https://www.theaustralian.com.au/bu...t/news-story/80977701a1db3cf06df5e35114d34f2a
Auctus in raising for its pet project
Auctus is looking at a 5 per cent cash dividend out of the portfolio and a 15 per cent internal rate of return.
- EXCLUSIVE
DAMON KITNEY
VICTORIAN BUSINESS EDITOR
- 12:00AM NOVEMBER 25, 2020
Auctus, the ASX-listed investment group backed by a branch of the billionaire Wilson family, owners of bathroom products giant Reece, is raising up to $50m to support the growth strategy of Australasia’s largest family-owned pet specialty retailer.
Under the terms of the deal struck with the business known as PETstock, Auctus will work to generate investment in a specialty fund of between $30m and $50m, which will be used to invest in PETstock to provide equity capital to support its future growth.
It is the first time that PETstock, which has more than 170 stores across Australia and New Zealand providing products and services for all pet owners, has raised external capital outside of their friends and family network in its 30-year history.
“We believe that the quality and defensiveness of the PETstock business, experienced management, internal culture, family ownership and growth profile will appeal to the Auctus sophisticated and wholesale investor network,” Auctus told investors this week.
Auctus has grown to have more than $230m in assets under Management, focusing on opportunities across private equity, infrastructure and private real estate.
Auctus’s biggest backer is Wolf Capital, a private investment company established by Bruce Wilson in 2011.
Bruce and his brothers Alan and John Wilson and the Wilson family own 67 per cent of the listed Reece Group.
Bruce’s son Andrew Wilson, the managing director of Wolf Capital, became a non-executive director of Reece after his father stepped down from the board two years ago.
Wolf Capital owns more than 10 per cent of Auctus and was the first external shareholder into the listed group.
“They have built up their shareholding over the past two years as they have built up the confidence in what we are doing,” Auctus chief executive Campbell McComb said.
In August, Auctus further strengthened its balance sheet with a $4m placement to sophisticated investors, which was backed by PETstock chief executive Shane Young, Sydney investor John Plummer and Dorman Capital, the private investment office of the Dorman family. Bryan Dorman co-founded residential aged-care giant Regis Healthcare.
The funds established by Auctus are set up as special purpose vehicles. Each new transaction is housed in its own fund.
Off the back of reaching $100m in assets under management earlier this year, Auctus recently announced a $US50m ($68m) fund in a joint venture with US-based student housing asset manager Student Quarters.
“This is a really good asset class and we are now looking at setting up a feeder trust out of Asia,” Mr McComb said. “It will be a broad portfolio of student accommodation assets. The aim is to build the fund to $US250m of equity over three years.’’
He said COVID-19 had actually helped Student Quarters: the US firm has its accommodation off site from universities in major cities within a mile of the campuses, offering two to three-bedroom apartments.
Auctus is looking at a 5 per cent cash dividend out of the portfolio and a 15 per cent internal rate of return.
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