Australia's ABGF invests $10m in local tourism player

HMC operates a group of companies across the tourism and aviation sectors, including various guided tours providers, hospitality businesses, a scenic helicopter flight service, and a helicopter training business. It focuses on Western Australia and is considered an economic driver for the remote northwestern regions of the state.

The company claims to be experiencing growing demand for its services. It has made several strategic acquisitions and re-invested in its existing businesses in the past 10 years to meet this demand. To this end, the fresh capital to expand the aviation fleet and network infrastructure.

“I know [ABGF’s] team will challenge us on our ideas and provide invaluable corporate experience to assist our businesses to grow,” Michael McConachy, a managing director of HMC, said in a statement.

“My aim is to leave a worthwhile legacy in the state of [Western Australia], knowing that we have contributed something of value to the regional communities in which we live and operate, and the state as a whole. We look forward to further increasing our regionally based operations.”

ABGF was launched in 2019 with an initial AUD 540m in funding, including AUD 440 million from ANZ Bank, Commonwealth Bank of Australia, Westpac, National Australia Bank, HSBC, and Macquarie Group, and AUD 100m from the government.

The fund is modelled on the UK’s Business Growth Fund and follows a similar remit. It commits AUD 5m to AUD 15m for minority stakes in companies with revenues of AUD 2m to AUD 100m. The idea is to fill a perceived funding gap between late-stage venture capital and larger buyout funds.

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• Topics
• Australasia
• Consumer
• Expansion
• Australia
• Travel
• Transportation
• SME
• Growth capital