Factory Capital to raise $100 million in strategic capital to fund high-growth operating businesses
Factory Capital, an operating company that builds businesses in the healthcare, education and lifestyle sectors where demand exceeds supply, today announces plans to raise $100 million in on balance sheet capital — and, for the first time, is inviting external investors to participate.
Factory Capital has built a track record of success through businesses such as Dentalcorp in Australia and Cananda, Edge Early Learning, The Fertility Partners in Canada, and Removery, the world’s largest tattoo laser removal businesses.
After operating privately for the past 15 years, the firm is now offering external people the opportunity to invest at the founder level and participate in its strategy, which has delivered internal rates of return (IRR) of 50% over that period.
“We scale small unsophisticated but profitable companies into the next generation of category leaders.”
Dan Ritchie, Factory Capital, Chief Executive Officer
“We scale small unsophisticated but profitable companies into the next generation of category leaders,” said Dan Ritchie, Factory Capital, Chief Executive Officer. “Our proven playbook draws on our execution skills building executive management capabilities, refining the customer journey, enhancing systems, and creating competitive advantages that drive growth and expansion.”
Factory Capital’s proprietary deal flow provides investors with access to founder like returns which are typically difficult to achieve. It’s ancillary funds management business further enhances returns and extends the investment lifecycle through to the later stages of a business’s growth, while minimising shareholder dilution and preserving investor control.
“This raise marks the evolution of Factory Capital into a holding company,” Ritchie added. “Rather than building these businesses with external capital that must be constantly recycled, we now have the ability to hold them for 10 to 20 years. Investors in Factory Capital will also have the opportunity to co-invest directly in the businesses we are building. What sets us apart is our deep operational focus, which drives real value creation—we are not passive capital.”
The raise marks the next phase of growth for Factory Capital as it strengthens its portfolio to meet rising demand across its core sectors and continues its track record of building resilient, high-performing businesses.
Read coverage in The Australian Financial Review and Business News Australia.