Three former IFM Investors executives have launched Black Kite Partners, a new private markets firm backed by a significant investment from Scarcity Partners. The Sydney-based firm commences with $1.3 billion in assets under advisement and is preparing to raise $500 million for its first independent fund. This launch marks a significant new entry into the Australian private equity landscape, led by a team with a proven history of success.
A New Venture with a Proven Legacy
The founding team, comprising David Odgers, Adrian Kerley, and Stuart Wardman-Browne, brings a wealth of experience from their senior roles at IFM Investors. During their tenure, they managed highly successful funds, including a 2016 vintage fund ranked by Preqin as the 10th best of all time in Australia and New Zealand. Their collective expertise and strong performance history form the bedrock of the new independent firm.
Black Kite's formation follows IFM Investors' strategic decision to exit its Australian private equity operations to concentrate on global investments. This shift created an opportunity for the team to establish a focused, independent platform while ensuring continuity for certain assets. The new firm will continue to provide advisory services to IFM, supporting the management of six existing portfolio investments.
Strategic Partnership and Investment Focus
Scarcity Partners, a specialist investor in fund management businesses, has taken a significant minority stake in the new venture. This investment, the fifth from its GP Access Fund, will provide growth capital and strategic support in areas like distribution and operational scaling. Black Kite will retain complete autonomy over its investment decisions, preserving its distinct culture and operational independence.
The firm will concentrate on the lower and mid-market segment, which it views as best positioned to deliver globally competitive returns. Black Kite will target high-growth, profitable businesses in software, tech-enabled services, and healthcare across Australia and New Zealand. Managing Partner Adrian Kerley highlighted the significant room for growth in Australian private equity, which underpins the firm's strategic focus.
Ambitious Fundraising and Future Outlook
With its operational and strategic foundations in place, Black Kite Partners is set to launch its first independent fund, known as Fund 3. The firm aims to raise approximately $500 million in commitments to deploy into its target sectors. This fundraising initiative represents a key milestone as the team transitions from its previous platform to a fully independent manager.
The venture has received strong endorsements, with Scarcity Partners' Managing Partner Adrian Whittingham praising the team's experience and clear market focus. He noted the exciting growth potential that arises from combining a specialist investment platform with Scarcity's expertise in scaling fund management businesses. This positive reception from backers and potential investors signals strong market confidence in Black Kite's strategy.
The launch of Black Kite Partners introduces a formidable new player to the Australian private equity market, combining a seasoned team with a top-quartile track record. Supported by the strategic backing of Scarcity Partners, the firm is well-positioned to capitalize on opportunities in the tech-enabled mid-market. Its upcoming $500 million fund will be a critical test of its vision and a key indicator of its future impact.