Already a subscriber?AustralianSuper, the country’s largest superannuation fund, has been forced to write off more than $1.1 billion in equity and loans tied to an American online education start-up, marking it as its single worst investment in venture capital.
At the weekend, Vista and AustralianSuper walked away from Pluralsight as its debts spiralled, leaving the company in the hands of lenders led by Blue Owl Capital and Ares Management. The Pluralsight failure, which puts a $US900 million valuation on the company, is the highest-profile blow-up in the fast-growing private credit market.
The credit was provided to Pluralsight based on earnings growth expectations, rather than profitability. However, rising interest rates – along with weakening commercial performance – meant the company could not make its repayments. AustralianSuper’s Mr Hargraves said Pluralsight had been backed by several major investors. But the impact of the COVID-19 pandemic, more difficult economic conditions amid rising interest rates and increasing competition had weighed down the company.
“It highlights the importance of founders selling during what I call ‘golden windows’, and that business fundamentals do not change just because the times and technology do.”Sam Kroonenburg did not respond to a request to comment about the fortunes of A Cloud Guru since its sale to Pluralsight.