Australian private equity firm Allegro has reached the first close of its third fund at A$200 million ($156 million) and expects to complete fundraising before the end of October 2017 above its target of $250 million.
The first close was done early last month, backed by both local and global institutional investors, according to Vantage Asset Management, an LP of the Allegro Fund III. Vantage Private Equity Growth 3 committed A$12 million to the vehicle.
Allegro said it is also raising a sidecar fund that will be able to tap larger investments and deploy about $50 million into any one deal.
The PE firm, which targets turnaround and distressed investments ranging from $10 million to $50 million in Australia and New Zealand, started its first fund in 2008 after being mandated as the manager for the $300 million ABN AMRO Capital Australia Fund II. It followed that up with the launch of its $180 million second fund in 2015.
The second vehicle has since then made eight financing rounds. In total, Allegro has managed more than $1 billion assets since its establishment in 2004.
Adrian Loader, managing director, Allegro, said the third fund will continue to focus on mid-market businesses experiencing headwinds, where the firm could help with its transformation capital.
In conjunction with the first close, Allegro has appointed Menno Veeneklaas, who was formerly with Partners in Performance (PIP), as an operating partner.
Menno has 25 years of experience in the industry across Australia, New Zealand, Asia, Europe and North America. Prior to his stint at PIP, his positions included COO of PE-backed media company iSentia, investment executive at Macquarie Direct Investment, consultant with Boston Consulting Group and key roles in various investment funds.