Sydney-based private equity firm Anacacia Capital has invested an undisclosed sum in infrastructure advisory and project management firm Root Partnerships, the latter said in an announcement.
The investment will help expand the company’s independent advisory and project management services offering in the region, said its founder Peter Root, who will continue to serve as its managing director.
Founded in 1994, Root Partnerships advises government and private clients on infrastructure projects across a diverse range of sectors including aviation, healthcare, schools, tertiary education, housing, justice and civic and cultural infrastructure. Its offerings range from feasibility studies and business cases to delivering major capital works projects.
“We are very optimistic about the increasingly significant role played by infrastructure investment in the prosperity of Australia,” Root said. “Our strategic collaboration with Anacacia will drive outstanding new opportunities for the firm and our people, and allows us to continue to deliver the best possible service to current and future clients.”
Anacacia Capital is taking a big bet on Australia’s large infrastructure pipeline. A whopping amount of A$288 billion has been earmarked for infrastructure investments over the next decade. However, the industry is also facing great challenges in terms of an acute skills shortage and escalating materials costs, according to an August report by law firm Allens.
Anacacia Capital focuses on small and medium businesses with a market capitalisation of less than $500 million. Last year, the firm closed its third fund at A$300 million to primarily invest in the consumer, services and industrials sectors.