Ironbridge-owned Bravura files for $113m Australia IPO

The company will sell 78.9 million new shares and 23.2 million existing shares for A$1.45 apiece, according to a prospectus. Ironbridge will sell 16.1 million shares, generating A$23.3 million, and then receive a further A$62.7 million through the redemption of preference shares. Its remaining 47.2% stake in the company - down from 86.7% - will be worth A$146.6 million, based on the IPO price.

Ironbridge first invested in Bravura in 2009, paying A$33.4 million for a 33% interest. Further purchases took its stake to 67.1% before the GP offered A$0.28 per share in cash for the rest of the company via a scheme of arrangement in June 2013. The transaction, which closed in October of the same year, was supported by debt facilities provided by Commonwealth Bank of Australia, which included the rollover of existing debt.

Founded in 2004, Bravura delivers software products and services to 60 clients operating in the wealth management and fund administration spaces. Clients on the wealth management side include banks, superannuation and pension providers, life insurance companies, third-party administrators and financial advisors. Its core markets are superannuation and pension players in Australia and the UK.

The fund administration side of the business caters to mutual funds, unit trusts, investment trusts, open-ended investment companies, money market funds and exchange-traded funds. These services are provided out of the UK, Luxembourg and Ireland to 11 clients that in turn support more than 285 investment management companies working with retail and institutional investors in Europe and Asia.

The wealth management business has grown significantly during Ironbridge's ownership period, with revenue rising from A$59 million in the 2014 financial year to A$99.6 million in 2016. Fund administration revenues increased from A$76.5 million to A$85.1 million over the same stretch. Overall EBITDA came to A$20.2 million in 2016, up from A$17.1 million and A$18.2 million for the previous two years. Net profit for 2016 reached A$6.8 million.

Pro forma forecast revenue for 2017 is A$187.6 million, with EBITDA and net profit expected to hit A$32.3 million and A$21 million, respectively.

Bravura is the last substantial holding in Ironbridge's second fund, which closed at A$1.05 billion in 2006. A source close to the GP previously told AVCJ that the vehicle was on course to deliver a 2x return. However, problems with Fund I have raised questions about the future of the firm. An attempt at a stapled secondary in 2014 failed to gain traction and was replaced by a traditional secondary deal, with no new capital.

Since then, members of the Ironbridge team have completed several investments on a deal-by-deal basis, tapping the firm's LP base as well as high net worth individuals. Earlier this year, Josh McKean, an operational partner at Ironbridge, teamed up with ex-Catalyst Investment Managers executive Trent Peterson and experienced retail player Brett Blundy to buy nutritional products retailer Mr Vitamins.

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• Topics
• Australasia
• Financials
• IPO
• Australia
• Ironbridge Capital
• Exit