CHAMP closes Fund IV short of target

The Australian manager has raised $550m for its latest buyout fund, significantly smaller than its $1bn predecessor.

Sydney-based mid-market firm CHAMP Private Equity has held a final close on its fourth fund on A$735 million ($550 million; €490 million), short of its A$1.5 billion target.

It is not clear what is behind the dramatic reduction in fund size, but it is understood that including co-investment capital, the firm has up to A$1 billion of investment firepower for CHAMP IV, as reported earlier by the Financial Review. CHAMP declined to comment on fundraising.

The firm began fundraising in early 2015 with a target of A$1.5 billion, according to PEI data. The fund is significantly smaller than its predecessor, 2009-vintage CHAMP III, which closed on A$1.48 billion in 2010.

CHAMP, which typically invests between A$50 million to A$250 million per deal, has already made four investments from CHAMP IV: New Zealand’s Strait Shipping and Freight Lines, Melbourne-based global forex and CFD broker Pepperstone, automotive company Dutton Group and technology solutions provider Containerchain.

Limited partners in the firm’s previous funds include the Military Super and Benefit Scheme, Telstra Superannuation Fund, and funds of funds AlpInvest Partners and Pantheon, PEI data show.