Lower mid-market private equity buyout firm Tasman Capital Partners has achieved a first close for its Fund IV.
Led by managing partner Rob Nichols, Sydney-based Tasman has so far raised around $120 million of a $200 million target. The fund will seek lower mid-market investments across Australia and New Zealand.
Tasman has already made two investments from the fund, diversified natural springs water assets owner Black Mount Spring Water, and Acis, a long-established legal services software provider. Black Mount Spring Water was acquired from The Growth Fund late last year, as that firm sought exits to wind down its business. Acis provides a software platform specialising in simplifying the formation and administration of companies, trusts and self-managed superannuation funds. Buy-and-build specialist private equity firm Pemba Capital took a stake in Acis in early 2022.
According to Tasman, the Fund IV first close has secured commitments from global institutional investors including a leading European private bank and a US-based fund-of-funds as well as prominent Asian and Australian family offices.
Tasman managing partner Rob Nichols said: “The support of leading global institutional investors, alongside substantial commitments from existing investors, reflects continued belief in our strategy, team and investment approach.
“Fund IV is launching from a position of strength, with two high-quality platform investments already established and a compelling pipeline of opportunities. We continue to see significant value creation potential across the Australian lower mid-market, a segment that represents the majority of private equity transactions in Australia and remains underserved by institutional capital.”
Nicols said Tasman’s investment strategy focuses on acquiring and growing defensively positioned businesses across Australia and New Zealand and building them, emphasising on operational improvement, strategic acquisitions and long-term value creation.
Fund IV has been structured with an unusually short eight-year term, which Nicols said reflected the firm’s demonstrated ability to realise investments and return capital efficiently while maintaining flexibility to exercise long-term growth strategies. He said he expected the new fund to be substantially deployed by the time it reaches final close which is slated for early March next year.
Tasman retains stakes in residential land lease businesses Serenitas and Tasman Holiday Parks. Tasman founded Serenitas as a joint venture with Singapore government-owned investment company GIC in 2017. Pacific Equity Partners and Mirvac (ASX: MGR) acquired the majority of Serenitas in a $1 billion-plus deal in 2024. Tasman and some of its institutional investors have retained a stake in the business through a continuation fund. Tasman Holiday Parks was established in 2019 as a roll-up strategy in the fragmented caravan and holiday parks industry and now has 45 assets.
Image: Black Mount obtains its water from natural springs across Australia.