CHAMP Ventures, the lower mid-market arm of the CHAMP Group, has held a final closing of its seventh fund, CHAMP Ventures Investments Trust No.7 (“Fund 7”) at A$475 million, exceeding its targeted hard cap of A$450 million. The firm’s prior fund, CHAMP Ventures Investments Trust No. 6, raised in April 2006, had A$300 million in capital commitments. Fund 7 was raised in eleven months following the first close.
Twenty five per cent of funds raised were sourced from Asia, 20% from the United States and 11% from Europe and Middle East, with the remainder (44%) being raised in Australia. “We are delighted with the caliber and diversity of the limited partners in our seventh fund particularly as the competition from emerging private equity markets is growing. More than half of the fund commitments come from Asia, the US, Europe and the Middle East. This reflects both support for CHAMP Ventures and recognition of Australia’s unique position in the thriving Asia Pacific region,” said Su-Ming Wong, Chairman and CEO at CHAMP Ventures.
MVision acted as global placement agency for Fund 7. “It continues to be a challenging fund raising market, but our success with CHAMP Ventures’ new fund demonstrates that those top-tier performers with a proven long-term track record of delivering returns will continue to attract capital from major international investors,” said Niklas Amundsson, Partner of MVision.
Fund 7 will continue the approach of prior funds and invest in the Australasian lower mid-market, generally in established companies with enterprise values up to A$200 million. It will typically invest between A$20 million and A$55 million in expansion capital, replacement capital and buy-out opportunities. Fund 7 has completed two transactions already by investing in fleet management company SG Fleet and specialist safety products and equipment retailer RSEA. A third investment is expected to close before the end of July.
“Our focus is very much on partnering with business owners and management teams of privately owned companies to assist them in their next phase of growth and create value. We are working on a solid pipeline of new investment opportunities,” said Gareth Banks, Director from CHAMP Ventures.
CHAMP Ventures is part of the CHAMP Group, one of Australia’s leading private equity managers with over A$2 billion in funds under management. Recent investments by CHAMP Ventures include Lorna Jane, an Australian active wear retailer and lifestyle brand; Mastermyne, an underground coal contractor; and Amdel, a minerals laboratory testing business. The CHAMP Group has offices in Sydney and Brisbane, Australia and affiliated offices in Singapore and New York (www.champventures.com).