Australia's Quadrant raises $390m for second growth fund
Quadrant Private Equity has closed its second Australia and New Zealand-focused growth capital fund with A$530 million ($390 million) in commitments.
The GP is an established presence in the mid-market buyout space, raising A$1.24 billion for its 10th fund – and seventh as an independent manager – last year. A growth strategy was introduced to address opportunities that were being overlooked as its buyout funds became larger with each vintage. It writes checks of A$30-50 million for minority and control positions.
The first growth fund closed on A$400 million in 2019, with LPs in Quadrant’s buyout vehicles accounting for the entire corpus. Fund II includes some investors who are new to the franchise, a source close to the situation told AVCJ. Separately, Roc Partners – an existing investor – confirmed its participation to the Australian Financial Review (AFR).
The Fund I portfolio includes baby care brand Love to Dream, online beauty products retailer Adore Beauty, industrial goods auction platform Grays, phone mount business Quad Lock, fashion brand ModiBodi, the enterprise services division of Arc Group, and women’s sleepwear brand Papinelle.
A first partial exit came last year, when Adore completed a A$270 million IPO. Quadrant took A$137.7 million off the table, reducing its stake from 57.8% to 32.5%.
Justin Ryan, a managing partner at Quadrant who led the growth strategy from its inception, left the firm earlier this year after deciding against staying for another full fund cycle. Responsibility for growth coverage has shifted to Marcus Darville and Simon Pither, a managing partner and a partner, respectively. Chris Hadley, Quadrant’s executive chairman, chairs the investment committees of both the buyout and growth funds.
“Quadrant has built a franchise over the past 25 years that has put it into the top 10 private equity funds in the world in the latest survey. This longevity of performance is testament to the strong leadership of Chris and the depth of his team,” Michael Lukin, a partner at ROC, told AFR.
In February, Quadrant was included in the top 10 managers in the HEC-Dow Jones Private Equity Performance Ranking. It is the first Asia Pacific-based GP to achieve this status.
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