Our investment strategies

The PEP Funds target investments in a wide range of industries including industrial services, energy, consumer products, entertainment and ‘big data’/financial services. A number of these businesses already have operations in Asia, and others are in the process of developing operations in the region. Funds managed or advised by PEP have made 39 operating company investments, and over 150 bolt-on acquisitions.

We provide advice and assistance to our portfolio companies on acquisitions, capital restructuring, growth plans which leverage competitive advantage, and strategies for improving operating earnings. Our highly experienced management teams achieving long term average profit growth between 15-20% and annual leveraged returns of 25-30%.

Currently open for investment:


Secure Assets, Capital Solutions and Gateway

Buyout Investments

We have experience across a wide range of sectors with companies whose principal operations are in Australia and New Zealand. Buyout strategies target companies that have been identified through our team’s rigorous analysis as not achieving their full potential while being resilient to external market forces.

Enterprise value: Target A$200M-A$1B
Target Gross IRR: 20%
Downside risk: Bounded
Industries/Sectors: All industries/sectors considered
Geographies:
Principal operations in Australia or New Zealand
Existing funds: Buyout Funds IV, V and VI
Structure: Closed-ended
Status:
Fund IV: Fully invested
Fund V: Fully invested
Fund VI: 55% invested
Next raising: Expected 2023

 

Contact us for more information

We do not invest in:

  • Start-ups or unprofitable businesses
  • Investments predominantly focused on tobacco, gaming or gambling, weapons or coal
Capital Solutions

Capital Solutions partners with strong businesses to support their continued development with flexible capital and operational expertise. We blend non-dilutive finance with a private equity tool kit in a true partnership approach to assist companies achieve their growth, reorganisation and acquisition objectives.

Investment size: Target A$25M-A$150M
Target Fund Gross IRR: 10-12% (including 6-8% cash yield)
Downside risk: Structurally protected
Industries/Sectors: All industries / sectors considered
Geographies:
Principal operations in Australia or New Zealand
Existing fund: PEP Capital Solutions Fund
Structure: Open-ended fund
Status: Open for investment

 

Contact us for more information or to invest
Gateway

We’ve recently launched Gateway to unlock global Private Equity for individual investors. Gateway is a premium open-ended fund offering access to the best Private Equity funds and fund managers in the world, with regular liquidity.

Unlocking Global Private Equity.
Providing the Gateway for individual investors.
Access The Best Globally
Private Equity has never been easy
to get into or out of, until now. Gateway
gives individual investors much greater
access and liquidity.   
As Australasia’s most successful and
established private markets fund manager,
PEP is able to partner with the very best
private managers and funds in the world.
Now you can diversify your portfolio
with global fund managers who consistently deliver excellent returns,
from a far greater playing field.

 

Click here to apply

Contact us for more information

Secure Assets Investments

PEP’s Secure Assets Fund targets investments possessing a combination of protected cashflows, operating step-change and strategic repositioning potential across a range of sectors. The Fund seeks to acquire Australian and New Zealand businesses that have secure underlying cashflows and by transforming their scale, contractual position and environmental, social and governance (“ESG”) performance, position them for exit to longer term, lower cost capital or strategic buyers and thereby realise premium returns for investors.

Enterprise value: Target A$50M-A$1B
Target Gross IRR: 14-16%
Downside risk: Protected contractually or through
strong entry barriers
Industries/Sectors: Transport and logistics, waste, utilities and renewables, data and telecommunications, social and agricultural infrastructure
Geographies:
Principal operations in Australia or New Zealand
Existing fund: Secure Assets Fund I
Structure: Closed-ended
Status: 54% invested
Status: Currently raising

 

Contact us for more information

We do not invest in:

  • Start-ups or unprofitable businesses
  • Investments predominantly focused on tobacco, gaming or gambling, weapons or coal
Agright
Agriculture
Transaction type:
Commitment:
Private Vendor (Founder)
Acquisition date:
Investment date:
July 2022
Fund:
Facility type:
Buyout Fund
SAF I
Capital Solutions
ESG initiative:
Facilities to be powered by renewables utilising market leading solar and battery systems
Company overview >

Agright

Agright is an industry-leading poultry grower in Australia and New Zealand. It develops high-quality agricultural infrastructure with in-house design and construct capabilities, and operates poultry farms under secure long-term contracts with leading poultry processors. Agright’s facilities are market leading, incorporating best practice in animal welfare and sustainability.

Agright
Cranky Health
Health and Wellness Products
Transaction type:
Commitment:
Private Vendor (Founder)
Acquisition date:
Investment date:
January 2022
Fund:
Facility type:
Buyout Fund VI
SAF
Capital Solutions
ESG initiative:
Cranky Health’s products are assisting hundreds of thousands of Australians to achieve their health goals
Company overview >

Cranky Health

Cranky is a leading Australian online provider of health, weight management and supplements products. It was founded by Australian sports celebrity Adam MacDougall and his wife Belinda in 2013. Cranky’s flagship products ‘The Man Shake’ and ‘The Lady Shake’ are the clear #1 meal replacement shakes in Australia, helping hundreds of thousands of Australians to achieve their health goals. Cranky operates a predominantly direct-to-consumer business model through its own website. The business also has a growing retail presence, with national distribution through grocery chains and pharmacies.

Cranky Health
MoneyMe
Personal / Auto Lending Platform
Transaction type:
Commitment:
A$75M
Acquisition date:
Investment date:
November 2021
Fund:
Facility type:
Buyout Fund Capital Solutions
SAF
Corporate
ESG initiative:
B Corporation Certification (in process)
Company overview >

MoneyMe

MoneyMe is a leading, technology-enabled, non-bank lender providing a range of personal credit products to Australian consumers.

MoneyMe
Mortgage House
Mortgate Lender
Transaction type:
Commitment:
Undisclosed
Acquisition date:
Investment date:
June 2021
Fund:
Facility type:
Buyout Fund Capital Solutions
SAF
Corporate
ESG initiative:
Responsible lending
Company overview >

Mortgage House

Mortgage House is the largest independently-owned, non-bank mortgage lender in Australia.

Mortgage House
Calibre Group
Engineering Services
Transaction type:
Commitment:
Undisclosed
Acquisition date:
Investment date:
May 2021
Fund:
Facility type:
Buyout Fund Capital Solutions
SAF
Corporate
ESG initiative:
Health and Safety
Company overview >

Calibre Group

Calibre is a diversified engineering services provider focused on infrastructure, technology, and sustainability projects across multiple sectors.

Calibre Group
Modern Star
Education Resources
Transaction type:
Commitment:
Undisclosed
Acquisition date:
Investment date:
December 2020
Fund:
Facility type:
Buyout Fund Capital Solutions
SAF
Corporate
ESG initiative:
Ethical procurement of products and packaging via mandatory supplier commitments and factory audits for high-risk countries
Company overview >

Modern Star

Modern Star is the market leading supplier of curriculum-aligned educational resources to schools and early learning centres throughout Australia and New Zealand.

Modern Star
Healthe Care
Healthcare
Transaction type:
Commitment:
Corporate Carve-out
Acquisition date:
Investment date:
September 2021
Fund:
Facility type:
Buyout Fund VI
SAF
Capital Solutions
ESG initiative:
Clinical governance and workplace safety processes and policy frameworks in line with best practice, supported by medical advisory and safety committees and board reporting
Company overview >

Healthe Care

Healthe Care operates a network of 13 hospitals and seven day surgeries across Australia. It is the leading group across the Central Coast, Newcastle and several other regional areas with a network of 1,300 beds and 90 operating theatres treating 200,000 patients per year. Healthe Care’s operations span a wide range of acute medical and surgical procedures and sub-acute mental health and rehabilitation services.

Healthe Care
ACG
Private Education
Transaction type:
Commitment:
Leveraged Buyout
Acquisition date:
Investment date:
September 2015
Fund:
Facility type:
Buyout Fund V
SAF
Capital Solutions
ESG initiative:
The ACG Founders' Scholarship, which was inaugurated in 2018, enables students to explore programmes of study or attend overseas universities that may not have been financially possible without such support.
Company overview >

ACG

At acquistion, ACG was comprised of Schools and Tertiary Divisions. ACG is New Zealand’s largest private education provider. Since the establishment of its first school 20 years ago, ACG has grown organically and by acquisition to provide a diversified education offering by age, level of education and geography. At the time of PEP’s investment, ACG educated ~14,000 students each year, and employed ~1,500 staff across 50 campuses in 10 cities across New Zealand and South East Asia.

ACG Schools Division comprised:

  • Domestic Private Schools: Five private schools and several early childhood facilities
  • Offshore Private Schools: International schools in Vietnam and Indonesia catering to expatriate students as well as a growing demand from select local students

ACG Tertiary Division comprised:

  • Tertiary/Private Training Establishment: Under four key brands, ACG is the largest vocational training provider in New Zealand, educating a mix of local and foreign students coming to New Zealand to attain a globally recognised qualification
  • NZ International: University foundation programmes for international students, supported by exclusive partnership agreements with two of Auckland’s top universities

On 31 May 2019, following approval from the New Zealand Overseas Investment Office, the sale of ACG Schools to Inspired Education was completed. The remaining Tertiary Division has been re-named UP Education.

ACG
Manuka Health
Consumer Foods
Transaction type:
Commitment:
Private Vendor
Acquisition date:
Investment date:
April 2019
Fund:
Facility type:
Buyout Fund V
SAF
Capital Solutions
ESG initiative:
Manuka Health united key brands and led industry engagement with both NZ and key export market regulators, with the outcome of significantly reducing counterfeit product, bolstering customer confidence in product quality / authenticity across all key export markets.
Company overview >

Manuka Health

Manuka Health manufactures and distributes:

  • Manuka honey at various grades which has strong anti-bacterial properties
  • Supplements such as manuka honey-based syrup and lozenges, propolis, royal jelly and other bee products
  • Personal care products including wound care, skin care and oral care products
  • Gourmet foods including a variety of non-manuka floral honey blends and baked goods

Manuka Health is one of two corporate players of scale in a fragmented but consolidating industry. The strength of the Manuka Health brand along with a new state-of-the-art production facility provides a strong competitive advantage and an excellent platform for growth.

On 27 September 2018, PEP entered into an agreement to sell 100% of its shares in Manuka Health. The transaction completed on 8 January 2019.

Manuka Health
Allied Pinnacle
Baked Goods & Bakery Ingredients
Transaction type:
Commitment:
Corporate Multinational Carve-out
Acquisition date:
Investment date:
February 2020
Fund:
Facility type:
Buyout Fund V
SAF
Capital Solutions
ESG initiative:
Improvements in safety across Allied Pinnacle’s manufacturing network via the introduction of traffic controls, machine guarding, metal detectors and reductions in manual handling.
Company overview >

Allied Pinnacle

Allied Pinnacle is the leading provider of value added bakery products and bakery ingredients in Australia. The business was formed following the strategic integration of complementary businesses Pinnacle Bakery & Integrated Ingredients and Allied Mills.

Allied Pinnacle currently services over 3,000 customers across all key channels in Australia. The business has operated in the Australian market for over 100 years. Allied Pinnacle is the largest supplier of flour for human consumption in Australia. It is also the number one provider, by scale and capability of prepared bakery and premix products to major supermarkets.

Allied Pinnacle’s broad product range includes:

  • Prepared bakery products including par-baked bread loaves and rolls, hot cross buns, cakes pastries and donuts
  • Value added premixes such as bread, cake, muffin and donut mixes
  • Flour and other bakery ingredients

On 27 February 2019, Nisshin Seifun Group Inc (TSE: 2002, “Nisshin”) entered into an agreement to acquire Allied Pinnacle from Funds advised by PEP. The transaction completed on 1 April 2019.

Allied Pinnacle
Zenith Energy
Remote Energy Infrastructure
Transaction type:
Commitment:
Public to Private
Acquisition date:
Investment date:
August 2020
Fund:
Facility type:
Buyout Fund SAF
SAF I
Capital Solutions
ESG initiative:
20% carbon emissions reduction target by 2025 linked to management incentives, targeting net zero by 2035
Company overview >

Zenith Energy

Zenith Energy is an industry leader in remote hybrid power solutions. The business designs, builds and operates a complete range of thermal and renewable fuel sources to offer its customers innovative, cost effective and reliable energy solutions. Zenith Energy services clients across Australia with a customer base that includes some of the largest miners in the world, who value its innovative solutions and unparalleled safety track record.

Zenith Energy
WINconnect
Utilities
Transaction type:
Commitment:
Leveraged Buyout
Acquisition date:
Investment date:
March 2020
Fund:
Facility type:
Buyout Fund SAF I
SAF I
Capital Solutions
ESG initiative:
WINconnect is the only independent embedded network operator with GreenPower accreditation with the ability to offer up to 100% renewable energy to customers
Company overview >

WINconnect

WINconnect is a leading owner and operator of ‘last mile’ network infrastructure within multi-tenanted residential and commercial buildings across Australia. Across its portfolio of over 300 sites and 60,000 connection points, the business operates and maintains a range of infrastructure assets under long term contracts, including:

  • Hot water and electricity meters
  • Centralised hot water plant and equipment
  • Centralised Electric Vehicle charging stations
  • Embedded solar generation infrastructure

The business also provides metering services, billing and on-selling of energy utility services to end-consumers.

WINconnect
Intellihub
Energy Infrastructure
Transaction type:
Commitment:
Corporate Carve-Out
Acquisition date:
Investment date:
June 2018
Fund:
Facility type:
Buyout Fund SAF
SAF I
Capital Solutions
ESG initiative:
A$1.45 billion green loan certified by the Climate Bonds Standard certification scheme’s electrical grids and storage criteria
Company overview >

Intellihub

Intellihub is the leading provider of smart metering in Australia and New Zealand. It performs an essential, regulatory role in the electricity network, with an increasing importance as both the supply and consumption of electricity becomes more dynamic. Its operations include:

  • Installation of electricity smart meters across a range of market segments, including residential, commercial and Industrial
  • Remote collection, recording and distribution of energy usage data at regular time intervals and distribution of this data to market regulators and electricity retailers
  • Remote connection and disconnection of energy supply
  • Customer and network data analytics and support

Intellihub operates under long term contracts, servicing the major energy retailers and consumers across Australia and New Zealand. The business was purchased in partnership with Landis+Gyr, a Swiss-based smart metering company.

Intellihub
The Citadel Group
Information Technology and Healthcare
Transaction type:
Commitment:
Public to Private
Acquisition date:
Investment date:
December 2020
Fund:
Facility type:
Buyout Fund VI
SAF
Capital Solutions
ESG initiative:
Citadel's core health software products target improved health outcomes, facilitate preventative care across customer healthcare networks
Company overview >

The Citadel Group

Citadel provides core software for medical specialists and secure records management software, technology and professional services to a diversified set of Government clients in Australia and the UK. Citadel holds long customer contracts, often of three to 10 years in duration. The business employs approximately 375 people.

Citadel operates three core business lines:

  • Health software: Market-leading software used in radiology, pathology, oncology and maternity
  • Enterprise software: Software used for secure records management, electronic tendering and grants
  • Technology & professional services: Professional services, contracting, and AV solutions for secure information networks
The Citadel Group
Modern Star
Education Resources
Transaction type:
Commitment:
Secondary
Acquisition date:
Investment date:
December 2020
Fund:
Facility type:
Buyout Fund VI
SAF
Capital Solutions
ESG initiative:
Ethical procurement of products and packaging via mandatory supplier commitments and factory audits for high-risk countries
Company overview >

Modern Star

Modern Star is the market leading supplier of curriculum aligned educational resources to schools and early learning centres throughout Australia and New Zealand with a 60+ year history in the Australian market. The business supplies a comprehensive range of over 30,000 education products to a highly diversified customer base with the majority of its revenue generated from proprietary or exclusive products.

Modern Star
AutoPacific Group
Industrial Products
Transaction type:
Commitment:
Corporate Carve-out
Acquisition date:
Investment date:
September 2019
Fund:
Facility type:
Buyout Fund V
SAF
Capital Solutions
ESG initiative:
Focus on recycling to harvest and utilise grey water in the finishing line, as well as steel, wood pallet and paper recycling across all three facilities in Australia, Thailand and New Zealand
Company overview >

AutoPacific Group

AutoPacific Group is the leading manufacturer and distributor of towbars, towing solutions, sports bars and related vehicle accessories in Australia and New Zealand, with manufacturing facilities in Australia, New Zealand and Thailand. The business has a strong market position and a diverse customer base of car manufacturers, dealerships, and aftermarket retailers. The core products are highly engineered with the flagship aftermarket brand, Hayman Reese, recognised as the clear market leader in Australia.

AutoPacific Group
Evolution Healthcare
Health
Transaction type:
Commitment:
Private Vendor
Acquisition date:
Investment date:
March 2019
Fund:
Facility type:
Buyout Fund V
SAF
Capital Solutions
ESG initiative:
Use of best-in-class equipment to reduce environmental impact to implement improved waste recycling and medical waste reprocessing
Company overview >

Evolution Healthcare

Evolution Healthcare is a leading provider of private hospitals and rehabilitation services in New Zealand and Australia. Evolution’s operations include:

  • Private Hospitals: Evolution owns or manages a network of private hospital facilities that provide a range of surgical, medical, oncology and diagnostic imaging services
  • Rehabilitation Services: Evolution owns a network of rehabilitation clinics in New Zealand under the Proactive banner. Proactive is one of only six businesses contracted to provide return-to-work services by the NZ government
  • Mental Health: Evolution owns and manages a day clinic offering consultations for sub-acute mental healthcare.
Evolution Healthcare
LifeHealthcare
Medical Device Distributor
Transaction type:
Commitment:
Public to Private
Acquisition date:
Investment date:
May 2018
Fund:
Facility type:
Buyout Fund V
SAF
Capital Solutions
ESG initiative:
Employer-sponsored volunteer days for all employees
Company overview >

LifeHealthcare

LifeHealthcare is a leading independent medical device distributor, operating in Australia and New Zealand. The business supplies a diversified product portfolio across multiple therapeutic channels including spine, orthopaedics and neurosurgery, amongst others. LifeHealthcare also provides associated value-added services to suppliers and surgeons, including regulatory management, clinician training and surgical consultation on device selection and application.

LifeHealthcare supplies three key types of products:

  • Implantable devices: Replaces, supports or enhances biological structure of the body (e.g. spinal prostheses)
  • Non-implantable devices: Consumables used during medical procedures (e.g. surgical instruments)
  • Capital equipment: Required for surgical or diagnostic purposes (e.g. Ultrasound, Operating Theatre capital equipment)

LifeHealthcare services a diversified customer base of public and private hospitals, surgeons and medical specialists. The business is supported by a number of global suppliers, with long-standing relationships.

LifeHealthcare
iNova Pharmaceuticals
Consumer Healthcare
Transaction type:
Commitment:
Corporate Multinational Carve-Out
Acquisition date:
Investment date:
September 2017
Fund:
Facility type:
Buyout Fund V
SAF
Capital Solutions
ESG initiative:
Australia's first 1 for 1 Vitamin brand, where one Kynd product sold sees one Immunity powder donated to an Australian in need
Company overview >

iNova Pharmaceuticals

iNova is a leading consumer healthcare company that sells a portfolio of prescription and over-the-counter products in Australia and New Zealand, South Africa and Asia.

The company sells key brands across:

  • Prescription products: focus in the weight management, cardiology, dermatology, and pain relief categories
  • Over-the-counter products: market leading brands in the throat, cough and cold, and skin care categories.

iNova’s independent sales force covers the GP and pharmacy channels in its key markets.  All product manufacturing is outsourced, as is the majority of pharmaceutical research and development.

The businesses acquired were purchased in equal partnership with The Carlyle Group.

 

iNova Pharmaceuticals
Patties Foods
Savoury Baked Goods Manufacturer
Transaction type:
Commitment:
Public to Private
Acquisition date:
Investment date:
September 2016
Fund:
Facility type:
Buyout Fund V
SAF
Capital Solutions
ESG initiative:
Reducing Patties' environmental impact by targeting the use of 100% recyclable, reusable or compostable packaging by 2022
Company overview >

Patties Foods

Patties is Australia’s leading provider of frozen savoury and frozen dessert pies, with key products including meat pies, sausage rolls and fruit pies. The company produces three of the five leading pie brands in Australia, and is a major supplier into several channels including grocery, route and foodservice. The company generates annual net sales of more than A$200M.

Iconic brands in the Patties Foods portfolio include FOUR’N TWENTY, Patties, Herbert Adams, Nanna’s and Chef’s Pride. FOUR’N TWENTY has existed in the Australian market for over 50 years. It is the number one branded range of meat pies in Australia across all retail markets including supermarkets, route trade and convenience stores. It is also the number one selling pie at most major sporting venues in Australia.

Patties Foods
UP Education
Private education
Transaction type:
Commitment:
Leveraged Buyout
Acquisition date:
Investment date:
April 2016
Fund:
Facility type:
Buyout Fund V
SAF
Capital Solutions
ESG initiative:
Improving the accessibility of learning for a diverse range of disadvantaged learners ('second chance', Maori and Pasifika, and regional/rural learners)
Company overview >

UP Education

UP Education is New Zealand’s largest private education provider. It is the rebranded Tertiary Division of ACG following the separation and disposal of the ACG K-12 Schools. UP Education educates ~9,000 students each year, and employs ~1,200 staff across 40 campuses across New Zealand and Australia.

UP Education comprises:

  •  Tertiary/Private Training Establishment: UP Education is the largest vocational training provider in New Zealand, educating a mix of local and foreign students coming to New Zealand to attain a globally recognised qualification
  •  NZ International: University foundation programmes for international students, supported by exclusive partnership agreements with universities in both Australia and New Zealand.
UP Education
American Stock Transfer and Trust Company
Stock Transfer Agent and Related Services
Transaction type:
Commitment:
Private Vendor
Acquisition date:
Investment date:
May 2008
Fund:
Facility type:
Buyout Fund IV
SAF
Capital Solutions
ESG initiative:
AST is an inclusive and diverse workplace, with 48% of its employees coming from underrepresented minorities in the US
Company overview >

American Stock Transfer and Trust Company

American Stock Transfer & Trust Company, LLC (AST) is a full-service, tech-enabled professional services firm that helps companies and shareholders across North America maintain momentum through the use of secure corporate data, analytics, advisory services, and a strategic approach to every interaction. AST was originally founded as a transfer agent in 1971. Through organic growth and strategic acquisitions, AST pioneered a new model of integrated services in the industry.

AST affiliates include AST Trust Company (Canada), D.F. King & Co., Inc., and Donlin, Recano & Company, Inc. Together, AST leads the industry with a comprehensive portfolio that includes transfer agent and registrar services, corporate governance and advisory services, issuer and mutual fund proxy services, equity plan solutions, ownership intelligence, restructuring services, and class action and mission critical services.

American Stock Transfer and Trust Company