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Pacific Equity Partners

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This is an old revision of this page, as edited by MatthewDalhousie (talk | contribs) at 02:32, 18 October 2023 (→Investments: really the article on this firm needs a decent chunk about the business (the way it's set up and its culture), a proper schedule of its investments (past and current) and its history (on key people and activities, the deals that went well and the deals that went badly, of which there are at least two that I've noticed). Anyway, I've made a nudge on the history.). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

Pacific Equity Partners
Company typeProprietary limited company
IndustryPrivate Equity
Founded1998; 26 years ago (1998)
Founders
  • Simon Pillar
  • Rickard Gardell
  • Paul McCullagh
  • Tim Sims
HeadquartersSydney, Australia
Products
AUMA$10 billion (2022)
Websitewww.pep.com.au

Pacific Equity Partners (PEP) is a private equity investment firm focusing on transactions in Australia and New Zealand. PEP invests across a range of industries and sectors and in turnaround and growth capital transactions.

The firm is based in Sydney, Australia, and was founded in 1998 by Rickard Gardell, Paul McCullagh, Simon Pillar and Tim Sims. All but McCullagh previously worked together as executives at Bain & Company.[1][2]

The firm has raised more than A$8 billion across five funds since its founding and has approximately A$10 billion of assets under management,[3][4] making it the largest private equity firm in Australia.[5]

Investments

Since its establishment in 1998, the firm is said to have completed 40 private equity buyouts by 2023.[6]

Apart from buying and operating large companies, PEP has made 100 "bolt-on" acquisitions in the same 25-period, these are smaller firms, bought and merged with portfolio companies, for their strategic value.[7] PEP claims to have "at least doubled" investor monies in 12 of its previous 13 deals, which have included the purchase, restructure and resale of several Australian companies such as Spotless and Hoyts.[6][8] In the case of Patties however, the sale is understood to have not met this standard, with low post-Covid earnings for the food group.[9]

Among the firm's past investments are Hoyts (sold to Wanda Cinemas in 2015),[10] Independent Liquor (sold to Asahi Breweries in 2011),[11] Griffin's Foods (acquired from Danone in 2006 and sold to Universal Robina in 2014),[12] Frucor (sold to Suntory in 2008), Peters Ice Cream (sold to Froneri in 2014) and Tegel Foods (acquired in 2005 from Heinz and sold to Affinity Equity Partners in 2011).[13]

Some of the firm's current investments include Patties Foods,[14] iNova Pharmaceuticals,[15] medical devices group LifeHealthcare,[16] smart metering company IntelliHUB,[17] and Evolution Healthcare.[18]

PEP made two acquisitions toward the end of 2019. It purchased the Asia-Pacific segment of NYSE-listed towing and trailering equipment manufacturer Horizon Global[19] and it also acquired community energy network provider WINconnect[20] from private operators. WINconnect is the third deal for the firm's Secure Assets Fund.

The firm realised a positive return from the sale of New Zealand honey supplier Manuka Health which it exited in 2018 for $NZ300 million.[21] PEP first purchased Manuka in 2015 and made key changes including expanding the company's operations and leading an industry reform to standardise honey grades, allowing better transparency on quality and reducing counterfeiting. This work gained industry recognition in 2018 for quality management and responsible investing.[22]

Other recent investment exits include the sale of Allied Pinnacle to Japan's Nissin Foods[23] in February 2019 and the exit of NZ private education provider ACG[24] in late 2018.

History

Pacific Equity Partners was founded in Sydney, Australia, in 1998.[25] The founders came from the consulting and banking sectors: Rickard Gardell, Tim Sims, Simon Pillar all from Bain & Company; and Paul McCullagh, from Salomon Brothers.[26] While McCullagh stepped back from management operations in 2017, as of 2023 all four had remained in the partnership.[26]

References

  1. ^ "Australia's Private-Equity Deals for the New Year". Wall Street Journal. Retrieved 15 June 2022.
  2. ^ Wilson, Drew. "Privately Speaking: Tim Sims of Pacific Equity Partners". Private Equity International. Retrieved 15 June 2022.
  3. ^ Thomson, James (2 May 2022). "PEP's $10b moment heralds private equity's new era". Australian Financial Review.
  4. ^ "Pacific Equity Partners – About Us". pep.com.au. Retrieved 26 June 2022.
  5. ^ Mendoza, Carmela (24 July 2018). "Pacific Equity Partners on why the Australian mid-market is thriving". Private Equity International. Retrieved 10 April 2019.
  6. ^ a b "The 'apprenticeship' culture that drives Australia's biggest PE firm, Pacific Equity Partners". Australian Financial Review. 30 July 2023. Retrieved 14 September 2023.
  7. ^ Mendoza, Carmen. "Pacific Equity Partners on why the Australian mid-market is thriving". Private Equity International. PEI Media.
  8. ^ Cole, BRETT (24 February 2014). "PEP yet to ask banks for Spotless pitches". The Australian.
  9. ^ Carter, Bridget (2 February 2022). "Pandemic takes toll on consumer goods deals; Patties sale pushed back". The Australian. Retrieved 14 September 2023.
  10. ^ "Hoyts to be sold to private equity group". Australia: ABC News. 24 September 2007. Retrieved 9 April 2019.
  11. ^ "Asahi to Buy New Zealand Liquor Company". DealBook. 18 August 2011. Retrieved 9 April 2019.
  12. ^ "Pacific Equity buys Griffin's Foods". The Age. 1 April 2006. Retrieved 9 April 2019.
  13. ^ "Pacific Equity Mulling Options for Tegel Foods". DealBook. 20 August 2010. Retrieved 9 April 2019.
  14. ^ “PEP in advanced discussions to acquire ASX listed Patties Foods” "Australian Financial Review", 29 May 2016.
  15. ^ “iNova sold to PEP, the Carlyle Group” "Australian Financial Review", 9 June 2017.
  16. ^ “Allens advises PEP on acquisition of LifeHealthcare” from Allens Media Release, 25 May 2018.
  17. ^ “Landis+Gyr and Pacific Equity Partners announce joint venture for acquisition of acumen metering business” from Landis+Gyr media release, 24 May 2018.
  18. ^ “North Island Hospitals sold to new Australian Owners” in Stuff.co.nz on 25 September 2018.
  19. ^ [1], Horizon Global Investor Centre, 16 August 2019.
  20. ^ [2], in Australian Financial Review, 19 December 2019.
  21. ^ – Pacific Equity Partners secures sale for Manuka Health, Australian Financial Review, 27 September 2018.
  22. ^ – 2018 AVCJ Awards for Responsible Investment: Manuka Health, Asian Venture Capital Journal, 12 November 2018
  23. ^ – PEP secures sale for Allied Pinnacle, Australian Financial Review, 27 February 2019.
  24. ^ – Sale of ACG schools, Newsroom NZ, 23 June 2018.
  25. ^ "This float could create Australia's first private equity billionaire". Australian Financial Review. 3 May 2022. Retrieved 18 October 2023.
  26. ^ a b Glascow, Will; Lacy, Christine (21 December 2017). "Paul McCullagh steps back at Pacific Equity Partners". The Australian.
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