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Bain Capital exits Camp Australia after substantial recapitalisation and board reshuffle
Jason Roberts
Sep 13, 2022
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Outside school hours care (OSHC) provider Camp Australia has confirmed the finalisation of a new capital structure and a set of Board appointments that will mark the end of, former majority owner, US based private equity firm Bain Capital's involvement with the Group.
Under the terms of the restructure, Sydney-based investment firm, Allegro Funds, will become the lead shareholder, alongside Melbourne based Tanarra Capital. Bain Capital, who acquired its stake in Camp Australia in 2016 for what was reported to be $400 million, have exited completely.
Both Allegro and Tanarra were previously significant lenders to Camp Australia, with their stakes in the newly capitalised business calibrated to their previous debt exposure and formalised via a ‘debt for equity’ swap arrangement.
Allegro and Tanarra will be joined by other lenders, including Perpetual, Broad Peak Investment Advisors, Intermediate Capital Group and Apollo Global in the new investor consortium however their equity stakes will be smaller given their relatively smaller lending commitments to Camp Australia.
Camp Australia Chief Executive Officer Warren Jacobson said the changes will allow the business to deliver on its commitment to market leadership.
“We have an opportunity to reset the capital and Board structure of Camp Australia to ensure we are well-positioned to navigate any lasting impact of the COVID -19 pandemic, and to prepare for our next chapter of growth delivering enhanced services for children, families, schools and the broader community.”
Camp Australia is currently the largest OSHC provider in Australia with more than 500 services in operation.The current management team led by Mr Jacobson is expected to remain in place.
The team will be supported in particular by Allegro’s local team who have extensive experience supporting businesses to grow and also a track record in the education sector.
“Our continued journey to excellence will be spearheaded by our refreshed strategic plan, and anchored around the best people, service excellence and quality partnerships,” Mr Jacobson said.
He was clear that the completion of the recapitalisation process has not, and will not, have any impact on the Group’s broader operations.
To learn more about Camp Australia visit its website.
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