Anacacia Fund II reaches $75m first close

The private equity firm told AVCJ that it has the capacity in the next year to raise up to $150 million in subsequent closes.

"Local investors are still willing to back the best Australian GPs," said Jeremy Samuel, managing director of Anacacia. "We are also seeing the best international private equity LPs increasingly looking to get exposure to the Australian lower mid-market given the sustained strong track record."

Anacacia focuses on smaller management buyouts and growth capital for Australian-based SMEs typically with revenues greater than $20 million and earnings greater than $3 million. Its second fund follows the successful Anacacia Partnership I, a 2007 vintage fund which closed at A$50 million, of which $7.6 million was contributed by Sovereign Investment Research. The vehicle has delivered a gross internal rate of return of more than 50%.

Samuel argued that Australia has been an economy of small businesses and many are facing succession issues, creating tremendous investment opportunity for small buyouts in Australia. While other funds either focus on much larger transactions or deal with portfolio issues, the lack of competition has provided a niche for Anacacia and its investors.

In February, Anacacia sold its interest in Planet Services, a provider of hydraulic solutions.

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• Topics
• Australasia
• Fundraising
• Growth capital
• Australia
• Fundraising
• Anacacia Capital