
announced.
Dovetail provides online document
collaboration software for accountants.
The company was started by
accountant Rob Cameron about twoand-a-half years ago and is the second
business Cameron has sold to small
business software company MYOB.
Cameron founded Innovate in 1999. That
business developed Level 31, a document
management system for accountants, and
was sold to MYOB in 2006.
INVESTMENT ACTIVITY
development the company is close to full
commercial production.
Hackett invests in new
battery technology
INVESTMENT ACTIVITY
Internode founder and now technology
investor Simon Hackett has invested
$2.1 million to become a substantial
shareholder in RedFlow Ltd (ASX: RFX).
Hackett bought more than 17.5 million
shares in the company last month (May)
making him the largest investor in the
company with a stake of more than
9 per cent.
South Australia-based Hackett has
this year invested in cloud-hosting
company UltraServe, electric vehicle
company eVRS and aviation software
company AvSoft.
Hackett said RedFlow’s products had
the potential to become a global
gamechanger for the energy industry.
RedFlow is a leading developer of high
capacity zinc-bromide batteries which
are manufactured without rare earth
materials. After lengthy research and
Australian Private Equity & Venture Capital Journal
$2m Chinese investment for
solar start-up
A Chinese company has agreed to invest
$2 million in an Australian solar energy
start-up.
ZhouZhou Intense Solar is to invest
the money into concentrated solar photo
voltaic (CSPV) technology business
RayGen Resources as part of a $60
million agreement which gives it exclusive
distribution rights for China.
Under the deal, ZhouZhou Intense Solar
will assemble Australian made components
of the technology.
According to the company, the deal
will guarantee RayGen a minimum of $58
million in high technology components
sales over the next few years.
The deal was signed during a recent
Australian government trade mission to
JUNE 2014 · Year 22 No 242
|
15
China. Trade minister Andrew Robb said it
was an example of Australian innovation
finding a market in China which would
result in jobs, investment and trade for
Australia.
In 2012, Melbourne-based Raygen
predicted it would be able to lower
generation costs for utility scale solar
plants to $60 a megawatt hour.
CSPV uses computer controlled mirrors
to direct concentrated beams of sunlight
onto ultra-efficient solar semiconductor
devices. According to RayGen, these
devices are twice as efficient as
conventional solar panels.
RayGen has received $2.75 million in
federal and state government grants since
it was formed in 2010.
INVESTMENT ACTIVITY
Last month (May) the San Francisco Bay
area office of telecoms operator Orange
SA signed a contract to use 1-Page’s hiring
platform and technology to recruit staff.
PEOPLE MOVES
PEOPLE MOVES
Managing director leaves
mid-market firm
Managing director Nick Batchelor has left
RMB Capital Partners.
Batchelor joined the Sydney-based midmarket private equity firm in 2006 and led
a buyout of the firm’s management
company from Rand Merchant Bank in 2009.
The departure of Batchelor leaves Magnus
Hildingsson and Mark Summerhayes as
RMB managing directors. Batchelor is
believed to be joining a larger Sydneybased mid-market private equity firm.
Micro cap plans to take out
US venture investors
PEOPLE MOVES
An ASX-listed micro cap has exercised an
option for the acquisition of a US business
in which two overseas venture capital firms
are invested.
InterMet Resources (ASX: ITT)
announced on 22 May that it planned to
exercise its option to acquire US business
1-Page Company Inc. LSE AIM-listed
investment company TMT Investments and
US venture capital firms Blumberg Capital,
and Western Technology Investment are
investors in 1-Page.
InterMet has raised $400,000 via a
placement at .008 cents per share and
has appointed KTM Capital and Foster
Stockbroking as lead managers to raise
up to $7 million to finance the acquisition.
They plan to lodge a prospectus with
ASIC on 4 July. The offer is conditional
on approval from a shareholder meeting
scheduled for 15 July.
1-Page was founded to commercialise
the concept proposed in 2002 best-selling
self-help book, The 1-Page Proposal. The
company is building corporate software as
a service (SaaS) products and an internet
platform which will enable one-page
proposals to be negotiated.
The business was founded by the author
of The 1-Page Proposal, Pat G. Riley,
and Joanna R. Weidenmiller, co-founder
of 360Fashion Network. Riley is now
chairman and Weidenmiller chief executive.
Luxe City Guides, a publisher of print and
mobile app tourist guides.
QIC appoints head of new
multi-asset role
Queensland Investment Corporation
(QIC) has recruited Neil Williams from New
Zealand Superannuation.
Williams has been appointed to the new
role of managing director – multi-asset and
investment solutions.
Williams had been with New Zealand
Super since 2008 and was part of the
team that developed the fund’s investment
strategy, including setting up a reference
portfolio and adopting strategic tilting.
PEOPLE MOVES
Misev rejoins Towers Watson
Alek Misev has rejoined Towers Watson as
a private markets consultant after a short
spell with Aberdeen Asset Management.
Misev had previously spent three years
with Towers Watson as an investment
consultant focusing on private markets.
PEOPLE MOVES
Knights takes chair of
tourist app business
Ironbridge Capital founding partner Julian
Knights has been appointed chairman of
Australian Private Equity & Venture Capital Journal
Global executive joins
board of wireless power
company
New Zealand founded technology
company PowerbyProxi has appointed a
senior executive of a global semiconductor
company to its board.
Dr Gani Jusuf was an early member of
the team that built up Marvell Technology
Group Limited and is now vice president of
engineering for Marvell’s communications
and consumer business group.
PowerbyProxi chief executive Greg
Cross said Jusuf brought a wealth
of experience and knowledge to the
company and understood the dynamics of
a fast-growth business.
PowerbyProxi claims to have developed
the world’s smallest and safest contactless
power transfer system, a system which
enables devices such as mobile phones
to be recharged simply by being placed
close to a charger instead of having to be
connected to it.
“Wireless power technology is still
developing and has enormous potential to
be a key, game-changing technology for
anyone who uses electronics on a day to
day basis,” said Jusuf.
New Zealand venture capital firm Movac
was an early investor in PowerbyProxi and
last year electrical connection devices
company TE Connectivity (NYSE:TEL) led
an investment round in which Movac also
participated.
PowerbyProxi’s technology was spun
out of research at the University of
Auckland.
PEOPLE MOVES
Private equity specialist
establishes advisory business
Daniel Waine has established Sydneybased corporate advisory business
Whitehall Capital.
Waine was formerly a director of
National Bank private equity alternative
unit Integrated Capital Solutions (NabICS)
which ceased operations in 2012.
JUNE 2014 · Year 22 No 242
|
16
Prior to that he worked for Anacacia
Capital and with now defunct ANZ Capital
Private Equity.
CONFERENCES & ROUNDTABLES
Victorian government
backs start-up body
Dealing with disruptive technologies
Strategies major companies are adopting
to embrace new disruptive technologies
will be the focus of Agile Australia 2014 at
the Melbourne Convention and Exhibition
Centre, June 17-18.
Lisa Frazier of CBA will outline how the
bank implements agile strategies across
its IT and business departments and Lee
Vanaruzzo of Woolworths will explain how
the major retailer deals with innovation.
They will be among 60 speakers at the
event.
For more information visit: www.
agileaustralia.com.au
Australian Private Equity & Venture Capital Journal
JUNE 2014 · Year 22 No 242
|
17
FEATURE
DATA ANALYSIS POINTS
TO OPPORTUNITIES
ANALYSIS OF DATA CONFIRMS LOWER AND UPPER
MID-MARKET SECTORS OFFER MOST PRIVATE EQUITY
OPPORTUNITIES
By Adrian Herbert
Data made available by
international business
intelligence company
Bureau van Dijk (BvJ)
backs up the view that in
Australia and New Zealand
the lower mid-market
offers by far the largest
number of opportunities
for private equity
investment.
A
PE&VCJ used BvJ’s Orbis*
database to carry out an initial
statistical analysis of private
companies in Australia and New Zealand.
Recognising the minimum deal size
requirements of most private equity firms,
we restricted the analysis to companies
with annual revenues in excess of $US10
million. This identified a total of 8,042
businesses.
These businesses were then separated
into bands rising by $US10 million in
annual revenue.
Of the total of 8,042 businesses, 436
had annual revenues of $US10 million to
$US20 million while 5,237 were in the
next band with revenues between $US20
million and $US30 million.
The next bulge, of 1,461 companies, was
in the $US60 million to $US70 million
band. After that, the numbers in each
band fell sharply with a total of only 314
companies populating the four bands from
over $US70 million to $US100 million and
then just 26 with annual revenues above
$US100 million.
This indicates that there are definitely
quite distinct lower and upper midmarkets ˗ in the $US20 million to $US30
million annual revenue and $US60 million
to $US70 million annual revenue bands.
Within those two bands, the ranking
of types of companies by number was
fairly consistent. Both were led by
“other services” (businesses not in the
Orbis database standard categories
Australian Private Equity & Venture Capital Journal
and including all high technology-based
businesses) followed by wholesale
and retail trade; education and health;
construction; machinery equipment,
furniture, recycling.
Across all bands, the largest increases in
annual revenue of more than 11.03 per cent
were recorded by 253 companies (3.15
per cent). The largest number (74) was
in wholesale and retail trade followed by
other services (59).
This suggests that the preference of
private equity firms to invest in retailing
ahead of many other sectors remains
appropriate despite the downturn that has
persisted in the sector since the global
financial crisis.
The next best performing sector was
machinery, equipment, furniture, recycling
with 17 companies.
Of the top 20 companies by revenue,
12 were based in Australia and 8 in New
Zealand. Only one of these businesses is
known to currently have private equity
investment.
Of the Australian companies, three were
subsidiaries of foreign businesses and one
was a subsidiary of an Australian listed
company.
Of the New Zealand companies, four
were subsidiaries of foreign (not including
Australian) businesses.
Of the remainder, the highest last
available revenue figure (2011) of $US106.6
million was recorded for South Australiabased building products company OZroll
JUNE 2014 · Year 22 No 242
|
18
FEATURE
Pty Ltd. The company was recorded as
having just 35 direct employees in 2011.
OZroll, which trades as OZRoll
Industries, made a number of bolton acquisitions over recent years to
broaden its range of products. These
included Acryloc Building Products,
Solar Industries, Shutter Concepts
Aluminium Louvres, Rollashield Aluminium
Rollershutters and Centurion Garage
Doors. The company is controlled by
managing director Ron Bayley.
The second highest last available
revenue figure (2011) of $105.8 million was
recorded for Darrell Lea Chocolate Shops
Pty Ltd. The company was recorded
as having around 850 employees in
2011. In July 2012 Darrell Lea was put
into administration and extensively
restructured to reduce outgoings.
After being sold to the Quinn family of
Queensland, the owners of VIP Petfoods,
the company was further restructured
including closing all company owned
retail stores and eliminating most retail
employee positions.
Riordan Grain Services of Lara, Victoria,
had revenue of $US105.4 in 2011 and had
just 35 direct employees that year.
Riordan was established as a onetruck grain transport operation in 1996.
Founder Jim Riordan remains managing
director of the business. Today Riordan is
an integrated grain trading, storage and
transport business.
NSW company Daracon Plant Hire
had revenue of $US103.2 million in 2011
and employed around 100 people. The
Newcastle-based company maintains
one of the largest fleets of earthmoving
equipment in Australia. Daracon Plant
Hire’s clients include the operators of large
mine sites in the Hunter Valley as well
as the NSW Roads and Traffic Authority
(RTA).
Daracon Plant Hire is part of civil
engineering business Daracon Group
which has total annual revenue of
around $A400 million. Daracon Group
is controlled by founder and managing
director David Mingay and his family. The
company’s general manager is Jon Mingay.
Queensland-based G James Glass and
Aluminium had revenue of $US101.5 million
in 2011. The business had about 100 direct
employees.
G James claims to be Australia’s
leading integrated glass and aluminium
manufacturer and produces window
products used in residential housing
through to major commercial projects.
The company also produces aluminium
sections for other engineering uses such
as ship building. A family business, G
James is led by chairman and managing
director Lewis Saragossi.
Sydney-based engineering services
business RMMC Pty Ltd had revenue of
$US101.1 million in 2011.
Turning to New Zealand private
companies, New Plymouth-based TSB
Bank Limited had revenue of $US103.1
million in 2012. Formerly Taranaki Savings
Bank, TSB Bank is owned by the TSB
Community Trust.
In addition to banking, TSB Bank
operates a number of other business units
including TSB Foreign Exchange which
has 13 branches around New Zealand and
real estate business TSB Realty which has
three branches.
Auckland-based Radius Health Group
Limited had revenue of $US102.7 in 2012.
Radius owns and operates medical centres
and pharmacies as well as managing
franchised medical centres.
Vitaco Health (NZ) Limited had revenue
of $US101.1 in 2012. Vitaco is an Aucklandbased company which produces health
foods, supplements and sports nutrition
products. The business also has a Sydneybased Australian subsidiary and is
developing export operations.
Sydney-based private equity firm Next
Capital has a 72 per cent stake in Vitaco.
the Australian Bureau of Statistics and
Statistics New Zealand.
Hundreds of search criteria are available
across the databases. These criteria can be
combined to search for companies meeting
specific profiles.
Individual company information includes
full lists of direct and indirect subsidiaries
and shareholders indicating the company’s
degree of independence, its ultimate owner
and other companies in the same corporate
family.
BvD also offers the Zephyr database
which contains information on M&A, IPO,
private equity and venture capital deals.
Access can be by annual subscription
or on a BvD credit account if need is less
frequent.
*The Orbis database includes information
on over 120 million companies globally,
more than 99 per cent of them private
companies. This information is collected
from a variety of information providers
and aggregated. The data provided by
individual information providers is regularly
evaluated. A separate Australia and New
Zealand database, Oriana, is also available.
This uses the ANZSIC codes used by
Australian Private Equity & Venture Capital Journal
JUNE 2014 · Year 22 No 242
|
19
FEATURE
OPERATING REVENUE (TURNOVER) (TH USD)
Industry (BvD major
sectors)
From
10,000
to
20,000
From
20,001
to
30,000
From
30,001
to
40,000
From
40,001
to
50,000
From
50,001
to
60,000
17. Other services
99
1,674
32
43
26
11. Wholesale & retail trade
122
1,272
62
43
19. Education, Health
6
106
2
5
10. Construction
29
571
11
08. Machinery, equipment,
furniture, recycling
35
362
01. Primary sector
6
06. Chemicals, rubber, plastics,
non-metallic products
10
07. Metals & metal products
13. Transport
From
70,001
to
80,000
From
80,001
to
90,000
From
90,001
to
100,000
More
than
100,001
296
29
21
14
5
0
2,239
32
108
27
18
13
8
0
1,705
5
749
3
3
1
1
0
881
12
11
66
9
6
1
1
0
717
23
19
14
56
10
5
3
1
0
528
248
7
8
7
17
2
8
3
0
0
306
114
12
10
4
17
7
5
5
3
0
187
12
128
10
6
3
14
3
2
2
0
0
180
16
94
9
10
3
23
5
1
5
1
0
167
15. Banks
18
78
12
5
5
19
6
4
5
1
0
153
02. Food, beverages, tobacco
8
60
9
7
4
12
3
4
10
3
0
120
12. Hotels & restaurants
12
82
3
0
2
12
4
1
0
0
0
116
03. Textiles, wearing apparel,
leather
0
46
1
6
4
12
0
2
1
0
0
72
05. Publishing, printing
12
37
2
0
2
9
1
4
1
0
0
68
09. Gas, Water, Electricity
3
26
2
1
2
6
2
0
1
0
0
43
14. Post & telecommunications
5
24
0
0
1
7
2
2
0
0
0
41
04. Wood, cork, paper
3
18
3
0
1
7
1
2
1
0
0
36
16. Insurance companies
1
10
1
1
2
5
2
4
2
2
0
30
18. Public administration &
defence
1
14
1
0
0
0
1
0
1
0
0
18
n.a.
38
273
19
23
20
26
15
14
7
0
0
435
All
436
5,237
221
199
148
1,461
132
106
76
26
0
8,042
Australian Private Equity & Venture Capital Journal
From
60,001
to
70,000
n.a
JUNE 2014 · Year 22 No 242
all
|
20
FEATURE
Operating revenue (Turnover), growth rate (%)
Industry (BvD major sectors)
Less than -1.67
From -1.67 to 6.35
From 6.35 to 11.03
More than 11.03
n.a.
All
17. Other services
49
55
65
59
2,013
2,241
11. Wholesale & retail trade
63
77
66
74
1,426
1,706
19. Education, Health
3
6
3
6
865
883
10. Construction
11
5
4
2
699
721
08. Machinery, equipment, furniture,
recycling
14
20
18
17
459
528
01. Primary sector
16
3
9
11
267
306
06. Chemicals, rubber, plastics, nonmetallic products
9
15
15
9
139
187
07. Metals & metal products
9
4
5
6
157
181
13. Transport
12
10
16
11
119
168
15. Banks
25
14
12
14
89
154
02. Food, beverages, tobacco
5
7
15
6
88
121
12. Hotels & restaurants
10
6
1
3
96
116
03. Textiles, wearing apparel, leather
3
1
6
4
58
72
05. Publishing, printing
7
7
2
9
43
68
09. Gas, Water, Electricity
3
4
3
3
30
43
14. Post & telecommunications
0
4
4
5
28
41
04. Wood, cork, paper
0
5
5
2
25
37
16. Insurance companies
3
4
2
6
15
30
18. Public administration & defence
0
0
2
0
16
18
n.a.
11
6
0
6
413
436
All
253
253
253
253
7,045
8,057
Number of employees
Industry (BvD major sectors)
49 or less
From 50 to 99
From 100 to 499
500 or more
n.a.
All
17. Other services
434
309
1,350
8
140
2,241
11. Wholesale & retail trade
712
150
651
0
193
1,706
19. Education, Health
244
38
584
4
13
883
10. Construction
258
71
384
1
7
721
08. Machinery, equipment, furniture, recycling
173
77
241
1
36
528
01. Primary sector
112
67
99
2
26
306
06. Chemicals, rubber, plastics, non-metallic
products
46
20
96
0
25
187
07. Metals & metal products
73
21
71
1
15
181
13. Transport
43
24
71
1
29
168
15. Banks
25
53
28
0
48
154
02. Food, beverages, tobacco
46
15
39
2
19
121
12. Hotels & restaurants
10
14
73
0
19
116
03. Textiles, wearing apparel, leather
25
8
35
0
4
72
05. Publishing, printing
11
13
31
0
13
68
09. Gas, Water, Electricity
19
7
7
0
10
43
41
14. Post & telecommunications
9
3
20
0
9
04. Wood, cork, paper
12
8
12
0
5
37
16. Insurance companies
5
8
1
0
16
30
18. Public administration & defence
4
5
9
0
0
18
n.a.
216
44
165
3
8
436
All
2,477
955
3,967
23
635
8,057
Australian Private Equity & Venture Capital Journal
JUNE 2014 · Year 22 No 242
|
21
FEATURE
ACQUIRER WILL NOT
LEAVE PETERS IN
DEEP FREEZE
By EUROPEAN CORRESPONDENT SELWYN PARKER
ICE CREAM COMPANY PETERS
HAS BEEN ACQUIRED BY A
BUSINESS IN A HURRY WHICH
LAST YEAR CAME UNDER THE
CONTROL OF ONE OF EUROPE’S
MOST OPERATIONALLYFOCUSED PRIVATE EQUITY
FIRMS. SIGNIFICANT CHANGE
APPEARS INEVITABLE.
J
udging by its behaviour following
previous acquisitions in the UK and
across Europe, PAI Partners-owned
R&R will take a year or so to plan its
strategy but will then launch into a round
of investment and rationalisation at Peters
(see separate item this issue).
At that point the second-biggest
ice-cream producer in Europe can be
expected to remodel Peters along the
lines of the 19 businesses it has acquired
over the last 20 years.
R&R stated on acquisition that it
planned to work with the current Peters
management under chief executive
Stephen Audsley but that, as the team is
no doubt well aware, is no guarantee they
will be retained longer term.
Suppliers can also expect to be put
under pressure in terms of price, quality,
ingredients and timeliness.
PAI routinely subjects acquisitions
to forensic analysis. As R&R’s latest
bondholders report notes: “After a period
of observation and understanding,
we determine the extent of capital
expenditure required to improve the
business, potential further synergies that
we believe can be extracted, any staffing
resources we believe may enhance the
business and any identifiable savings we
believe can be achieved.”
Any duplicated functions will be a
particular target in a highly focused search
for synergies and cost savings. R&R chief
executive Ibrahim Najafi has carried out
similar processes across R&R’s acquisitions
in Europe.
Australian Private Equity & Venture Capital Journal
Last year’s €57.3m acquisition of UK’s
Fredericks Dairies – the first since PAI
bought R&R from Oaktree Capital in
mid-2013 – provides an example. Already
a successful business managed along
similar lines to R&R, it was a large,
branded company with a broad range of
licenses for Cadbury, Del Monte, Nichols
and Britvic. A number of its functions
were, however, similar to the acquirer’s UK
operations. Directors, senior management,
including the finance team, and the
sales force were all deemed surplus to
requirements. A key element for R&R,
finance, was taken over by head office.
Highly margin-conscious, R&R shifted
production of a range of products to its
own existing facilities, once again slashing
overheads. “The factors contributed to a
significant improvement in the profitability
of the acquired business,” the company
notes.
R&R has a record of bedding down
acquisitions under a winning formula. First,
it reviews pricing, production and recipes
with a view to boosting margins. Second,
it tackles the procurement function under
a 28-point system that concentrates on
economies of scale – “we believe it is
relatively easy to purchase ingredients at
better prices,” it notes. Third, it looks for
wasteful duplication. Fourth, it analyses
options to shift production to other
locations to improve distribution and
lower costs. Fifth, it examines all possible
synergies with existing businesses.
R&R’s approach adds up to a relentless
pursuit of improved margins, especially
JUNE 2014 · Year 22 No 242
|
22
FEATURE
in manufacturing processes in which the
company believes it has a key advantage
over the competition.
Meanwhile, PAI is noted for its focus
on operational improvements within
its portfolio companies. What PAI does
not do is leave an already successful
business to be managed as it was before
acquisition. A specialist in fast-moving
food goods – PAI previously owned
Yoplait which taught it a lot about the
dairy industry.
Under PAI ownership R&R has been, if
anything, even hungrier for international
acquisitions. The company is already the
second-biggest take-home ice cream
manufacturer in Europe and is number
one in the UK, Germany, France and
Italy. This is a business where scale,
rationalisation and synergies pay off.
Last year the group posted earnings
before interest, tax, depreciation and
amortisation (EBITDA) of ¤107.4 million on
revenues of ¤709 million. With free cash
flow before acquisitions of ¤55.7million –
over 60 per cent of adjusted EBITDA, R&R
constantly builds a war chest, both for
expansion and investment. In the last six
years the group has poured some ¤340
million into plant and properties.
It was Oaktree that actually turned the
company into R&R after buying a group
Australian Private Equity & Venture Capital Journal
called Richmond in 2006, then merging
it with Germany’s Roncad. In short order
Oaktree added five more ice cream
manufacturers in UK, France, Germany
and Italy. A coup was a 2011 licensing
deal made with Mondelez International,
a former Kraft Foods brand that gave it
the rights to manufacture and distribute
Toblerone, Oreo and other brands in
Europe.
The acquisition of Peters gives R&R a
beach head in the Asia Pacific from which,
going by earlier form, it will convert into a
much bigger role beyond Australia.
JUNE 2014 · Year 22 No 242
|
23
REARVIEW MIRROR
5 YEARS AGO... JUNE 2009
COMMENT: Budget’s pluses and minuses
By Adrian Herbert
The Federal Budget proved to be more
favourable to the private equity industry
than we had been conditioned to expect
but, as AVCAL chief executive Katherine
Woodthorpe noted, it was still a document
of pluses and minuses.
The Commercial Ready program, axed
in the 2008 budget, did not miraculously
reappear in a re-badged form as some
had fervently hoped. Overall, however,
the budget was more in accord with
recommendations in Dr Terry Cutler’s
report on the national innovation
system than had widely been expected,
considering current economic conditions.
Some alternative incentives to those in
Commercial Ready, such as the Re-tooling
for Climate Change grants, had been
introduced prior to the budget and more
were outlined in the budget papers.
Clean energy initiative
The $4.5 billion Clean Energy Initiative,
that includes $3.5 billion in new money
(budgetspeak for actual new commitment
as opposed to redirection of already
promised funding), should provide flow-on
benefits to the clean technology sector
in Australia as it seeks to expand clean
energy generation and new technologies
development. That, in turn, should help the
venture capital sector attract some much
needed additional private funding to an
area that is expanding rapidly, if from a
small base.
The initiative includes:
• $2.4 billion, including new funding
of $2 billion, to be directed toward
developing low emissions coal
technologies in industrial scale carbon
capture and storage projects under the
Carbon Capture and Storage Flagships
program
• $1.6 billion, including new funding
of $1.365 billion, in a Solar Flagships
program that is intended to help
position Australia as a world leader in
this area • $465 million to establish Renewables
Australia, including new funding
of $100 million, to support leading
edge technology to research and
bring to market renewable energy
technologies. The new body will advise
governments and the community
on the implementation of renewable
energy technologies
The Solar Flagships program has
the objective of creating an additional
1000mW of solar generation capacity. This
is three times the size of the largest solar
energy project currently operating
anywhere in the world.
Solar Flagships will seek to develop up to
four individual generation plants which will
feed power into the national grid. These
may use solar thermal or solar photovoltaic technologies and are planned to
have electricity generation capacity equal
to or greater than a current conventional
coal-fired power station.
Specific technologies will complement
Carbon Capture and Storage Flagship
projects, and demonstrate the
government’s commitment to helping
to maintain the value of Australia’s coal
exports and utilising our renewable
potential. The carbon capture and solar
technologies are to be underpinned
by supporting specialised research,
development and demonstration programs.
The government has committed to work
with the private sector to position the
Australian economy for a low carbon, high
skilled future.
Tax treatment of managed
investment trusts
AVCAL was particularly pleased that the
budget confirmed that managers could
continue to elect for gains, or losses,
on investments of managed investment
trusts to be taxed as capital on disposal as
from 2008-09.
The revenue potential of treating such
gains as earned income has, of course,
reduced considerably since the private
equity boom peaked in mid 2007. But while
this issue remained on the government
agenda there was always a danger the
government might be persuaded that view
should prevail.
This had been a worrying sleeper issue as
it would undermine the foundations of the
Australian Private Equity & Venture Capital Journal
private equity industry. AVCAL had lobbied
hard on this issue as assistant treasurer Chris
Bowen acknowledged on budget night.
Deloitte partner, M&A taxation, Matt
Turner said the government’s intention
to allow a managed investment trust to
“hard code” capital gains tax treatment
for its gains and losses went a long way to
restoring a sense of stability within private
equity and venture capital.
The real test would, however, be in the
detail of the final legislation, he said.
“On face value, these measures should
give investors the tax certainty that they
need to continue to invest in Australia’s
private equity and venture capital funds,”
Mr Turner said.
But he added: “The timing of these
measures is interesting in that it comes
at a time when some private equity
funds are sitting on unrealised losses
on their investments. A commitment to
CGT (capital gains tax) treatment would
effectively reduce the value of any realised
losses as they would only be capital gains
and not taxable income, generally.
“In this context, fund managers should
carefully consider their options for any
particular fund that they manage. The
choice is irrevocable in the first income
year of operation that commences on or
after the 2008-09 income year.
“Of course not making the election
would likely leave the taxation gains/
losses subject to treatment under ‘ordinary
concepts’ whose distinction remains open
for argument.”
A discussion paper on the proposed
details of these changes is available from
Treasury. Interested parties are invited to
comment on the paper. The closing date
for submissions is July 10.
R&D tax credit
The new refundable R&D tax credit, which
will take effect in the 2010-11 financial
year (see feature article this issue), will
be particularly valuable for early stage
venture-backed companies.
Deloitte R&D tax partner Serg Duchini
described the R&D changes as “significant”
and said they “largely implement key
JUNE 2014 · Year 22 No 242
|
24
REARVIEW MIRROR
recommendations of the Cutler review of
innovation policy”.
Under the new system companies with
annual turnovers of less than $20 million
will have access to a refundable tax credit
of 45 per cent.
“The value of this initiative is that the
credit will be able to be offset against
corporate tax liabilities or be refundable if
the company is in a tax loss position,” he said.
But he added: “What needs to be
clarified is how companies in a tax loss
position can make use of these credits.”
The government estimates that as many
as 5500 companies will benefit. These will
include many high technology start-ups.
To assist firms in the transition from the
current concession system to the new
credit system, the tax offset expenditure
cap will be raised from $1 million to $2
million for financial year 2008-09.
Companies with turnover greater than
$20 million and those with IP held overseas
that carry out R&D in Australia, will also
benefit. These businesses will receive a
40 per cent non-refundable tax credit
from 2010-11. In the case of companies
with IP held overseas, this will replace the
international premium that was introduced
on July 1, 2007.
In addition, no cap will be set on the level
of eligible expenditure that can be claimed
under the new tax credit system.
These changes largely fulfill
recommendations of the Cutler review that
recommended a 50 per cent tax break for
small companies and 40 per cent for larger
businesses.
Clean Energy Trade and
Investment Strategy
The venture sector also stands to gain
directly from the $15 million Clean Energy
Trade and Investment Strategy, intended
to help clean energy developers find
international opportunities.
Bonus Tax Deduction for Small
Business Capital Investments The $141 million over four years Bonus
Tax Deduction for Small Business Capital
Investments should filter through to some
venture capital backed companies.
TCF Sector Restructuring Finance Similarly, the redirection of $55
million of existing Textile Clothing and
Footwear (TCF) Sector Restructuring
Finance, including $10 million in new
funding, towards innovation may assist
some venture capital backed companies.
Science Innovation Research and
Education
The record spending on science,
innovation, research and education should
also have a trickle-down effect on the
venture sector although it may be seen
as confirmation that this government, as
well as the minister for innovation Senator
Kim Carr, sticks to the view that funding
university research is the best way to
promote commercial innovation, a view
which many in the venture capital sector
would oppose.
New funding in this area will be worth
$4.5 billion over four years with $3.1 billion
to go to science, innovation and research
and the rest to education.
Employee share schemes taxation
Venture-backed companies were,
however, in line for a body blow if the
proposed new taxation regime for
employee share schemes, involving upfront taxing of share options, had gone
ahead in its original form.
Strong opposition from business and
unions forced the government to institute
an urgent review of this measure. It is
a matter of concern, however, that the
proposal got into the budget papers in the
form in which it was presented. It would
appear that effects on the venture sector,
and AVCAL representations on the issue,
were given scant, if any, consideration prior
to the budget being handed down.
The government said the measure was
primarily intended to claw back tax from
highly paid executives of listed companies.
Setting the threshold at a salary of
$60,000 a year, however, meant it would
inevitably cause serious collateral damage
to early-stage technology companies.
Surely those drafting the budget papers
should have been aware that technology
start-up companies rely on generous share
options schemes as incentives to recruit,
reward and retain skilled staff?
Pre-revenue companies are by definition
unable to afford high salaries. They use
employee share schemes to attract
skilled staff who might otherwise opt for
Australian Private Equity & Venture Capital Journal
higher rewards offered by established
companies or chose to go overseas,
principally to the US where technology
sector salaries remain generally
considerably higher than in Australia.
Treasurer Wayne Swan on June 5
issued a consultation paper that made the
following proposals:
• The $1,000 tax exemption on share
options apply to salaries of up to
$150,000 rather than up to $60,000
• Limited deferral of the taxing point be
allowed where there is genuine risk of
forfeiture of shares
• Annual reporting should be required
and obligations on employers should
be removed
• Existing valuation rules should be
reviewed
Interested parties were given a whole
week to respond with the government
planning to enact new legislation before
parliament rises on June 25, necessary for
the legislation to be in place for the new
tax year.
It is difficult to understand how the
government got into such a tangle over
this issue apart from concluding it ignored
pre budget representations. This is hardly
encouraging after last year’s debacle when
Commercial Ready was scrapped in the
budget despite its retention being item one
in AVCAL’s submission to the Cutler review.
JUNE 2014 · Year 22 No 242
|
25
REARVIEW MIRROR
10 YEARS AGO... JUNE 2004
Government R&D support branded ‘too little, too late’
The extra $1 billion promised for business
research and development in last month’s
federal budget is “too little, too late” and
may not mean any increase in real terms,
according to accounting giant Deloitte.
“The big disappointment is the lack of
encouragement to the private sector to boost
R&D here in Australia,” said Deloitte tax
partner, Jamie Munday. “Australia is slowly
improving but we have a long way to go.”
In the May 6 Federal Budget, Treasurer
Peter Costello announced the $1 billion
Commercial Ready Program which the
government says will run until 2011.
Commercial Ready includes
many existing programs including the
second version of the Backing Australia’s
Ability—Building
Australia’s Future through Science and
Innovation (Backing Australia II) package
and will inject some additional funding.
However, Mr Munday said that even with the
new funding announcements, Australia still
lags significantly behind much of the
developed world with regard to providing
encouragement for research and development.
“Australia is now moving—albeit slowly
but the rest of the world is moving far faster
from a better start point. It is great to have
the government’s commitment but it is not
enough to give industry and business the
incentives they need to shrink the gap.”
Australia’s current business investment
is 0.72 per cent of GDP compared with the
OECD average of 1.56 per cent, according to
Mr Munday. The USA, Finland, Sweden and
Japan exceed 2 per cent, while Germany,
France, the UK, Canada, Korea, Denmark,
Austria, Belgium, Iceland, Switzerland and the
Netherlands range between 1 per cent and 2
per cent. The Czech Republic, Norway, Ireland
and Italy are in the same group as Australia
with business investment ratios of between
0.5 per cent and 1 per cent of GDP.
Mr Munday said that the biggest
beneficiaries of Backing Australia II will be
small to medium enterprises.
“The big end of town will be supported as
well but not to the same extent,” he said.
At the tail end of the original Backing
Australia’s Ability program, Federal
industry minister, Ian Macfarlane,
announced the sixth round of funding for
the Biotechnology Innovation Fund last
month. The BIF has provided $36 million
for 160 ‘proof of concept’ projects since its
inception in 2001.
Mr Macfarlane said that in future
BIF would be included in the $1 billion
Commercial Ready program due to be
operating within the coming financial year.
“Commercial Ready will cast a much
broader net, providing grants for ‘proof of
concept’ projects in all industry sectors and
I expect the biotechnology sector to be a
major recipient of those grants.”
The closing date for BIF applications is
July 15.
business version of the NIES Export
Market Planning program to assist small
businesses design and implement export
plans.
• The Government is to promote the
improvement of business skills to lift small
firm performance. Close to $3 million will
be provided over the next four years.
Measures will augment existing courses
in secondary and tertiary institutions and
assist professional associations to offer
advanced courses. A key element will be firm
performance.
$1.5 million in grants over the next three
years will be made available through two
programs.
The Australian Quality Council has
successfully piloted the E Team project
in NSW and this will now be expanded
nationally. The program provides basic
training in total quality management to
secondary school students.
More places will be made available in the
Enterprise Workshops and these will be
better marketed.
Training materials based on NIES products
and case studies will be developed for
interested professional agencies such
as accountancy and banking associations.
The aim is for professionals to provide better
advice to small and medium businesses.
• The Industry Commission inquiry into
new industrial materials has released an
issues paper that can be used as a guide
when making submissions. The paper
seeks information and poses questions
on the potential for greater us of new and
advanced industrial materials, including
scope for increasing the output of high
value added products and exports.
20 YEARS AGO... JUNE 1994
Government news
• Former Opposition leader, John Hewson,
is the new shadow minister for Industry.
The new Opposition spokesman on Small
Business is Judith Moylan.
• Industry Minister Peter Cook has continued
the Government’s drive to boost
investment with an upbeat assessment of
the economy in an address to the NSW
Chamber of Manufactures.
Senator Cook said the economy is growing
at around 4 per cent per year, growth is being
driven by the lowest interest rates in two
decades and the lowest inflation rates for 30
years.
He said the corporate profit share is at
an all time high, business confidence in
manufacturing is at a 30 year high and
consumer confidence remains buoyant.
• The Department of Industry, Science
and Technology is to develop a small
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JUNE 2014 · Year 22 No 242
|
26
COMING EVENTS
11 June
29 August
Law for Turnaround
iAWARDS 2014 Gala Dinner.
CTPA Course through UTS. Sydney.
Turnaround Management Association of
Australia.
www.turnaround.org.au/whats-on.php
Melbourne. MCI Australia.
www.iawards.com.au
3-4 September
17 June
Meet Brant Cooper, Lean
Entrepreneur
Melbourne. Slattery IT.
www.slatteryit.com.au
AVCAL alpha.
Melbourne. AVCAL.
www.avcal.com.au
8 September
Accounting for Turnaround.
17 June
Future Forum, Technology –
Friend or Foe?
Sydney. Australian Financial Review,
Macquarie Group.
afr.com/events
CTPA Course through the University of
Technology, Sydney.
Sydney. Turnaround Management
Association of Australia.
www.turnaround.org.au/whats-on.php
18 September
17-18 June
TMA 2014 National Conference.
Sydney.
Agile Australia 2014 – Embracing
Disruption.
Turnaround Management Association of
Australia.
www.turnaround.org.au/whats-on.php
Melbourne. Slattery IT.
www.slatteryit.com.au
23 October
19 June
Tech23.
Meet Brant Cooper, Lean
Entrepreneur.
Sydney. Slattery IT.
www.slatteryit.com.au
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30 July
Communications Alliance &
CommsDay Awards (ACOMMS).
Sydney. Communications Alliance and
Commsday.com.
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Australian Private Equity & Venture Capital Journal
JUNE 2014 · Year 22 No 242
|
27
SHARE CHART
Last sale at end of month
AUSTRALIAN LISTED PRIVATE EQUITY FUNDS/ INVESTMENT COMPANIES
Investors/ Month
May-14
Apr-14
Mar-14
Feb-14
Jan-14
Dec-13
Nov-13
Oct-13
Sep-13
Aug-13
Jul-13
Jun-13
PRIVATE EQUITY & VENTURE CAPITAL
FUNDS/ INVESTORS
A1 Investments & Resources (ASX: AYI)
0.001
0.001
0.001
0.001
0.001
0.001
0.001
0.002
0.003
0.002
0.003
0.002
Acrux (ASX: ACR)
0.870
1.035
1.72
2.100
2.350
2.22
2.510
2.680
3.300
3.320
3.370
3.600
Arowana International Ltd (ASX: AWN)
0.900
0.890
0.785
0.600
0.450
0.48
0.540
0.480
Authorised Investment Fund (ASX: AIY)
0.020
0.026
0.026
0.029
0.029
0.026
0.026
0.033
0.040
0.036
0.038
0.038
Biotech Capital (ASX: BTC)
0.020
0.023
0.025
0.021
0.018
0.025
0.025
0.024
0.022
0.025
0.020
0.020
Billabong International (ASX: BBG)
(Centrebridge Partners/ Oaktree Capital)
0.485
Blue Sky Alternative Investments (ASX: BLA)
2.500
2.340
2.400
2.090
2.190
1.610
1.930
1.450
1.390
1.550
1.405
1.250
BPH Energy Ltd (ASX: BPH)
0.009
0.008
0.010
0.012
0.011
0.013
0.013
0.013
0.013
0.015
0.011
0.007
delisted
delisted
delisted
delisted
delisted
delisted
delisted
delisted
0.275
0.275
0.270
0.170
Bravura (ASX: BVA) (Ironbridge Capital)
Burson Group (ASX: BAP) (Quadrant
Private Equity)
1.940
Chandler Macleod (ASX: CMV) (Lazard
Australia Private Equity)
0.335
0.415
0.415
0.410
0.415
0.425
0.505
0.475
0.455
0.510
0.450
0.400
ClearView Wealth (ASX: CVW) (Crescent
Capital)
0.820
0.760
0.735
0.700
0.660
0.610
0.605
0.655
0.590
0.615
0.600
0.610
CoverMore Group (ASX: CVO) (Crescent
Capital)
2.380
1.180
1.230
1.180
1.200
1.180
1.200
1.100
1.115
1.060
1.030
1.000
CVC Limited (ASX: CVC)
1.250
Dick Smith Holdings (ASX: DSH)
(Anchorage Capital)
2.150
Disruptive Investment Group (ASX: DVI)
0.016
0.190
0.250
Energy Developments (ASX: ENE) (Pacific
Equity Partners)
5.060
5.200
5.160
5.500
Grandbridge (ASX: GBA)
0.060
0.060
0.064
0.064
0.045
0.045
0.045
0.040
0.050
0.042
0.044
0.033
Invigor Group (ASX: IVO)
0.040
0.040
0.053
0.020
0.040
0.020
0.020
0.025
0.030
0.032
0.027
0.030
0.007
0.007
0.525
0.530
0.550
0.590
0.535
0.595
0.530
Invigor Group (ASX: IVO) options Jul 2018
0.007
0.007
0.007
0.007
0.007
iSonea (ASX: ISN) (Bioscience Managers/
Triton Inc)
0.180
0.180
0.210
0.280
0.320
iSonea (ASX: ISN) options Jun 2014
0.085
0.085
0.085
0.120
Lion Selection Group (ASX: LSX)
0.400
0.455
0.050
0.510
Lion Selection Group (ASX: LSX) options
Dec 2014
0.035
0.035
0.035
0.530
NSX Limited (ASX: NSX)
0.115
0.170
0.170
0.170
0.110
0.140
0.150
0.135
0.150
0.110
0.110
0.160
Oceania Capital Partners (ASX: OCP)
1.450
1.460
1.500
1.500
1.600
1.600
1.590
1.600
1.600
1.600
1.600
1.600
QRX Pharma (ASX: QRX) (Uniseed)
0.095
0.094
0.770
0.860
Q Technology Group (ASX: QTG)
(Helmsman Capital)
0.021
0.015
0.020
0.017
0.020
0.021
0.018
0.020
0.020
0.012
0.012
0.009
Spotless Group (ASX: SPO) (Pacific
Equity Partners)
1.820
Techniche Limited (ASX: TCN)
0.064
0.650
0.070
0.094
0.070
0.670
0.069
0.081
0.070
0.046
0.042
0.033
Transpacific Industries (ASX: TPI)
(Warburg Pincus, exited 2 Nov 2013)
exited
exited
exited
exited
exited
exited
exited
1.145
0.980
0.960
0.855
0.780
Veda Group (ASX: VED) (Pacific Equity
Partners)
2.270
30.000
28.980
36.88
37.360
38.050
29.620
30.900
24.120
16.860
13.850
15.300
13.000
0.480
0.460
0.465
0.440
0.440
0.435
0.440
0.460
0.440
0.42
0.400
0.405
Xero (ASX: XRO) (Valar Ventures, Matrix
Capital)
FUNDS OF FUNDS
ING PEAL (ASX: IPE)
Australian Private Equity & Venture Capital Journal
JUNE 2014 · Year 22 No 242
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