Australia’s CHAMP PE rebrands as CPE Capital
CHAMP Private Equity, which makes growth and buyout investments in middle-market companies across Australia and New Zealand, has been renamed CPE Capital.
The firm was founded in 1987 as Australian Mezzanine Investments and entered a joint venture with US-based Castle Harlan in 2000 to form Castle Harlan Australian Mezzanine Partners, which was later referred to as CHAMP Private Equity.
It claims to have deployed A$3.8 billion ($2.6 billion) in total across 75 investments, with net returns to investors on all exited deals having delivered an annual return of 21%. The 10 most successful of these are said to have averaged a 6x return, generating proceeds of A$2.5 billion.
“CPE Capital’s experience and performance over 32 years across all market cycles and aspects of the private capital business in Australasia is unique and a foundation for the delivery of future superior investment returns,” CEO John Haddock said in a statement.
CPE closed its fourth fund at A$735 million in 2017. This result fell short of a A$1 billion target, although AVCJ understands the firm has secured co-investment agreements with LPs that have brought the total to almost A$1 billion for acquisitions. CPE is currently fundraising for its next vehicle with a target of A$800-900 million.
Recent investment activity includes packaged foods supplier MaxFoods, specialty cracker maker Find Food Holdings, and stem cell bank operator Cell Care. Earlier this year, CPE agreed to acquire a majority stake in Marand Precision Engineering. The deal established CPE as the first Australian GP to invest in a company with significant exposure to the local defense sector.
CPE emphasized with the rebrand that it has concluded its arrangements with Castle Harlan and CHAMP Ventures, an affiliate that targets buyouts and growth deals at the smaller end of the middle market. CHAMP Ventures has raised seven funds but decided against pursuing another fundraise in 2016. Its remaining portfolio companies are in the process of being exited.
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