INova Pharmaceuticals

Pacific Equity Partners
Company type	Private
Industry	Private equity
Founded	1 January 1998; 28 years ago in Sydney, Australia
Founder	Rickard Gardell, Paul McCullagh, Simon Pillar, Tim Sims
Headquarters	Sydney, Australia
Area served	Australia and New Zealand
Key people	Rickard Gardell, Paul McCullagh, Simon Pillar, Tim Sims (partners)
Products	Private equity funds, Secure Assets funds, Capital Solutions, Single Assets, PEP Gateway fund

Pacific Equity Partners (PEP) is a private equity firm focused on investment activities within Australia and New Zealand. It concentrates on various sectors by engaging in both turnaround projects and growth capital ventures. By the year 2023, PEP was recognized as the largest private equity firm operating in Australia.

Established in 1998 in Sydney by Rickard Gardell, Paul McCullagh, Simon Pillar, and Tim Sims—most of whom had prior experience at Bain & Company—PEP holds the distinction of being Australia's longest-standing private equity firm.

Over the years, PEP has successfully raised several buyout funds, managing assets totaling $8.6 billion as of 2022, with projections to reach $14 billion by 2025. In 2023, the company introduced its first 'Gateway fund,' designed to allow private investors entry into global private equity markets with reduced minimum investments. This fund has achieved returns close to 20% for two consecutive years by co-investing alongside firms such as Bain Capital and Leonard Green & Partners.

In 2024, PEP launched its seventh buyout fund, Fund VII, aiming for a A$3 billion closing later that year—making it one of the largest private equity funds in Australia.

Investments

Since its founding in 1998, PEP had completed 40 private equity buyouts by 2023. Beyond acquiring and managing large enterprises, the firm has conducted around 100 "bolt-on" acquisitions, integrating smaller companies into existing portfolio businesses to fuel strategic expansion. Recent portfolio additions include Patties Foods, iNova Pharmaceuticals, LifeHealthcare (a medical devices company), smart metering provider IntelliHUB, and Evolution Healthcare.

PEP states it has "at least doubled" investor returns in 12 out of its last 13 transactions, which involved acquisitions, restructurings, and divestitures of prominent Australian and New Zealand firms such as Spotless, Hoyts, and Frucor. The sole exception was Patties Foods, which was sold at a 1.7x multiple due to weaker consumer goods performance following the Covid period.

Investment products

PEP provides investors with exposure to value created from its corporate acquisitions through five primary investment approaches:

Private Equity—the core buyout strategy with seven funds launched so far. A recent significant acquisition was allied health business Healthia in December 2023. Funds I–V are closed, Fund VI is fully deployed, and Fund VII is currently open.
Secure Assets—targets infrastructure-like companies characterized by stable cash flows that have been spun out from private equity holdings. Two funds have been formed: SAF I and SAF II; the latter includes backing from the Clean Energy Finance Corporation.
Capital Solutions—a private debt initiative providing senior secured loans combined with active management support aimed at mid-market companies across Australia and New Zealand.
Single Assets—this involves moving individual assets from pooled funds into dedicated continuation vehicles; investments include Intellihub.
PEP Gateway—introduced publicly in 2022, this fund-of-funds grants private investors access to leading global private equity firms such as Bain Capital, Brookfield Corporation, and Carlyle Group while offering lower minimum investment requirements.

Target investments as of 2024

The table below details the companies that Pacific Equity Partners (PEP) has identified, acquired, and currently oversees as of February 2024.

Investment	Year Acquired	Description of Transaction
ATOM	2023	Obtained an 80% ownership interest in the industrial safety and cleaning equipment firm; held within Fund VII.
Zenith Energy	2020	Executed a public-to-private buyout at $1.01 per share, valuing this thermal and renewable energy company at A$150 million; included in the SAF I fund.
Magentus	2020	Privatization of the health technology enterprise formerly known as Citadel Group ASX, in a transaction worth $500 million; part of Fund VI.
Modern Star	2020	Secondary buyout of an educational resources provider valued at $600 million; held within Fund VI.
Healthe Care	2021	Acquired through a corporate carve-out of the private hospital segment from China-based Luye Pharma Group; managed under Fund VI.
Agright	2022	Added New Zealand’s poultry business to the SAF I fund portfolio.
Intellihub	2022	Secondary acquisition of a smart metering company; held in SAF II fund.
Cranky Health	2022	Secured controlling interest in a weight management products company valued near $200 million; included in Fund VI.
Altus Traffic	2022	Acquired a traffic management firm for roughly $200 million; later divested 50% equity to Brookfield Corporation valuing the company at $3 billion including debt; stake retained in Fund VI.
iNova Pharmaceuticals	2022	Co-invested with TPG Inc. in a consumer healthcare business valued at approximately $2 billion; held within Fund VI.
UP Education	2023	Secondary acquisition of an Australasian private education provider operating 30 campuses, valued at NZ$540 million; part of Education SPV fund.

Past investments

Initial investments were concentrated on food and beverage companies across Australia and New Zealand, including Allied Pinnacle (divested to Nissin Foods in 2019), Frucor (sold to Suntory in 2008), Peters Ice Cream (transferred to Froneri in 2014), Tegel Foods (purchased from Heinz in 2005 and sold to Affinity Equity Partners in 2011), Independent Liquor (disposed to Asahi Breweries in 2011), and Griffin's Foods (acquired from Danone in 2006 and Universal Robina in 2014, then sold to Intersnack in 2021). The firm expanded into education and healthcare sectors beginning with acquisitions of ACG and Manuka Health from New Zealand. Their investment strategy focuses on companies with valuations up to $1 billion, aiming to enhance financial results over five years prior to exit.

Investment	Year Acquired	Description of Transaction
Hoyts	2007	Purchased Australian and New Zealand operations for $440 million; subsequently sold to Wanda Cinemas in 2015 for approximately $1 billion.
Independent Liquor	2006	Acquired alongside Unitas Capital for $600 million; sold to Asahi Breweries for $1.3 billion in 2011.
Griffin's Foods	2006	Bought from Danone for NZ$385 million; later sold to Universal Robina in 2014 for A$650 million, then divested to Intersnack in 2021 for A$580 million.
Frucor	1998	Initial investment acquired for NZ$67 million; sold to Suntory in 2008 for A$1.28 billion.
Peters Ice Cream	2012	Held within Fund IV; divested to Froneri in 2014 for just below $450 million.
Tegel Foods	2005	Purchased from Heinz for $250 million; sold to Affinity Equity Partners in 2011 for $600 million.
WINconnect	2019	Acquired community energy network provider for about $100 million; sold to Origin Energy in 2021.
Manuka Health	2015	Bought for NZ$110 million; noted for business transformation and responsible investing practices; sold to Hong Leong Group for A$200 million.
Allied Pinnacle	2015–17	get acquired Pinnacle Bakery & Integrated Solutions ($200 million) and Allied Mills ($455 million); sold collectively to Japan’s Nissin Foods around $1 billion in 2019.
ACG	2015	New Zealand private education provider purchased for NZ$530 million; exited in 2018 for approximately NZ$500 million to UK-based Inspired Education Group.

History and culture

Established in Sydney, Australia, in 1998, Pacific Equity Partners was created by Rickard Gardell, Tim Sims, Simon Pillar—all formerly of Bain & Company—alongside Paul McCullagh, who came from Salomon Brothers. Although McCullagh withdrew from day-to-day management in 2017, as of 2023, all four founders continue to hold partnership roles.

PEP is distinguished by a strong 'apprenticeship' ethos that prioritizes long-term employee retention and collaborative deal-making strategies. This approach, rooted in a management consulting background, sets the firm apart within the private equity sector.

The company’s main office is situated in Deutsche Bank Place in Sydney, a landmark recognized as the first building in the Southern Hemisphere designed by Sir Norman Foster.