Divests QSR and Strengthens Portfolio

Quadrant recently announced the successful divestment of Quick Service Restaurants to Archer Capital, achieving strong returns for investors. Quadrant has also broadened its portfolio over the past six months through a number of successful bolt-on acquisitions for its Virtus Health and Independent Pub Group portfolio businesses.

Sucessful Divestment of Quick Service Restaurants

In June 2011, Quadrant successfully divested QSR via a sale to Archer Capital. This was the first exit for QPE No. 2 returning around 60% of the drawn capital of the fund (achieving a money multiple of approximately 3.0x and an IRR of 30%).

QSR is one of Australia’s leading fast food operators with over 620 Red Rooster, Oporto and Chicken Treat stores across Australia, New Zealand, China, the US and the UK. Since acquisition in April 2007, QSR generated significant revenue uplift and doubled its earnings from a combination of successful growth initiatives, international expansion and significant operational improvements. During the 4 years of Quadrant ownership, the QSR store footprint grew from approximately 440 stores at the time of acquisition to over 620 stores today, including a launch of the Oporto brand in the US, China and the UK.

The business is well positioned for further growth and we are confident that the management team will continue its successful store roll-out and broader growth initiatives over the coming years.

Acquires Hunter IVF and Fertility Gold Coast

In March 2011, Virtus Health completed the acquisition of Hunter IVF, the Hunter region’s leading Newcastle based fertility care business.

In July 2011, Virtus completed the acquisition of Fertility Gold Coast, the leading fertility care business servicing the Gold Coast region. Both the Hunter IVF and Fertility Gold Coast doctors have reinvested in the combined Virtus group.

Both acquisitions offer synergy benefits and are consistent with Virtus’ strategy of extending its geographical footprint and providing fertility services convenient to patients. Virtus Health is the largest IVF group nationally and will continue to expand organically as well as through selective opportunities. Please refer to www.ivfsuccess.com.au/our-network/ for further information.

Acquires the Exchange Hotel in Brisbane

In May 2011, Quadrant investee, Independent Pub Group, acquired the freehold going concern of the Exchange Hotel, a high volume entertainment hotel located in Brisbane’s CBD. The acquisition brings IPG’s total hotel portfolio to 19 hotels located in South Australia and Queensland.

IPG is seeking to acquire further hotels and to participate in the consolidation of the hotel sector.

For further information please visit www.indpg.com.au.

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