Advent 4 / 5
Internal Rate of Return (IRR)
Our investment SCADAGroup
SCADAGroup is a leading provider of systems integration solutions, supervisory control and data acquisition (SCADA) products to water utilities, oil and gas businesses. These solutions enable SCADAGroup’s clients to monitor and control its valuable infrastructure assets, meet legislative and regulatory standards, and improve safety, efficiency and security of supply. Advent’s investment funded the replacement of Catalyst Investment Management’s equity and enabled management to continue with business growth strategies.
We were impressed with SCADAGroup for many reasons, including its proprietary technology, sticky customer base, reliable revenue streams in the Australian and UK water markets, and strong leadership team. We had identified areas for ‘quick wins’, including doubling down on markets exhibiting strong performance and closing underperforming operations, and shifting the Business’ strategic focus to enhance margins, growth and strategic value.
Working together, we shifted the Company’s focus to its higher-margin products business, and selectively acquired and developed products to sell-down channels. Research and development was also centralised for efficiency, and we continued to expand the business into new geographies across Europe, USA and South America.
We were awarded the AVCAL Award for Best Buyout under $100 million in 2010 for our successful exit from our investment in SCADAGroup. The Business was sold to Schneider Electric of France who saw the company as a world-class strategic asset. The investment returned 5.0x money multiple and 56.8% IRR.
“While we have been private-equity funded since 1997, our major growth came after teaming with Advent following a secondary buyout in 2006. Advent has been the perfect fit and has had the right focus for the business. They gave the management team support to grow the business while ensuring all parties focused on a strategy for an eventual exit. A key element in the success of the relationship with the Advent team was their correct level of involvement. They were always supportive but not intrusive in the day-to-day operation of the company.”
Paul Chisholm, Managing Director, SCADAGroup