Australia's The Growth Fund expected to disband
The Growth Fund, an Australian mid-market private equity (PE) firm, is expected to manage out its current portfolio and then disband
Mergermarket, AVCJ's sister publication, was informed of the development by four sources familiar with the situation.
The current fund – which closed on AUD 450m (USD 290m) in 2016, according to AVCJ Research – will be the firm's last. Private equity funds typically have a 10-year life with provisions for two one-year extensions.
The breakup was driven by internal clashes, two of the sources said, without elaborating. The second and third sources added that, while the partners will not move ahead as a team, some may look to raise new funds separately.
The Growth Fund did not respond to requests for comment.
The firm has reportedly hired sell-side advisors for four assets this year: vehicle sharing business GoGet through Grant Samuel, accident replacement vehicle business CompassCorp through Miles, and Ekera Dental and Quantum Radiology, both through Allier Capital.
The four mandates were reported by local media between mid-March and mid-May.
The firm also sold pet store chain Best Friends to PETstock, now part of Woolworths, last July for an undisclosed amount.
The Growth Fund was established in 2006 as an affiliate of Archer Capital with a mandate to focus on small buyouts in Australia and New Zealand. It raised two funds under the Archer Growth brand. These closed on AUD 200m and AUD 300m, respectively, in 2006 and 2012.
Fund II is one of the best-performing Australia buyout funds across all vintages, according to Preqin. It had generated a 2.98x net multiple as of June 2023, it said.
The firm spun out from Archer Capital in 2015 under the leadership of Craig Cartner, Tim Spencer, and Scott Greck. They are still listed as the three managing partners on The Growth Fund's website.
Other current investments referenced on the website include corporate health and fitness programme operator Fitness Passport, poultry supplier M&J Chickens, cloud software provider Plan.B, furniture business Guest Group, insulated panels manufacturer Askin Performance Panels, audio and visual equipment provider NW Group, and truck repair player Royan Group.
Two more recent investments are not mentioned. The Growth Fund acquired luxury products online retailer My Fashion Republic and AFS Logistics in 2021, according to Mergermarket.
Archer Capital abandoned plans for a sixth fund in 2018, as earlier reported by AVCJ. Some team members sought to revive the process a year later, but to no avail, and ended up going their separate ways.
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