BGH sets $2b hard cap for debut Australia fund

A first close of approximately A$2.2 billion is scheduled for February 15, according to sources familiar with the situation. The LP base as it stands primarily comprises foreign investors, although AustralianSuper is understood to have made a commitment to the vehicle, which is said to be oversubscribed.

Assuming the hard cap is reached, the fund will become the second-largest raised by an Australian PE manager. Pacific Equity Partners received A$4 billion for its fourth fund in 2007, comprising $2.7 billion in core equity and A$1.3 billion in non-discretionary co-investment capital. This structure was dropped for Fund V – co-investment is discretionary – which closed in 2015 at A$2.1 billion.

BGH launched its fund last September with a target of A$2 billion ($1.6 billion). The timing was dictated by the terms of Gray’s agreement with TPG, which is said to hold a small minority stake in the GP. His departure from TPG was announced in August of 2015 but he stayed on until the end of 2016.

Gray’s fellow founding partners are Simon Harle, who spent over 10 years with TPG, and Robin Bishop, who was previously head of Australia and New Zealand at Macquarie Capital. Other senior team members include ex-Credit Suisse banker Stephanie Charles, who is a deal partner and head of capital markets, and former Wesfarmers CFO Terry Bowen, who leads the operations group.

Gray joined TPG in 2004 and became co-head of Asia in 2013. Either individually or in conjunction with Harle, he led some of the firm’s largest deals in the region, such as retailer Myer, hospital business Healthscope and poultry producer Ingham’s Enterprises, gas and electricity supplier Alinta Energy, and the property brokerage platform that includes DTZ, Cushman & Wakefield, and Cassidy Turley.

TPG is currently in the market with its seventh pan-Asian fund, targeting between $4 billion and $4.5 billion. 

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• Topics
• Australasia
• Fundraising
• Buyout
• GPs
• Australia
• BGH Capital