Historic Investments
Diversified Constructions Pty Limited (DCC)
PE backing is often required for a company to take advantage of market opportunities and increase sales. DCC is a contractor to the oil, gas and water pipeline industry. Prior to Helmsman’s support, the company was challenged due to the inability of its owner to support the working capital and capital expenditure funding required to build systems and processes and attract high quality management to take advantage of growth opportunities. After obtaining PE backing in mid 2006 from Helmsman Capital Fund (HCF) and Walter Mining, who provided strategic support, established systems and processes to support business growth, and access to funding for working capital and equipment financing, the DCC management team were able to achieve dramatic results, with revenue growing by over 200% in the year after receiving PE funding.
The DCC investment also demonstrated Helmsman’s structuring flexibility using a hybrid funding structure holding a 25% economic interest directly that provided equity for the acquisition, and a 50% interest in DCC indirectly through Walter Mining.
In late 2006, WM and DCC were merged to form WDS Limited and publicly listed in December 2006, providing a high value exit for HCF and wealth generation for the management shareholders, many of whom remained with the group.