Anacacia invests Australian workforce services player

It will see the private equity firm nominate two non-executive directors to the Sureway board. CEO Matthew Hall will continue to lead the business and will retain the same executive team. 

Sureway operates a team of about 350 across New South Wales, Victoria, and South Australia. Services focus on recruitment and skills development for government employees, with a view to addressing how career paths evolve due to changing policy initiatives in various industries. 

"We have a very strong understanding of the needs of both employers and jobseekers in regional Australia and with the added support Anacacia offers, we will continue to deliver services which meet the specific labour market needs in our communities," Hall said in a statement. 

This is the fourth investment by Anacacia's third fund, which closed at the hard cap of A$300 million ($197 million) in 2018. The other deals include Root Partnerships, an infrastructure project management firm, logistics services provider Direct Couriers, and smart city supplier Duncan Solutions.

AVCJ understands Fund III is about 30% deployed and that all four transactions to date have been secured on a proprietary basis. The fund is expected to make up to 12 investments in total with a preference for small to medium-sized family-owned enterprises facing succession issues and looking for a buyer to take them public. 

Workforce services has rapidly become one of the most attractive segments in Australia's B2B and enterprise software opportunity set. In the past two years, 12 separate workforce services companies, including Sureway, have attractive PE or VC investment, primarily in the early start-up stages. Analytics-focused Culture Amp is among the best-funded with $158 million raised to date. 

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• Topics
• Australasia
• Support services
• Expansion
• Growth capital
• Australia
• professional services
• Anacacia Capital