Private Equity Portfolio

VPEG4 will only make investments into or alongside, later expansion and buyout funds that target the consistently strong performing, lower to mid-market segment of Private Equity in Australia, where businesses typically have an enterprise value of between $25m – $250m at initial investment. This segment of Private Equity is attractive due to the following reasons:

  • There is less competition for deals, businesses can be purchased at lower purchase multiples and lower levels of debt are utilised in this segment than the highly competitive, large or mega market private equity fund space, that is dominated by global private equity firms.
  • The majority of growth in value of private equity backed businesses in this segment is generated by sustainable earnings enhancement rather than the financial engineering or cost cutting approach that is typical of the larger market space.
  • Private Equity executives work more actively in partnership with the management of portfolio companies in this segment and bring deep financial and business skills as well as the broad networks and experience that are essential for transformational business growth.
  • This segment also benefits from the ability for Private Equity funds to exit (or sell) portfolio companies by several different methods, including;
    • an Initial Public Offer (or listing on a public market),
    • a Trade Sale to a larger industry player or
    • as a “Secondary Sale” to a larger, often global, private equity fund.

As VPEG4 develops its Private Equity portfolio over time, a summary of each underlying fund commitment and investment is provided below.

January 2020
VPEG4 made an initial $5 million investment commitment to Riverside Australia Fund III. In June 2020, VPEG4 increased its total commitment to Riverside Australia Fund III to $10 million
April 2020
VPEG4 Completes a $10 million investment commitment to CPE Capital 9. In June 2021, VPEG4 increased its total commitment to CPE Capital 9 to $20 million
June 2020
VPEG4’s Investment Committee approves a $10 million investment commitment to Adamantem Capital Fund II
April 2021
VPEG4 completes a $20 million investment commitment to Advent Partners 3 Fund
August 2021
VPEG4 commits $30 million to Allegro Fund IV, a $600 million mid market turnaround and special situations fund based in Sydney, managed by Allegro Funds Pty Ltd
September 2021
VPEG4’s Investment Committee approve a $2 million co-investment alongside Advent Partners 2 Fund into Imaging Associates Group (IAG), one of the leading independent providers of diagnostic imaging services in Victoria and regional New South Wales.
February 2022
VPEG4 completes a $30 million investment commitment to Anchorage Capital Partners Fund IV
February 2022
VPEG4’s Investment Committee approve a $2 million co-investment alongside Allegro Fund IV into Gull New Zealand, a leading independent fuel distributor and retailer in New Zealand with a prominent challenger brand through its network of 112 fuel sites across the country, regional New South Wales.
February 2022
VPEG4’s Investment Committee approve a $2 million co-investment alongside Riverside Australia Fund III into EventsAir, a leading provider of events management software for in-person, virtual and hybrid events

Details of VPEG4′s Current Private Equity Commitments:

Private Equity Fund Name Fund / Deal Size Vintage Year Investment Focus / Type VPEG4 Commitment Total No. of Investee Companies No. of Exits
Riverside Australia Fund III $350m* 2019 Lower to Mid Market Expansion / Buyout $10.0m 6
CPE Capital 9 $800m* 2020 Mid Market Buyout $30.0m 2
Adamantem Capital Fund II $727m 2020 Mid Market Expansion / Buyout $10.0m 2
Advent Parnters Fund 3 *$400m 2021 Lower to Mid Market Expansion / Buyout $30.0m 1
Allegro Fund IV *$600m 2021 Mid Market Turnaround $30.0m 1
Anchorage Capital Partners Fund IV *$500m 2022 Mid Market Special Situations $30.0m 0
Co-invest No.1 (Imaging Associates Group) $52.0m 2021 Lower to Mid Market Growth Expansion $2.0m 1
Co-invest No.2 (Gull New Zealand) ~$500m 2022 Mid Market Special Situations $2.0m 1
Co-invest No.3 (EventsAir) ~$100m 2022 Lower to Mid Market Growth Expansion $2.0m 1
TOTALS $146.0m 13**

* target fund size
** Excluding Duplicates