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CHAMP Ventures holds first close for Fund VII

The size of the close is confidential, however the fund is targeting $482m in commitments.

CHAMP Ventures, the mid-market specialists of Australia’s CHAMP Private Equity group has held a first close on its latest fund, CHAMP Ventures 7.

Jonathan Kelly, director at CHAMP Ventures confirmed the close but declined to disclose its exact closing size. He however noted that the fund was targeting total commitments of A$450 million (€340 million; $482 million).

CHAMP Ventures 7 will invest between A$20 million to A$70 million for buyouts, expansion capital and replacement capital opportunities in the Australasian mid-market.

It succeeds CHAMP Ventures Investment Trust 6 (CVIT 6), which made minority interest expansion and control or buyout investments valued at between A$50 million to A$100 million. CVIT 6 closed in 2006 and was oversubscribed at A$300 million.

CVIT 6 has since been fully deployed, its last deal being a A$35.5 million investment in fleet management and salary packaging services provider SG Fleet, for a significant minority stake.

The firm has also offloaded several assets in trade and secondary sales over the past few months.

In March, CHAMP realised its first exit for CVIT 6 when it sold subsea specialist oil and gas provider TS Marine to Dutch trade buyer Fugro N.V for an undisclosed sum. The deal generated returns of 2.4x to its investors, the firm said.

Following that in May, CHAMP completed the sale of clothing company RAG to Malaysian buyout house Navis Capital for an undisclosed sum. The terms of the sale were confidential, however the exit also locked in a total return of more than 3x for the CVIT 5 fund, according to the firm.

In June, the firm sold private hospital operator Healthe Care Australia to Archer Capital in a deal reports had valued at A$230 million. According to CHAMP, the sale realised an IRR of 37 percent and a cash multiple of 2.5x for the investment made through CVIT 6.