Perennial launches private fund for wholesale investors

Perennial Partners has launched its sixth private fund, bringing to market the Perennial Private to Public Evergreen Fund (PPP+) for wholesale investors.

An evergreen version of its existing Perennial Private to Public (PPP) investment strategy, PPP+ offers investors access to a variety of private growth and pre-IPO companies as well as selected IPOs and listed placements available via Perennial’s hub of private company deal flow.

The new fund, made available for wholesale investors from 29 April to the end of June, provides 15 to 25 picks in “domestic, fast-growing, founder-led private businesses” that intend to remain private before undergoing an IPO, trade sale or secondary sell-down.

“In terms of deployment, the domestic private market remains favourable with lower valuations & attractive terms, and few suppliers of this type of private capital,” Brendan Lyons, Perennial’s Head of Private Investments, said.

“On the other hand, we have seen a marked increase in corporate activity (takeovers, mergers and IPOs) in both domestic & offshore public markets since the start of the year.

“There were 93 M&A transactions (both private & public) announced in Australia in the first quarter valued at A$34b in total, while 17 ASX-listed companies received takeover offers with values of A$100m or more in the same period. And in the US, the first quarter of 2024, saw the highest number of public listings in the last two years for larger IPOs (with proceeds above A$1b).

“The combination of attractive terms for fund deployment and a significant increase in corporate activity is the perfect sweet spot to be launching our new PPP+ Fund. This is a favourable dynamic which we haven’t seen in the market for 3-4 years.”

The fund will add to the $700 million currently managed by the Perennial Private Investments team.