Wesfarmers Emerging Ventures will target high-growth investment opportunities outside the group’s traditional business streams.
Wesfarmers has grown into one of Australia’s largest listed companies and has diverse business operations covering supermarkets, department stores (i.e., Target, Kmart), home improvement and office supplies; coal mining; insurance; chemicals, energy and fertilisers; and industrial and safety products.
For the past six months, the emerging ventures team, led by senior executives Kate Chaney and Michael Chaney, has been approaching investors in hi-tech sectors to discuss opportunities. The team, which also includes executive Mussaret Nagree, reports to Wesfarmers chief financial officer Terry Bowen. The amount earmarked for investment has not been made public.
“It just signifies our preparedness to look at new evolving areas,” Wesfarmers chief executive Richard Goyder told local broadsheet, The Australian, of the recently formed venture unit.
Not a stranger to private equity, Wesfarmers is invested in funds managed by Gresham Private Equity, which also invests in mining services, retail, logistics and other specialist sectors.
Other recent corporates setting up venture capital units include Australia mobile phone and broadband network company, Telstra Corp, which set up just over 18 months ago targeting early-stage strategic investments.