Australia's Anacacia targets up to $290m for Fund IV
Australian middle market private equity firm Anacacia Capital is preparing to launch its fourth fund, telling investors that it expects to surpass the AUD 300m (USD 193m) raised for Fund III but would not exceed AUD 450m.
The official launch will come at the firm's annual general meeting in Sydney on September 28, according to a source close to the situation. The strategy will be the same as Anacacia's previous fund: backing profitable small and medium-sized enterprises (SMEs) in Australia and New Zealand with revenue of AUD 20m to AUD 500m.
Fund III closed at the hard cap in May 2018 after a matter of weeks in the market, having won support from the likes of superannuation and pension funds, family offices, and endowments from Australia and overseas.
Just over six months after the final close, Anacacia completed the final exit from its debut fund with the sale of workplace equipment provider RIS Safety. The fund – for which deploying started during the global financial crisis – is Australia's best-performing buyout vehicle, according to Preqin data cited by Anacacia. It returned 3.45x. Next on the list is The Growth Fund's second vehicle with 2.89x.
Across all three funds, Anacacia claims to have delivered a 28% net IRR. The worst-performing of the three is on 10% - something the firm sees as indicative of its ability to protect capital.
"Anacacia was introduced to us when they started over 15 years ago. It's been such a positive experience that we have invested in each of their funds...it's been an extremely rewarding relationship," said Alan Rimmer, a founder and managing director of ARA Consultants, an Australian fund-of-funds.
The firm's standout investments include baby food producer Rafferty's Garden, machine learning and artificial intelligence specialist Appen, consumer products player Home Appliances, and snacks manufacturer Yumi's Quality Foods.
More recent deals have seen the firm push into e-commerce online video gaming and PC hardware retailer Mwave and direct-to-consumer haircare products brand Pump Haircare. It has also backed workforce services player Sureway Employment & Training, logistics services provider Direct Couriers, and project management advisory business RP Infrastructure.
"The firm is continuing to work with amazing founders and business owners to help them with their staged retirements and growing their businesses," said Jeremy Samuel, a founder and managing director at Anacacia (pictured, second right, with team members).
He added that much of the firm's success has come through partnering with strong business owners during capital-constrained times and increasing value.
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