Baar-Zug, 3 October 2011
Partners Group leads mezzanine investment in Australian quick service restaurant franchisor
Partners Group, the global private markets investment manager, has provided a mezzanine loan to Australian Quick Service Restaurant Holdings, a franchisor and operator of over 620 quick service restaurants under the Red Rooster, Oporto and Chicken Treat brands, on behalf its clients. Each brand offers a predominantly chicken-based menu and operates several store formats including freestanding drive-through stores, shop fronts, food court stores and stores at special purpose venues such as sporting stadiums and airports.
With an estimated market size of AUD 14 billion and a compound annual growth rate of 5.5% over the last decade, the quick service restaurant market is the most attractive segment of the dining out industry in Australia. Quick Service Restaurant Holdings owns a strong portfolio of locally founded and established brands, which should ideally position the company to further capitalize on this growth: Red Rooster, founded in Australia in 1972, is the most successful and largest home-grown quick service restaurant brand in Australia; Portuguese chicken-themed Oporto was the fastest growing major quick service restaurant chain in Australia in the last decade; and Chicken Treat, founded in Perth in 1974, is a market leader in Western Australia.
Martin Scott, Head of Partners Group's Sydney office comments: "We are excited to support the buyout of Quick Service Restaurant Holdings. As the only mezzanine provider in this transaction, we have once again proven our ability to offer sound financing solutions to investment partners in a volatile market environment while negotiating attractive terms for our clients. Partners Group has built a strong presence in the Asia Pacific region and continues to constantly screen the market for promising investment opportunities."
Partners Group’s experience includes prior mezzanine investments in several other successful quick service restaurant businesses, including Australia's Collins Foods Group. After completing Australia’s largest IPO so far this year, Collins Foods Group repaid its mezzanine loan to Partners Group.