24 Jan Vol 13 – MCF2 – September 2018 Quarterly Report
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Findex is a leading digitally-enabled provider of wealth management, accounting and other professional services. With more than 60,000 clients and with more than $10b in wealth management funds under advice, Findex has uniquely been able to establish a scale wealth and financial planning business alongside a comprehensive accounting professional services platform in Australia and New Zealand.
Findex has a long history of pioneering digital innovation within the financial services sector, including having established proprietary digital workflow platforms, and a market leading wealth technology platform, Centric.
Findex is led by an experienced executive management team across its large network of offices, which provides a strong presence within many of Australia and New Zealand’s fastest growing and largest regional and suburban hubs.
Mercury acquired a ~42% shareholding in Findex in April 2024.
Fyfe is a multi-disciplinary professional services firm providing integrated engineering, environment, planning and survey consulting services to a diverse mix of high-quality clients. Fyfe is led by an experienced executive team with ~470 employees operating across 16 office nationally.
Fyfe’s services support the planning, design and construction of projects being delivered across a range of sectors such as energy and resources (including natural gas, critical minerals, and renewables), public infrastructure, property development and construction, industrials, and defence. Fyfe plays a big role in the Australian-wide investment into energy and resources, public infrastructure, industrial sectors, and supporting the energy transition.
Mercury acquired a 60% shareholding in Fyfe in April 2024.
Blue Star is New Zealand’s largest full service commercial printing company, providing solutions across web offset, sheet-fed and digital printing and associated services. Its customers include leading New Zealand and multinational companies, government departments and agencies. Blue Star employs ~700 staff across nine facilities throughout New Zealand.
Blue Star was sold to Peninsula Packaging Limited in January 2024.
Tamaki Health is the largest primary care operator in New Zealand with ~300,000 enrolled patients, ~1.2 million patient visits per annum and over 950 employees and contractors including ~350 doctors. Tamaki Health operates a portfolio of 49 clinics primarily located in “high needs” areas, including 19 Urgent Care Clinics largely across Auckland. Mercury’s investment strategy is focused on pursuing organic opportunities within the existing clinic portfolio as well as ongoing acquisition and greenfield led growth.
Mercury acquired an interest in Tamaki Health in July 2017 and currently has an 89% shareholding.
Partner
Combined 15 years of private equity and consulting experience including three years at McKinsey & Company before joining Mercury Capital in 2010
Broad experience working with growth companies across a range of industries in Australia, New Zealand and Asia and ranging in enterprise value from $40m up to large cap
Current Directorships include ResourceCo, Squiz, Re.Group and Matrix Education
Holds a Bachelor of Engineering in Engineering Science (First Class Honours) from the University of Auckland and a Master of Business Administration (Second Year Honours) from Harvard Business School
Investment Manager
Brent has over 10 years’ experience across corporate finance, strategy and investor relations. He was most recently the Chief Strategy Officer of MessageMedia after joining in 2017. Prior to this he was Head of Corporate Affairs at Orion Health and with Goldman Sachs’ investment banking team in New York and Auckland.
Involved with investments into Blue Star and are media, and currently serves on the board of are media.
Holds a Bachelor of Commerce from the University of Auckland.
Investment Manager
Previously an Associate in the Investment Banking Division of Rothschild & Co, Australia before joining Mercury Capital in 2018
Experience advising corporate and financial sponsor clients across power, utilities and infrastructure sectors
Involved with investments into Fiftyfive5, Are Media, ResourceCo, E&P, Tamaki Health and Re.Group and currently serves on the board of Tamaki Health
Holds a Bachelor of Laws and Bachelor of Commerce from the University of Auckland
Investment Director
Combined 11 years of private equity and investment banking experience including four years at UBS, Australia before joining Mercury Capital in 2016
Experience advising corporate and private equity clients across a range of sectors including consumer products, healthcare, transport, media and technology
Current Directorships include Matrix Education and Green by Nature
Holds a Bachelor of Commerce and Bachelor of Law (First Class Honours) from Monash University (Melbourne)
Investment Director
10 years of private equity and investment banking experience including three years at Goldman Sachs, Australia before joining Mercury Capital in 2015
Experience across a range of transactions advising clients in the consumer, retail, healthcare and financial institutions sectors
Involved in investments into Nexus, International Volunteer HQ, MessageMedia, Squiz, TEG and Avive
Holds a Bachelor of Commerce (Valedictorian, First Class Honours) from Bond University and a Graduate Certificate in Mathematical Sciences (First Class Honours) from the Queensland University of Technology. Samara is also a member of the Australian Investment Council Diversity & Inclusion Advisory Committee.
The merger of FiftyFive5 and GalKal facilitated by Mercury Capital creates Australia’s largest independent market and customer insight consultancy. The business has offices in Sydney, Melbourne, Canberra, Auckland and Singapore, a team of 200 and more than 250 clients across 40 countries serving multiple industries including financial services, telecommunications, FMCG, media and entertainment, social and government and healthcare.
Fiftyfive5 was acquired by Accenture in December 2022.
Matrix Education is a private education business that provides out-of-school tutoring classes to more than 7,000 school students per year across five Sydney campuses and via an online learning platform, Matrix+.
Matrix is a leader in the Sydney tutoring market and supports the educational journey of a large proportion of New South Wales’ top performing secondary school students each year. The business is now embarking on an exciting period of growth involving new campuses, geographic expansion, establishment of tutoring programmes for primary school students, and enhanced online offerings.
Mercury acquired a 60% shareholding in Matrix in Feb 2023.
E&P Financial Group (‘E&P’) is an Australian Securities Exchange listed scaled and diversified financial services business. E&P employs over 450 staff across three complementary divisions. E&P Wealth services approximately 9,200 clients, representing in excess of $20 billion in funds under advice.
E&P Capital is an advisor to many leading Australian institutions through the provision of research, institutional sales and trading, corporate advisory, equity capital market and debt capital market services. E&P Funds manages approximately $7 billion of assets across a diverse range of asset classes.
E&P was acquired July 2021 (~23% shareholding)
Re.Group is one of Australasia’s largest private municipal recycling businesses, created through the transformational merger of Re.Group and Polytrade which was facilitated by Mercury in 2022. The group provides kerbside recycling services to over 4m citizens across 19 operating sites in Australia. Re.Group has a ~25 year operating history and is a clear market leader in MRFs, further processing, FOGO, and CDS collection schemes. The business recycles ~500k tonnes of material at an industry leading ~88%+ recovery rate.
Mercury acquired a ~38% shareholding in Re.Group in June 2022.
Architectus is a top-tier commercial architecture and design company with over 350 staff and five studios across Australia. Architectus is a trusted design partner to both public and private sector organisations investing in Australia’s community infrastructure. The business will play a critical role in the ongoing expansion and regeneration of infrastructure in sectors such as transport, education, health and community spaces.
Architectus has designed many landmark buildings and spaces across Australia, including major transport hubs, universities and schools, office buildings, cultural sites, and public spaces. Led by over 30 Principal architects, Architectus is known for its collaborative culture and leadership in digital design and delivery, and has been recognised with over 150 national and international architectural design awards over its 20+ year history.
Mercury acquired a 50% shareholding in Architectus in October 2021.
Australasian Landscape Services (ALS) is Australia and New Zealand’s largest provider of commercial landscape maintenance and construction services holding an estimated ~12% market share of the ~A$1bn ANZ market. The ALS group comprises of four leading landscape services businesses including; Green Options (the initial platform asset), Super Gardens, Skyline Landscape Services and Recreational Services. ALS services include specialist sports turf maintenance, lawn care, horticulture, irrigation and landscape construction to customers in the Sports, Education, Commercial and Government end markets across Australia and New Zealand.
Mercury acquired a ~31% shareholding in ALS in May 2021.
ResourceCo is Australasia’s largest private waste to energy and tyre recycling business with ~900 employees across 18 sites throughout Australia and South East Asia. ResourceCo has a 30-year operating history and is the clear market leader in the attractive sectors that underpin the circular economy. The business recycles and recovers ~6m tonnes of material every year, extracting maximum value from materials otherwise destined for landfill. It works closely with governments and communities to progress the circular economy and preserve natural resources for a sustainable future.
Mercury acquired a ~24% shareholding in ResourceCo in December 2020.
are media is Australia and New Zealand’s leading multi-platform publisher across magazines, digital and books. are media is home to some of Australia and New Zealand’s longest-running and most loved brands, across the categories of women’s interest, homes, food and automotive. Each month, are media reaches over 9.7 million Australians and almost 6 in 10 Australian women across its print and digital platforms with brands such as Australian Women’s Weekly, Woman’s Day and New Idea.
Mercury acquired a ~100% shareholding in are media in July 2020.
TEG is the leading provider of ticketing and event promotion services and technology to the live entertainment industry in Australia, New Zealand and South East Asia and with a growing presence in Europe. TEG holds ~70% market share in Australia and New Zealand for ticketing for large concerts and top tier sports events primarily via its core ticketing brand, Ticketek, and is a leader in event promotion with a focus on tier 1 concerts. TEG employs ~500 staff across its operations in Australia, New Zealand, South East Asia and the United Kingdom.
Mercury acquired a ~7% shareholding in TEG in March 2020.
Squiz is a Sydney headquartered and globally focused enterprise software business with operations in Australia, New Zealand, United States, United Kingdom and Poland. Squiz offers its core Digital Experience Platform and Enterprise Search products and related services to more than 500 customers across a wide range of sectors and is a leading provider in the specialist niches of Government and Higher Education. Squiz’s products are consistently rated as global leaders in Gartner’s Magic Quadrant, the industry benchmark for enterprise software. Squiz currently employs a growing base of ~350 staff across 12 offices worldwide.
Mercury acquired a 30% shareholding in Squiz in August 2019.
IVHQ is the world’s leading volunteer and internship travel organisation placing 18,000 volunteers and interns per year and more than 120,000 since 2007. IVHQ offers the broadest range of affordable volunteer and intern adventure experiences with more than 300 volunteer and 200 internship projects across more than 50 destinations in over 40 countries. IVHQ is a values-led organisation and a Certified B-Corp who are proud to have built long term partnerships with local communities and an unrivalled safety record for volunteers and interns. IVHQ’s passion is to provide immersive and meaningful travel experiences for volunteers and interns while contributing to projects that make a difference to local communities.
Mercury acquired a 75% shareholding in IVHQ in December 2017.
Avive Health is a specialist mental health hospital operator based in Sydney, Australia. The business is establishing and will operate state of the art, purpose built, mental health hospitals across Australia. Avive Health partners with leading psychiatrists to deliver world class care to its diverse patient base across a range of clinical diagnoses with a focus on addiction, mood and anxiety disorders amongst others. Mercury is partnered in the investment with the deeply experienced founders, management team and Foundation Doctor Shareholders.
Mercury acquired a 48% shareholding in Avive Health in January 2023.
CFO – Mercury Capital Fund twenty2
Justina is an accountant with over 15 years of experience, Justina previously worked at Blackbird Ventures, Pacific Equity Partners, Macquarie Group and the Reserve Bank of Australia. At Mercury, Justina will be looking after the financial operations of Mercury Capital Fund twenty2.
Justina is a member of Chartered Accountants Australia and New Zealand, and a CFA charterholder.
Compliance and Operations
Rose previously worked at Goldman Sachs JBWere within the Principal Investment Area assisting with the operation of the private equity and mezzanine debt funds.
Rose assists with the office administration, compliance and operations for Mercury Capital.
Office Manager
Danielle joined Mercury Capital as Office Manager in 2022.
Prior to this Danielle worked at Jefferies Australia developing her skills in business and facility management.
Danielle provides support to the investment team.
Associate
Previously a consultant at Bain & Company, before joining Mercury Capital in 2022, having worked on buy-side/sell-side transactions, growth strategy and performance improvement across a range of industries (technology, consumer products, transportation, and energy & natural resources) and geographies (Australia, Europe, and Asia).
Holds a Bachelor of Engineering (Hons) and Bachelor of Commerce from the University of Canterbury.
Investment Manager
Combined 8 years of private equity and consulting experience including four years at Boston Consulting Group (Melbourne and New York) before joining Mercury Capital in 2018
Involved with Fund 3 investments into Squiz, ResourceCo, E&P, Architectus, and Re.Group, and currently serves on the board of ResourceCo.
Holds a Bachelor of Commerce (Valedictorian, Honours in Economics) from the University of Melbourne.
Chairman of No. 1 Fund, Fund 2, Fund 3 and Fund Twenty2, and CEO of the Manager
Clark founded Mercury Capital in 2010 and is the Chairman of the Mercury Capital Funds and the Chief Executive of Mercury Capital, the Manager of each Fund.
Clark has worked in investment markets for over 30 years, which includes over 20 years of private equity experience. He was Head of the Merchant Banking Division of Goldman Sachs JBWere, and Executive Chairman of GSJBW’s Private Equity Funds, Hauraki No 1, Hauraki No 2 and Trans-Tasman PE Fund. Total of 14 years with GSJBW, including Director of GSJBW Australia, member of the Management Committee, and Chairman and CEO of GSJBW NZ
Clark is Chairman of Tamaki Health, director of Blue Star, Squiz, TEG, Are Media, ResourceCo and Re.Group and board observer in E&P Financial Group
Holds a Bachelor of Commerce from the University of Auckland
MessageMedia is a leading global customer engagement platform providing software to businesses that enables the management and delivery of two-way messaging communication. MessageMedia is the largest SME focused platform globally with 60,000 customers worldwide and over 26,000 customers in the large US market. MessageMedia sent more than 5 billion messages via its gateway in FY21 across Australia, New Zealand, the United States and the United Kingdom.
MessageMedia was acquired by Sinch in November 2021.
Partner
Over 16 years private equity experience in Australia, including four years at global private equity firm CVC Capital Partners before joining Mercury Capital at establishment in 2010
Commenced in M&A investment banking at JP Morgan, Sydney, focused on the general industrials and power, utilities and infrastructure sectors
Current portfolio Directorships include Blue Star and Are Media
Holds a Bachelor of Civil Engineering (First Class Honours) and Bachelor of Commerce degrees from the University of Western Australia
Partner
Combined 21 years private equity and consulting experience including six years at Australian mid-market firm Crescent Capital, two years at buy-out firm Pacific Equity Partners and three years with McKinsey & Company
Broad experience across deals with enterprise values ranging from $50m – $1bn with responsibility for deal identification and completion, managing portfolio companies and overseeing exits
Current Directorships include Tamaki Health, Australian Landscape Services and Architectus
Holds a Bachelor of Civil Engineering (First Class Honours) and a Bachelor of Business Administration (Distinction) from RMIT University (Melbourne)
Associate
Previously a consultant at Bain & Company, before joining Mercury Capital in 2020. Experience advising on private equity transactions and growth strategy across industries such as consumer goods, financial services, technology, and sport.
Involved with investments into Green Options and Architectus, and currently serves on the board of Architectus.
Holds a Bachelor of Laws and Bachelor of Commerce from the University of Auckland.
Chairman of No. 1 Fund and Fund 2, and CEO of the Manager
Clark founded Mercury Capital in 2010. Mercury initially raised a A$120m Fund in mid 2010, followed by a subsequent A$300m Fund in 2015 and the current A$600m in 2018. Clark is the Chairman of the Mercury Capital Funds and the Chief Executive of Mercury Capital, the Manager of each Fund. Head of the Merchant Banking Division of Goldman Sachs JBWere, and Executive Chairman of GSJBW’s Private Equity Funds, Hauraki No 1, Hauraki No 2 and Trans-Tasman PE Fund. Total of 14 years with GSJBW, including Director of GSJBW Australia, member of the Management Committee, and Chairman and CEO of GSJBW NZ
Clark is Chairman of Message Media, Hexagon, Tamaki Health and Are Media and a director of Blue Star, Squiz and TEG
Chief Financial Officer
Over 20 years experience across multiple disciplines in finance, compliance, tax, fund and business operations
Worked across various investment banks such as Bankers Trust, Deutsche Bank, Challenger Financial Services, Morgan Stanley and Goldman Sachs before joining Mercury Capital at establishment in 2010
Member of Chartered Accountants Australia and New Zealand
Hexagon Holdings (Hexagon) was formed by Mercury Capital through the acquisitions of Kiwi Labels, Rapid Labels, Hally Labels and Adhesif Labels. The business is Australasia’s leading label printer and benefits from a diverse customer base and deep expertise in several attractive market niches. The Hexagon businesses employ approximately 500 staff across eight production facilities.
Hexagon was acquired by Multi-Colour (New Zealand) in October 2021.
NXP is a New Zealand business supplies company, providing thousands of products across multiple procurement categories via a single-source procurement portal. NXP is the leading New Zealand B2B and e-commerce company servicing enterprise and government customers, the largest provider for the contract cleaning industry and is growing rapidly in the SME market. Key product lines include facilities & hygiene supplies, office products, coffee and kitchen products, IT and furniture, supplied from distribution centres in Auckland, Wellington and Christchurch. NXP has in excess of NZ$150m revenue and 200 employees. It is the primary supplier of critical PPE to the New Zealand government, Ministry of Health and other large customers during the 2020 COVID pandemic.
NXP was acquired by Tiri Group in October 2021.
Australian Animal Hospitals (AAH) is the largest veterinary services group in the Perth and Adelaide metropolitan markets operating 20 large full service clinics. AAH is focused on serving the companion animal market and enjoys strong customer loyalty, being recognised as the market leader in the delivery of high quality clinical care. The business employs approximately 100 staff with its head office based in Perth.
Australian Animal Hospitals was acquired by Vet Partners in February 2017.
Nexus Day Hospitals (Nexus) is the second largest day hospital operator in Australia with 12 facilities located across Sydney, Melbourne, Adelaide, Hobart, Perth, Albury, Newcastle and Canberra. Mercury invested into Nexus to facilitate the acquisition by Nexus of National Day Surgeries, to create a larger group. The combined business operates across five main medical craft groups (ophthalmic, gastro, plastic, orthopaedic and pain) with high quality surgical facilities and a management team with deep industry experience. Mercury was partnered in the investment by approximately 70 shareholder doctors.
Nexus was acquired by QIC in November 2019.
Novotech is Asia’s leading independent full service contract research organisation (CRO). Novotech’s core business is to provide outsourced clinical trial management services to US and European biotech and pharmaceutical companies. These services include feasibility, trial regulatory and ethics approval, investigator and site management, and ensuring compliance with highly prescriptive trial protocols and regulations. Novotech manages the Australian and Asian elements, providing its customers with access to one of the world’s largest and fastest growing healthcare markets. Novotech currently employs 300 staff across a network of 14 offices in 12 countries.
Novotech was acquired by TPG Capital in September 2017.
Estia Health Care is one of Australia’s largest Aged Care businesses with staff of over 4,000 operating across 50 residential facilities. Mercury’s investment into Estia Health Care, together with the acquisition of Padman and Cook Care, created a diversified national business with significant presence in the NSW, Queensland, SA and Victorian markets. Estia Health Care listed on the ASX in December 2014 and since has been an active consolidator in the industry continuing its strategy of acquiring and integrating aged care facilities as a key growth enabler.
Estia was listed on the Australian Securities Exchange in December 2014.
HealthStrong is a leading provider of allied health services into the Australian market. Based in Sydney, HealthStrong employs over 250 allied health practitioners including physiotherapists and occupational therapists. These staff deliver essential pain management and functional physiotherapy services to a large group of for-profit and not-for-profit residential aged care facilities and community care providers across Australia.
HealthStrong was acquired by Medibank in June 2017.
TBC
Website TBC
Currently Chairman of Blue Star and Hexagon. and previously Managing Director of Clayton Dubilier investment Blue Star Group
Previously Director Hauraki No. 1 Fund and Hauraki No. 2 Fund
Currently chairman and owner of the Tiri Group
Prior to immigrating to New Zealand, Chairman CEO of United Stationers, Redman Industries, and RBP Holdings
Previously co-founder of PE fund Wingate Partners, the No. 1 ranked fund by Buyouts magazine (prior to 2003)
Founded Sky Television where he was Director and Chairman until 2001
Formed Rainbow Corporation which built and operated leisure venues throughout New Zealand. Exited to Brierley Investments in 1987 after diversifying primarily into Australasian food retailing
Became a Director of Brierley Investments, Progressive Enterprises and Woolworths Australia
Board member of New Zealand United States Business Council