Unicorn’s listing to boost technology fund

Listed technology expansion capital fund Bailador (ASX: BTI) has confirmed that it expects its investee company SiteMinder to list on the ASX before the end of the year.

In an 18 October announcement, Bailador said a cornerstone bookbuild process ahead of SiteMinder’s IPO implied a valuation of $99.6 million for Bailador’s investment in the company. This represented a $17.1 million (21% uplift) to Bailador’s current valuation. Bailador’s SiteMinder stake is its largest investment.

The valuation represents an effective IRR of 44% and a multiple of investment cost of 22.7x on Bailador’s investment in SiteMinder. The implied NTA impact on the Bailador fund is 12 cents a share.

Bailador said it planned to retain most of its holding in SiteMinder following the listing but would sell down its stake in the IPO to generate a $15.1 million cash return. Assuming the listing goes ahead, the fund would retain the remaining $84.6 million holding and would enter into a voluntary escrow arrangement not to dispose of any part of that stake until after SiteMinder released its full year results for the current financial year.

Sydney-based SiteMinder offers a hotels commerce software platform that is used by accommodation providers around the world. The business has demonstrated strong resilience to disruption to the global travel industry caused by the COVID-19 pandemic.

In September, existing SiteMinder shareholders AustralianSuper and BlackRock led a $100 million pre-IPO funding round for SiteMinder (APE&VCJ, Oct 2021). Global investment and asset management business Fidelity International became a new investor in Siteminder in that round.

Other existing shareholders Ellerston Capital, Pendal Group (ASX: PDL) and Washington H. Soul Pattinson (ASX: SOL), all of whom had previously invested prior to the COVID-19 pandemic (APE&VCJ, Feb 2020) made new investments in the round. The capital raise confirmed SiteMinder’s pre-COVID-19 unicorn valuation of more than $1 billion.

Early investors including Les Szekely of Grand Prix Capital and Equity Venture Partners, who invested at seed stage, Bailador Technology Investments (ASX: BTI) and US-based growth capital firm TCV retained their stakes in SiteMinder.

Bailador co-founder and managing partner Paul Wilson said: “SiteMinder is an Australian tech success story. With a world leading platform, a truly global addressable market, and an A+ grade management team, SiteMinder is exactly the sort of business that we are proud to have as a cornerstone of our portfolio, and to continue to support.”

Disclosure: The writer holds shares in BTI.