KKR, Domain team up for Pexa bid
Private equity giant KKR & Co has netted a big fish in its quest for Australian property settlement platform Pexa.
Street Talk can reveal KKR is working with property listings and services giant Domain Holdings Australia on a joint bid for Pexa’s holding company Torrens Group Holdings, which is in play courtesy of a strategic review at Link Group.
The KKR/Domain pairing seeks to match KKR’s deep pockets and dealmaking expertise - $US252 billion in assets under management and more than $US50 billion dry powder - with Domain’s knowledge of the Australian property market and desire to dominate “all of life’s property decisions”.
It’s a potential coup for both parties - as long as they can stick tight as the auction heats up in coming months and agree on points such as value. Teaming up with Domain boosts KKR’s credentials over rival private equity bidders, and helps Domain work out how to fund its interest and reduces its reliance on equity capital market conditions.
It is understood the pair are working together in the early stages of Pexa’s auction, which is handled by Macquarie Capital and UBS. Up for grabs is an initial 44.2 per cent stake owned by Link Group, although there are expectations one of Pexa’s two other shareholders may add some of its holding to the selldown.