Archer Capital rockets to $1.5bn

Archer’s ‘strongly oversubscribed’ fifth fund has beat it’s $1.27bn target after only four months on the market.

Earlier this year, Archer Capital managing director Peter Wiggs told Reuters that only the “rock stars of the industry” have been able to raise money. Apparently, by his own definition, Archer is a rock star.

Archer Capital has landed on A$1.5 billion (€1.16 billion; $1.5 billion) for its fifth fund after only four months on the market, the firm announced in a statement. The fund was “strongly oversubscribed”, beating it’s A$1.26 billion target, according to the firm.

“The positive response from investors in such a short time-frame and difficult market conditions represents a very good result for the firm,” Wiggs said in a statement. “For everyone at Archer it is an endorsement of our track record of delivering strong and consistent returns.”

The firm also was able to withstand a slow down on private equity fundraising in Australia, where local limited partners like the Victoria Funds Management Corporation and Unisuper, have stopped making new commitments to private equity in favour of other asset classes.

The firm could not be reached for further comment at press time.

Archer typically targets investments in Australian or New Zealand-based companies with enterprise values between A$100 million and A$1 billion. The firm focuses on acquiring majority stakes in control investments in commercial sector businesses in the small or middle market, excluding real estate or “unproven” technology. 

In 2011, Archer invested around A$600 million across four transctions, acquiring Brownes Foods, Quick Service Restaurants, V8 Supercars and Healthe Care.

The firm’s previous flagship fund raised A$1.36 billion in 2007, according to sister data provider Private Equity Connect. Limited partners in that fund included HarbourVest Partners, Pomona Capital, Squadron Capital and several Australian pension systems and funds of funds.

Archer was founded in 1996 and manages around A$2 billion in assets, according to its website.