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Australia’s private equity landscape is set to welcome a new player, as Premier Capital Partners (PCP Growth) makes its debut. This new private capital firm is poised to carve out its niche in the mid-market growth sector, particularly within the technology space.
Leadership Behind Premier Capital Partners
The leadership of PCP Growth is comprised of industry veterans, each bringing a wealth of experience to the firm. Ryan Sohn, who co-founded and managed the Perennial Private to Public portfolio, has departed from Perennial to establish Premier Capital Partners. Joining him are Jason Lenga, Managing Director at SEEK Investments and a former operating partner at Tiger Global, along with Paul Lewis, the former Chief Financial Officer at Qube Holdings (ASX:QUB).
Focus on Mid-Market Growth in Technology
PCP Growth aims to target mid-market growth opportunities, focusing on companies within the technology, tech-enabled services, software, and high-growth sectors. The firm is seeking to invest in companies generating over $10 million in revenue, with a particular interest in those that are profitable or nearing profitability. Minority stakes of 5% to 20% are expected to be held for up to five years.
The firm’s strategy involves writing cheques ranging from $5 million to $20 million, positioning itself between early-stage venture capital funds and larger private equity firms, such as Potentia and Quadrant. This approach allows PCP Growth to fill a gap in the market that is often overlooked by traditional buyout or venture capital funds.
Fundraising and Market Positioning
PCP Growth has already initiated its fundraising efforts, with a target of raising between $30 million and $50 million, and a hard cap set at $75 million. The firm’s pitch to potential investors has been met with significant interest, with sources indicating that demand has already surpassed $50 million. The fundraising campaign is expected to close by the end of September.
According to the firm’s pitch deck, PCP Growth is aiming for an internal rate of return exceeding 25% over a seven-year period. The firm’s strategy is centered around investing in Series B and beyond companies, which are typically poised for significant growth but have yet to attract the attention of larger private equity funds.
Track Record of Success
The team behind PCP Growth brings a proven track record of success in the private growth market. Ryan Sohn’s tenure at Perennial saw investments in companies such as Linkby, Equiem, and Sonder. His experience during the COVID-19 pandemic, particularly with investments in companies like Koala, highlights his ability to navigate challenging market conditions.
Jason Lenga’s experience at SEEK (ASX:SEK) and Tiger Global includes a series of successful investments, including Chinese jobs site Zhaopin, fintech Tyro, and workplace safety unicorn SafetyCulture. Notably, Lenga played a pivotal role in establishing SEEK’s education business, which includes ASX-listed IDP Education (ASX:IEL). His involvement in the acquisition of construction payments tech company Payapps by Nasdaq-listed Autodesk further underscores his expertise in the sector.
Carving Out a Niche in Private Growth
Premier Capital Partners is positioning itself as a unique player in Australia’s private equity market. By focusing on mid-market growth opportunities and targeting companies that may not yet be on the radar of larger funds, PCP Growth aims to fill a niche that is currently underserved. With a strong leadership team and a clear strategy, the firm is well-positioned to make a significant impact in the market.
As the fundraising efforts continue and the firm begins to make its initial investments, Premier Capital Partners will be a company to watch in Australia’s evolving private equity landscape. The firm’s focus on technology and growth sectors, combined with its experienced leadership team, sets it apart as a promising new entrant in the field.
