Australian private equity firm Anacacia Capital has raised 125 million Australian dollars (US$129.5 million) for Anacacia Fund II, following an A$80 million first close in July.
The fund has not called a final close, allowing for further small allocations to future investors in coming months. Investors in Fund II to date include global fund-of-funds and Australian superannuation and pension funds.
“We are very pleased to welcome investors into our successor fund. We feel very loyal to the investors in our first fund and are pleased that they have achieved strong returns and we are delighted to include some new investors that we have known for some time to join us,” Anacacia Capital Managing Director Jeremy Samuel said.
Mr. Samuel said that the firm would focus on executing its strategy of backing strong management teams in established small-to-medium enterprises, and that Fund II intends to make up to 12 investments over a 10-year period.
Potential investment companies will be seeking capital to grow by acquisition or to aid management sell-down and must have existing revenues of between A$20 million and A$100 million, and minimum earnings of A$3 million.
“We are seeing succession as a continuing theme among Australian businesses [as] many founders who started businesses thirty years ago are now starting to think about retirement,” Mr. Samuel added, noting that Anacacia facilitates an exit which allows management to retain a portion of ownership.
Rafferty’s Garden, an infant food company held in Anacacia’s first fund, could soon be sold to global food conglomerate H.J. Heinz Co. (HNZ) if approved by the Australian Competition and Consumer Commission.
Its first set of “lunchbox 1″, or LB1, products — targeted at older children — will be launched at Woolworths Ltd (WOW.AU) this week, while ice-blocks will be rolled out later this month.