Australia’s Archer targets $208m for sixth fund

In addition to the A$300 million from external investors, Archer is planning a GP contribution of A$15 million, according to a placement memorandum reported by the Australian Financial Review and confirmed by AVCJ. The GP will also target co-investments worth an additional A$150 million. Archer declined to comment.

Wiggs announced his departure from Archer last year, but the exit is planned to be gradual and happen over several years. He will join managing partners Peter Gold and Ben Frewin on the investment committee for Fund VI.

Investments will likely fall in the consumer, healthcare, and business services sectors, which Archer sees as its most successful segments. The firm plans to make between two and four buyouts with an enterprise value of A$150-500 million.

The target for Fund VI is significantly lower than Archer’s fifth fund, which closed at A$1.5 billion in 2012 after less than four months on the market but returned A$300 million to LPs two years later due to slower than expected deployment.

The successor vehicle was originally planned to launch in late 2016, but was delayed several times due to LP concerns about investments and exits. Uncertainty about the team also played a role, following several high-level departures in recent years.

Exit issues have primarily involved Fund IV, which finished investing in 2011 and still has not been fully exited. Investees from the fund that remain in Archer’s portfolio include quick service restaurant operator Craveable Brands and motorsports brand Supercars.

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• Topics
• Australasia
• Fundraising
• GPs
• Buyout
• Australia
• Archer Capital
• Peter Wiggs