Private equity firms Anacacia Capitals Jeremy Samuel

Anacacia Capital Launches Fund IV

Anacacia Capital, a Sydney-based private equity firm, is preparing to launch Fund IV, which will target mid-market buyouts.

The fund is expected to have a 10-year lifespan and will commence fundraising in October 2023 with a first close scheduled for the same month.

Private Equity News Australia

The target size of the fund is AUD 450m, and the firm aims to exceed the AUD 300m raised for Fund III.

Anacacia Capitals Jeremy Samuel

Anacacia Capital’s Jeremy Samuel.  

Anacacia Capital has a track record of investing in profitable companies with revenues ranging from $20m to over $500m, often through family succession planning needs.

Anacacia Partnership I, the firm’s first fund, was the best-performing among 102 Australian buyout funds across all vintages to June 30, with a net return of 3.45 times. Growth Fund 2, Archer Capital Fund II, Quadrant Capital Fund 2, and PEP’s Fund II followed with net returns of 2.89 times, 2.78 times, 2.57 times, and 2.53 times, respectively.

Anacacia Partnership I began in 2008 and benefited from being able to take its picks from the post-GFC carnage.

Founder Jeremy Samuel is telling investors that there are similarities to 2008, and hence opportunity for Fund IV to make decent returns.

Anacacia Capital’s investment strategy is to identify and partner with great business owners, particularly during tougher capital-constrained times, to increase value.

The firm looks for outstanding management in great businesses at a fair entry price. Anacacia Capital has never had a better pipeline of opportunities and has invested in companies such as Appen, Rafferty’s Garden, Home Appliance, and Big River Industries. Fund III invested in parking meter payment business Duncan Technologies, Direct Couriers, and consulting firm RP Infrastructure.

Investors are being told that in the past 15 years, the three funds have delivered a net internal rate of return of 28%. The listed equities fund ended the 2023 financial year with 30% net returns. Past funds are understood to have been supported by high-net-worth and institutional relationships via the likes of ARA Consultants, Barwon Investment Partners, and Cambridge Associates.

Anacacia Capital’s current portfolio includes Big River Industries, which recently posted a record profit, and RP Infrastructure, which has been bulking up via bolt-on acquisitions. However, Direct Couriers is going down the recap path after trying a sale process, and Pump Haircare has been up for sale via Miles Advisory after struggling to sustain pandemic growth.

Anacacia Capital’s investment strategy is to invest in profitable companies with a strong management team and growth potential. The firm has a successful track record of investing in SMEs, often through family succession planning needs, and has built strong institutional relationships over the years.

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