PAG Asia Capital → Australian Venue Co (80% stake, from KKR)
completedAsia-focused alternative investment firm PAG signed a definitive agreement to acquire KKR's roughly 80% controlling stake in Australian Venue Co (AVC), a pub, bar and restaurant operator with 210+ venues across Australia and New Zealand, in a transaction reported at approximately A$1.4 billion. Announced 24 August 2023, the deal closed in late 2023.
PAG said it saw AVC as a strong, well-managed hospitality platform with room for continued growth in metro, suburban and regional venues, building on KKR's track record of expanding the business from 50 venues (2017) to 210+ venues by 2023.
KKR had grown AVC more than 300% since its initial 2017 investment and used the sale to PAG to realise returns on a mature private-equity holding, consistent with KKR's typical hold-and-exit strategy for portfolio hospitality assets.
Not applicable — Australian Venue Co, KKR and PAG are all privately held / unlisted for this transaction.
Trade press described the deal as one of the largest hospitality/pub-sector private equity transactions in Australia in recent years, continuing AVC's run of rapid, PE-backed venue growth under successive owners.
Deal mechanics
BofA Securities (financial); Ashurst (legal) — advising PAG
Jefferies (financial); Allens (legal) — advising KKR/AVC
Acquisition of KKR's approximately 80% controlling equity stake in AVC; the transaction was accompanied by a new roughly A$900 million debt facility for the group.
Subject to customary closing conditions, including regulatory approvals; deal was expected to and did close in late 2023.
New ~A$900 million debt facility arranged alongside the equity transaction.