Adamantem Capital Fund 1
During March 2017, Vantage Private Equity Growth 3 committed $5m to Adamantem Capital Fund 1. In December 2017, VPEG3 increased its total commitment to Adamantem Capital Fund 1 to $10m
Adamantem Capital Fund 1 is managed by Adamantem Capital Pty Limited (www.adamantem.com.au) of Sydney. The Fund has raised total commitments from investors of $608m, for investment into mid-market expansion and buyout opportunities in Australia and New Zealand. Adamantem completed a first close of Adamantem Capital Fund 1 in late December 2016.
Adamantem Capital was founded in early 2016 by former Managing Directors of Pacific Equity Partners (PEP), Anthony Kerwick and Rob Koczkar.
Anthony and Rob were instrumental in delivering much of the early track record for PEP having successfully managed 12 investments during their PEP tenure from 2004 through to 2014.
The Adamantem team believe that the sweet spot for private equity returns in Australia is best served with their target fund size of $600 million, which will ultimately invest into companies of Enterprise Value between $100 million to $500 million at investment. It is this size where the least competition exists in the Australian Private Equity market.
Adamantem Capital Fund 1 has completed six investments to date; Heritage Lifecare, Hygain Holdings, Servian Group, Zenitas Healthcare, Hellers and Legend Corporation Pty Ltd.
Heritage Lifecare. During April 2017, Adamantem Capital Fund 1 entered into a binding agreement to acquire a majority shareholding of Wellington-based Heritage Lifecare Limited, a New-Zealand age-care and retirement village operator. Heritage Lifecare is known for its premium portfolio of properties and its strong operational focus on resident care.
Heritage Lifecare has 19 facilities with approximately 969 beds and over 300 living units under management across the North and South islands of New Zealand.
The aged care sector in New Zealand is a highly fragmented market and with an ageing population, the industry is seen as offering attractive growth opportunities. These opportunities are attributed primarily to the mismatch between the forecast supply / demand for quality facilities and the New Zealand government’s funding initiatives in the industry.
During June 2017, the investment received consent from the New Zealand Government, Overseas Investment Office to the completion of the transaction, allowing Adamantem to assume control of Heritage Lifecare and commence the implementation of plans for the growth of the business.
Hygain Holdings Pty Ltd. During November 2017, Adamantem Capital Fund 1 announced the acquisition of Hygain Holdings Pty Ltd a premium Australian horse feed producer established in 1983.
Hygain specialises in high performance, Equestrian, Stud and Supplement products backed by an uncompromising commitment to equine excellence. Products are created using only the finest certified ingredients, apply the strictest quality controls and employing constantly reviewed nutritional research resulting in ground breaking innovations so as to provide customers with the highest possible standards in equine nutrition.
Hygain manufactures specialised horse feed and supplements in its modern state of the art manufacturing facility utilising revolutionary cooking processes to enhance the nutritional value of products, improving palatability, increasing feed efficiency and conversion whilst reducing incidences of dietary related equine disorders. Products also incorporate the latest in unique ingredients to support a healthy immune system and promoting gastrointestinal heath and performance.
On 22 August 2018 Adamantem Capital announced that portfolio company Hygain Holdings had entered into an agreement to acquire the Mitavite business from the Ingham’s Group. The deal will see two of Australia’s premium horse feed brands come together to establish a solid platform in the domestic market and expand its global export business.
The acquisition of the Mitavite assets will allow Hygain to accelerate a number of strategic initiatives including the capacity to gain better access to horse owners across Australia and to a broader range of market segments. The acquisition also offers the opportunity for Hygain to operate a more efficient and larger business that has the capacity to grow both domestically and into new export markets.
Servian Group. During June 2018, Adamantem Capital Fund 1 acquired a majority shareholding in specialised data and analytics consulting firm, Servian Group (“Servian”).
Founded in 2007 by current CEO Tony Nicol, Servian is a specialised, Australian-based data and analytics consultancy. Servian provides advisory, consulting, and managed services to predominantly Tier 1 clients in the financial services, telecommunications and retail sectors. Servian’s core service offering includes:
- implementation and customisation of complex data management and analytical tools, often in cloud environments;
- Development of advanced, bespoke analytics solutions for improved decision making, business process automation, and customer experience; and
- Development of user-friendly digital interfaces for employees and customers, usually delivered alongside a newly implemented analytical tool or application.
With more than 250 employees across Australia and India, and deep management capability, Servian is well positioned for both organic and inorganic growth.
Zenitas Healthcare. During December 2018, Adamantem Capital Fund 1, in consortium with Liverpool Partners, acquired 100% of the shares of ASX listed Zenitas Healthcare Limited, by way of a scheme of arrangement. Following scheme approval by 99.2% of Zenitas shareholders during November 2018, the shares of Zenitas ceased to trade on the ASX from 13 December 2018.
Zenitas Healthcare is a community-based healthcare provider specialising in the provision of in-home and in-clinic care solutions to reduce the reliance on high cost acute and post-acute institutional care.
Healthcare services are shifting away from hospitals and other institutional care providers to community-based providers. With this sharp focus on quality care and costs, Zenitas is well positioned to take advantage of this transition through economies of scale and capacity with its 2,000+ workforce.
Hellers.On 4 February 2019, Adamantem Capital completed an investment into Hellers, New Zealand’s leading producer of processed meats.
Established in 1985 by Todd Heller, Hellers has grown from a single butchery to become New Zealand’s largest producer of processed meats including sausages, bacon, ham, salami and other small goods. Hellers also produces other value added products including frankfurters, salami, burger patties, meatballs, poultry and cold cuts. In July 2018, Hellers acquired Moira Mac’s Poultry and Fine Foods Pty Ltd, an Australian manufacturer of chilled ready to eat poultry products based in Bendigo Victoria.
Adamantem sees top line growth opportunities in Australia and New Zealand by investing in new product developments and distribution channels to further grow market share. The strategic outlook for the company is to make the well-known brand more widely available through non-grocery channels particularly in food service and quick service restaurants.
Legend Corporation Pty Ltd. On 8th August 2019, Adamantem announced that they had acquired all issued shares in Legend Corporation Ltd, a leading engineering solutions provider for the Electrical, Power & Infrastructure and Gas & Plumbing industries
Legend was an ASX-listed distributor of products, tools, components and accessories into the electrical wholesale and industrial / commercial gas markets. Legend stocks an extensive range of product lines and is a preferred supplier across all major electrical wholesalers in Australia. Legend’s products are employed across a diversified range of end markets, including electrical, power, rail, mining and telecommunications. In business since 1962, Legend now employs over 300 people across Australia in multiple warehouses, manufacturing facilities, testing laboratories and offices.
Legend is a preferred supplier to major electrical wholesalers in Australia and New Zealand and a brand of choice for electrical contractors, power utility and datacoms installers. Legend is renowned for best in class customer service and exceptional on-time delivery of more than 30,000 SKUs.