Former ANZ Capital private equity director Jeremy Samuel, who resigned from the bank at Christmas, has resurfaced as managing director of new private equity firm Anacacia Capital.
The Sydney-based company plans to cash in on the baby boomer retirement frenzy – and side-step the competition – through investing in small to medium enterprises (SMEs).
It will invest private equity in established, profitable Australian businesses in sectors that include consumer goods, manufacturing and distribution services, Samuel said.
“While other private equity firms are focused on larger often public companies where they compete with multiple buyers, Anacacia Capital will look to support management teams acquiring SMEs with EBIT [earnings before interest and tax] profits [of] less than $10m per annum,” he said.
Management teams will be installed in the companies using the networks and skills of a business advisory council of eight to 10 prominent Australian chief executives and chairmen.
Driving the strategy are huge, unmet demands for private equity investment from small family-run operations where the owner is looking to retire but the children do not want to take over the family business, Samuel said.
“There is a huge level of demand, particularly from the baby boomer generation, who have built up quite significant businesses.and want to sell their businesses in a private, confidential way,” he said.
Anacacia Capital’s wholesale fund will be launched within the next few weeks and there will be capital raising exercise of an undisclosed amount from institutional funds and wealthy individuals and families.
InvestorDaily understands the minimum investment will be $2 million and annual returns are expected to be around 25 per cent.
