Carlyle finally put an end to the local industry's suspense and announced that Simon Moore will be heading up their new Australian office. I've heard more than one person boast that they were approached but decided not to pursue the role . . . oh please. It's a trophy job and Simon should feel thrilled and proud to have the opportunity.
The Carlye Group's arrival strikes me as a marker of a distinct "third phase" for Australian private equity. The first phase was establishment, the pioneers, guys like Bill Ferris at CHAMP. Funds were small, there was little distinction between private equity and venture capital, and the debt market was relatively primitive.
The second phase, which began in the late nineties, reflected a maturing industry: more professional and confident teams, larger funds and with them larger deals, explosive growth in the debt market, and advisors who finally understood private equity.
And the third generation? Fund sizes denominated in billions, secondary buyouts becoming part of the landscape, but most of all, the arrival of regional and global money. Thanks to the terrific returns achieved by teams like CHAMP, Archer, Pacific Equity Partners, and Catalyst, Australia is on the map. If a deal exceeds $200 million in enterprise value then the bidders will now include international funds. Take two recent transactions: Affinity Equity Partners out of Hong Kong won the Loscam auction and rumour has it that Carlyle and Newbridge Capital are in the final round to acquire Taverners. The game is up, we've been well and truly discovered.
Comments