Australian private equity turnaround specialist Anchorage Capital Partners has closed its third fund – Anchorage Capital Partners Fund III – at $265.2 million (A$350 million).
The vehicle was closed within three months of launch and Anchorage is likely to make an announcement Thursday, according to a report from Australian Financial Review.
According to the report, Anchorage managing director Simon Woodhouse said, Fund III “was considerably oversubscribed, with demand exceeding the fundraising target, attributable to continued strong support from existing investors combined with significant interest of new investors.”
Anchorage invests in businesses operating below their full potential or undergoing a significant transformation. It partners with management teams via control investments to turn around the company.
It invests in companies, which have reported revenues of over $100 million, located in Australia, New Zealand or Southeast Asia. According to the firm’s website, its deal size or enterprise value “sweet spot” ranges from $25 million to $250 million, but it does not shy away from making significantly larger investments in partnership with existing investors if required. Most investments are across all sectors with the exception of high-tech, bio-tech, direct mining or direct property, it adds.
The third fund attracted 40 per cent of the commitments from Australian institutions and the balance from overseas investors, the report said.
Anchorage had closed its A$250 million Fund II in 2013 from which it is currently investing. The first in the series was a A$200 million vehicle raised in 2008 and has been fully deployed.
In September this year, the firm acquired facility maintenance provider TJS Services that provides services for customers in Australia in the government, hospitality, education, healthcare, corporate and entertainment sectors. Last month, it invested in Bapcor Ltd’s industrial waste services unit, Contract Resources.