Private Equity Fund III (PEFIII)

Private equity financing allows businesses to develop new technologies, grow market share or expand their products or services. The growing sophistication and attraction of private equity investing in recent years has led to greater sector specialisation by private equity funds. Today, an increasing number of investors are targeting managers that can focus on particular sectors or industries to meet their specific risk/return considerations. AMP Capital is providing investors with this sector specialisation through its new private equity fund – Private Equity Fund III (PEFIII).

What is PEFIII?

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 will provide 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).

To date the fund has made six investments totalling $63 million. Unlike most private equity funds, which acquire assets after the final financial close, PEFIII investors have the benefit of investing in assets at the time of their commitment. See Investment Portfolio.

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
• proven private equity management expertise