Latest News

VPEG3 Investee Allegro Fund III Completes the Sale of Ngahuia Group to Tahua Partners

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On 25 February 2021, VPEG3 investee Allegro Fund III completed the 100% sale of Ngahuia Group Ltd to Tahua Partners.

In October 2017, Allegro partnered with Roger and John via an MBO to acquire Ngahuia from ASX listed Bapcor (ASX:BAP), who sold the business as a non-core asset. Allegro applied its unique approach and large operating partner team with skills across branding, operations and strategy to partner with management to accelerate the transformation of Ngahuia.

Ngahuia is New Zealand’s leading footwear retailer operating 100 stores across two iconic retail brands—Number One Shoes and Hannahs. Hannahs is one of New Zealand’s oldest brands and has operated for over 150 years while Number One Shoes has operated for over 40 years. Both brands are focused on the value to mid market segment.

The business pursued an aggressive customer and digital led strategy while shrinking its physical footprint and lowering its operating cost base. Online sales have grown significantly to 10% of sales and continues to grow rapidly. The business also invested in its data capability to drive CRM and digital marketing across its 1m+ customer database.

Once completed the proceeds of this sale will deliver another strong return and distribution to VPEG3 investors during the June 2021 Quarter.

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VPEG3 Quarterly Report December 2020

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18 February 2021

VPEG3 Quarterly Report for the 3 months ending 31 December 2020

Special Points of Interest;

  • Advent Partners 2 completes the successful exit of SILK Laser Clinics Australia via an IPO, representing VPEG3’s first exit from its underlying portfolio
  • Strong earnings growth by a majority of VPEG3’s underlying companies delivers a 31.7% increase in portfolio value across the quarter
  • Next Capital Fund IV invests in Enviropacific Services Pty, a market leading environment remediation specialist providing tailored solutions for the prevention and treatment of solid and liquid contamination in Australia
  • Adamantem Capital Fund I announces the sale of Servian to US technology firm Cognizant Technology Solutions Corporation

View or download a copy of the VPEG3 Quarterly Report December 2020

VPEG3 Investee Adamantem Capital Fund I Announces the Sale of Portfolio Company Servian to US technology firm Cognizant Technology Solutions

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On 11 January 2021, VPEG2 & VPEG3’s underlying investee Adamantem Capital Fund I announced that they had entered into a binding agreement to sell 100% of its shares in Servian to US technology firm Cognizant Technology Solutions Corporation (“Cognizant”). This exit, once completed, represents Adamantem Capital Fund I’s first exit for this Fund and VPEG3’s second exit from its underlying portfolio.

Adamantem acquired Servian in June 2018 with the investment thesis centred around using Servian as a platform asset to build an independent, data and analytics focused IT services company of scale in Australia and New Zealand. Adamantem’s strategy was to accelerate growth in both existing and new clients by investing in recruitment and business development; make strategic acquisitions to both expand the core practice and extend into adjacency services; and launch in new international markets to expand the geographic footprint.

The management team successfully executed on this strategy and since June 2018 has grown the number of consultants from 200 to over 500. Acquired 2 new businesses to expand the service offering and scale the New Zealand operations, established a greenfield presence in Singapore and the UK, and deepened its tier 1 cloud partnerships.

The sale of Servian, once completed, will represent the second exit from VPEG3’s portfolio delivering a strong return and another distribution to VPEG2 & VPEG3 investors during the June 2021 quarter.

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Advent Partners 2 completes the successful exit of SILK Laser Clinics Australia via an IPO Listing

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On 15 December 2020, Advent Partners 2 completed the successful exit of SILK Laser Clinics Australia via an IPO. This exit represents VPEG3’s first exit from its underlying portfolio.

Advent Partners 2 made its initial investment in SILK on 31 January 2018 and since this time Advent has supported SILK to become a national leader in the Australian non-surgical aesthetics market taking its network of clinics from 12 to over 50.

This growth included greenfield clinic expansion, an acquisition of a rival network of clinics which were subsequently rebranded SILK and the purchase and relaunch of a proprietary skincare brand Aesthetics Rx.

SILK Laser Clinics Australia (ASX: SLA) listed on 15 December 2020 at a share price of $3.45, implying an enterprise value of $162 million. Upon listing Advent Partners 2 realised a portion of their investment holding representing 2.0x of the Fund’s original investment in SILK, with the Fund retaining 28% of SILK post IPO.

Once fully completed the exit will deliver top quartile performing returns for Advent Partners 2 investors, including VPEG3 investors. The realised proceeds from the IPO were distributed by Advent to VPEG3 on 18 December 2020 and subsequently distributed to VPEG3 investors during the March 2021 quarter.

View VPEG3’s Private Equity Portfolio

VPEG3 Quarterly Report September 2020

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21 November 2020

VPEG3 Quarterly Report for the 3 months ending 30 September 2020

Special Points of Interest;

  • Next Capital Fund IV invests in Eptec Group, a specialist contractor providing asset preservation, life extension and maintenance services to marine, critical transport and infrastructure assets in Australia.
  • A significant majority of companies in VPEG3’s underlying portfolio, representing 95% of total NAV, maintained or increased in value across the quarter
  • The improvement in value across the portfolio delivered a 4.8% increase in VPEG3’s Consolidated NAV across the quarter
  • VPEG3 investee Advent Partners 2 prepares SILK Laser Clinics for exit via IPO listing on the ASX, which is expected to be completed by December 2020 delivering a strong return on investment

View or download a copy of the VPEG3 Quarterly Report September 2020

Notice of VPEG3 2020 Annual General Meeting

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3 November 2020

The 2020 Annual General Meeting (AGM) of Vantage Private Equity Growth 3 (VPEG3) consisting of Vantage Private Equity Growth 3, LP (ILP NO. L0000419E) (VPEG3, LP) and Vantage Private Equity Growth Trust 3A, (VPEG3A) will be held via video conference at 11:00am AEDST on Wednesday 25th November 2020 broadcast from Level 17, 8 Chifley Square, Sydney NSW 2000

Investors seeking to attend the virtual AGM, please advise Vantage by email at info@vantageasset.com, to register your interest and you will receive video conference details by way of an invitation prior to the meeting.

Performance Highlights from VPEG3’s 2020 Annual Report;

  • $16.21m in Additional Capital Drawn by underlying Private Equity Funds
  • 16 new underlying company investments added to the portfolio
  • A total of 33 underlying company investments have now been completed with an average hold period of 1.2 years
  • Paid capital by all investors to VPEG3, LP of $0.55 per dollar of Committed Capital to VPEG3
  • Paid capital by all investors, except SIV investors, to VPEG3A of $0.23 per dollar of Committed Capital to VPEG3
  • Companies held within the VPEG3 portfolio for more than one year have on average increased Revenue by 72% and Earnings (EBITDA) by 21% since initial investment
  • 21% is the total increase in value, after fees, delivered by VPEG3, across FY20

 

VPEG3 Quarterly Report June 2020

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21 August 2020

VPEG3 Quarterly Report for the 3 months ending 30 June 2020

Special Points of Interest;

  • Advent Partners 2 invests in Medtech, a leading provider of Practice Management Software to over 18,000 GP, Allied Health & Specialist users across Australia and New Zealand
  • Advent also invests in Flintfox International, a global provider of Trade Revenue Management software and services for large enterprise customers
  • Mercury Capital Fund 3 acquires Bauer ANZ, Australia’s leading magazine publisher with a strong presence also across digital, books and other media across Australia and New Zealand
  • VPEG3’s Net Asset Value improves by 18.7% across the quarter due to an increase in the value of 14 underlying companies at quarter end due to earnings improvements

View or download a copy of the VPEG3 Quarterly Report June 2020

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Australian Private Equity Well Positioned to Outperform

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2 July 2020

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.

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VPEG3 Quarterly Report March 2020

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14 May 2020

VPEG3 Quarterly Report for the 3 months ending 31 March 2020

Special Points of Interest;

– Next Capital Fund IV acquires TM Insight, a Supply Chain consulting and implementation service provider to clients across the food, wholesale, manufacturing and transport / logistics sectors.

– Mercury Capital Fund 3 acquires a minority shareholding in TEG, a market leading live entertainment business in Australia and New Zealand.

– Anchorage Capital Partners Fund III announces the acquisition of AHG Refrigerated Logistics, Australia’s largest fully integrated refrigerated logistics provider.

– A significant majority of VPEG3’s underlying portfolio have reported a net benefit or a low impact to their revenues as a result of the current COVID-19 operating environment

View or download a copy of the VPEG3 Quarterly Report March 2020

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Private Equity Wins on COVID-19 Testing Kits

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VPEG3’s underlying investment in Legend Corporation Pty Ltd, completed by investee Adamantem Capital Fund I during August 2019, is currently benefiting from a strong demand in volumes for tiny parts made from an Adelaide plant used to create COVID-19 testing kits.

Legend Corporation, which has manufacturing businesses across electronics, data storage equipment and semi-conductors, is experiencing a heavy uptick in demand for ceramic substrates made by its Hendon Semiconductors business, which are a component in COVID-19 testing kits.

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