Sydney-based mid-market firm Anacacia Capital is set to launch its third Australia-focused fund targeting A$300 million ($240 million; €195 million) by the end of the first quarter, Private Equity International has learned.
The firm’s target for Anacacia Private Equity III is larger than its predecessor, the 2013-vintage A$150 million Anacacia Fund II, which is now 76 percent invested, a source with knowledge of the matter told PEI.
Anacacia would not be drawn on fund performance and declined to provide information on fundraising.
Capital raised from Fund III will be invested in up to 12 companies facing succession issues or require capital and support for acquisitions. The firm typically backs private and listed small and medium enterprises in the consumer, services and industrials sectors, with revenues of between A$20 million and A$250 million and EBITDA of at least A$5 million.
Meanwhile, the capital raised from Fund II has so far been invested in seven companies, including fire protection company Force Fire, timber and steel manufacturer Big River, post-secondary educator Catalyst Education, and dips and snacks company Yumi’s Quality Foods. Investors that have committed capital in Fund II include superannuation funds, funds of funds and family offices from Australia and overseas, according to PEI data.
The firm’s debut fund was the 2008-vintage Anacacia Fund I, which collected A$52.75 million. The fund is understood to have delivered a net IRR north of 40 percent and a net multiple of ~4x for its investors, the source added.
The source did not share performance figures for Fund II, but noted that about 30 percent of the capital has been returned to investors so far.
In November last year, the firm sold majority of its stake in linguistics technology company Appen, reaping a 12x return for its investors.
Anacacia, which currently manages over A$250 million of assets, has made more than 30 acquisitions in the last decade.