Ironbridge makes partial exit from Australia's Bravura

The GP sold 60 million shares, according to a filing that didn’t specify the sale price. Bravura’s stock closed at a record high of A$1.76 on September 21, up 4.76% on the previous day. It ended September 22 down 6.25% at A$1.65, valuing the business at approximately $353 million. Ironbridge now holds 41.7 million shares, or a 19.2% stake.

Ironbridge paid A$33.4 million for a 33% interest in Bravura in 2009. Further purchases took its stake to 67.1% before the GP took the business private in June 2013 at a valuation of A$148 million via a scheme of arrangement. The deal closed in October of the same year.

Returning to the public markets last year, Bravura sold 78.9 million new shares and 23.2 million existing shares for A$1.45 apiece. Ironbridge offloaded 16.1 million shares – generating A$23.3 million and reducing its stake to 47.2% from 86.7% – and received a further A$62.7 million through the redemption of preference shares.

Bravura delivers software products and services to more than 60 clients operating in the wealth management space – its core markets are superannuation and pension players in Australia and the UK – and 13 in fund administration spaces. Its flagship product is Sonata, an integrated wealth management platform. The company has 12 offices in eight countries.

The wealth management business grew significantly under Ironbridge’s control, with revenue rising from A$59 million in the 2014 financial year to A$99.6 million in 2016. It continued its rise in the most recent financial year, with revenue hitting $122.6 million. However, the fund administration operation saw revenue contract to A$69.2 million from A$85 million.

Total pro forma operating EBITDA rose to A$32.6 million in 2017, up from A$20.2 million the previous year, while Bravura swung from a net loss of A$6.46 million to a net profit of A$14.4 million over the same period.

Prior to the IPO, Bravura was 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.

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• Topics
• Australasia
• Financials
• Open market
• Australia
• Ironbridge Capital
• Financial Services