BGH Capital’s AGM draws global giants | CSR trading raises eyebrows | Transurban k ills Denver bid

Good evening,

It’ll be a regular institutional investor love-in at the Grand Hyatt on Collins Street this week when BGH Capital gathers its limited partners to discuss strategy and outlook.

The guest list, obtained by this column, is a good reminder of how wide a base the private equity firm run by Ben Gray, Simon Harle and Robin Bishop, one of the country’s largest, have to call on.

Deal makers from the $US161 billion ($245.6 billion) Washington State Investment Board have flown in for the event, as have their Canadian peers from British Columbia Investment Corporation and Ontario Teachers’ Pension Plan – guardians of just under $300 billion each. Among the locals, the country’s biggest superannuation fund, AustralianSuper, is expected to be present. And there should be some Asian sovereign wealth money in the room via Singapore’s $1.17 trillion GIC and Temasek.

The meeting is expected to span a couple of days, including an all-day AGM, where BGH operatives walk their deep-pocketed limited partners through the firm’s $6.8 billion portfolio, their view of the world, and what to expect this year. Previous iterations of the event suggest BGH might parade out a CEO or two from a well-performing portfolio company, and test the waters for upcoming co-invesments. Book-ending the event will be informal catch-ups at the city’s best restaurants from Gimlet to Vue de monde.

But it won’t be surprising if the firm fields a question or two on what’s happening with exits, especially in its $2.8 billion Fund I raised in 2018.

The firm has earned a name for itself as a wily bidder, that can be aggressive if needed. But as the seven-year anniversary approaches, it is yet to line investors’ pockets in any meaningful way. BGH has made one partial exit since its founding in 2017 – selling 51 per cent of booking website TripADeal to Qantas Frequent Flyer in 2022.

In BGH’s defence, its oldest investment is 4½ years old while average hold across the portfolio is 2.6 years, which is similar to other prominent local private equity shops. Sources said that BGH deal makers are not under any pressure from their investors, who are expected to be told this week to expect “multiple exits” over the next 18 months.

Of note, this column has previously reported sale preparations are under way at BGH’s CyberCX, a cybersecurity roll-up that is expected to be worth about $1.5 billion.
Read the full story tomorrow and more on the Street Talk page.

Since their December 2021 deal, Paradice IM has lost $3.3 billion in funds under management – and with it, 29 per cent of its valuation – while Charter Hall’s share price has nosedived 40 per cent.

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