Archer Capital Closes Fifth Fund with $1.5B

Australian private equity firm Archer Capital has raised $1.5 billion for its fifth fund, Reuters reported Wednesday. The firm raised the fund over four months, Reuters wrote. Limited partners in the fund were not named.

(Reuters) – Australian private equity firm Archer Capital has raised A$1.5 billion ($1.5 billion) for its fifth fund, snaring interest from local and international institutions within just four months, it said on Wednesday.

“The positive response from investors in such a short time-frame and difficult market conditions represents a very good result for the firm,” Archer Capital Managing Director Peter Wiggs said in a statement.

In what has been the best year since 2006 for private equity deals in Australia, Archer said it invested about A$600 million in four acquisitions, buying Brownes Foods, Quick Service Restaurants, V8 Supercars and Healthe Care.

It sold Cellarmasters, MYOB, iNova and Rebel Sport for A$2.5 billion, the four exits together returning 3.2 times their initial investment.

Weak markets have made companies more amenable to offers and buyout firms are looking to spend capital that investors committed years ago, providing scope for more activity.

In the latest deal in the works, Pacific Equity Partners is in talks to buy Australian cleaning services firm Spotless Group for A$711 million. ($1 = 0.9923 Australian dollars) (Reporting by Sonali Paul)