Quadrant Private Equity

{{Infobox company

|name = Quadrant Private Equity

|logo = Quadrant_Private_Equity_Logo.png

|type = Proprietary limited company

|foundation = {{Start date and age|1996}}

|founder = Chris Hadley

|former_name = Quadrant Capital

|location = Sydney, Australia

|industry = Private Equity

|products = Private equity funds

|assets =

|subsid =

|homepage = {{URL|http://quadrantpe.com.au/}}}}

Quadrant Private Equity (also simply known as Quadrant) is an Australian private equity investment firm based in Sydney, Australia. The company was founded as Quadrant Capital in 1996 by Chris Hadley.{{cite web |url=https://www.afr.com/street-talk/rock-star-reception-for-quadrant-private-equity-s-1-24b-raising-20201209-p56lvw |title=Rock-star reception for Quadrant Private Equity's $1.24b raising |date=10 December 2020 |work=Australian Financial Review |first1=Sarah |last1=Thompson |first2=Anthony |last2=Macdonald |first3=Tim |last3=Boyd}} Hadley now serves as the firm’s Executive Chairman.{{cite web|url=https://www.afr.com/street-talk/quadrant-crows-about-500m-canva-investment-20240502-p5foi1|title=Quadrant crows about $500m Canva investment|website=AFR|date=May 2, 2024|author=Sarah Thompson|access-date=February 15, 2025}}

Quadrant hosts multiple investment funds which invest in businesses across a wide array of industries and sectors, specifically targeting management buyouts, growth capital and strategic equity transactions.{{cite web|url=https://www.privateequitywire.co.uk/2007/05/03/quadrant-closes-usd-500-million-private-equity-fund|title=Quadrant Closes USD 500 million private equity fund|date=3 May 2007|work=Private Equity Wire|access-date=20 May 2018}} The first three Quadrant funds delivered a collective 37% return between 1996 and 2006. Since its inception, Quadrant has raised $10 billion throughout 15 funds and has made over 100 investments.{{cite web|url=https://www.quadrantpe.com.au/about|title=About|website=Quadrant|access-date=February 15, 2025}}

The firm has owned or co-owned a number of well-known Australian companies including: Canva, Adore Beauty, Amart Furniture, Pumpkin Patch, One Rail Australia, Fletcher Building, TOWER Software, Virtus Health, Craveable Brands, Affinity Education, Barbeques Galore, Darrell Lea, Journey Beyond, Fitness First, and Timezone.{{Cite web |date=2023-10-13 |title=Quadrant pauses $1b Affinity auction, eyes ACCC childcare report |url=https://www.afr.com/street-talk/quadrant-pe-pauses-affinity-education-sale-cites-accc-childcare-report-20231013-p5ec4h |access-date=2023-10-18 |website=Australian Financial Review |language=en}}{{Cite web |date=2023-08-16 |title=Early obituary for Quadrant's Jonathon Pearce |url=https://www.afr.com/rear-window/early-obituary-for-quadrant-s-jonathon-pearce-20230816-p5dwzd |access-date=2023-10-18 |website=Australian Financial Review |language=en}}{{Cite news |last=Carter |first=Bridget |date=17 June 2023 |title=Barbeques Galore gets cooking with E&P Corporate Advisory |work=The Australian |url=https://www.theaustralian.com.au/business/dataroom/barbeques-galore-gets-cooking-with-ep-corporate-advisory/news-story/e2b32b7455e71e2a2d440c265e7b79ef}}{{Cite news |last=Carter |first=Bridget |date=19 May 2019 |title=Quadrant's Darrell Lea sale on the back burner |work=The Australian |url=https://www.theaustralian.com.au/business/dataroom/quadrants-darrell-lea-sale-on-the-back-burner/news-story/6a2339e61e041d69ba927233cdb35b41}}

Quadrant is Australia's largest fitness centre operator through acquisitions of brands including Fitness First, Jetts Fitness and GoodLife Fitness.{{cite web|url=https://www.westpac.com.au/news/in-depth/2017/08/fitness-and-funds-but-is-fitting-in-a-workout-half-the-work/|title=Fitness and funds - but is fitting in a workout half the work?|last=Bennet|first=Michael|date=25 August 2017|work=Westpac|access-date=20 May 2018}} Quadrant has floated a number of its interests on the Australian Securities Exchange (ASX) including Kathmandu, Virtus Health,{{cite web|url=https://www.fool.com.au/2013/06/11/virtus-health-not-so-healthy/|title=Virtus Health: Not so healthy|date=11 June 2013|first=Mike|last=King|work=Fool|access-date=20 May 2018}} Isentia,{{cite web|url=https://www.businessinsider.com.au/isentia-float-values-ceo-media-monitoring-veteran-john-crolls-holding-at-18-4-million-2014-6|archive-url=https://web.archive.org/web/20140610054618/http://www.businessinsider.com.au/isentia-float-values-ceo-media-monitoring-veteran-john-crolls-holding-at-18-4-million-2014-6|url-status=dead|archive-date=10 June 2014|title=iSentia Float Values Media Monitoring Veteran John Croll's Holding At $18.4 Million|work=Business Insider Australia|date=6 June 2014|first=Chris|last=Pash|access-date=20 May 2018}} APN Outdoor, Bapcor (previously Burson Auto Parts) and Estia Health.{{cite web|url=https://www.nabtrade.com.au/investor/insights/latest-news/news/2017/06/lessons_for_particip|title=Lessons for participating in private equity floats|date=16 June 2017|access-date=20 May 2018|work=NAB|first=James|last=Dunn}}

Notable investments

File:Red Rooster Wagga Wagga.jpg outlet]]

File:Ghan-Loco.jpg, a rail service operated by Journey Beyond]]

File:Fitness First centre in Sydney.jpg gym in suburban Sydney, Australia in 2016.]]

Quadrant bought Kathmandu Holdings in 2006 for NZ$275 million, floating the company on the ASX three years later for around AU$350 million.{{cite web|url=https://www.reuters.com/article/kathmandu-ipo-idUKSYD48575620091019|work=Reuters|title=UPDATE 2-Australian retailer Kathmandu plans $349 mln IPO|first=Denny|last=Thomas|date=19 October 2009|access-date=20 May 2018}}

In 2007, Quadrant acquired Australian-owned fast food restaurants Red Rooster, Chicken Treat and Oporto in deals collectively worth A$240 million, forming Quick Service Restaurant Holdings (renamed in 2017 as Craveable Brands). The group of 620 stores was sold in 2011 to Archer Capital for A$450 million.{{cite web|url=https://www.reuters.com/article/archer-acquisition/update-1-australias-archer-buys-fast-food-chain-for-a450-mln-idUSL3E7HD2WO20110613|title=UPDATE 1-Australia's Archer buys fast food chain for A$450 mln|work=Reuters|access-date=20 May 2018|date=14 June 2011|first=Victoria|last=Thieberger}}

Quadrant purchased a half-stake in advertising company APN Outdoor in 2011, before acquiring the remaining stake from APN News & Media in 2013 for around A$70 million.{{cite web|url=http://www.adnews.com.au/adnews/apn-set-to-sell-outdoor-business-to-quadrant|title=APN set to sell outdoor business to Quadrant|date=22 October 2013|work=AdNews|access-date=20 May 2018}} It was listed on the ASX in 2014.{{cite web|url=https://mumbrella.com.au/apn-outdoor-close-first-day-trading-262077|title=APN Outdoor close down on first day of trading|work=Mumbrella|first=Alex|last=Hayes|date=11 November 2014|access-date=20 May 2018}}

In 2012, Quadrant and Ironbridge Capital formed BBQSAM Holdings after acquiring retailers Barbeques Galore and Amart Furniture.{{cite web|url=https://www.sunshinecoastdaily.com.au/news/amart-and-barbeques-galore-sold/1505939/|title= A-Mart and Barbeques Galore sold |date=15 August 2012|access-date=20 May 2018|work=Sunshine Coast Daily|publisher=News Corp Australia}}{{cite web|url=https://www.ibisworld.com.au/australian-company-research-reports/retail-trade/bbqsam-holdings-pty-ltd-company.html|title= BBQSAM Holdings Pty Ltd - Profile Company Report Australia|date=25 June 2017|work=IBISWorld|access-date=20 May 2018}}

Quadrant purchased Zip Industries in 2013{{cite web|url=https://australianhotwater.com.au/6912-2/|title=Michael Crouch – Australia's hot water king dies age 84|work=Australian Financial Review|first=Paul|last=Clearly|date=20 February 2018|access-date=20 May 2018}} from its founder, and after abandoning an IPO offloaded the company to Culligan in 2017 for around US$550 million.{{cite web|url=https://www.afr.com/street-talk/us-water-treatment-company-buys-quadrants-zip-industries-20170630-gx1wkc|title=US water treatment company buys Quadrant's Zip Industries | date=30 June 2017|access-date=20 May 2018|work=Australian Financial Review|url-access=subscription}}

In 2014, Quadrant purchased a 45% stake in Canberra Data Centres for A$140 million, selling the businesses two years later.{{cite web|url=https://www.itnews.com.au/news/canberra-data-centres-taken-over-in-800m-deal-419774|title=Canberra Data Centres taken over in $800m deal|date=19 May 2016|access-date=20 May 2018|work=IT News|first=Juha|last=Saarinen}} The deal was recognised with an award from The Australian Private Equity and Venture Capital Association Limited (AVCAL).{{cite web|url=https://www.businessinsider.com.au/the-best-australian-private-equity-deals-of-2017-2017-9|archive-url=https://web.archive.org/web/20170916004340/https://www.businessinsider.com.au/the-best-australian-private-equity-deals-of-2017-2017-9|url-status=dead|archive-date=16 September 2017|work=Business Insider Australia|first=Chris|last=Pash|date=15 September 2017|access-date=20 May 2018|title=The best Australian private equity deals of 2017}}

In 2015, Quadrant purchased Queensland-based pet food company VIP Pet Foods for A$410 million. After renaming the company The Real Pet Food Company, Quadrant sold the business to a foreign consortium including Singapore's Temasek Holdings and Chinese firms Hosen Capital and New Hope Group for A$1 billion in 2017.{{cite news|url=http://www.abc.net.au/news/2017-10-24/chinese-investors-sink-teeth-into-pet-food-company/9081298|title=Real Pet Food Company: Chinese investors gobble up Queensland business targeting four-legged gourmets|date=24 October 2017|work=ABC News|first=Peter|last=Ryan|access-date=20 May 2018}}

In 2016, Quadrant acquired restaurants owned by chef Neil Perry through its Urban Purveyor Group for a reported A$65 million, creating the Rockpool Dining Group.{{cite web|url=https://www.smh.com.au/business/small-business/how-private-equity-swallowed-rockpool-20180426-p4zbvv.html|title=How private equity swallowed Rockpool|date=28 April 2018|work=Sydney Morning Herald|access-date=20 May 2018|publisher=Fairfax Media|first=Cara|last=Waters|url-access=limited}} Quadrant acquired a majority stake in Great Southern Rail in 2016, operator of the Indian Pacific and The Ghan train journeys, folding the company into its investments in Cruise Whitsundays and Rottnest Express to form tourism company Experience Australia Group.{{cite web|url=https://www.smh.com.au/business/control-of-the-indian-pacific-ghan-changes-one-more-time-in-private-equity-reshuffle-20160915-grgwej.html|title=Control of the Indian Pacific, Ghan changes one more time in private equity reshuffle|work=Sydney Morning Herald|access-date=20 May 2018|date=15 September 2016|publisher=Fairfax Media}}[https://web.archive.org/web/20200918114258/https://thewest.com.au/business/finance/rottnest-express-anchors-new-tourism-play-ng-ya-123258 Rottnest Express anchors new tourism play] The West Australian 15 November 2016

Also in 2016, Quadrant Private Equity formed Fitness and Lifestyle Group, after purchasing Jetts Fitness, Goodlife Health Clubs, Hypoxi and the Australian arm of Fitness First, becoming the largest operator of fitness centres in Australia. The holding company is partially-owned by Oaktree Capital Management.{{cite web|url=https://www.ausleisure.com.au/news/quadrant-expands-wellness-empire-with-aquisition-of-fitness-first-australia/|title=Quadrant expands wellness empire with acquisition of Fitness First Australia|work=Australasian Leisure Management|date=29 September 2016|access-date=19 May 2018}}{{cite web|url=https://www.sbs.com.au/news/fitness-first-gyms-in-new-hands|title=Fitness First gyms in new hands|work=Australian Associated Press|publisher=Special Broadcasting Service|date=30 September 2016}} Queensland-based Go Health Clubs were added in 2017.{{cite web|url=https://www.ausleisure.com.au/news/fitness-and-lifestyle-group-acquires-go-health-clubs/|title=Fitness and Lifestyle Group acquires Go Health Clubs|date=27 October 2017|work=Australian Leisure Management|access-date=20 May 2018}} The Australian arm of Jetts Fitness was divested in 2022, retaining the international Jetts brand.{{cite web|url=https://www.businessnewsaustralia.com/articles/fitness-first-parent-divests-franchise-division-of-jetts-fitness-via-management-buyout.html|title=Fitness First parent divests franchise division of Jetts Fitness via management buyout|work=Business News Australia|date=26 September 2022|access-date=6 January 2023}}

In 2017, Quadrant acquired a partial stake in gaming arcade company Timezone.{{cite web|url=https://thewest.com.au/business/mergers-and-acquisitions/perth-family-behind-timezone-sells-out-to-quadrant-ng-b88658453z|title=Perth family behind Timezone adds second player|first=Sean|last=Smith|work=The West Australian|date=13 November 2017|access-date=20 May 2018}}

In 2017, Quadrant sold their majority share of Icon Group, Australia's largest oncology provider, in a reported $1.1 billion deal.{{cite news |title=Icon Group won't slow growth after $1.1b deal |url=https://www.afr.com/business/banking-and-finance/icon-group-wont-slow-growth-after-11b-deal-20170522-gwa0st |access-date=17 July 2018 |work=Australian Financial Review |date=22 May 2017}}

Quadrant purchased an 80-90% stake in confectionary company Darrell Lea in 2018 in a deal worth around A$200 million.{{cite news|url=http://www.abc.net.au/news/2018-01-16/darrell-lea-sold-to-private-equity-firm-for-$200-million/9333012|title=Darrell Lea sold to private equity for $200 million; outgoing owner says 'absolutely no job cuts'|first=David|last=Chau|work=ABC News|date=16 January 2018|access-date=20 May 2018}}{{cite news|url=http://www.afr.com/street-talk/quadrant-private-equity-buys-darrell-lea-sources-20180115-h0ii22|title=Quadrant Private Equity buys Darrell Lea|last1=Thompson|first1=Sarah|date=15 January 2018|newspaper=Australian Financial Review|access-date=15 January 2018|archive-url=https://web.archive.org/web/20180115151216/http://www.afr.com/street-talk/quadrant-private-equity-buys-darrell-lea-sources-20180115-h0ii22|archive-date=15 January 2018|url-status=live|last2=Macdonald|first2=Anthony|last3=Moullakis|first3=Joyce|df=dmy-all|url-access=subscription}}

In 2019, Quadrant bought auction business Grays Online for A$60 million from Eclipx Group.{{cite web|url=https://au.finance.yahoo.com/news/eclipx-share-price-rockets-28-050236600.html|title=Eclipx share price rockets 28% higher on GraysOnline sale news|first=James|last=Mickleboro|work=Yahoo Finance|date=5 July 2019}}

In 2020, Quadrant bought the Enterprise business from Arq Group as part of a consortium for A$35 million.{{Cite web |date=2020-02-11 |title=Quadrant Growth Fund buys Arq Enterprise for $35m |url=https://www.afr.com/street-talk/quadrant-growth-fund-buys-arq-enterprise-for-35m-20200211-p53zqv |access-date=2022-05-06 |website=Australian Financial Review |language=en}}

Quadrant acquired Jaybro, a supplier to the construction and infrastructure sector operating in Australia and New Zealand, in March 2022.{{Cite web |last=Carcano |first=Sonia |title=Quadrant Private Equity's Acquisition of Jaybro |date=3 March 2022 |url=https://globallegalchronicle.com/quadrant-private-equitys-acquisition-of-jaybro/ |access-date=2022-05-06 |language=en-US}}{{Cite web |last=Croft |first=Lauren |date=2022-03-14 |title=Jaybro acquired by private equity firm |url=https://www.lawyersweekly.com.au/biglaw/33873-jaybro-acquired-by-private-equity-firm |access-date=2022-05-06 |website=www.lawyersweekly.com.au |language=en-gb}}

Quadrant’s second Growth Fund invested in three New Zealand cybersecurity businesses in March 2023; the trio offers GRC, penetration testing, and cloud security services.{{Cite web |last=O'Neill |first=Rob |date=2023-10-12 |title=Cyber security roll-up Bastion rolls up threat intelligence specialist Cassini |url=https://www.reseller.co.nz/article/1294899/cyber-security-roll-up-bastion-rolls-up-threat-intelligence-specialist-cassini.html |access-date=2024-12-10 |website=www.reseller.co.nz |language=en-gb}}{{cite web|url=https://www.afr.com/street-talk/quadrant-pe-scoops-up-kiwi-cybersecurity-trio-20230330-p5cwsj|title=Quadrant PE scoops up Kiwi cybersecurity trio|website=AFR|date=March 30, 2023|author=Anthony MacDonald|access-date=February 15, 2025}}

Quadrant’s Strategic Equity Fund closed its biggest investment in May 2024; $500 million was invested into Canva’s secondary sale at a $25 billion valuation. Also in May 2024, Quadrant invested growth equity into Birch & Waite, valuing the company at $300 million.{{cite web|url=https://www.afr.com/street-talk/quadrant-dips-into-fortitude-s-300m-plus-commercial-food-biz-20240505-p5fp14|title=Quadrant dips into Fortitude’s $300m-plus commercial food biz|website=AFR|date=May 6, 2024|author=Sarah Thompson|access-date=March 24, 2025}}

It was announced in August 2024 that Quadrant partner Johnny Zhang accepted terms to invest in Evolution Surgical, a manufacturer of spinal implants.{{cite web|url=https://www.afr.com/street-talk/quadrant-growth-fund-dealmaker-invests-in-fast-growing-medtech-20240826-p5k5ak|title=Quadrant Growth Fund dealmaker invests in fast-growing medtech|website=AFR|date=August 6, 2024|author=Sarah Thompson|access-date=March 24, 2025}} In November 2024, the firm offloaded its majority stake in Quad Lock to Thule in a deal that valued Quad Lock at $500 million.{{cite web|url=https://www.afr.com/companies/retail/quadrant-strikes-500m-deal-to-offload-outdoor-phone-group-quad-lock-20241111-p5kpmy|title=Quadrant strikes $500m deal to offload outdoor phone group Quad Lock|website=AFR|date=November 11, 2024|author=Carrie LaFrenz|access-date=March 24, 2025}}

In 2025, workers at Affinity Education{{snd}}which owns Australian childcare brands such as Papilio, Milestones and Kids Academy{{snd}}told of a toxic workplace culture where cost cutting, low wages, staff shortages and overreliance on trainees led to children being abused and harmed. Parents said conditions had dropped at childcare centres after Affinity bought them. Affinity expanded from 150 to 250 childcare centres since Quadrant took over, and in New South Wales its rate of compliance actions from the government regulator had increased to more than triple that of other providers.{{cite web |last1=Ferguson |first1=Adele |last2=Gillett |first2=Chris |date=12 May 2025 |title=Video shows childcare worker hitting baby and laughing about it at Affinity Education centre |url=https://www.abc.net.au/news/2025-05-12/video-shows-childcare-worker-hitting-baby-at-affinity-education/105268298 |website=ABC News |publisher=Australian Broadcasting Corporation |access-date=22 May 2025}}

Funds

Quadrant Private Equity has operated a total of 15 individual funds.{{cite web|url=http://quadrantpe.com.au/Investments.aspx|title=Quadrant Private Equity Investments|work=Quadrant Private Equity|access-date=20 May 2018}}{{cite web|url=https://www.afr.com/street-talk/quadrant-banks-600m-for-third-growth-fund-20241220-p5kzw2|title=Quadrant banks $660m for third growth fund|website=AFR|date=December 20, 2024|author=Sarah Thompson|access-date=February 15, 2025}}{{cite web|url=https://www.afr.com/street-talk/future-fund-roc-back-quadrant-s-second-bite-at-motorone-20221031-p5buej|title=Future Fund, ROC Partners back Quadrant's new buyout fund|website=AFR|date=November 1, 2022|author=Anthony MacDonald|access-date=February 15, 2025}}

Fund	Years active	Capital ($m)	{{tooltip\|No.\|Number}} of investments
class="wikitable"
Quadrant Capital Fund No. 1	1996-2007	$50	16
Quadrant Capital Fund No. 2	1998-2008	$75	13
Quadrant Capital Fund No. 3	2001-2009	$125	7
Quadrant Private Equity No. 1	2005-2015	$265	7
Quadrant Private Equity No. 2	2007-2017	$500	5
Quadrant Private Equity No. 3	2010-2020	$750	7
Quadrant Private Equity No. 4	2014-2024	$850	7
Quadrant Private Equity No. 5	2016-2026	$980	5
Quadrant Private Equity No. 6	2017-2027	$1,150	1
Quadrant Growth Fund	2019-2029	$400	8
Quadrant Private Equity No. 7	2020-2030	$1,240	6
Quadrant Growth Fund 2	2021-2032	$520	7
QPE MotorOne Fund	2022-2027	$255	1
Quadrant Strategic Equity Fund	2023-2033	$600	3
Quadrant Growth Fund 3	2024-2034	$660	0

References

External links

{{officialwebsite|http://quadrantpe.com.au/}}

Category:Private equity firms of Australia

Category:Investment companies of Australia

Category:Privately held companies of Australia

Category:Holding companies of Australia

Category:Financial services companies established in 1996

Category:Financial services companies based in Sydney

Category:Australian companies established in 1996

Category:Holding companies established in 1996