Market Review
As at 30 September 2021, VPEG3 had committed $67.50 million across seven Primary Private Equity Funds and two co-investments. As a result, a total of 40 underlying company investments exist within the portfolio at quarter end. VPEG3’s investment commitments include; $12 million to Allegro Fund III; $10 million to each of Adamantem Capital Fund 1, Advent Partners 2 Fund, Anchorage Capital Partners Fund III and Next Capital Fund IV, $7.5 million to Mercury Capital Fund 3 and $7 million to Odyssey Private Equity Fund 8. VPEG3 co-investments include; $0.25 million into Fitzpatrick Financial Group and $0.75 million into Tribe Brewing.
The period 1 July 2021 to 30 September 2021, saw elevated levels of Private Equity activity across VPEG3’s portfolio, with two new underlying private equity investments added to VPEG3’s portfolio. These new investments were announced by VPEG3 investee Advent Partners 2. As a result of these investments being added to VPEG3’s portfolio, the total number of underlying company investments increased to 40. In addition, the partial sell down in shares of a previously exited, now ASX listed company, was also successfully executed during the quarter.
Australia’s private equity environment continued to remain buoyant as investors sought quality investment opportunities in the Australian lower to mid-market. VPEG3’s managers’ report that these investors are attracted to companies operating in the lower to mid-market segment in Australia as these business have predominately demonstrated strong cash flows and resilience throughout the pandemic.
Aided by the considerable amount of consumer and business spend in Retail, Technology, Industrials and Healthcare companies across the previous quarters, these businesses have exhibited strong levels of liquidity, enabling many of these companies to continue to improve their performance despite interruptions to their operations caused by the various COVID lockdowns imposed in certain locations. In addition, as a significant proportion of VPEG3’s portfolio companies have an emphasis on growth initiatives, which as the economic recovery has come to fruition, has accelerated the adoption of their businesses offering’s, leading to an increase in demand for the products or services of these companies.
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Vantage Private Equity Growth 3 Quarterly Report September 2021