$980m private equity capital raising completed in less than two months

Quadrant Private Equity has closed its eighth fund at $980 million after less than two months of formal fundraising.Managing partner Marcus Darville said most of the investment for Quadrant Private Equity No 5 (QPE5) has been raised from prior investors who are fairly evenly split between local and overseas institutions and include a range of Australian superannuation funds, overseas pension funds and sovereign wealth funds.

Darville said the fund had been capped at $980 million so the firm would be able to keep investing in its proven highly successful mid-market sector. Imposing the cap had resulted in some potential new investors failing to gain access to the fund and some “re-up” investors not being able to increase their allocations as much as they had sought.

The first investment from the new fund has already been made, the $260 million acquisition of the Goodlife health clubs division of Ardent Leisure Group (ASX: ADD) (see separate item this issue).

Quadrant’s prior fund raised $850 million after a similarly short fundraising campaign in early 2014. QPE5 has made five investments, Icon Cancer Care, Canberra Data Centres (CDC), Real Pet Food Company, Superior Food Services and Urban Purveyor Group. CDC was successfully exited in May (APE&VCJ, Jun 16). With this fund not scheduled to close until 2024, it is expected to focus now on the growth and acquisition strategies of the remaining investee businesses.

Quadrant’s management team was re-organised late last year with founder Chris Hadley moving to the role of executive chairman while Marcus Darville and Justin Ryan took up the roles of managing partners. Alex Eady and Jonathon Pearce were promoted to partners, Simon Ha was appointed an investment manager and Simon Pither retained his role as an investment manager.