Quadrant Private Equity seals a new $1.24 billion buyout fund. The new fund would be Chris Hadley-led Quadrant’s 10th buyout fund and, at $1.24 billion, its biggest ever. The previous biggest was a $1.15 billion fund raised in 2017.
Street Talk understands Quadrant, the country’s busiest private equity firm, was in front of investors seeking to finalise the $1.24 billion funding round on Thursday night.It is understood most of Quadrant’s fresh capital came from the firm’s existing investors, including Australian and offshore superannuation and pension funds, and large family offices offshore.
Quadrant’s senior dealmakers – industry veteran and firm founder Hadley along with managing partners Marcus Darville, Jonathon Pearce and Alex Eady – recommitted to the firm as part of the new 10-year fund.It is understood Quadrant told investors it had exited 60 investments across all of its funds for a total of $6 billion, as part of the raising. It said it had invested $2.1 billion into those deals, recording a 36 per cent gross internal rate of return before fund fees and expenses.
Its two recent sales were among its biggest: a $1.6 billion deal to sell employment services group APM and the $735 million radiology group QScan.The raising caps a rollercoaster year for Quadrant, which has included three acquisitions, two exits, a fundraising and plenty of time spent working with existing businesses to get them through the COVID-19 pandemic and associated economic downturn.
Its portfolio companies include some businesses heavily exposed to Australian consumers and the leisure and travel sectors, including gyms owner Fitness & Lifestyle Group, restaurant chain Rockpool Dining Group and The Ghan owner Journey Beyond.
The raising and, more importantly, the quick four-week offer period, was a strong endorsement of Quadrant’s team, portfolio and a shot in the arm for Australia’s private equity industry more generally.Quadrant would join rival Pacific Equity Partners in closing a new fund this year. PEP’s was a $2.5 billion effort, albeit raised over the space of more than one year. Only $800 million was raised by Australia-focused private equity funds last year, according to data group Preqin and the Australian Investment Council.
At $1.24 billion, Quadrant’s fund would also be the fourth-largest Australia-focused buyout fund raised in the past five years, behind BGH Capital’s $2.6 billion fund, and two PEP funds ($2.1 billion in 2015 and $2.5 billion in 2020).