With more than $3.8 billion in funds invested since inception, CPE Capital has generated consistent returns over several cycles.
Across the firm's 32 year history, net returns to investors on all exited deals have delivered a compound annual return of 21% pa, compared to the ASX All Ordinaries Accumulation Index return of 9.5% pa over the same period.
In addition, ten landmark investments over this period have averaged a 6x return by turning ~$410m of investors’ equity into ~$2,520m of cash proceeds.
CPE Capital has made 75 platform investments since 1987.
Once a portfolio company achieves the objectives agreed at the time of investment, the CPEC and company management teams examine the nature of the company and its market, management's preference as to future ownership and valuation metrics to determine the most appropriate mechanism for CPEC's exit.
Exits from CHAMP funds I, II, III and IV are listed here.
Gourmet Food Holdings
AWARD: 2018 AVCAL Deal of the Year
Miclyn Express Offshore
United Malt Holdings
AWARD: 2010 AFR Private Equity Exit of the Year AWARD: 2010 AVCAL Best MBO A$100-500m
Bluestar Print Group
Australian Discount Retail
AWARD: 2016 AVCAL Deal of the Year
AWARD: 2011 AVCAL Best MBO A$100-500m
International Energy Services
Australian Pacific Paper
Australian Discount Retail
New Price Retail
Penrice Soda Products
REALISING GROWTH POTENTIAL
Our Approach to Investment
As the country’s most experienced private capital manager, CPEC’s primary investment objective is to realise the growth potential of every company within our portfolio, thus creating value for all stakeholders. We achieve this by identifying outstanding opportunities and partnering with high-quality management teams.
ENHANCING LONG-TERM VALUE
Partnering with Business
Our partnership approach requires executives to invest their own money alongside the Limited Partners in the Fund. This is because the approach incentivises them to make decisions that enhance the company’s long-term value. Our partnership approach also sees us dedicate team members to individual investment opportunities, from the initial due diligence investigations through to our eventual exit. This creates deep relationships between our team and the management of our portfolio companies.
EXITING AN INVESTMENT
Once a portfolio company achieves the objectives agreed at the time of investment, the CPEC and company management teams examine the nature of the company and its market, managements’ preference as to future ownership and valuation metrics to determine the most appropriate mechanism for CPEC’s exit. In the majority of exited investments, management have remained with the company and retained a substantial portion of their equity stake.
At CPE Capital, we believe that environmental, social and governance (ESG) considerations can affect the performance of investment portfolios. To ensure this belief is central to our investment approach, CPEC became a member of the United Nations Principles of Responsible Investment (UNPRI) in 2009 and now submits annual ESG reports under the UNPRI reporting framework.
As part of this process, we collaborate with the management teams of our portfolio companies and external ESG experts, to identify, manage and report ESG related risks and opportunities on an ongoing basis.
We also encourage knowledge sharing across our portfolio companies. This allows us to develop a better understanding of how ESG issues can be translated into incremental investment returns and supports our ability to generate value via the creation of strong, sustainable businesses.
For further information regarding our ESG practices please email email@example.com