Quadrant Private Equity is believed to be poised to capitalise on its recent success with the sale of Adore Beauty and Qscan Group by launching a new fund worth about $1 billion.
DataRoom understands that the Australian-based private equity firm is in the process of finalising two acquisitions – one of which is a business services company worth somewhere close to $500m.
Once those transactions have been completed, the buyout fund plans to go to investors to seek around $1bn for its next fund, say sources.
It comes after Quadrant this month floated the online cosmetics business Adore Beauty with a market value of $650m as the COVID-19 pandemic drove demand for online businesses.
It purchased a 60 per cent interest in the online retailer last year in a deal that valued the business at $110m.
Quadrant also reaped a windfall from the sale of its Qscan radiology group at the weekend, offloading the business to a Morrison & Co-led consortium for $735m and more than doubling its money on its original investment.
Quadrant has ownership interests in 22 companies, and Adore Beauty sat within its growth fund.
Other investments in the growth fund include graysonline.com, Love To dream, Modibodi and ARQ Group.
It is thought that the private equity firm is making the most of the momentum that it has achieved from the successful divestments, as it continues to address other companies under its ownership that have been impacted by the health crisis.
These include the outdoor advertising business QMS, Rockpool Dining Group, its tourism business Journey Beyond and its gyms business Fitness and Lifestyle Group.
But sources say that the funds in which the businesses are held have already made major returns on other investments.
Quadrant also owns A Mart Furniture, which is said to be generating strong sales momentum amid the COVID-19 pandemic and is understood to be on offer for sale through Jefferies Australia.
Sources say that the affordable furniture retailer’s annual earnings before interest, tax, depreciation and amortisation have soared to about $50m.
It also owns the food distribution business Superior Food Services that has Stanton Road Partners as its adviser and is also earmarked for divestment.
Its confectionery business Darrell Lea is expected to be placed up for sale late next year at the earliest.
This year, Quadrant also sold its disability employment service provider APM business for $1.5bn.
CoStar boss had eyes on Domain on Australian trip
CoStar founder and president Andrew Florance is understood to have been in Australia late in 2024 as part of his quest to gain control of Domain Group, sources say.
Origin, Goodman ponder demergers, spin-offs
Two listed powerhouses, Origin Energy and Goodman Group, could both have their sights on major demergers or spin-offs of units in the coming years.