Cavari Partners

Permanent capital.
Structural businesses.
Built to compound.

The permanent capital arm of Cavari Group. We acquire, integrate, and compound essential businesses across Australia's lower middle market - with no fund life, no forced exits, and the patience to build enduring value.

Our approach Start a conversation
17
Target platforms over 5 years
16
Vetted sectors across 4 clusters
4–5x
Entry multiple range
Our Thesis

Patient capital for businesses that endure.

Cavari Partners operates a sponsor model - direct equity in each acquisition, unconstrained by fund life or forced exit timelines. We hold for as long as it compounds, and we exit only when the return profile justifies it.

We focus exclusively on Australia's lower middle market, where 60 to 70 percent of businesses face founder succession in the coming decade. Entry multiples of 4 to 5 times sit five to seven years behind comparable US and UK markets - presenting a structural opportunity that rewards disciplined, patient capital.

Every platform follows the same playbook: acquire an anchor business, bolt on three complementary acquisitions, drive 2.5-turn multiple arbitrage, and optimise operations over a three-year base case. The permanent capital structure means we are never forced to sell into a weak market.

Australian lower middle market opportunity
Market Opportunity

Five tailwinds converge.

Australia's lower middle market presents a generational opportunity. Structural forces are creating conditions for disciplined acquirers that institutional capital cannot efficiently access.

60–70%

Founder succession wave

The majority of lower middle market businesses will transition ownership within the next decade as founders approach retirement.

4–5x

Compressed entry multiples

Entry valuations sit 5 to 7 years behind comparable US and UK markets, creating structural arbitrage for patient acquirers.

$10B+

Private credit availability

Over ten billion dollars in private credit is now available in Australia, enabling leveraged acquisitions that were previously inaccessible at this scale.

Investment Filter

Five disciplines. Zero compromise.

Every opportunity is evaluated against five non-negotiable filters. A sector must satisfy all five to enter our universe.

Structural Quality

Essential services with regulation-driven demand that persists through economic cycles.

Multiple Arbitrage

Platform-level entry at 4–5x with bolt-on integration driving 2.5-turn uplift at exit.

Recurring Revenue

Contract-based or subscription models with high retention, low churn, and predictable cash flows.

Asymmetric Economics

Structurally favourable risk-reward profiles where downside is bounded and upside compounds.

Platform Compounding

Anchor-plus-bolt-on model that drives organic growth, operational synergy, and compounding returns.

Sector Universe

Four clusters. Sixteen vetted sectors.

Our target sectors are pre-selected through rigorous screening. Each satisfies all five investment disciplines and sits within a cluster where we have developed deep operational and deal knowledge.

Cluster 01

Compliance & Regulatory

Fire protection Building compliance Environmental testing Workplace safety Regulatory consulting
Cluster 02

Industrial Services

Specialised maintenance Facilities management Industrial cleaning Equipment services Asset management
Cluster 03

Energy & Digital

Energy services Digital infrastructure Smart building tech
Cluster 04

Specialist Services

Healthcare compliance Education services Professional licensing
Platform Model

Anchor. Integrate. Compound.

Every investment follows the same disciplined playbook. We acquire a high-quality anchor business, integrate complementary bolt-on acquisitions, and optimise the combined platform for operational efficiency and growth.

The permanent capital structure means we can compound across cycles without the pressure of fund-life constraints, forced distributions, or artificial timelines.

1

Acquire anchor platform

Identify and acquire a structurally sound business at 4–5x, typically founder-led with strong recurring revenue and regulatory moats.

2

Execute bolt-on acquisitions

Integrate three complementary businesses that expand geography, capability, or customer base - driving multiple arbitrage and revenue synergies.

3

Optimise operations

Deploy shared services, modernise technology, professionalise management, and implement best-practice governance across the integrated platform.

4

Compound or exit

Hold and compound for as long as the return profile justifies it. No forced exits, no fund-life constraints - permanent capital provides indefinite optionality.

Cavari Ecosystem

Integrated by design.

Cavari Partners operates within a vertically integrated group - every division reinforces the others, creating proprietary deal flow, operational leverage, and capital efficiency.

Advisory

Cavari Advisory

Independent M&A advisory generating proprietary deal flow and deep sector intelligence across the lower middle market.

Capital

Cavari Capital

Quantitative fund management and venture capital - providing complementary capital solutions and co-investment capacity.

Technology

Accreta by Cavari

Institutional-grade transaction technology that powers deal execution, due diligence, and portfolio monitoring across the group.

Ventures

Cavari Ventures

Early-stage venture capital backing real-economy founders - extending the group's reach into emerging sectors and technologies.

Get in Touch

Ready to explore a partnership?

Whether you are a business owner considering succession, an investor seeking permanent capital exposure, or an advisor with a proprietary opportunity - we would welcome the conversation.

Schedule a confidential discussion