Good evening,
 
 

Good evening,

It’s not just layoffs, bolt-on acquisitions and a Series C capital raise that have kept Future Super’s top brass busy.

Street Talk understands the superannuation and investing start-up has been soft sounding the market to scope out potential buyers for the business, which boosted revenue by 73 per cent to $61.2 million in the 2023 financial year – but still made $14.1 million net loss, thanks to hefty financing costs from an old convertible note.

Sources said while the company hasn’t launched an auction, it has been seeking out parties it thinks could pay near the $300 million mark to buy the entire business.

The buyer hunt comes after a busy year, during which the group acquired GuildSuper, Child Care Super and the remaining 80 per cent of Verve Super – funded through a Series C round raise shown to investors at a $225 million pre-money valuation.

Sources said integrating recent acquisitions had been tough, while debt costs were still high despite the company having tackled the old convertible notes that cut into FY23 profits.

When contacted by Street Talk, a spokeswoman for Future Super suggested it had received in-bounds, instead of seeking out takeover proposals itself.

“We are not expecting to pursue any offers for the business despite multiple recent approaches from various parties, as to date it continues to be our belief that returns for our members and shareholders, along with the impact we seek to make for the planet, are best supported by staying independent,” she said, adding the firm upsized its Series C in December to bring on Singapore private equity investor Wipunen Incrementum Capital.

As for who has approached Future Super recently, one widely expected suitor, ASX-listed Australian Ethical, ruled itself out on Sunday evening.

“AE can confirm that there is no offer for Future Super Group,” a spokeswoman for the company told this column.

Read the full story tomorrow and more on the Street Talk page.

Warburg Pincus, the New York-headquartered private equity giant, was considering a tilt at Ingenia Communities late last year around the time David Di Pilla’s HMC Capital purchased a decent stake in the $2.1 billion group, Street Talk can reveal.

Click here for the latest equity market wrap.

 
The Australian Financial Review
TwitterInstagramLinkedInFacebook
Apple StoreGoogle Play

You have received this email because you are subscribed to Street Talk First Look with the email address: newsletter@newslettercollector.com

  Manage Subscriptions     Unsubscribe     Privacy Policy     Contact Us  

© 2024 The Australian Financial Review

1 Denison Street North Sydney, NSW 2060 Australia

 
Nine Entertainment, 1 Denison St, North Sydney, NSW, 2060, Australia Profile center