Private Equity Fund III

Fund overview

PEFIII is a 10 year closed-end fund that provides private equity funding for mid-market businesses in Australia and New Zealand. These businesses generally have established operations with an enterprise value of between $20 to $100 million. Industries targeted by the fund include, healthcare, business services, branded goods, transport and businesses with international operations or the potential to expand.

PEFIII provides financial support in the form of equity to support management buyouts, management buyins, industry consolidation or succession planning with the objective of achieving a return of 20% pa over the life of PEFIII (after fees and expenses and before tax).

Key features

PEFIII is ideally suited for investors with a high risk appetite. Key features include:

• leveraging AMP Capital's strong industry network to participate in proprietary transactions;
• focussing on growth industries and portfolio diversification;
• a seeded investment portfolio, giving investors an opportunity to scrutinise the quality of the investments; and
• proven private equity management expertise.

Fund Facts

Investment Objective	To achieve a return of 20% per annum (after fees and expenses and before tax) over the life of the Fund. A profit share hurdle of 8% pa (after all fees and fund costs) applies, with the Manager receiving a sliding scale performance fee when the investors' profit amount exceeds this hurdle rate.
Investment Approach	To acquire and develop mid-market businesses that have significant commercial exposure in Australia and New Zealand. We target companies that have: an enterprise value of between $20-$100 million and earnings before interest, tax and amortisation (EBITA) of between $3-$20 million a solid financial track record a successful management team the potential for business growth. Investments may take the form of management buyouts, management buyins, industry consolidation or succession planning.
Inception date	31 December 2004
Minimum suggested timeframe	10 years
Status	Closed
Minimum investment	A$ 10,000,000
Distributions	Paid on the realisation of any asset or when other income (such as company dividends or return of capital) is received by the fund.