Australian buyout firm PEP closes sixth flagship fund at $1.79b hard cap

Sydney, Australia. Photo: Unsplash

Australian buyout major Pacific Equity Partners (PEP) has closed its sixth flagship fund, PEP Fund VI, at its hard cap of A$2.5 billion ($1.79 billion).

The final close for the middle-market buyout fund was held in July, the firm said on its website.

Limited partners include the New York State Teachers’ Retirement System, which committed A$200 million to the fund last year.

Ocorian, a corporate services firm specialising in fiduciary, fund administration and capital markets, acted as the fund administrator for the closing.

PEP Fund VI, with its parallel vehicles, will continue to invest in underperforming market leaders, predominantly in Australia and New Zealand, with the likelihood of significant co-investment opportunities, Ocorian said.

Its predecessor, PEP Fund V, closed in 2015 at A$2.1 billion ($1.5 billion). The fifth fund has so far exited three investments – Australia’s bakery products and ingredients provider Allied Pinnacle, consumer foods firm Manuka Health, and New Zealand-based education group ACG.

PEP funds target investments in companies with enterprise value between A$200 million and A$1 billion in industrial services, energy, consumer products, entertainment, big data and financial services.

In addition to the sixth buyout fund, PEP closed its Secure Assets Fund and related parallel vehicles in June 2020 at A$360 million.

The infrastructure fund recently upped its bid in acquiring Zenith Energy from A$1.01 per share to A$1.05 per share, valuing the power producer at A$259 million.

Established in 1998, PEP Fund I was the first LBO fund to be established in Australia and New Zealand. The firm says on its website that it currently manages A$4.9 billion in assets, having made 32 operating company investments and over 100 bolt-on acquisitions.

PEP seeks to achieve long-term average profit growth of 15-20 per cent and annual leveraged returns of 25-30 per cent.

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.