Allco reveals AU$750m war chest

Listed Australian private equity firm Allco Equity Partners has announced its intention to invest more than AU$750m over the next 12 months.

Peter Yates, managing director of Allco Equity Partners, the Sydney-based private equity firm that listed on the Australian Stock Exchange last December, told Asian news service Asia Pulse the firm has more than AU$750 million ($548 million; €468 million) to invest over the next year.

Yates told Asia Pulse that the firm was currently exploring several opportunities in spite of the Australian private equity market being ‘hyped’. Capital for transactions would be provided from existing cash reserves together with AU$183 million in second instalment payments on shares issued at the time of flotation and a AU$20 million return from its stake in credit reporting group Baycorp Advantage.

Baycorp is the only investment completed by Allco so far. Its failed hostile takeover of the firm in July nonetheless resulted in Allco becoming its largest shareholder with a 17 percent stake. Allco said several operating changes had been made at Baycorp as a result of its bid and that discussions were ongoing regarding the possible appointment of an Allco executive to the Baycorp board.

Allco has said it plans to build a portfolio of six to eight investments over the medium term. Its focus is on the financial services, media, gaming and healthcare sectors in Australia and New Zealand.