CHAMP Ventures, the mid-market private equity specialists of the CHAMP Group, today announced that the close of its new fund, CHAMP Ventures Investment Trust Numbers 6A and 6B (CVIT #6) oversubscribed at A$300 million.
Demand for the CVIT#6 funds greatly exceeded this amount but was capped to maintain the level of investment focus that has proven successful for previous CHAMP Ventures' funds. CHAMP Ventures was originally targeting A$250 million and this total was expanded to accommodate some of the strong demand, primarily from Australian superannuation funds.
The key target for the CVIT #6 funds will be across a range of industries in the midmarket expansion capital and buy-out segments i.e. established companies with enterprise values up to A$100 million. Some funds may also be targeted at early-stage investments in fast-growing, innovative Australian businesses.
CHAMP Ventures was established in 2001 as the successor to Australian Mezzanine Investments Pty Ltd (AMIL) and collectively since 1988 the companies have made 55 investments over five investment funds.
Past portfolio clients include Dexion Holdings (manufacturing), RAMS Home Loans (finance), Video Ezy (entertainment), Medical Images Australia (medical) and, via the AMWIN Innovation Fund, the internet start-up companies LookSmart (search) and Seek (recruitment).
Current portfolio clients include Kailis & France (food & beverage), nudie Foods (premium fruit juices), Tarocash (menswear), Mastermyne (mining services) and Amdel Holdings (laboratory testing).
Mr. Su-Ming Wong, Managing Director, CHAMP Ventures said that he anticipated CVIT #6 funds would be allocated over a similarly diverse range of industry segments with particular focus on the healthcare, mining services, food & beverage and financial services sectors.
"Irrespective of the industry, our core focus is on identifying and partnering with strong management teams and entrepreneurs who have already proven themselves but wish to capitalise fully on unrealized growth potential."
"Our experience is in identifying and capitalising on growth opportunities - whether they be organic or via acquisition. This expertise, built-up over 17 years has proven highly attractive to mid-market companies looking to realise their potential," said Mr Wong.
In recent years, CHAMP Ventures portfolio companies have included family run businesses and the company expects this trend to continue.
"Family run businesses constitute a significant proportion of successful, privately owned companies in Australia and succession planning is increasingly an issue for them. We have the flexibility and expertise to respond to their long-term planning needs, for example by taking a minority position as a pre-cursor to a complete exit and by tapping into our extensive alumni and affiliate network to assist in their development."
CHAMP Ventures anticipates that CVIT #6 will invest in 10-15 portfolio companies over a 4-5 year timeframe, with subsequent holding periods appropriate to the circumstances of the portfolio company. Divestments are expected to occur progressively from year 5 onward, with most divestment occurring by year 7 and total divestment anticipated within 10 years.