HESTA, Stafford Capital Partners launch $250m PE co-investment
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The news: Superannuation fund HESTA and investment firm Stafford Capital Partners have launched a new $250 million private equity co-investment mandate called QP4.
The numbers: The launch of QP4 follows Stafford and HESTA's previous $200 million co-investment vehicle QP3, which was fully invested over three years.
Stafford said its deal with the $83 billion super fund would build on the existing co-investment strategy first implemented by the two companies in 2011.
The context: Stafford noted that the strategy aimed to open up smaller deal sizes, providing access across a wider spectrum of private equity investments. Single-asset style continuation vehicles, where HESTA would represent long-term patient capital, were also an area of focus, it said.
Through QP3, co-investments were made into companies operating in a mix of industries, including healthcare technology, cyber security, sustainable packaging, and financial payments.
What they said: Stafford's Australian private equity lead Daniel Bowden said: "HESTA, as a large institutional investor, is looking for investment opportunities of appropriate scale that can be efficiently executed".
"This can mean that potentially strong-returning smaller deals may be more difficult to access. QP3 — and now QP4 — enables Stafford to access and complete smaller strong-returning deals on behalf of HESTA," he said.
"QP4 is also able to complete co-investments sourced by both the HESTA and Stafford investment teams, benefitting from the relationships both organisations have, and underscoring the importance of a 'partnership' style approach to investing that HESTA prefers."
The source: Stafford Capital Partners media release
