24 March 2022
VANTAGE FUNDS MARCH 2022 NEWSLETTER
Vantage Funds March 2022 Newsletter Special Points of Interest;
- Recently completed and announced exits deliver Vantage Funds an average gross 4.3 X return on invested capital
- VPEG4 completes final close with $180 million of commitments from over 500 investors
- VPEG5 completes first close with $37 million of commitments from over 200 investors and remains open for investment
- Vantage Funds commit a further $150 million to underlying private equity funds and co-investments
Please click on the link below to view Vantage’s latest newsletter.
18 December 2021
VPEG5 COMPLETES FIRST CLOSE & REMAINS OPEN FOR INVESTMENT
Vantage Private Equity Growth 5 (VPEG5) recently completed its first close with more than 212 investors committing approximately $37.0 million, enabling VPEG5 to commence its investment program. VPEG5 also remains open for investment for new investors and will conduct monthly closes until its target fund size of $250 million is reached.
VPEG5 is an Australian Private Equity Fund of Funds established to provide investors with access to the superior returns consistently delivered by the top performing Later Expansion and Buyout Private Equity Funds in Australia.
VPEG5 will continue with the same successful investment strategy implemented by Vantage’s previous funds, which at 31 December 2021 had investments across 27 Australian Private Equity Funds, who in turn had invested in 149 companies across a broad range of industry sectors and had exited (sold) 70 of these investments generating a gross 3.1x multiple of invested capital for an average gross Internal Rate of Return for 41.8% per annum. VPEG5 is targeting to deliver a net return after fees of 20% p.a. to investors over a four to six-year investment timeframe.
If you would like to learn more about VPEG5 please contact your wealth manager or financial adviser. Alternatively if you would like to receive a call or request a meeting with a Vantage executive to discuss VPEG5 please call +61 2 9067 3133 or email email@example.com
15 September 2021
VANTAGE FUNDS DELIVER STRONG RETURNS ACROSS FY21
Vantage managed Funds delivered a strong return to investors across the financial year ended 30 June 2021 (FY21) as a result of the continued growth in value of companies across the portfolios and a number of company exits from each Fund. The growth in each fund’s value was attributable to the improvement in financial performance of a majority of underlying companies across each portfolio, as well as the partial or full sale / listing of 9 companies from the portfolios, across the year.
This growth in portfolio value, combined with the realisation (sale) of six companies from the portfolio, contributed to deliver Vantage Private Equity Growth 2 (VPEG2) investors a strong return across FY21, with VPEG2A and VPEG2B each increasing in value by 55.3% and 57.0% respectively across the year. As a result, VPEG2A and VPEG2B have now delivered a net of fees return to investors of 20.9% p.a. and 13.9% p.a. respectively, since final close in May 2015.
Vantage Private Equity Growth 3 (VPEG3) also increased in value across FY21 with the sale of three companies from its portfolio contributing to its strong investor returns. As a result, VPEG3 delivered a total investor return of 56.9% across the 2021 financial year and has now delivered a net of fees return of 23.0% p.a. since its final close in January 2019.
Read more in the latest Vantage Fund’s Newsletter September 2021
21 June 2021
Recently Completed & Announced Exits Deliver Vantage Funds an average gross 4.9x Return on Invested Capital representing an Internal Rate of Return of 73.9% p.a.
As the Australian economy continued to rebound during the first half of 2021, consumer confidence surged to an eleven-year high and business confidence also achieved an all-time record high in April 2021. This renewed confidence resulted in an increase in M&A and IPO activity leading to a considerable increase in exit activity across Vantage Private Equity Growth Fund portfolios during the June 2021 quarter.
With the exit environment continuing to be strong, a number of underlying companies from Vantage Private Equity Growth 2 (VPEG2) and Vantage Private Equity Growth 3 (VPEG3) portfolios have recently been successfully sold, either by trade sale or a secondary sale to a larger institutional investor, or partially realised via an IPO and ASX listing. Across the June 2021 quarter, five underlying company exits were either completed or announced from Vantage Fund portfolios. These exits will deliver Vantage’s Funds an average gross 4.9 X return on invested capital, representing an average gross Internal Rate of Return of 73.9% per annum.
Read more in the latest Vantage Fund’s Newsletter June 2021
9 March 2021
Vantage Private Equity Growth Funds Combined Net Asset Value increases 33.8% across 2020
The 2020 calendar year was one of continued growth for Vantage managed Funds. Despite the impacts and restrictions caused by the COVID-19 pandemic, the onset of Australia’s first recession in many years and extremely volatile public markets across the year, the combined Net Asset Value of Vantage’s Private Equity Growth Funds increased by 33.8% across the year. This growth was attributable to the strong operating performance of a majority of underlying companies across the portfolio, contributed to by an increase in business and consumer spending across the second half of the year.
VPEG2 continued to produce top performing returns for investors to 31 December 2020, with VPEG2A and VPEG2B having now delivered a net of fees return of 14.7% p.a. and 9.9% p.a. respectively, since the Fund’s final close in May 2015.
VPEG3 also significantly increased in value across 2020 such that as at 31 December 2020, the Fund had delivered a net of fees return of 23.0% p.a. since its final close in January 2019. This return ranks VPEG3 as the 4th best performing Private Equity fund of funds globally of the 62 fund of funds that commenced investing in 2017.
Read more in the latest Vantage Fund’s Newsletter March 2021.
2 July 2020
Australian Private Equity Well Positioned to Outperform
With Australia entering its first recession in 29 years as a result of the slowing economy caused by the COVID-19 restrictions, it is timely to compare the historical performance of the Australian & New Zealand Private Equity market across all time frames, to the performance of those Private Equity funds that were established during, or otherwise invested across, previous recessionary periods.
Summary statistics provided by AVCAL & Cambridge Associates reveal that the median and upper quartile net returns from Private Equity funds formed in Australia and New Zealand, between 1997 and 2018, focused on the later expansion and buyout financing stage, in which Vantage funds invest, was 11.1% p.a. and 20.3% p.a. respectively. These robust returns demonstrate Private Equity’s ability to consistently outperform public markets as the return on the S&P ASX 200 Accumulation Index over the corresponding period was only 8.4% p.a..
5 May 2020
VANTAGE FUNDS MAY 2020 COVID-19 UPDATE
In late March 2020, the Australian and New Zealand Governments implemented strong containment measures to reduce the spread of COVID-19 among our communities. To date these measures have proved effective in reducing the rate of new infections. As a result, the governments of both countries have recently commenced rolling back restrictions across states and territories to essentially restart each economy.
During this period, Vantage’s team has continued to monitor the impact of COVID-19 on every underlying company investment across each Vantage Private Equity Growth Fund. Management are in constant communication with all underlying Private Equity fund managers and receive detailed updates on strategies being implemented to protect the value of each underlying portfolio company during the current economic downturn.
15 April 2020
VPEG4 Completes a $10 million investment commitment to CPE Capital 9
In March 2020, Vantage Private Equity Growth 4 completed its second investment commitment for the Fund, with a $10 million investment commitment to CPE Capital 9 (CPEC 9).
CPEC 9, formerly CHAMP Private Equity, is managed by CPEC Management Pty Ltd (www.cpecapital.com) of Sydney. CPEC 9 is a (target) $800 million mid-market expansion and buyout fund, focusing on control investments into profitable private companies, operating within the middle market segment in Australia and New Zealand with enterprise values of A$100 million to A$500 million.
18 March 2020
Vantage Funds Update – COVID-19
Vantage Asset Management is closely monitoring the developing COVID-19 situation and has implemented responsible measures to ensure the health and safety of our employees, business partners, service providers, clients and investors. In addition, the protection of the value of all of Vantage’s Funds underlying investments, is one of our highest priorities.
13 March 2019
Vantage Private Equity Growth 4 Now Open for Investment
On 1 July 2015, the Australian Government implemented new Significant Investor Visa (SIV) requirements under a revised ‘Complying Investment Framework’ developed by Austrade. Of the AU$5 million total investment required, a mandatory investment of at least AU$500,000 (or up to AU$3,500,000) is required to be made into, AusIndustry registered, Venture Capital or Growth Private Equity (VCPE) complying funds, including Fund of Funds.
Vantage Private Equity Growth 4 (VPEG4) is a SIV complying, Australian Fund of Funds, focused on investing in the lowest risk segment of VCPE, Growth Private Equity.
VPEG4 is now open for investment to Significant Investor Visa Applicants, Institutional Investors and Sophisticated Investors. To request a copy of the VPEG4 information memorandum please email firstname.lastname@example.org or call Vantage on +612 8211 0477
Read more about VPEG4, a complying investment for the Significant Investor Visa
21 February 2019
VPEG2 Outperforms All Major Asset Classes Across 2018, Including Public Equity, Bonds, Property and Cash
Strong underlying portfolio company performance across the second half of 2018 contributed to VPEG2 outperforming the majority of other major asset classes, across the 2018 calendar year.
For the period 1 January 2018 to 31 December 2018 VPEG2A and VPEG2B delivered gains of 29.6% and 18.4% respectively, net of all fees.
This generated an internal rate of return (IRR) for VPEG2A Unit Holders of 17.1%p.a. net of all fees, since the final close of the fund in May 2015, which represents a global top quartile return within the Private Equity asset class.
Read more about VPEG2 outperforming all major asset classes across 2018
22 March 2017
VPEG2 Commits $7.5m to Odyssey Private Equity Fund 8
Odyssey Private Equity Fund 8 is a $275m growth capital fund, managed by Sydney, Australia based, Odyssey Private Equity (Odyssey)
Odyssey was established in early 2017 by Gareth Banks, Jonathan Kelly and Paul Readdy, former CHAMP Ventures directors, as well as George Penklis, a co-founder and former partner of Quadrant Private Equity.
Odyssey’s partners bring a wealth of experience, drawn from more than 50 private equity investments completed during their careers.
Read more about the Odyssey Private Equity Fund 8
7 March 2017
VPEG3 Receives Unconditional Registration from Australian Government Department
Vantage Private Equity Growth 3, LP (VPEG3) today received UNCONDITIONAL registration status by the Innovation Investment Committee of the Australian Government Department of Industry, Innovation and Science.
This unconditional registration positions VPEG3 as one of only a limited number of COMPLYING Venture Capital or Growth Private Equity (VCPE) funds for the Significant Investor Visa (SIV), approved by this Australian Government Department to operate and commence its investment program.
VPEG3 satisfied all the criteria required to achieve unconditional registration, including having raised in excess of $10m in investment commitments, managed by a highly experienced Australian Financial Services Licensed fund manager with a more than 15 year track record of investment in Private Equity, as well as having a diverse spread of more than 80 investors with no single investor representing more than 5% of total investment commitments.
Approximately 25% of all committed capital raised to date by VPEG3 have come from SIV applicants, attracted to VPEG3’s diversified, growth private equity investment strategy.
VPEG3 is the lowest risk, capital stable, VCPE investment currently available for SIV applicants, as it invests ultimately into a diversified portfolio of profitable companies, ultimately managed by the top tier private equity fund managers in Australia (no startups, no early stage or venture capital investments).
16 January 2017
VPEG3 Completes $20m First Close
Vantage Private Equity Growth 3 (VPEG3) successfully completed its First Close on 16 January 2017 with 75 investors committing approximately $20m of capital to the Fund, allowing VPEG3 to commence its investment program.
VPEG3 is now scheduled to make its first investment commitment during the March 2017 quarter, to a mid-market focused, expansion / buyout fund managed by a highly experienced, top quartile performing, Australian domiciled, private equity fund manager.
With a target raise of $100m, VPEG3 currently remains open for new investors to participate, including Sophisticated Investors and Significant Investor Visa (SIV) Applicants, with month-end closes planned until the target fund size is reached.
VPEG3 will continue with the same successful investment strategy of its predecessor funds, VPEG & VPEG2 and is focused exclusively on investing in the strongest performing, small to mid-market, expansion & buyout segment of private equity in Australia and New Zealand.
To Invest in VPEG3 please click on the following link; Invest Now in VPEG3
15 September 2016
Allegro II Sells Great Southern Rail to Quadrant Private Equity
Vantage Private Equity Growth 2 (VPEG2) investee, Allegro Fund II, today announced that Quadrant Private Equity has entered into an agreement to acquire a majority stake in Allegro II portfolio company, Great Southern Rail (GSR).
GSR is the operator of luxury Australian transcontinental passenger rail services, The Ghan, The Indian Pacific and The Overland.
Allegro initially acquired GSR in May 2015, with a 16-month ownership period that saw it stabilise the business and more than double its earnings.
Read more about Allegro’s Sale of GSR to Quadrant
13 July 2016
VPEG investee, Next Capital II, lists portfolio company, Scottish Pacific Group, on the ASX
Scottish Pacific Group (ASX:SCO) has been admitted to the Official List of the Australian Securities Exchange (ASX) with its ordinary shares trading on the ASX from midday 13 July 2016.
Scottish Pacific Group is the clear market leader in the SME finance sector, with more than 1600 clients in Australia and New Zealand, handling more than $10 billion of invoices each year and providing debtor and trade finance funding exceeding $800 million.
Based on the listing price, Scottish Pacific Group will have a market cap of over $440m.
Read more about Next Capital II’s exit of Scottish Pacific Group
27 June 2016
Vantage Asset Management Listed as a Complying SIV Fund Manager on Victorian Government Significant Investor Services Directory
Following extensive Due Diligence by the Victorian Government Department of Economic Development, Jobs, Transport and Resources, Vantage Asset Management Pty Limited has today been listed in the “Live in Melbourne” Significant Investor Services Directory as a complying Fund Manager for the Significant Investor Visa, Private Equity investment stream.
14 April 2015
Vantage Asset Management featured in Asian Venture Capital Journal / Cover story
Strategies of Scale; Fund-of-funds weigh up the benefits or going large or niche. Vantage Asset Management’s unique and focussed, private equity investment strategy discussed in detail.