CASE STUDIES >
 
   

We are proud of our track record of creating wealth for our investors and management stakeholders. Following is a sample of successfully exited investments, which were led by members of the Equity Partners team.


 
    Growth Buyouts  

 

NATIONAL CREDIT MANAGEMENT LIMITED

NCML is a leading provider of integrated receivables management services in Australia. The company's services offering consists of contingent debt collections, outsourced credit management services, and debt purchase. The company has offices in key strategic state capitals servicing over 1,000 customers across both the public and private sectors.

During our partnership with the management buyout team, the company grew very strongly, with new business divisions created and significant investments made in people, systems and infrastructure. Over the period of our investment, EBITDA increased five-fold and staff grew from 45 to over 180.

The investment was exited in March 2011 via a trade sale to Thorn Group, resulting in 3.9 times multiple on equity investment and an IRR of 30%.

ncml
 

LEGION

Legion was Australia's market leader in interactive communications services. It specialised in promotional marketing and media interactivity, content acquisition, aggregation, publishing and delivery.

During our partnership with the management buy-out team, the company invested in core infrastructure to build a sustainable platform for growth, successfully executed a strategic "bold-on" acquisition and recruited key people resources to augment the capabilities of the management team. Over the period of our investment, revenue quadrupled and EBITDA increased six-fold.

The investment was exited in March  2005 in a trade sale to The Photon Group, resulting in 7.4 times multiple on equity investment and an IRR of 92%.

 

ROYAL WOLF

Royal Wolf is Australia’s leading supplier of domestic storage and freight containers.

During our partnership with the management buy-out team, the company tripled its earnings through expansion of the container lease fleet, product innovation and successful execution of strategic "bolt-on" acquisitions to strengthen Royal Wolf's competitive positioning.

The investment was exited in March 2007 in a trade sale to General Finance Corporation (a company listed on the American Stock Exchange), resulting in 4.4 times multiple on equity investment and an IRR of 62%.

 

PENRICE

Penrice is Australia's sole manufacturer of soda ash and sodium bicarbonate with blue chip customers including ACI and Amcor. We backed an experienced management team and successfully executed a break-up strategy to optimise shareholder value.

The investment was exited through a trade sale of the salt fields to Ridley Corporation in April 2005 and an IPO of the remaining business in June 2005.  This resulted in a 2.5 times multiple on equity investment and an IRR of 144%.

   

Expansion Capital

 
 

SKINS

Skins is a leading designer and marketer of premium compression sports apparel that provides improved performance and recovery for sports participants of all levels. The "active" sports apparel market is the fastest growing segment of the sporting goods market globally.

Equity Partners provided expansion capital to Skins in December 2007. During our involvement we worked closely with the management team to develop and grow Skins's strategic value. Over the 4 year period of our investment revenue grew from $16 million per annum to $50 million per annum and the distribution footprint was significantly expanded from 8 countries to 37 countries.

In April 2012 we facilitated a strategic alliance between Skins and Itochu, one of Japan's leading trading companies, which enabled Skins to buy back the share capital held by Equity Partners for over $30 million, delivering a 2.4 times multiple on equity investment and an IRR of 24%.

 

 

IMMERSIVE TECHNOLOGIES

Immersive Technologies is the dominant provider of operator training simulators to the global mining industry.  We provided capital to help fund expansion of the company' product set as well as growth in international sales.

During the period of our investment, we worked closely with the founders to refine the company's business model to focus more on recurring revenue streams, corporatise the business, assist with sourcing key board members and instill corporate governance best practice.

The investment was exited in September 2006 when the founders acquired Equity Partners's shareholding in the company, resulting in 3.0 times multiple on equity investment and an IRR of 42%.

 

SFG Australia

SFG Australia (formerly Snowball Group) is a leading non-aligned financial advice and end-to-end wealth management firm, now listed on the Australian Securities Exchange.

We provided expansion capital to the business before it was listed, to help fund the organic growth of new wealth management initiatives together with growth by acquisition.

We worked closely with the Board and management, both before and after listing on the ASX, to grow the business's critical mass in terms of funds and advice and revenue streams. Over the ten year period of our investment, earnings before interest and tax grew from approximately $1 million per annum to a run-rate, at the time of the merger with Shadforth Financial Group shortly after we exited, of approximately $40 million per annum.

The investment was exited in June 2011, resulting in 1.9 times multiple on equity investment and an IRR of 11%.

 

FLEXIRENT

Flexirent is Australia’s largest micro-ticket leasing company for computing equipment, electronics and appliances. We provided expansion capital to support growth of the company and to facilitate a partial transition of ownership.

During the period of our investment, we worked closely with the founders and recruited a high calibre management team, diversified product funding sources, entered into a number of long-term agreements with major strategic retail partners, diversified into new asset classes and launched new products. Over the period of our investment, profit before tax of the company increased from $12 million to $40 million.

The investment was exited in December 2006 via an IPO at a market capitalisation of $435 million. This resulted in 7.2 times multiple on equity investment and an IRR of 125%.