Equity fund-of-funds manager Development Australia Fund (DAF) has raised $300 million for its latest private equity fund, DAF III, which it says is the largest PE capital raising in the country this year.
DAF CEO Ian Court described the capital raising as ”a significant achievement” in a tough domestic private equity market and reflects a resurgence of interest in the asset class following a period of uncertainty.
He expects a first close of DAF III by June 30, and to receive further commitments of capital, which would boost DAF III beyond the $400 million mark, at the final close of fund raising, likely to be in September.
The $300 million capital raising takes DAF to $2.7 billion in overall funds under management in the domestic and international private equity and infrastructure sectors.
The capital raised will be allocated across a range of private equity investment opportunities. Capital will be invested in 15 to 20 private equity funds over a two to four year program. Up to 150 existing and early stage Australian enterprises will benefit from the investments, with a significant job creation effect.
Court says DAF allocation targets were to buyouts (45 per cent), expansion capital (35 per cent), venture capital (15 per cent) and other investments (5 per cent).
