Australia's Archer raises A$1.4 bln buyout fund

Sydney, June 4: Private equity firm Archer Capital has raised A$1.36 billion ($1.13 billion) for its latest fund, which it said was the largest leveraged buyout raising by an Australian firm so far.

Archer said on Monday it would target Australian and New Zealand businesses with enterprise values of between A$200 million and A$1.4 billion over the expected four-year life of the fund.

''We are targeting a four-year investment with that programme so we should expect to be back in the market in three to 3-{ years time,'' Archer Capital Partner Greg Minton told Reuters.

''We will be back sooner if we can find good businesses to buy.'' The fund, to be known as Archer Capital Fund 4, is the firm's fifth capital raising. Its previous raising was A$450 million in 2004.

Australian investors contributed more than 50 per cent of the fund's capital with the balance from international investors. Minton said 80 per cent of the money raised was from existing investors.

Archer is part of a consortium bidding for Australian healthcare firm Symbion Health Ltd. . In March it won a A$368 million bid for sporting goods retailer Rebel Sport Ltd. and in April bought beer maker Fosters's Group Ltd's wine club business.

About 11 per cent of the fund has already been allocated, while a successful Symbion deal would take it up to 28 per cent.

Australian firms have been the target of a wave of private equity buyouts in the last year, although a number of recent large deals such as Qantas Airways Ltd. have failed due to shareholder opposition.

Local buyout firm Pacific Equity Partners (PEP) closed a A$1.2 billion fund last year, while market veteran Ironbridge raised A$1.05 billion in November.

PEP is also raising a A$4 billion fund which would be Australia's largest by far, sources familiar with the matter told Reuters in February.

Reuters