Australian Venue Co has engineered its next phase of industry-leading growth, taking CVC Capital in as a new private equity partner.
Australian Venue Co (AVC) is one of the country’s largest operators, currently keeping 243 licensed venues, primarily pubs, across Australia and New Zealand.
CVC Capital Partners Asia VI is a private equity fund managed by Luxembourg-based CVC Capital Partners, which is the private equity strategy of leading global private markets manager CVC.
Toward the end of 2023 Hong Kong-based PAG acquired a majority stake in AVC from New York-based KKR, for a sum reported at the time to be north of $1.4 billion.
Early 2024 CVC closed its sixth Asia fund, (CVC Capital Partners Asia VI), having amassed US$6.8 billion in commitments, which was 50 per cent more than its predecessor. The fund was slated to focus on control, co-control and partnership investments in high quality businesses in core consumer and services sectors.
It has now acquired a 45 per cent stake in AVC from majority owner PAG. The two entities will have equal stake in AVC, with the remaining 10 per cent of equity held by management.
AVC has continued its signature program of acquisition and enhancement.
Just in recent months this has seen HotelHQ in Queensland reopen after extensive renovation, the former Crafty Squire transformed into Hickens Hotel courtesy of a $6.5 million renovation, and the group execute one of its partnership acquisitions with Charter Hall, picking up the freehold and business of Hervey Bay icon the Bayswater Bar & Grill.
The pub giant has not revealed the amount paid by the Asia VI fund, but sources suggest a group valuation of approximately $2.1 billion.
The fresh capital will reportedly fuel AVC’s next round of expansion.
“The combination of CVC and PAG as owners will allow the company to meet its growth strategies to revamp existing premises and deliver better customer experience while also funding new opportunities in major population centres,” says AVC chief executive, Paul Waterson.
Richard Blackburn, head of CVC Australia, praised the pub group and its guiding influences.
“We have long admired AVC and viewed it as best in class both in terms of its customer offering and operations. We’re excited to be partnering with a truly exceptional management team and with PAG to support the next phase of growth for AVC.”
Sid Khotkar, managing director of PAG, went further to suggest the deal benefitted both private equity firms as well as AVC.
“We work to invest in strong businesses in Australia and help make them even stronger.
“This agreement is a testament to that approach and to AVC’s great success.
“We are happy to partner with CVC on this next exciting phase for Paul and the team.”
