IFM takes 34% stake in NZ's Scottish Pacific

Scottish Pacific, which has been operating in Australia and New Zealand for over 20 years, provides financial services and short-term credit facilities to enterprises with annual sales ranging from A$500,000 ($449,000) to A$300 million and those that typically cannot access traditional banking facilities.

IFM co-invested alongside Next Capital - and Scottish Pacific management - which acquired their stake from Lazard Australia Private Equity last month. The transaction value wasn't disclosed but reports put the deal at around A$90 million. Lazard bought the business in May 2010 as part of a management buyout.

"Scottish Pacific has a highly experienced and stable management team. We're pleased to be involved in this acquisition and believe that Scottish Pacific will continue to build on their long history of growth and profitability," said Steve Lipchin,executive director private equity, IFM, in a statement.

IFM made its investment via its IFM Australian Private Equity Fund IV (APEF IV) and on behalf of a separate account managed by IFM for one of its industry fund investors. According to IFM, APEF IV delivered a 12-month performance of 15.9% for the year to 30 June 2013.

IFM is owned by 30 Australian superannuation funds and has around A$46 billion in assets under mangement - A$2 billion of which is allocated to private equity. While IFM's superannuation fund owners are able to participate in funds and co-investments, capital is already raised from third-party institutions.

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• Topics
• LPs
• Financials
• Australasia
• Australia
• Growth capital
• Financial Services
• Industry Funds Management
• New Zealand