Private equity’s big opportunity - and who it wants to help pay for it

One of Australia and New Zealand’s most established private equity firms is eager to capture funds from wealthy investors seeking to increase exposure to alternative investments.

“We’ve always been predominantly funded by big global institutions and very little from wealth and family offices,” Pacific Equity Partners (PEP) managing director Cameron Blanks told Markets with Madison in Sydney.

“I think really where we see the competitive fundraising environment is actually attracting individuals and family offices into the broader ecosystem of private markets.”

He was also in talks with KiwiSaver firms in New Zealand about co-investment, he said.

PEP was best known for its purchase and later sale of Peter’s Ice Cream in Australia, and Tegel the chicken company and Griffins biscuits in New Zealand.

After 27 years in business, PEP had A$14 billion ($24.16b) in funds under management.

“We’re just in the process of finalising our seventh buyout fund, which is a A$3.1b ($3.39b) dollar fund.”

That was on top of its A$4b ($4.38b) buying spree before Christmas, purchasing three businesses including Singapore Post’s Australian operation and the Australian-listed vehicle leasing and fleet management company SG Fleet.

Blanks said his firm was now receiving more offers to buy businesses.

“Most of these opportunities do actually walk through our door these days, but that doesn’t mean that we just sit and wait for the phone to ring.

“We’re actively out there having conversations with companies about divisions that they may want to sell, or public companies ... and the like about what might be able to be done in a private environment that can’t be done in a public environment.”

One opportunity it was considering currently was the carve-out of Fonterra’s consumer division, Mainland Group.

Find out if PEP would buy Fonterra’s consumer asset, and the other opportunities it’s chasing, in today’s episode of Markets with Madison above.

Get investment insights from executives and experts on Markets with Madison every Monday and Friday here on the NZ Herald, on YouTube and wherever you get your podcasts.

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Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.

Madison Malone (nee Reidy) is host and executive producer of the NZ Herald’s investment show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.