SYDNEY 24 AUGUST 2007. Deutsche Bank’s former direct private equity business in Australia, DB Capital Partners, has been divested into a new independent company, Propel Investments, led by two of its former executives Peter Dowding and Albin Kurti.
“This is an exciting opportunity to build on a very solid private equity platform,” said Mr Dowding, co-managing director of Propel Investments and the former chairman of the Australian Private Equity and Venture Capital Association. “We already manage more than A$450 million in private equity funds and have over 20 domestic and offshore institutional investors, including some of Australia’s largest superannuation funds,” he added. Some of these funds are managed under sub-delegation from Deutsche.
Propel Investments began operations after a busy 18 months during which it committed approximately A$160 million to direct private equity investments across a range of industries including smart metering, debt collection, apparel and oil and gas services.
“We plan to recruit additional resources to our investment team in the coming months,” said Mr Kurti, co- managing director at Propel Investments. “Fundraising for our third private equity fund will commence in early 2008. The new fund will continue our focus on mid-market acquisition opportunities,” Mr Kurti added.
Deutsche Bank said the restructure follows a strategic review of the investment bank’s direct private equity operations in Australia.
“This change is consistent with the global trend of successful private equity teams shifting from captive to boutique ownership and has been well supported by our private equity investor clients,” said Chum Darvall, Chief Executive Officer of Deutsche Bank Australia and New Zealand.
“We wish our former colleagues well in their new operating environment and look forward to working together on transactions where the Bank can assist,” added Mr Darvall.
Following a three month transition period since the business was divested, the entire former team at DB Capital Partners in Australia is now working at Propel Investments, with new offices recently opened in Sydney.
Propel Investments further announced it has completed the acquisition of an initial 30% stake in Perth-based engineering consultancy group, Advanced Well Technologies (AWT).
Providing details of its first transaction as a private equity boutique business, Propel Investments said AWT services the upstream oil and gas industry and employs about 100 engineering and support personnel. Terms were not disclosed.
AWT was established in October 1996 by its four founders who remain involved with the business and retain a significant ownership interest. Mr Dowding will join the AWT board.
“Armed with this significant capital injection from Propel Investments, AWT will immediately instigate a substantial growth program which we have been planning for more than 12 months,” said AWT co-founder and managing director Cameron Manifold.
“Our expansion will focus on Australia and other key markets including Malaysia, India, New Zealand, the Middle East and Europe,” Mr Manifold added.
AWT’s expansion plans include a broadening of the group’s skill base to support conceptual field development and field refurbishment teams, project services capabilities as well as strengthening AWT’s engineering and implementation teams.
ENDS
For more information please contact:
Peter Dowding
Managing Director, Propel Investments
Ph: +61 416 140 905
Albin Kurti
Managing Director, Propel Investments
Ph: +61 404 843 947
Kristin Silva
Corporate Communications, Deutsche Bank
Ph: 02 8258 1568