Adexum Capital set to deploy Fund II

The Sydney based mid-market firm is poised to invest Fund II, a A$75 million vehicle that will make between two and four investments.

Australian mid-market firm Adexum Capital is looking to deploy its second fund, an A$75 million ($51 million; €47 million) vehicle that it raised at the end of last year.

The fund will make two to four investments over the next 18 months, executive director Greg Robertson told Private Equity International. It drew commitments from 180 investors.

Investors in Adexum, which focuses on growth investments in Australia and New Zealand, are primarily high net worth individuals from Australia, including a number of self-managed superfunds for which access private equity is often limited, he explained.

Its first fund, A$50 million vehicle launched in July 2014 just after the firm was established, drew commitments from 200 investors. It took 15 months to invest in two transactions.

In November 2014, Adexum acquired a 44 percent stake in Enviropacific Services that specialises in remedying solid and liquid contamination problems in Australia. Its A$25 million investment is now worth twice that, said Robertson.

At the end of last year, Adexum took a 50.3 percent stake in Australia’s PeoplePlan, a human capital consulting firm that uses e-learning and technology solutions to empower organisations to grow their businesses.

Adexum’s invests companies with revenues from A$50 million to A$250 million per annum or EBITDA in excess of A$5 million per annum. It has a minimum investment target of A$15 million per investment but can be flexible.

Prior to establishing Adexum, its founding directors Robertson and John Murphy managed Investec Wentworth Private Equity (IWPE) in Australia for over 12 years, and its predecessor firm MGB Equity Growth (MGB) from 1999 to 2012, according to Adexum’s website.

The firm abandoned initial plans to list in favour of launching its first fund as the timing was not right, said Robertson.