Stafford Capital Partners wins $220m PE ESG mandate with First Super
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The news: Investment firm Stafford Capital Partners has announced that its Australian private equity co-investment program with First Super has been converted into an evergreen structure, with proceeds from sales or exits to be reinvested into new joint deals.
The numbers: The new $220 million private equity mandate will be ESG themed.
Stafford said its original private equity program with First Super, which has been operating since 2010, has generated a net internal rate of return in excess of 20% pa since inception.
The context: Converting the existing private equity program into an evergreen structure allows proceeds received from exits to be reinvested into new co-investment opportunities.
Stafford said that co-investments will be made into small-to-medium sized Australian companies forecast to generate returns alongside co-investment partners.
Stafford has worked closely with First Super for several years to develop a specialised ESG diligence framework that will continue to be applied to the co-investment program.
Earlier this month, Stafford launched a $250 million private equity co-investment with super fund HESTA.
What they said: First Super CEO Bill Watson said: “First Super is looking forward to continuing to support this important part of the Australian economy”.
“Our size means we can continue to invest our members’ retirement savings in Australia, rather than in offshore private equity," he said.
Stafford’s Australian private equity lead Daniel Bowden said: “This strategy’s strong focus on active management of ESG risks sets it apart within the private equity asset class, delivering strong benefits beyond the significant bottom line net returns".
“It is exciting that following several recent exits from First Super’s original program, there is dry powder available to reinvest under the ESG PE co-investment program.”
The source: Stafford Capital Partners media release
