Blue Sky backs Australian burrito chain

According to The Wall Street Journal, the investment will be used to fund expansion into new locations. The company's revenue is said to have increased five-fold in the last three years.

Blue Sky was the first to invest in Beach Burrito back in 2007. The company has since expanded from a single restaurant in Sydney to a chain of six stores across New South Wales, Australia's most populous state.

"There is a significant opportunity to roll out new restaurants across the country," said Tim Wilson, managing director of Blue Sky. "We know the demand for the product is there, it is now just about bringing the model to the market as quickly as possible."

The company is trying to replicate the American trend for fast casual dining, filling a gap between fast food and formal dining. Wilson expects to grow the network to as many as 30 company-owned restaurants within the next 3-5 years. There are no plans to adopt the franchise model.

Blue Sky's strategy is to target rapidly-expanding Australian companies in the consumer sector. Last year the firm invested A$2 million in skincare brand Milk & Co. for a significant minority stake.

The private equity firm is part of Australia-listed Blue Sky Alternative Investments, which recently reported that its funds had generated an annual IRR of 15.6%, excluding fees, since it was established in 2006. Aside from its private equity vehicle, the group also has funds in private real estate and real assets.

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• Topics
• Australasia
• Consumer
• Expansion
• Australia
• Consumer
• Growth capital