Quadrant amasses $900m for latest buyout fund

The firm’s sixth vehicle had a high re-up rate and received about 60% of commitments from offshore investors.

Quadrant Private Equity gathered A$1.15 billion ($900 million; €750 million) for its latest buyout fund in December, in its largest and fastest ever fundraise.

The Sydney-based manager began fundraising for Quadrant Private Equity No. 6, which had a A$1 billion target, in November and held a final close about a month later.

The fund close was first reported by The Australian Financial Review.

The firm’s latest offering is larger than its 2016-vintage predecessor, which held a first and final close on A$980 million (€660 million; $746 million) in August last year, after less than two months in market.

Chris Hadley, executive chairman of Quadrant, told Private Equity International in November the firm wanted to keep the fund size to A$1 billion. “We can raise a much larger fund – there’s certainly a lot of demand – but it would push us out of the middle market that we are focused on.”

Quadrant’s latest vehicle, was reportedly oversubscribed and received bids in excess of A$2 billion. All the capital raised for the fund was from existing investors, of which 69 percent are offshore and 40 percent are Australian, Hadley told PEI. He added that deal flow is strong and the firm expects to announce its first deal in the new fund this month.

Fund of funds manager ROC Partners and Future Fund are said to be among investors in Fund No. 6. Meanwhile, investors in the firm’s previous funds include Adams Street Partners, AustraliaSuper and Telstra Super, according to PEI data.

Quadrant invests across a range of sectors across Australia and New Zealand including retail, healthcare, media, consumer foods, financial services and other sectors. In December the firm acquired the bowling and entertainment division of theme park operator Ardent Leisure for A$160 million.