First Super, Stafford pen $220m co-investment effort

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The private equity firm’s latest comes just days after another superannuation fund, HESTA, signed a $250 million deal.

Already a subscriber?Stafford Capital Partners has signed a $220 million mandate with First Super, the firm’s second co-investment agreement with a superannuation fund in as many weeks.

Daniel Bowden, Stafford’s head of private equity, has finalised over $400 million in investment agreements with HESTA and now First Super.Under the agreement, Stafford selected nearly 100 private equity managers, which it whittled down to about 15 investment firms, according to First Super chief executive and investment officer, Bill Watson. Those investors then bring possible deals to Stafford, which runs them past Mr Watson’s team.

This agreement also converts the money invested into an evergreen structure, which meant proceeds from sales or exits can be reinvested into new joint deals, Daniel Bowden, a partner at Stafford, said.“What is important is partnering with a private equity manager that is a really significant minority position or, more usually, a control position for that company.

Chaired by former IFM Investors chief Brett Himbury, Stafford manages about $US8 billion in funds. Established in 2000, the firm has crafted out a niche in forestry, timber and renewable power investments across the US, Brazil and Australia.First Super, meanwhile, has changed its strategy towards private equity investing. In 2017, the fund shut down its private equity program due to concerns about poor labour practices at companies linked to First Super’s private equity partners.

 

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