Crescent Capital Partners III

Crescent Capital Partners III is managed by Sydney based Crescent Capital Partners ( Founded in 2000 Crescent is owned and controlled by its executives whose interests are closely aligned with the long term return on investors funds through performance fees and their own investments in each of their funds.

Crescent’s previous funds, Crescent Capital Partners Growth Fund ($25 million, raised 2001) and Crescent Capital Partners II ($100 million, raised 2004) have each achieved top quartile performance for their respective vintage years.

In 2003 Crescent won AVCAL’s Buyout of the Year Award for their management buyout investment in the James Hardie Industries windows business, Trend / Breezeway, which achieved a return of 375% per annum for the Crescent Capital Partners Growth Fund.

The Crescent Capital Partners III fund is focused on investing in small to mid market sized expansion and buyout opportunities in Australia and New Zealand with enterprise value in the range of $50 million to $250million.

Investments completed to date by Crescent Capital Partners III include Steel-Line Garage Doors, Australian Music Group, National Hearing Care, Metro Glass, CoverMore and GroundProbe.

Steel-Line Garage Doors manufactures, distributes and installs garage doors and associated remote control units under the brands “Steel-Line” and “BOSS”. The company is Australia’s second largest player in the domestic garage door market and employs over 250 staff and 160 installation contractors.

The company has recently invested in new plant and equipment which Crescent expects will deliver significant cost savings in 2008 and future years. Crescent plans to grow the business both organically and through the acquisition of attractive businesses in the same and/or similar market segments, to enhance earnings prior to an exit.

During March 2018, Crescent Capital Partners completed the trade sale of Steel-Line Garage Doors to Japanese owned, Bunka Shutter. The sale of Steel-line represents the final exit from the Crescent Capital Partners III portfolio.

Acquired by Crescent in April 2007, Steel-Line manufactures, distributes and installs residential and commercial garage doors and associated remote control units under the brands “Steel-Line” and “BOSS”. The company is Australia’s second largest player in the domestic garage door market and employs over 250 staff and 160 installation contractors.

During Crescent’s ownership the company invested in new plant and equipment which delivered significant cost savings. Crescent grew the business both organically and through the acquisition of attractive businesses in the same and / or similar market segments which delivered enhanced revenue and earnings and setting the business up for exit.

VPEG’s share of the sale proceeds from the Steel-Line exit were received on 23 March 2018.

Australian Music Group (AMG) is the largest wholesaler and retailer of musical instruments (including orchestral) and accessories in Australia.

In mid July 2010, Crescent completed the merger between AMG and Allans Music, the number two retailer of musical instruments in Australia. The merged retail business is now comprised of 26 stores nationally.

AMG’s wholesale business represents a wide range of suppliers of musical instruments, often under exclusive arrangements and supplies both Allans Music + Billy Hyde and third party retail stores. Examples of the products represented include Pearl Drums, D’Addario instrument strings and Korg electrical instruments.

The Group was severely impacted by the downturn in consumer sentiment and discretionary spending in Australia during FY11 and FY12 and in 2012 Ferrier Hodgson partners were appointed receivers and managers to AMG by the secured creditor and the equity in  the business was subsequently written down to zero.

National Hearing Care

During April 2008 Crescent Capital Partners III participated in a capital raising by Crescent Capital Partners II investee company Life Audiology and vended in its interest in Abano Healthcare Group, in exchange for a significant minority share of Life Audiology which was subsequently named National Hearing Care (NHC).

NHC is the leading independent hearing aid distribution company in Australia. The company acquires customers via outbound direct marketing to one of the more than 190 owned audiology clinics across Australia, New Zealand & New Delhi, India for testing and ultimate sale of hearing aids. The Acquisition of the Abano stake allowed NHC to position itself to influence the make-up of the audiology market in the Asia-Pacific region in the future.

During November 2010 Cescent sold NHC to the Italian listed audiology business Amplifon. NHC had posted $41m in earnings before interest, tax and amortisation for the June 2010 financial year from $144m in revenue. The reported sale price for the company was AUD$460m, representing 11.2 times FY10 EBITA.

Metro Glass

In June 2008 Crescent Capital Partners III (CCPIII) purchased subordinated mezzanine debt in NZ Glass Investment Company Limited (Metro Glass), the leading value added processer of glass in New Zealand.

Metro Glass which processes more than two million square metres of glass annually and has a 50 per cent share of the New Zealand market, has more than 21 decentralised sites across the country, including five major processing facilities, and more than 700 staff. The business operates on a “Just in time” basis and handles its own logistics through a fleet of 50 trucks.

In January 2012, a debt restructure of Metro Glass occurred delivering operational control to Crescent and providing CCPIII 40% of the shares on issue in Metro Glass

During July 2014, Metro reported a forecast net profit of NZ$14.3m for the year to 31 March, 2015, up from NZ$12m in the same period a year earlier. Full-year sales were forecast to rise to NZ$171.9m in 2015 from NZ$155.4m in 2014.

On 30 July 2014, Metro Glass was successfully listed on both the NZX and ASX with a market capitalisation of circa NZ$315m. The IPO allowed Crescent to realise 80% of its investment in Metro for cash with the remaining 20% held in escrow until September 2015. The resulting distribution in August 2014, provided another strong investment return to CCPIII investors including VPEG.


In September 2009, Crescent Capital Partners III acquired an approximate 80% equity interest in the Cover-More Group. Following Crescent’s investment, Cover-More made bolt-on acquisitions in China and India, and expanded into Southeast Asia.

Founded in 1986, Cover-More provides travel insurance to more than 2.2 million travellers each year and manages more than 40,000 overseas emergency medical assistance cases. Cover-More has an approximate 40% market share in the Australian travel insurance market.

Cover-More’s employee assistance business, Davidson Trahaire Corpsych, serves more than 700 organisations, including seven of the 10 largest companies in Australia by revenue.

In FY2013, Cover-More had net revenue of $196.2m and a net profit after tax of $16.6m.

In December 2013 Crescent sold the majority of their investment in Cover-More following the company’s $521.2 million initial public offering (IPO) and subsequent listing on the Australian Stock Exchange. The IPO was priced at 23.1 times forecast 2014 pro forma net profit.

Crescent Capital Partners III, sold the bulk of their shares into the IPO, reducing their equity holding in Cover-More from 82.7% pre IPO to 13% after the IPO. It is envisaged that the remaining shares held by Crescent will likely be sold down over time following voluntary escrow. The exit delivered another strong return to VPEG.


During October 2010, Crescent Capital Partners III invested in GroundProbe, a technology company that provides specialist measurement systems and geotechnical services to the mining industry. These services focus on measuring movement in mine structures utilising a radar-based technology called the Slope Stability Radar (SSR), therefore enabling its customers to manage risk, improve safety and lift productivity.

GroundProbe was the first company worldwide to commercialise and launch radar for this application and remains one of only three companies offering this technology globally.

The head office and manufacturing/assembly facility is located in Brisbane with sales distribution offices located in most of the world’s major mining markets including Perth, Beijing, Johannesburg, Santiago/Antofagasta and Tuscon.

During December 2017, Crescent Capital Partners III reached agreement for the sale investee company GroundProbe to mining services giant and ASX listed, Orica Limited. The Implied enterprise value for the business was A$205m which exhibited a robust money multiple for the Crescent III investment. The deal continues Orica’s push into data and technology services. VPEG’s proceeds from this investment where received on 23rd January 2018.