Archer cuts fees on buyout fund – report

According to the Wall Street Journal, the 2% management fee has temporarily been reduced to 1.6%, due to a slower use of funds than anticipated. Archer Capital Fund 5 closed in late December 2011, after less than four months in the market. The original target of A$1.2 billion was raised to A$1.5 billion.

Archer has made just one investment from the fund. In February, the Australian GP bought the aged care unit of Lend Lease Group for A$270 million. The company has since been renamed Allity.

Overseas LPs accounted for two-thirds of fund 5, compared to 55% of its A$1.36 billion predecessor. These include the Canadian Pension Plan Investment Board (CPPIB), HarbourVest Partners and Perennius Capital Partners.

In 2011 Archer was one of Australian private equity's biggest spenders investing approximately A$600 million across four transactions. Quick Service Restaurant Holdings (QSRH) - the company behind local fast-food chains Red Rooster, Oporto and Chicken Treat - was purchased from Quadrant Private Equity, while Healthe Care, Australia's third-largest hospital group, came from CHAMP Ventures. Archer also acquired a 60% holding in V8 Supercars and DairyWest, a portfolio company, bought Brownes Foods from Fonterra.

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• Topics
• Australasia
• Buyout
• Australia
• Archer Capital
• Fund administration