Private equity newcomer BGH Capital nails first close, raises target
As the region's private equity investors and fund managers fly into town for an annual gabfest starting Thursday, there is a $2.3 billion topic hot on people's lips.
As the region's private equity investors and fund managers fly into town for an annual gabfest starting Thursday, there is a $2.3 billion topic hot on people's lips.
Street Talk understands BGH Capital - the new kid on the block seeking to invest at the big end of town - has hit a first close.
And the first close is believed to be worth $2.3 billion.
Limited partner sources reckon that would make it one of the biggest first closes for a new private equity manager in memory.
They said BGH Capital was initially in the market for $2 billion in total, however that cap had been raised by 30 per cent to $2.6 billion. BGH could not be reached for comment.
Should it raise $2.6 billion, it would be the largest Australia and New Zealand-focused private equity fund in the market, overtaking Pacific Equity Partners which has about $2 billion at its disposal.
It's understood BGH Capital's investors were told of the first close and their allocations earlier this week. The investors do not have to stump up money to the Melbourne-based firm until it finalises its first acquisition, which will be the next focus.
BGH was founded by well known local players Robin Bishop, former head of Macquarie Group's local investment banking team, and ex-TPG dealmakers Ben Gray and Simon Harle, last year.
It is believed to have raised money from private equity investors globally, including superannuation and pension funds in Australia, Asia and North America.
As part of the fundraising, BGH told limited partners it would be in the market for deals as small as $300 million, or bigger than $5 billion, on an enterprise value basis, without the need to partner with other private equity firms.
BGH's raising is another reminder that private equity investors are keen to back select Australian funds, whether they are from existing managers or new ones. It follows Quadrant Private Equity's quick $1.15 billion fundraising in December.
Others though, including Archer Capital and CHAMP Private Equity, have struggled.
BGH Capital's new fund is expected to be one of the key talking points on the sidelines of an annual industry conference, to be held in Sydney on Thursday and Friday. Big private equity investors including Australians the Future Fund, HESTA, Sunsuper and First State are among the participants, as well as investors from North America and Asia.
The conference also has a few Australian funds taking the opportunity to hold their annual general meetings this week, with plenty of talk about fundraising, acquisition multiples and succession planning.
