QIC takes stake in resources firm

QIC's global private equity team has announced it has acquired a minority stake in Queensland-based Ostwald Construction Materials (OCM), the quarry and concrete solutions arm of Ostwald Bros.

Principal at QIC Phillip Cummins said the deal demonstrated QIC was seeing good investment opportunities in Australia's private equity market.

"An equity stake in OCM provides QIC with an investment that we expect to deliver value and benefit over the next two decades in the coal seam gas industry," he said.

"By taking active equity positions in private companies with exceptional founders and experienced management teams such as OCM, we provide capital knowing it can be leveraged to take advantage of growth opportunities to develop the business."

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Ostwald Bros' chief executive officer Brendan Ostwald said the privately owned resource services contractor would now have equity to make use of growth opportunities.

"Much of our work revolves around the Surat Basin so we anticipate this deal will have a direct impact on jobs and opportunities for regional Queensland, and associated national flow-on benefits," Ostwald said.

Cummins said Queensland and Australian companies provided good opportunities in private equity not available in public markets.

"We anticipate dynamic opportunities for investing offshore and cross-border capital directly into attractive investments in Australia, with a key focus on facilitating their growth and development," he said.