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Retail guru Brett Blundy leads a who's who list of Australian private equity players who have bankrolled the acquisition of Sydney-based vitamins retailer Mr Vitamins.
Retail guru Brett Blundy leads a who's who list of Australian private equity players who have bankrolled the acquisition of Sydney-based vitamins retailer Mr Vitamins.
It's understood Catalyst Investment Managers managing director Trent Peterson and Ironbridge Funds' partner Josh McKean - who are no strangers to the retail sector - have teamed up to raise a single asset fund called IPMB MrV Fund.
The fund, which is 25 per cent owned by Blundy and includes a host of other high net worth investors, has acquired Mr Vitamins.
Mr Vitamins is a small specialist Sydney vitamins and health foods retailer, which pairs advice from naturopaths with a retail business. It's understood the private equiteers want to expand to at least 10 sites in the next couple of years.
The new investors are working with Mr Vitamins chief executive Peter Barraket, who is also former chief financial officer at Blackmores, and appointed Sanity Music owner Ray Itaoui as chairman.
The new fund - and potentially new business model - has created plenty of interest among private equity investors and dealmakers, who are all pondering the future of the industry as it matures and deals with generational change.
While it is only a small step - the fund raised $29 million for the acquisition - it signals what could be a big shift for the industry. It's understood Peterson and McKean, who have known each other since starting their working careers together as cadets at accounting firm Coopers & Lybrand, had little trouble raising the new fund and closed it inside three weeks.
And, as a few private equity firms re-think their futures in light of the fundraising environment, it's understood the single asset fund was even able to attract a number of self managed superannuation funds [of sophisticated high net worth investors], which has long been the holy grail for local fundraisers.
Blundy is expected to be involved in a mentoring role, but will not be involved in Mr Vitamins on a day-to-day operational basis.
It comes as interest in vitamins and health foods is at record levels, thanks to the stunning run of ASX-listed wholesaler Blackmores.
Mr Vitamins' business is quite different to Blackmores, however. It is about selling highly specialised and typically high quality brands, including products that customers cannot find on supermarket shelves or at their local chemist.
The business was started by chemist and naturopath Abe James about 25 years ago and has two stores in the northern Sydney suburb of Chatswood.
It's understood the plan is to roll it out around Sydney then around Australia.
