Next Capital buys stake in Australian supply chain specialist

Financial terms have not been disclosed. Next Capital is investing via its fourth fund, which pursues small to mid-sized expansion and buyout opportunities across Australasia with enterprise values in a range of A$50-200 million ($34-135 million).

According to The Australian Financial Review, the private equity firm is taking a 51% stake in TM at an implied valuation of A$60 million. This is the third deal from Fund IV, following the acquisitions last year of hospitality industry supplier Silver Chef and InterHealthcare, a professional networking service.

TM provides supply chain, property, and end-to-end project support for corporate clients, including strategic advice, and ongoing portfolio and operational management. Operations have a strong focus on logistics and manufacturing but also extend to office design, real estate services, and hospitality industry refurbishments.

The company, which maintains offices in Melbourne, Sydney, and Hong Kong, is seeking to finance an aggressive Asian expansion following the opening of a new base in Singapore. "Next Capital has a strong experience in investing and growing Australian businesses across the region, which makes them an ideal partner for us," it said in an online bulletin.

Sydney-based Next Capital has completed about 50 buyout and growth deals since inception in 2005. Fund IV is targeting A$350 million, according to Vantage Asset Management, an existing LP which contributed A$10 million to the vehicle in late 2018. Fund III closed at A$256 million in 2016, while Fund II raised A$285 million in 2009. 

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• Topics
• Australasia
• Buyouts
• Support services
• Expansion
• Australia
• Next Capital
• Logistics
• professional services