PEP prepares biggest fund to date, pitches proven money-making prowess
Pacific Equity Partners is primed to start 2024 in a big way, preparing to launch its seventh buyout fund – Fund VII – in what is expected to mark the biggest fundraising so far for Australia’s largest private equity firm, Street Talk has been told.
It’s not secret PEP is a proven money-maker for investors with some $8.8 billion under management and more than 40 buyouts over the past 25 years. It at least doubled investors’ money in 12 of its past 13 deals (the 13th was 1.7-times money).
Now, PEP’s powerful team of dealmakers are targeting $3 billion for Fund VII, which – if the firm achieved first close before the New Year – would easily make it the biggest fund raised in 2023. As it stands, sources suggest it is still early days with marketing not expected to begin until early in the new year. Allens is doing the legal work on the fund.
Pacific Equity Partners’ Tony Duthie and Shannon Wolfers with Terry Miu Neeland earlier this year. Dominic Lorrimer
The largest private equity fundraising was BGH Capital, which hit a $3.6 billion hard cap for Fund II in March last year. The next largest in the last five years has been $2.6 billion, while PEP’s biggest effort has been $2.5 billion.
Fund VII will be run by managing directors David Brown, Tony Duthie and Shannon Wolfers.
It has been a big year for PEP, which has five strategies – traditional buyout; infrastructure, dubbed the Secure Assets Fund and run by Andrew Charlier and Evan Hattersley; credit, run by Jake Haines; Cameron Blanks’ Gateway fund; continuation funds – and some 70 investment professionals. The last business into PEP’s Fund VI was Healthia, after PEP lobbed a big-premium bid for the ASX-listed healthcare group in late August and quickly won the backing of
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