Woodthorpe says that private equity investors are active in the retail sector, despite the gloom. She lists:
- Rebel Sports: (sports retailer) Investor: Archer Capital.
- Super A-Mart: (discount furniture retailer) Investor: Ironbridge Capital.
- Barbeques Galore: (BBQs and outdoor furniture) Ironbridge Capital
- Godfreys: (vacuum cleaner chain) Pacific Equity Partners and CCMP Capital Asia.
- JB-HiFi: (budget electronics retailer) Investor: Next Capital
- Boost Juice: (fresh juice chain) Investor: The Riverside Company
- Lorna Jane: (women’s sportswear retailer) Investor: CHAMP Ventures
- Aesop: (skincare chain) Investor: Harbert Management Corporation.
“For Lorna Jane and Aesop, they needed the capital and expertise to push offshore,” Woodthorpe says.
Advice to leading companies
Gresham still has money to invest from its third fund, which totals $130 million.
Youens suggests that leading companies can overcome their concerns about private equity investors by making sure both parties want the same outcome.
“I say to people who are looking at it for succession or exit to make sure they are aligned with what the investor wants,” he says. “Investors want to grow and sell the business, as some point in time. I say consistently, make sure you have that alignment. Don’t go for higher price; go for the alignment.”
