Blue Sky’s Private Equity division specialises in providing both expansion and venture capital to Australian companies to help support their growth. Blue Sky’s Private Equity fund currently has investments in companies across a broad range of industries, including retail, consumer goods, equipment hire, manufacturing, media and mining services.

Private equity involves investing in private companies (i.e. those not listed on public equity markets like the Australian Securities Exchange). Blue Sky Private Equity employs a range of investment strategies, all of which share three common characteristics:

  • Investing in private companies allows Blue Sky Private Equity to take a medium-term view on business performance. Investee companies are not subject to continuous disclosure or half-year reporting requirements, so Blue Sky can make decisions that are in the long-term interests of the company, without fear of short-term share price fluctuations.
  • Blue Sky Private Equity takes meaningful equity stakes in the companies in which they invest as well as playing a key support role as a partner helping with the strategy and operations of the business, and taking board seats to assist with the company’s performance.
  • Unlike many other private equity investors, Blue Sky is comfortable acquiring significant but non-controlling stakes in the businesses in which it invests (typically 30-50%). This approach necessitates a more collaborative working relationship between Blue Sky, existing shareholders and management, based on shared risk and return for all stakeholders.
  • Blue Sky Private Equity invests with a medium-term exit horizon, planning to grow and develop the business for three to five years before selling the business, together with the founder/owner, at a profit.

Capital provided to investee companies can be employed in a number of ways:

  • to facilitate expansion
  • to assist in development of new products and/or markets
  • to fund changes in ownership and/or management
  • to fund mergers and/or acquisitions

For companies seeking capital, please click here to contact BSPE.