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 investment 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 investment experience
Compass is the leading Education Management Platform in Australia. One of only a few cloud-based, multi-lingual and multi-currency SaaS school management solutions. Founded in 2010, Compass is now used by almost 1,800 primary and secondary schools. The Compass ecosystem includes a broad range of modules covering attendance, reporting, parent communication, canteen management, student well-being, learning management, staff development, online payments, events and data analytics. The business has 100 staff in offices in Melbourne, Australia and Dublin, Ireland.
Advent’s investment will support Compass’ growth plans, including continued rollout in schools across Australia and further offshore expansion. This will be underpinned by a strong focus on maintaining its market leading customer support and continuing to improve product functionality, which includes stronger data analytics capability to inform personalised learning plans, powerful dashboards to track key learning metrics, and a range of enhancements to parent communication and mobile device usability.
Tribe is one of the leading independent manufacturers of craft beer and premium alcoholic beverages in Australia. Founded in 2012 by the Szpitalak family, Tribe has focused heavily on innovative and high-quality craft brewing of its own brand (Stockade Brew Co) as well as sharing its platform with contract brewing partners to further grow the craft industry.
The group has grown rapidly in the last two years with an extensive pipeline. Their Stockade brand is one of the fastest growing independent craft beers in Australia and the recipient of multiple awards and accolades. The rapid expansion has resulted in their Smeaton Grange, NSW brewery reaching its capacity at ~8 million litres p.a. Advent’s investment is in part to support the establishment of a state of the art craft brewing facility in Goulburn, NSW to facilitate further growth and provide greater format and packaging flexibility.
SILK Laser Clinics, is a premium laser and skin rejuvenation business with clinics in non-major Australian capital city markets.
SILK has 12 locations across Australia, with a mix of corporate-owned and franchised clinics. Founded in 2009, its service offering includes laser hair removal, skin treatments and anti-wrinkle cosmetic injections. SILK is a leading player and holds a strong market share in its home state, South Australia.
Advent’s investment will focus on rolling out clinics in new geographies, to capitalise on the extensive industry growth opportunity.
Advent was attracted to the business as SILK is a quality operator and exhibits many favourable attributes, including a passionate management team, well developed internal systems, operational processes and corporate governance.
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.
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.