A key element in the success of the relationship with the Advent team was their correct level of involvement. They were always supportive but not intrusive in the day-to-day operation of the company.
Ensure stakeholder interests are aligned and management are motivated with attractive incentives
Support senior executives without intrusion on management's role in directing the day-to-day activities of the business
Drive Equity Growth
Provide assistance in respect of key strategic, acquisition, capital structure, debt financing, corporate governance and executive recruitment decisions.
Clear and viable strategy
Identifiable acquisition opportunities (where relevant)
High-quality, core management team
Potential to take a leading position in the market
Sustainable competitive advantage and strong margins
Growing revenues and profitability
Existing annual operating profit of, typically, $5 to 30 million
33% - 95% shareholding
Equity cheque of $15 - 50 million
Enterprise value of $20 - 150 million
- Exit Strategy
To exit within five years
Attractive exit options, e.g. trade sale, secondary buyout, IPO
A sustainable, competitive advantage
A high-quality management team
Growing revenues and profitability
A clear and viable strategy over the period of investment
Privately-owned companies (or listed businesses going private)
An enterprise value of between $20 million and $150 million
Existing annual operating profit in excess of $5 million
A clear strategy to exit within three to five years
Generational and shareholder change
Expansion capital required
Management buy-outs and buy-ins
Industry consolidations, roll-ups and roll-outs
Spin-offs from larger corporations or government authorities
We embrace an expansive industry focus as a generalist fund manager. Core industry verticals include healthcare, consumer markets, proven technology, education, and leading edge industrial.
Attracted to businesses with a strong market position in an industry niche
Exclusions: property development, resources and primary production
Help navigate the challenges faced by growing businesses
Development and adaption of the business strategy
‘Corporatisation’ including implementation of corporate and governance policies to support growth
Capital structure optimisation
Sourcing of competitive lending packages
Assist in recruitment of key executives
Advent is one of Australia’s longest-standing private equity managers and has proven its investment philosophy across six funds since 1984
Creative deal makers that demonstrate flexibility to achieve shareholder requirements and align stakeholder interests
A key emphasis on a partnership approach and willingness to take both minority and majority stakes
Extensive contacts across a broad range of businesses and industries in Australia and New Zealand
Efficient decision-making and deal execution as Advent is independent and owned by the management team, which, collectively, have over 80 years of experience in private equity
Frosty Boy Australia
Frosty Boy is a leading Australian manufacturer of value added dairy products including soft serve ice cream, yoghurt and beverage powders used in fast food (QSR) chains and the food service sectors. Based in Yatala, Queensland, the Company’s products are exported to 50 countries which account for 70% of total sales, including the key Asian markets of South East Asia, China and India.
The business produces the equivalent of 2 million serves of soft serve ice cream per day and has been operating for over 40 years. Advent was attracted to Frosty Boy given its iconic brand and a true Australian food export success story. Further it has exciting growth ahead built on its excellent customer service, focus on innovation, a talented team and high quality products Advent has invested alongside the founders. The founders were seeking Advent’s assistance with growing the business into global markets
Wellness & Lifestyles
Wellness & Lifestyles (W&L), is one of Australia’s largest providers of allied health services to the aged care sector. W&L services over 200 residential aged care facilities nationally and offers physiotherapy, occupational therapy, podiatry, speech pathology, dietetics, consultancy and educational services. An important part of W&L’s value proposition is delivering its services in a manner which supports the funding and accreditation requirements for residential age care facilities, whilst also delivering clinical outcomes for residents.
Advent was attracted to the business due to its market positioning and strong clinical and operating systems and processes. Advent’s investment in December 2015 provides W&L with access to capture market opportunities and pursue acquisitions in the areas of residential aged care, ageing in the home and disability services.
Junior Adventures Group
Junior Adventures Group provides outside school hours’ care (OSHC) services to over 400 schools across Australia. This includes before and after school care, holiday programs and associated management services to government, independent and Catholic primary schools. The business focuses on providing the highest quality programs in the market, which is supported by industry leading National Quality Framework ratings as assessed by the independent regulator, ACECQA.
Advent’s investment in September 2015 provided funding to accelerate organic and inorganic growth and invest in systems and processes to provide a differentiated experience for program participants. An alliance was formed with Everlast Holdings, a high quality OSHC operator based in Queensland, in June 2016 providing increased scale, geographic diversification and the opportunity to share best practice systems and processes, deeper pools of talent and back office infrastructure.
Integrated Packaging Group
Integrated Packaging Group Pty Ltd (IPG) is the third-largest flexible manufacturing business in Australia and New Zealand, focused on industrial and agricultural packaging. It is a market leader in industrial and plain films in flexible packaging, particularly shrink film, stretch film, pallet wrap film and agricultural film products. It also distributes a full range of pallet wrapping machines and associated equipment.
Advent’s initial investment funded the exit of several former shareholders. It also enabled IPG to acquire the business and assets of Amcor Flexibles’ Perth plant, which produces cast and blown polyethylene products including stretch and shrink film. Advent’s follow-on funding in January 2011 facilitated the exit of IPG’s remaining shareholder.
Further follow-on funding in January 2013 funded the purchase of the business and assets of Amcor Flexibles Packaging plants in Cheltenham, Chester Hill and Kirrawee, which produce plain and printed polyethylene products including printed industrial bags, shrink film and PVC food films. This reinforced IPG’s growth strategy in industrial and agricultural packaging as well as expanding the business into printing, converting and PVC food films.
UGM Mining Solutions
UGM Mining Solutions Pty Ltd (UGM), based in the Hunter Valley in New South Wales, is one of Australia’s leading underground coal mining contractors. It focuses on coal cutting; conveyor installation and maintenance; outbye services including secondary roof support, ventilation and civil services; and diesel fleet hire and servicing.
Its key customers include Australia’s major coal mine owners like Xstrata, Anglo Coal, Peabody and Centennial Coal. It employs 300 people across New South Wales and Queensland.
Advent’s investment in October 2007 allowed existing executive shareholders to realise part of their UGM investment. It also supplied ongoing capital to fund acquisitions that added scale and diversity, and provided a platform for growth into other Australian mining sectors.
Trivantage Group Pty Ltd (Trivantage) is a leading, Australia-wide electrical engineering, contracting and switchboard manufacturer with offices in Melbourne, Sydney, Brisbane, Adelaide and Perth.
Its 600 staff provide services to a wide range of industrial, commercial and government customers. Its primary focus is industrial and commercial installations, switchboard design and manufacture, automation, refrigeration and air conditioning systems, telecommunication and data installations, and 24-hour breakdown services.
Advent’s investment allowed some existing shareholders to realise part of their investment and also funded further acquisitions.