Ironbridge Capital has completed its recapitalisation of Bravura Solutions Limited (Bravura), in one of the most significant private equity transactions this year.
The transaction was completed on 7 September, with Baker & McKenzie acting as the main advisors on the PIPE (private investment in public enterprises) transaction.
The Australian Baker & McKenzie team acted on one of the first PIPE transactions in Australia in late 2007, when it advised Colony Capital on its $464 million PIPE investment in Challenger Financial Services.
"This transaction forms a significant private equity investment which is relatively rare in the current market," Lead partner Mark McNamara said of the current deal.
"It is a good example of how private equity is prepared to adapt quickly to the current market and provide capital to a group in a non-traditional way."
The recapitalisation involved complex interdependent aspects: a non renounceable rights issue raising $33.4 million; a fully underwritten by wholly owned or affiliated subsidiaries of Ironbridge Capital; a grant of options to Ironbridge entitling it to subscribe to 86,666,667 Bravura shares at an exercise price of $.015, and Ironbridge lending funds to entities controlled by Bravura Directors.
It remains to be seen whether Australia will follow in the footsteps of the US and Europe and pick up the pace of PIPE transactions.
"There has been talk since the start of the global financial crisis about the expected rise in Australia of PIPE transactions. Whilst our colleagues in the US and Europe have seen a large number of PIPEs, the same claim has not been able to be made in Australia to date," McNamara said.
McNamara was assisted by private equity partner Simon De Young and banking and finance partners Howard Fraser and Bryan Paisley.