Pacific Equity Partners

Pacific Equity Partners (PEP) is a private equity investment firm focusing on transactions in Australia and New Zealand. PEP invests across a range of industries and sectors and in turnaround and growth capital transactions.

Pacific Equity Partners
TypeProprietary limited company
IndustryPrivate Equity
Founded1998 (1998)
Founders
  • Simon Pillar
  • Rickard Gardell
  • Paul McCullagh
  • Tim Sims
HeadquartersSydney, Australia
Products
AUMA$10 billion (2022)
Websitewww.pep.com.au

The firm is based in Sydney, Australia, and was founded in 1998 by Rickard Gardell, Paul McCullagh, Simon Pillar and Tim Sims. All but McCullagh previously worked together as executives at Bain & Company.[1][2]

The firm has raised more than A$8 billion across five funds since its founding and has approximately A$10 billion of assets under management,[3][4] making it the largest private equity firm in Australia.[5]

Investments

PEP has led eight public to private buyout transactions in Australasia including Spotless, Patties, LifeHealthcare, Zenith Energy, and Citadel.[6]

PEP has made more than 35 operating company investments as well as 100 bolt-on acquisitions since its founding.[7] Among the firm's past investments are Hoyts (sold to Wanda Cinemas in 2015),[8] Independent Liquor (sold to Asahi Breweries in 2011),[9] Griffin's Foods (acquired from Danone in 2006 and sold to Universal Robina in 2014),[10] Frucor (sold to Suntory in 2008), Peters Ice Cream (sold to Froneri in 2014) and Tegel Foods (acquired in 2005 from Heinz and sold to Affinity Equity Partners in 2011).[11]

Some of the firm's current investments include Patties Foods,[12] iNova Pharmaceuticals,[13] medical devices group LifeHealthcare,[14] smart metering company IntelliHUB,[15] and Evolution Healthcare.[16]

PEP made two acquisitions toward the end of 2019. It purchased the Asia-Pacific segment of NYSE-listed towing and trailering equipment manufacturer Horizon Global[17] and it also acquired community energy network provider WINconnect[18] from private operators. WINconnect is the third deal for the firm's Secure Assets Fund.

The firm realised a positive return from the sale of New Zealand honey supplier Manuka Health which it exited in 2018 for $NZ300 million.[19] PEP first purchased Manuka in 2015 and made key changes including expanding the company's operations and leading an industry reform to standardise honey grades, allowing better transparency on quality and reducing counterfeiting. This work gained industry recognition in 2018 for quality management and responsible investing.[20]

Other recent investment exits include the sale of Allied Pinnacle to Japan's Nissin Foods[21] in February 2019 and the exit of NZ private education provider ACG[22] in late 2018.

References
  1. "Australia's Private-Equity Deals for the New Year". Wall Street Journal. Retrieved 15 June 2022.
  2. Wilson, Drew. "Privately Speaking: Tim Sims of Pacific Equity Partners". Private Equity International. Retrieved 15 June 2022.
  3. Thomson, James (2 May 2022). "PEP's $10b moment heralds private equity's new era". Australian Financial Review.
  4. "Pacific Equity Partners – About Us". pep.com.au. Retrieved 26 June 2022.
  5. Mendoza, Carmela (24 July 2018). "Pacific Equity Partners on why the Australian mid-market is thriving". Private Equity International. Retrieved 10 April 2019.
  6. Thompson, Sarah; Macdonald, Anthony; Sood, Kanika. "PEP hits 4x money at LifeHealthcare". Australian Financial Review. Retrieved 15 June 2022.
  7. Mendoza, Carmen. "Pacific Equity Partners on why the Australian mid-market is thriving". Private Equity International. PEI Media.
  8. "Hoyts to be sold to private equity group". Australia: ABC News. 24 September 2007. Retrieved 9 April 2019.
  9. "Asahi to Buy New Zealand Liquor Company". DealBook. 18 August 2011. Retrieved 9 April 2019.
  10. "Pacific Equity buys Griffin's Foods". The Age. 1 April 2006. Retrieved 9 April 2019.
  11. "Pacific Equity Mulling Options for Tegel Foods". DealBook. 20 August 2010. Retrieved 9 April 2019.
  12. “PEP in advanced discussions to acquire ASX listed Patties Foods” "Australian Financial Review", 29 May 2016.
  13. “iNova sold to PEP, the Carlyle Group” "Australian Financial Review", 9 June 2017.
  14. “Allens advises PEP on acquisition of LifeHealthcare” from Allens Media Release, 25 May 2018.
  15. “Landis+Gyr and Pacific Equity Partners announce joint venture for acquisition of acumen metering business” from Landis+Gyr media release, 24 May 2018.
  16. “North Island Hospitals sold to new Australian Owners” in Stuff.co.nz on 25 September 2018.
  17. , Horizon Global Investor Centre, 16 August 2019.
  18. , in Australian Financial Review, 19 December 2019.
  19. – Pacific Equity Partners secures sale for Manuka Health, Australian Financial Review, 27 September 2018.
  20. – 2018 AVCJ Awards for Responsible Investment: Manuka Health, Asian Venture Capital Journal, 12 November 2018
  21. – PEP secures sale for Allied Pinnacle, Australian Financial Review, 27 February 2019.
  22. – Sale of ACG schools, Newsroom NZ, 23 June 2018.
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