Hall & Wilcox and Middletons have advised on Harbert Australia Private Equity’s acquisition of a minority stake in premium skin care brand Aēsop. Hall & Wilcox advised Aēsop management and Middletons advised Harbert.
Middletons’ lead partner John Mann described the deal as “a complicated private equity investment involving intricate equity and funding arrangements and the preparation of complex documents.”
He said he expects private equity funds to “take full advantage” of the current environment to invest in quality businesses. “I expect that private equity will return to basics with smaller deals and certainly more cash upfront,” Mann said. “Years of copious fundraising in a bull market has given private equity houses more funds than ever to deploy. I do however believe there is no doubt that we will largely see smaller deals put on the table.”
Mann said that companies exited by private equity funds had out-performed the general market and that private equity would have an increased role in Australian M&A activity in the future. “Australia’s private equity sector is less advanced than both UK and US counterparts, so we can expect to see a growth in the proportion of M&A activity being linked to private equity activity in the years to come,” he said.
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