Turnaround specialist Allegro Funds has achieved a final close for its latest buyout fund at $750 million.
Allegro Fund IV comprises a $600 million core fund and $150 million in commitments to side-car vehicles.
The fund will continue the mid-market firm’s focus on special situations, turnaround and transformation deals.
Allegro has already made a substantial investment from the new fund, agreeing to pay $NZ572 million for New Zealand service stations business Gull in March. Australia’s Ampol put Gull up for sale to meet anti-monopoly requirements for it to purchase the larger Z Energy service stations business.
Returns from Allegro Fund III began to flow to investors last year. Allegro achieved its first exit from the fund in February with the sale of its stake in New Zealand company Ngahuia Group – operator of retail business Hannahs and Number One Shoes – to its management buyout team.
In July, retail chain Best & Less was listed on the ASX (ASX: BST) after a $60 million IPO. Allegro retained most of its stake with the shares under escrow and intends to sell down over time once it is free to do so.
Image: A substantial investment from Allegro’s new fund has already been made in service stations business Gull.