UPDATE: Fortitude Investment Partners, a private equity firm based in Brisbane, is urgently seeking to raise $200 million for its inaugural fund, marking a significant shift from its current deal-by-deal investment strategy. The firm, which has over $250 million in funds under management, aims for a first close of approximately $100 million by the end of this year, according to insiders.
The new fund will primarily target investments in the lower-mid market across sectors such as food, healthcare, technology, and industrials. This initiative is spearheaded by Fortitude’s four lead partners: Nick Dignam, Nick Miller, Sam O’Connor, and Bryan Brown.
In a proactive move, Fortitude has engaged with both institutional investors and private wealth groups to secure the necessary capital. This funding is pivotal for the firm as it transitions to a more structured investment approach, moving beyond its previous strategy of tackling individual deals.
Fortitude has demonstrated a strong track record this year, highlighted by its recent acquisition of a stake in South Australian SMSF auditing business ASF Audits. In the past year, the firm has also invested in Queensland’s electricity equipment supplier, The Energy Network, and facilitated a bolt-on acquisition for its New Zealand-based tourism operation, Active Adventures. Notably, Fortitude recently sold part of its stake in condiments business Birch & Waite to Quadrant Private Equity.
The firm’s diverse portfolio also includes significant players such as artisan bread baker Nomad, the medical skin and aesthetic clinic Aura Medical Group, and the equipment marketplace Machines4U. Over the last decade, Fortitude has successfully executed 10 exits, notably achieving a nine-times multiple on invested capital with the sale of Shopper Media Group to Woolworths Group in 2022.
As Fortitude Investment Partners embarks on this ambitious fundraising journey, the investment community is closely monitoring its progress. The firm’s ability to attract the necessary capital will not only bolster its growth but also potentially reshape the mid-market investment landscape in Australia.
What happens next: Investors and market analysts will be watching Fortitude’s fundraising efforts closely, as a successful close could signal a new era for private equity in the region.
