A new growth capital firm is seeking to raise more than $50 million for an initial fund.
Sydney-based Premier Capital Partners has been set up by Ryan Sohn, formerly an investment manager with Perennial Partners; Jason Lenga, who has worked as an operating partner for New York growth capital firm Tiger Global; and Paul Lewis, former chief financial officer for listed company Qube Holdings (ASX: QUB).
During six years with Perennial, Sohn co-founded Perennial’s private to public and private growth capital strategies.
Prior to joining Tiger Global, Lenga founded an online recruitment business which he sold to SEEK (ASX: SEK). He then worked as a senior executive at SEEK. Lenga and Lewis have both been active private investors.
Premier Capital Partners’ initial fund is to be structured as a Venture Capital Limited Partnership (VCLP) with a stapled Managed Investment Trust.
The fund will be a seven-year vehicle and will have a three-year investment period.
The management fee will be 1.75% per annum on committed capital through the investment period and then on adjusted capital. A performance fee of 20% will be paid to the manager once the fund has exceeded a return of 8% per annum.
The minimum investor commitment is $250,000 but lower commitments may be accepted at the partners’ discretion.
The investment team will commit a minimum of $7.5 million to the fund.
Premier Capital plans to provide capital and support to high quality mid-market private growth companies and will target a net internal rate of return of 25% plus.
The investment team recognise a market opportunity in the private growth capital space as most private investment funds focus on early-stage venture capital or buyouts of established businesses. Venture firms that have set up growth funds mostly focus on providing capital to companies backed by their early-stage funds. The team believe there remains a clear gap for a dedicated private growth fund looking to invest in the range $5 million to $20 million.
Premier Capital has made its first investment, contributing to a $60 million Series C round for technology-enabled debt collection company InDebted.
Image: Premier Capital Partners co-founder Ryan Sohn.