Helmsman Capital seeks $211m for third fund - update

As a mid- to long-term investor, the private equity group targets businesses with an enterprise value of A$20-200 million that require restructuring.

Ten years ago, the group launched its A$45 million Helmsman Capital Fund I, which invested in turnaround opportunities in large private and small public companies with established businesses and histories of profitability, but which had operational problems. The vehicle delivered a 53% IRR, or a money multiple of 2.6x, according to The Wall Street Journal.

In 2009, Helmsman Capital closed its second fund, raising A$97.5 million from institutions in Australia and New Zealand. The fund is currently 86% committed across seven investments and has delivered an IRR of 31%.

"We often enter competitive processes where we are not the highest bidder but because of our deal structure, turnaround expertise or our ability to understand the motivations of lenders, we can be successful," Managing Director Ian Johnson said.

Johnson added that while fly-in fly-out overseas distressed investors have historically focused on larger deals, Helmsman's target market is protected because it is one of the few domestic firms looking at the small- to mid-size market.

Helmsman Capital began as a joint venture between Macquarie Group and KPMG in 2002. Five years later, Johnson and fellow managing director Douglas Potter led a management buyout of the company.

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• Topics
• Australasia
• Fundraising
• Fundraising
• Australia
• Distress
• Helmsman Capital