Private equity the new focus for Davis

LEAVING a well-remunerated senior management position to take the leap into entrepreneurship was a risk that WA Business News 40under40 award winner Bruce Davis was more than willing to take.

After winning the award in 2002, Mr Davis spent time working with multi-nationals McDonald’s and Coca-Cola Amatil, but in 2008 decided to start his own boutique private equity firm, InGlobo Private Equity.

Today, InGlobo has made five strategic investments in the area of mining services and office supplies, including Kooyong Industrial Supplies, Integrated Industrial Mining Supplies and Quick Corporate Australia. 

After leaving his position as McDonald’s WA state manager in 2002, Mr Davis moved to Victoria to assume the role as state manager for Victoria and Tasmania for Coca-Cola Amatil.

Making the decision to move back to Perth with his family in 2006, he became the CEO of Leisure and Allied Industries, the company that owns the Timezone business.

“That was a family business and still is a family business today, and at the time we were looking at ownership transition and management transition and … long story short, it didn’t happen,” Mr Davis told WA Business News.

It was a desire to own his own business that drove Mr Davis to move on from management roles.

“I had acquired this rich skills set and there comes a point in terms of entrepreneurial spirit where you’ve got to say, ‘I’m going to have a go now’ and back my own judgment and all of these organisations provided great experience,” he said.

Mr Davis said starting his own private equity firm allowed him to utilise his existing skills set and become involved in multiple businesses.

“For me it was very much about not wanting to be within the confines of four walls and one particular business, it was about being involved in a number and having the opportunity to contribute strategically,” he said.

However, Mr Davis said there were plenty of challenges associated with the private equity game, in particular, the state of the economy at present. 

“In terms of the market at the moment, it is very hard to raise a fund in these particular times,” Mr Davis said.

“For the firms that have raised their capital, they’re in a very good position because they’re cashed up and looking for opportunities; for the firms at the end of their investment cycle it’s very hard to raise a fund in the current times.”

In addition, Mr Davis said that out of the 100 or so businesses he would look into each year, only one or two would be acquired. 

“I look at a lot of businesses and what’s most challenging is finding good businesses and excellent management and of course, your access to capital is key,” he said.

“But the hard part is, you have to sort the wheat from the chaff … a good year in a private equity firm is you may do one deal, an outstanding year you’d do two deals.” 

To nominate for the 2012 awards, go to www.40under40.com.au.