Sydney, Australia-based private equity firm Pacific Equity Partners (PEP) has raised a total of AU$1.2 billion ($902 million; €748 million) for its third fund, PEP III.
The fund comprises a core fund focused on medium-sized transactions and a side vehicle aimed at larger deals. Tim Sims, managing director of PEP, told The Courier Mail that PEP III is “set up in two layers – a core and a supplemental fund – and what that enables us to do is have a very broad spectrum”.
According to sources close to the deal, AU$800 million has been committed to the core layer, with the remaining AU$400 million set aside for larger deals.
PEP secured commitments from several US investors including the endowments of Harvard, Stanford and Yale universities, a group of funds of funds, high net worth individuals and a number of pension funds, Rickard Gardell, a founding partner and managing director of PEP, said in an interview with PEO. The fundraising was three times oversubscribed, he added.
Gardell also said that PEP III will have a broad industry focus, targeting enterprises valued at between AU$100 million and AU$500 million in Australia and New Zealand.
Last week, PEP paid AU$253 million to purchase the surveillance and security division of Vision Systems, a Victoria, Australia-based technology company, and is currently finalising the acquisition of Tegel Foods, a poultry business in New Zealand.