Catalyst backs Australian offshore oil services provider

Set up in 1998, Bhagwan has 50 vessels operating out of ports in Western Australia, the New Territories and Queensland. It has an annual turnover of A$120 million ($128 million). Catalyst's capital will be used to strengthen the company's balance sheet and expand and develop its fleet.

The Kannikoski family will remain a significant majority shareholder in the business and Loui Kannikoski will continue to in the role of managing director.

"There are numerous growth streams available to the company as the development of energy and port infrastructure expands across Australia. We look forward to supporting Loui and his team to capitalize on these," said Aaron Hood, who leads Catalyst's Perth office, in a statement.

The deal comes one week after the private equity firm bought a 49% stake in Morris Corporation, which builds and operates remote accommodation camps for the likes of Fortescue Metals Group, Xstrata and QG. Bhagwan fits a similar investment rubric: A family-owned company in Australia's fast-growing resources sector that requires third-party capital and expertise at a time when domestic banks are increasingly wary about lending to private enterprises.

Catalyst is currently investing out of Catalyst Buyout Fund 2, which closed at A$598 million in March 2009.

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• Topics
• Australasia
• Expansion
• Industrials
• Australia
• Commodities
• Growth capital
• Catalyst Investment Managers