Allegro Fund III is a $290m turnaround fund managed by Sydney based Allegro (www.allegrofunds.com.au) an independently owned Australian fund manager investing primarily in mid-market businesses within Australia and New Zealand. Allegro currently manages more than $1.0 billion of enterprise value in investments.
Allegro are specialists in “Transformational Capital” – applying capital and expertise to unlock and create value. Allegro invest equity funds on behalf of their investors, and work in partnership with management to realise growth potential and deliver enduring value to their investors.
In September 2008, Allegro became the first fund manager to be backed unanimously by institutional investors to replace the incumbent manager of an Australian private equity fund, when it was appointed to manage the $300 million ABN AMRO Capital Australia Fund II (renamed Allegro Private Equity Fund I).
In June 2015, Allegro Fund II completed its final close with total commitments of $180 million. Allegro II subsequently invested in six businesses across Australia and New Zealand.
Today Allegro is recognised as a leading fund manager in the mid-market segment. Allegro’s team, which includes fifteen investment professionals, bring deep and varied experience in investing, turnaround management and operational value creation. Allegro have a proven ability to originate, evaluate and execute quality deals, and to drive value from mid-market businesses.
An active manager of portfolio assets, Allegro prefers hands-on involvement in both strategy and overseeing operational improvement. Allegro believe that staying close to portfolio companies is the surest path to extracting the value, and returns, that investors demand.
As the winner of the TMA Turnaround of the Year Awards in 2008, 2010, 2011 2012 and 2016, Allegro are the most recognised and awarded turnaround team in Australia. The performance of Allegro Funds I and II bears the hallmark of this distinctive approach.
Allegro Fund III has completed five investments to date; Ngahuia Group (Number One Shoes & R Hannah & Co.), Endeavour Learning Group (ELG), Questas Group, Perth Radiology Clinic and Greenlit Brands Pty Ltd
Ngahuia Group. During October 2017, Allegro announced the acquisition of New Zealand’s Leading footwear retail group, which includes Number One Shoes “NOS” and R Hannah & Co “Hannahs”. NOS and Hannahs together have a total of 112 stores across New Zealand and greater than 30% share of the growing value and middle segment of the NZ footwear market.
NOS is a value orientated, big-box footwear retailer offering affordable private labelled shoes between the prices of $20 to $60+. This business is New Zealand’s largest specialist discount retailer with 51 stores across New Zealand.
Hannahs, established in 1968, is the oldest footwear retail chain in New Zealand. The company has an enviable store network of 61 stores located in all major malls and high streets in New Zealand.
Combined, these businesses are the market leaders in New Zealand for shoes retailing from $20 to $200 per pair.
Endeavour Learning Group (ELG). On 5 October 2018, Allegro was pleased to announce that it had entered into a binding agreement to acquire Endeavour Learning Group (“ELG”) as the second investment in Allegro Fund III. The transaction includes Endeavour Colleges (“Endeavour”) and FIA Fitnation in Australia and the College of Natural Health and Homeopathy in New Zealand. ELG services more than 6,500 students and has a national footprint with 6 campuses in Australia and 2 campuses in New Zealand.
Endeavour is the core business being acquired and is the leading Australian higher education institution in the natural health sector. The college was established in 1975 and currently holds a 75% share of natural therapies within the market.
Questas Group. On 18 June 2019, Allegro announced the acquisition of a majority stake in Australian industrial firm Questas in a partnering deal with the company’s founder.
Established in 1996, Questas comprises a group of companies operating through a national branch network to provide hydraulic, irrigation, pump and engine solutions to the mining, construction, agricultural and general industrial sectors.
For more than 20 years Questas has successfully acquired, operated and transformed niche industrial businesses to become one of Australia’s largest independent hydraulics and water companies with a suite of brands.
Perth Radiology Clinic. On 25 July 2019, Allegro Fund III announced that they had acquired a significant holding of Western Australia’s largest diagnostic imaging provider, Perth Radiological Clinic (PRC), in partnership with PRC’s doctors.
Established in 1948, PRC is Australia’s largest private partner radiology business with more than 80 doctors (partners and employed associates). PRC services hospitals (public and private), specialist centres and suburban clinics across Western Australia. The company offers a complete and integrated range of radiology services including MRI, CT, US, plain films, interventional procedures and nuclear imaging.
Allegro’s longstanding relationship with PRC through their prior ownership of I-MED Network (an Allegro Fund I investment from 2011 to 2014), of which PRC was a subsidiary, was a critical factor in securing this unique investment opportunity for Allegro Fund III. This previous involvement provides Allegro with a further understanding of the operational strengths of this business and the increasing growth potential of this sector.
Value Retail Group. During November 2019, Allegro Fund III was pleased to notify investors that they had come to an agreement to acquire the Value Retail Group, which includes iconic retail brands: Best & Less and Postie (NZ).
Value Retail Group comprises a portfolio of well-known and trusted brands, offering its customers a broad range clothing, footwear and other personal apparel. Value Retail Group employs more than 10,000 people with 640 stores across Australia and New Zealand.