Australia: Buyout PE Pacific Equity Partners to raise up to $800m infra fund

Waterfront view of Sydney, Australia

Sydney-based Pacific Equity Partners (PEP), said to be Australia’s largest domestic buyout and venture capital player, is planning to raise a A$1 billion ($798.4 million) infrastructure vehicle.

The Australian Financial Review reports that the general partner (GP) is in early discussions with its existing base of limited partners (LPs) regarding the strategy and sources.

Founded in 1998, PEP invests in industrial services, energy, consumer products, entertainment, big data, and financial services in Australia and New Zealand.

The buyout fund, however, avoids investing in pre-profit businesses or vice businesses such as those operating in alcohol and tobacco sectors fields.

According to the firm, it seeks to invest at least A$100 million, unless it’s an add-on acquisition to an existing portfolio company, in companies having enterprise value between A$99.53 million and A$1 billion and exits its investment within three to six years.

The report claims that the PE firm wants to raise an A$1 billion fund targeting active infrastructure, operating as a hybrid of PE investments and infrastructure assets. PEP wants to apply its operational expertise from private equity to different asset classes.

The decision to launch the fund comes at a time when LPs are increasingly looking to deploy their capital into infrastructure projects as preferences shift.

A survey of LPs by Intralinks and Global Fund Media found that in 2016, overall total net inflows into alternatives was $669 billion; bringing industry-wide AUM to $4.46 trillion, with a preference by LPs for investments into technology, healthcare and infrastructure.

Also Read:

Australia: Pacific Equity Partners to acquire Allied Mills in $190m deal

Pacific Equity said to start $1.5b AST auction next month 

Valuations in Asia a challenge, continue to be quite high: EQT Partners’ Tak Wai Chung

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.