Australian middle-market buyout manager Tasman Capital has selected Geneva-based alternative assets marketing firm MCAM Group to raise capital for the Tasman Capital Partners fund internationally.
The private equity fund’s target size is AUD200 million with a hard cap of AUD300 million, and will be targeting deals in the Australian and New Zealand lower middle market with an enterprise value under AUD100 million. Tasman Capital will focus on MBO/MBI transactions, turnaround investments, roll-up and aggregation plays and expansion capital as well as engage in public-to-private transactions on an opportunistic basis.
According to Tasman Capital’s co-founders, Gene Lorenz (pictured) and Rob Nichols, The Australian middle market is a highly proven segment with the average realised enterprise value of the vast majority of deals (circa 100 deals) being AUD115 million. Only a very small number of deals with an enterprise value greater than AUD200 million have been realised to date.
Lorenz and Nichols both worked together at DB Capital Partners, the private equity arm of Deutsche Asset Management and were a part of the original team to set-up Nikko Principal Investments Australia back in 2006. Over the past ten years, the partners of Tasman Capital have delivered a realised cash on cash pre-fees IRR to their investors of 33% and a 2.4x money multiple.
“The Australian private equity middle market competitive dynamics have undergone a major change over the last few years, with many established Australian middle market managers having vacated the market. As a consequence competition for deal flow is lower and pricing is attractive.” says Nichols. “Tasman has chosen to stay in this tier of the market as it continues to be the most attractive investment segment in the Australian market. Australia is primarily an economy characterised by a high proportion of SME companies and is geared to the middle market."
“These changed market dynamics has positioned Tasman exceptionally well to capitalize on the attractive Australian middle market segment, and we are confident about our long-term ability to deliver superior returns for investors ” Tasman Capital co-founder Gene Lorenz adds. Lars Bjoergerd, Managing Director, MCAM Group, says: “ The team behind Tasman Capital is one of the most experienced and respected in the Australian mid-market buyout segment. We are very pleased that Rob and his partners have come to the decision to engage MCAM Group in raising assets internationally for its flagship fund, and we look forward to working together with them."