One of the country’s biggest owners of pubs, bars and hotels, Australian Venue Co (AVC), has attracted a new private equity partner to support its next stage of growth.
AVC currently operates 243 licensed venues, primarily pubs, as well as some bars and licensed restaurants across Australia and New Zealand. This includes a partnership with multinational craft brewery, BrewDog, that began in 2022 – opening venues in Melbourne, Sydney, and Perth that offer BrewDog craft beers on tap.
CVC Capital Partners Asia VI, a private equity fund managed by CVC Capital Partners, the private equity strategy of leading global private markets manager CVC, has acquired a 45 per cent stake in AVC from majority owner PAG, a leading Asia Pacific-focused alternative investment firm.
CVC Australia head, Richard Blackburn, said the company has long admired AVC and viewed it as best in class both in terms of its customer offering and operations.
“We’re excited to be partnering with a truly exceptional management team and with PAG to support the next phase of growth for AVC,” said Blackburn.
Moving forward, PAG and CVC Capital Partners Asia VI will have an equal stake of 45 per cent each in AVC, with the remainder of the equity held by management.
AVC chief executive, Paul Waterson, said the deal would allow the company to access additional funding needed to support the company in its ambitious growth plans.
“The combination of CVC and PAG as owners will allow the company to meet its growth strategies to revamp existing premises and deliver better customer experience while also funding new opportunities in major population centres,” said Waterson.
Hong Kong-based PAG has made several investments in the Australian food and hospitality sector since 2017, including acquiring Craveable Brands, the parent company of Red Rooster, Oporto, Chargrill Charlie’s and Chicken Treat, in 2019, and Patties Foods and Vesco Foods in 2022. The company acquired its share of AVC in 2023 from KKR, which invested in 2017.
PAG managing director, Sid Khotkar, said the new partnership was a great result for both private equity firms and the AVC business.
“We work to invest in strong businesses in Australia and help make them even stronger,” said Khotkar.
“This agreement is a testament to that approach and to AVC’s great success. We are happy to partner with CVC on this next exciting phase for Paul and the team.”
AVC’s management team will continue to lead the business.
