Pacific Equity Partners
| Company type | Private |
|---|---|
| Industry | Private equity |
| Founded | 1998 in Sydney, Australia |
| Founder | Rickard Gardell, Paul McCullagh, Simon Pillar, Tim Sims |
| Headquarters | Sydney , Australia |
Area served | Australia, New Zealand |
Key people | Rickard Gardell, Paul McCullagh, Simon Pillar, Tim Sims |
| Products | Buyout funds, private equity investments, infrastructure investments, private debt, fund-of-funds |
Pacific Equity Partners (PEP) is a private equity firm focused on transactions within Australia and New Zealand. The company invests across various sectors through both turnaround initiatives and growth capital opportunities. By 2023, it had established itself as the largest private equity entity in Australia.
Established in 1998 in Sydney by Rickard Gardell, Paul McCullagh, Simon Pillar, and Tim Sims—who were primarily former executives at Bain & Company—PEP holds the distinction of being Australia's longest-standing private equity firm.
The firm has successfully raised several buyout funds, managing $8.6 billion as of 2022, with plans to grow this figure to $14 billion by 2025. In 2023, PEP introduced its inaugural 'Gateway fund,' designed to provide private investors with access to global private equity markets at reduced minimum investments. This fund has achieved returns reaching 20% over two consecutive years and collaborates with top-tier international firms such as Bain Capital and Leonard Green & Partners through co-investments.
In 2024, PEP launched Fund VII, its seventh buyout fund, aiming for a A$3 billion closing—marking the largest fund of its kind ever raised in Australia.
Investments
Since its founding in 1998, PEP has completed 40 private equity buyouts by 2023. In addition to acquiring major companies, the firm has executed around 100 "bolt-on" acquisitions—smaller businesses integrated into existing portfolio companies to drive strategic growth. Recent portfolio additions include Patties Foods, iNova Pharmaceuticals, LifeHealthcare (a medical devices group), IntelliHUB (a smart metering provider), and Evolution Healthcare.
PEP states that it has "at least doubled" investor returns in 12 out of its last 13 transactions, which involve acquiring, restructuring, and divesting Australian and New Zealand enterprises such as Spotless, Hoyts, and Frucor. The sole exception was Patties Foods, which was sold at a 1.7x multiple due to weaker post-pandemic earnings within the food sector.
Investment products
PEP provides investors with access to value created through its corporate acquisitions via five principal investment approaches:
- Private Equity—the core buyout fund strategy; the most recent acquisition was allied health company Healthia in December 2023. As of 2024, seven funds have been launched: Funds I–V are closed, Fund VI is fully deployed, and Fund VII is currently open.
- Secure Assets—originating from the private equity platform, this approach focuses on infrastructure-like businesses with predictable cashflows. Two funds have been launched under this strategy: SAF I and SAF II, the latter including backing from the Clean Energy Finance Corporation.
- Capital Solutions—a private debt offering that provides senior secured loans alongside active management support, targeting mid-market companies across Australia and New Zealand.
- Single Assets—individual assets separated from pooled funds into continuation vehicles; notable examples include Intellihub.
- PEP Gateway—a fund-of-funds portfolio granting access to leading global private equity funds with lower minimum entry points. Publicly launched in 2022, it enables private investors to participate alongside firms such as Bain Capital, Brookfield Corporation, and Carlyle Group.
Investments Targeted as of 2024
Below is a summary of companies that PEP has targeted, acquired, and currently manages as of February 2024.
| Investment | Year of Acquisition | Transaction Overview |
|---|---|---|
| ATOM | 2023 | Purchased an 80% ownership interest in an industrial safety and cleaning equipment company, held within Fund VII. |
| Zenith Energy | 2020 | Completed a public-to-private buyout with an equity valuation of A$150 million; part of SAF I fund. |
| Magentus | 2020 | Privatized health technology firm formerly known as Citadel Group ASX in a $500 million transaction; included in Fund VI. |
| Modern Star | 2020 | Secondary buyout of an educational materials provider valued at $600 million; held in Fund VI. |
| Healthe Care | 2021 | Acquired private hospital business through corporate carve-out from Luye Pharma Group; part of Fund VI holdings. |
| Agright | 2022 | New Zealand-based poultry business acquisition incorporated into SAF I fund. |
| Intellihub | 2022 | Secondary acquisition of smart metering enterprise; included in SAF II fund. |
| Cranky Health | 2022 | Obtained controlling interest in weight management products company valued near $200 million; held in Fund VI. |
| Altus Traffic | 2022 | Acquired traffic management firm from founder for $200 million; subsequently sold 50% stake to Brookfield Corporation at a $3 billion valuation including debt; stake retained within Fund VI. |
| iNova Pharmaceuticals | 2022 | Co-invested with TPG Inc. in consumer healthcare company valued at roughly $2 billion; part of Fund VI portfolio. |
| UP Education | 2023 | Secondary acquisition of Australasian private education provider operating 30 campuses, valued at NZ$540 million; held within Education SPV fund. |
Previous Investments
Initial investments concentrated on food and beverage enterprises across Australia and New Zealand, such as Allied Pinnacle (divested to Nissin Foods in 2019), Frucor (sold to Suntory in 2008), Peters Ice Cream (transferred to Froneri in 2014), Tegel Foods (acquired from Heinz in 2005 and sold to Affinity Equity Partners in 2011), Independent Liquor (sold to Asahi Breweries in 2011), and Griffin's Foods (purchased from Danone in 2006 and Universal Robina in 2014, later sold to Intersnack in 2021). The firm subsequently diversified into education and healthcare sectors through acquisitions including ACG and Manuka Health. The investment approach targets companies with valuations up to $1 billion, focusing on enhancing financial outcomes over a five-year horizon before exit via sale at a multiple.
| Investment | Year Acquired | Transaction Summary | References |
|---|---|---|---|
| Hoyts | 2007 | Acquisition of Hoyts' operations across Australia and New Zealand for $440 million; later sold to Wanda Cinemas in 2015 for about $1 billion. | |
| Independent Liquor | 2006 | Joint purchase with Unitas Capital for $600 million; divested to Asahi Breweries for $1.3 billion in 2011. | |
| Griffin's Foods | 2006 | Bought from Danone for NZ$385 million; sold to Universal Robina in 2014 for A$650 million; subsequently transferred 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; sold to Froneri in 2014 for just under $450 million. | |
| Tegel Foods | 2005 | Acquisition from Heinz for $250 million; exited to Affinity Equity Partners in 2011 for $600 million. | |
| WINconnect | 2019 | Purchased community energy network provider for approximately $100 million; sold to Origin Energy in 2021. | |
| Manuka Health | 2015 | Acquired at NZ$110 million; developed into a business noted for quality management and sustainable investment principles; sold to Hong Leong Group for A$200 million. | |
| Allied Pinnacle | (2015–17) | (Comprised acquisition of Pinnacle Bakery & Integrated Solutions valued at $200 million and Allied Mills at $455 million); divested to Japan's Nissin Foods around $1 billion in 2019. | |
| ACG | 2015 | New Zealand private education provider acquired for NZ$530 million; sold in 2018 for approximately NZ$500 million to UK-based Inspired Education Group. |
History and culture
Established in Sydney in 1998, Pacific Equity Partners was created by a group of former Bain & Company consultants—Rickard Gardell, Tim Sims, Simon Pillar—and Paul McCullagh, who came from Salomon Brothers. While McCullagh withdrew from day-to-day management in 2017, all four founders continued to hold partnership roles as of 2023.
The company is distinguished by its distinctive 'apprenticeship' environment, which prioritizes the long-term retention of employees and a collaborative, team-oriented approach to transactions. This philosophy is rooted in management consulting principles, setting the firm apart within the private equity sector.
Pacific Equity Partners operates from Deutsche Bank Place in Sydney, notable as the first building in the Southern Hemisphere designed by Sir Norman Foster. This prestigious address complements the firm’s professional image and corporate branding.