Anacacia Capital sets $156m target for second fund

Anacacia Partnership I, which closed at A$50 million in April 2008, was ranked the top performing fund globally by Preqin, based on data collected on vehicles raised between 2006 and 2008. The fund has achieved an annual gross IRR of 58%.

Samuel told The Wall Street Journal that the new fund follow the same strategy as its predecessor, targeting profitable small- and medium-sized enterprises based in Australia but with links to Asia that need equity to fund succession or growth. Anacacia will also continue to inject modest amounts of debt into portfolio companies in order to collect dividends along the way.

"We like to back strong management and let them get on and run the business but we are active non-executive directors and speak with our CEOs several times a week to support them achieve our strategic growth plans," Samuel said.

There are six remaining portfolio companies in the first fund, including Appen Butler Hill, a language services provider, Norwest Productions, an audio services firm, and Rafferty's Garden, a baby food supplier. These have been held for 2-4 years. Two investments were announced in 2011: height safety provider Roofsafe Industrial Safety Enterprises and hydraulics firm Planet Services Group.

Exits are typically by way of trade sale or secondary buyout. Samuels said there is a trend of multinationals looking for an Asia Pacific base in order to diversify their business away from the US and Europe, epitomized by Acacia's sale of laboratory equipment provider Lomb Scientific to New York-listed ThermoFisher.

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• Topics
• Australasia
• Fundraising