Private Equity – Pet Resorts and Childcare

Pet Resorts Australia: RW Capital has identified the opportunity present in the pet care market in Australia

• Both the number of pet animals in Australia and the number of Australian households that own a pet has increased materially in recent years
• Despite this increase, the availability of pet boarding has not increased due to difficulty in achieving new licences through council approvals and high start-up costs
• In early 2022, RW Capital purchased two pet boarding facilities in Queensland
• Both sites are operated under a management agreement by Pet Resorts Australia, which has been a leading operator of luxury pet accommodation in Australia for the past 40 years
• Given the success of the initial equity investment, RW Capital established the Pets Fund Series II in 2024 which has acquired an additional six assets to date

Childcare Centres: RW Capital has recognised that COVID-19 has accelerated the emerging trend of increased demand for childcare, providing an opportunity to generate attractive returns underpinned by a long-term macro thematic

• RW Capital partnered with childcare developers in NSW and QLD to acquire sites, pre-lease them to established operators, and pre-sell and deliver the assets
• RW Capital’s strategy of pre-selling assets with an Agreement for Lease in place proved to be prudent, as centres were sold near the peak of the market, protecting investors from softening cap rates as interest rates increased
• RW Capital has realised one of its investments, and remains invested in three which are at various stages of development and realisation