In this episode of Inside the Rope, David interviews Adrian McKenzie, founder and partner of Five V Capital, an Australian private equity firm focused on the mid-sized market in Australia and New Zealand that boasts a remarkable internal rate of return. David highlights Adrian's notable career, including his tenure at CVC Capital Partners, where he was the youngest ever partner and board member. Adrian shares insights from his vast experience, including both successful investments as well as challenges, such as CVC’s investment in Nine Media Group.
Adrian discusses his journey from Glasgow to London and New York, detailing his early career in investment banking and his eventual transition to private equity. He reflects on the evolution of the private equity industry and the strategies that have driven success at Five V. Adrian emphasises the importance of aligning with business owners and investing in companies with strong growth potential.
The conversation delves into Five V's mid-market focus, targeting companies with earnings between $7-30 million and enterprise values ranging from $50-300 million. Adrian explains the firm's hands-on approach, collaborating closely with management teams to drive value and achieve growth. He also introduces the Horizons product, which offers investors access to mid-market private equity with quarterly liquidity, aiming to provide strong returns with greater flexibility.
Adrian shares examples of portfolio companies, such as Sea to Summit and Biopak, and discusses the significant opportunities in the mid-market space driven by intergenerational wealth transfer.
