Case Study: Pumpkin Patch

In November 1999, Quadrant provided growth capital to Pumpkin Patch to strengthen the company's capital base and to fund further store roll-out in Australia. At the time of Quadrant's investment Pumpkin Patch, a New Zealand based retailer of children's clothing and accessories, had 33 stores in New Zealand and Australia, 700 employees and revenue of NZ$70 million.

Quadrant's rationale for investment was as follows:

Vertically integrated retail model;
Strong and committed management team;
Significant growth opportunities in New Zealand, Australia and into International markets through store roll-out as well as the development and growth of other distribution channels such as wholesale & internet;
Defined niche market (i.e. middle range market).

In June 2004 Pumpkin Patch listed on the New Zealand Stock Exchange with a market capitalisation of NZ$208 million. At the time of IPO the business had grown to 111 stores in New Zealand, Australia and United Kingdom and had established several wholesale distribution agreements.

Quadrant sold its holding partly into the June 2004 IPO with the balance disposed in following years. Quadrant's funds achieved a return of 6.6 times money invested and an IRR of 40%.

Quadrant's investment in Pumpkin Patch was awarded the Best Expansion Stage Investment by the Australian Venture Capital Association (AVCAL) in 2004.

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Quadrant Private Equity

Case Study: Pumpkin Patch