Quadrant Private Equity No. 2
Quadrant Private Equity No. 2 is managed by QPE Funds Management Pty Limited a member of Sydney based Quadrant Private Equity (formally Quadrant Capital).
Quadrant Capital (www.quadrantcapital.com.au) launched their first fund in 1996 and subsequently grew funds under management to $250 million, across three funds, each focused on expansion and buyout stage private equity investments. The three Quadrant Capital funds invested in 36 businesses across a broad spectrum of industries with 28 of those investments now realised.
As at 31 December 2006, the Internal Rate of Return (or gross investment return per annum) for Quadrant Capital Funds 1, 2 and 3 was 24.5%, 44.8% and 89.6% respectively.
In 2005 the Quadrant Capital team formed Quadrant Private Equity (QPE) (www.quadrantpe.com.au) as an independent private equity fund manager owned entirely by its management team. QPE subsequently raised Quadrant Private Equity No. 1 with $265 million of commitments, which is now fully invested.
Quadrant Private Equity No. 2, with total commitments of $500 million, is focussed on investing into mid-market buyout and expansion capital opportunities in profitable, predominately Australian, businesses with enterprise value of between $50 million and $500 million.
Quadrant Private Equity No. 2 has to date completed investments in Quick Service Restaurants, Independent Pub Group, IVF Holdings and Summerset Retirement Villages.
Quick Service Restaurants (QSR) is the owner of leading retail brands Red Rooster and Chicken Treat. The two roast chicken retailers, founded respectively in 1972 and 1976, have 450 stores (385 Red Rooster and 65 Chicken Treat) and a combined annual turnover of approximately $500m.
In July 2007, QSR acquired the Oporto Portuguese Chicken and Burger Chain for $60 million. The acquisition of Oporto increases the store distribution of QSR to 540 outlets, comprising more than 300 company stores and 240 franchise outlets across the Red Rooster, Chicken Treat and Oporto network in Australia and New Zealand.
The expanded group now serves approximately 60 million customers visits per annum and employs more than 14,000 staff throughout its company and franchise network.
The company plans to continue to increase store numbers over the next three to four years prior to a planned listing of the business on the Australian Stock Exchange.
Independent Pub Group
In December 2007 Quadrant Private Equity No. 2 invested in Independent Pub Group Pty Limited (IPG). At the same time, IPG purchased and settled one hotel, Christie’s Beach Hotel in South Australia and subsequently purchased an additional eight hotels including the Willow Hotel in Brisbane, another four hotels in Queensland and three in South Australia.
In June 2008 a further twelve hotels were contracted to be acquired by IPG, from the Singapore listed Lasseters International Holdings. Upon the completion of these acquisitions IPG will have twenty one hotels in total with twelve in South Australia, six in Queensland and three in New South Wales.
Quadrant have invested in IPG alongside a former senior executive of Club Hotels, which was a successful investment of a previous fund of Quadrant Private Equity’s, Quadrant Capital Fund No.3.
IVF Holdings
In April 2008 Quadrant Private Equity No. 2 invested in IVF Australia. IVF Australia is the largest group of dedicated fertility specialists in NSW operating across an extensive network of fertility centres and consulting sites for the communities of Sydney and the Central Coast.
With a staff of more than 100, including a team of experienced scientists, nurses and counsellors, IVF Australia provides fertility treatment to men and women trying to conceive via treatment options including ovulation induction, insemination, IVF and ICSI.
In November 2008 IVF Australia acquired Melbourne IVF adding significant scale and market share to the overall group which was subsequently renamed IVF Holdings.
Melbourne IVF is a leading provider of IVF and related infertility treatment in Victoria and is known for being at the forefront of IVF technology around the world.
The combined group now accounts for an approximate 30% share of the market for IVF services in Australia, which positions the new group as national leaders in assisted reproductive technology.
Summerset Retirement Villages
In April 2009, Quadrant Private Equity No. 2 acquired a 50% equity interest in Summerset Retirement Villages (www.summerset.co.nz) from AMP Capital Investors (NZ).
Summerset is one of New Zealand's leading operators of retirement villages and providers of aged care services. Comprising ten operating villages and two villages under development, Quadrant's investment in Summerset provides exposure to one of New Zealand's leading retirement village operators and an industry experiencing rapid growth.
Summerset was founded in 1994 to provide mature New Zealanders with a high quality lifestyle in a safe, secure and enjoyable environment at an affordable cost. Summerset currently provides village lifestyle options and care facilities to more than 1450 people serviced by a staff of more than 360.