Australia's Anacacia closes third fund at $225m

LPs in Anacacia Private Equity III include superannuation and pension funds, family offices, endowments and institutions from Australia and overseas, according to a statement. Like Anacacia’s previous fund, the new vehicle will seek controlling stakes in small privately-owned businesses that seek to transition to public companies.

Anacacia plans to make up to 12 investments in the next few years, targeting Australian small and medium-sized enterprises (SMEs) with revenue of A$20-300 million and profit of at least $5 million per year. In particular, the firm sees opportunities in family-owned companies with succession planning issues in the consumer, manufacturing and services industries.

Anacacia was founded in 2007 and closed its first fund the same year at A$50 million. Its second vehicle launched in 2012 and closed the following year at the hard cap of A$150 million.

Investments from the second fund include construction materials manufacturer Big River Group, which Anacacia acquired through a management buyout in 2016 for an undisclosed amount with Pantheon participating as co-investor. Big River raised A$16.9 million in its IPO last year. 

Despite Australia’s large number of small businesses, the country has seen fewer GPs targeting the lower middle market in recent years, due to growing fund sizes and local LPs’ reluctance to write smaller checks. Anacacia believes these shifts leave a gap where the firm can find exclusive opportunities through its deep relationships with local family businesses.

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