CVC’s Australia head resigns
CVC Capital Partners’ Adrian MacKenzie, the managing partner responsible for investments in Australia, has resigned. The move comes as the private equity firm prepares to write off almost the entire A$1.9 billion ($1.97 billion) in equity that was pumped into beleaguered media giant Nine Entertainment. It is tipped to be the biggest ever private equity loss in Asia Pacific.
MacKenzie joined CVC's London office in 1995 and transferred to the Asia Pacific business in 1999. He has been a member of the private equity firm's board since 2007.
"Adrian has been a successful partner at CVC and was instrumental in establishing our Asian business and in launching our first Asian fund in 2000 - a very successful fund overall to which the Australian portfolio made a significant contribution," Rolly van Rappard, founder and managing partner of CVC, said in a statement. "It has been Adrian's decision to leave and he will remain a friend of the firm."
MacKenzie was responsible for several lucrative investments, including: Pacific Brands, bought in 2001 for $380 million alongside Catalyst Investment and PPM Ventures and exited via a $957 million IPO in 2004; Affinity Health, bought in 2003 for $572 million, alongside Government of Singapore Investment Corporation (GIC) and Ironbridge Capital, and sold to Ramsay Healthcare for $1.1 billion in 2005; and Tech Pacific, bought in 2003 for $200 million and exited to Ingram Micro for $500 million in 2004.
The three deals are said to have generated returns of 7.4x, 3x and 4x, respectively.
However, other investments haven't fared so well. CVC paid A$5.3 billion for Nine Entertainment - formerly known as PBL Media - through several highly leveraged transactions between 2006 and 2008. The company has since struggled and, with a A$3.9 billion in senior and mezzanine debt being readied for restructuring, CVC is likely to see its A$1.9 billion equity interest wiped out.
Stella Group, a travel company in which CVC bought a 65% stake for $409 million plus debt in 2008, has undergone a restructuring and the private equity firm hopes to reclaim its principal. CVC lost two thirds of the $716 million in equity that went into the $2 billion acquisition of DCA Group - now known as I-Med - in 2006.
According to media reports, MacKenzie is likely to be replaced by Graham Brooke.
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