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IFM takes majority stake in Render Networks

IFM Investors' private equity growth fund has spent $40 million to acquire a majority stake in construction management platform Render Networks.

The growth funds investment in Render Networks keeps with its strategy to accelerate the growth of mid-market technology companies through capital provisions.

This is the second deal for IFM's growth fund after having recently obtained a stake in the construction payment software provider Payapps.

IFM was attracted to Render as it saw the business having further growth opportunities through the expansion of its product offering and footprint in new markets.

Render has a demonstrable record with tier 1 delivery partners across Australia's NBN rollout and has several high-profile fibre network utility clients in the US and UK.

Moreover, the technology company has deployed can help build networks 30% faster with up to 50% less waste material compared to traditional construction practices. These efficiencies carry the additional benefit of contributing to significant emissions avoidance.

The efficiencies gained by Render's customer base have helped the sector avoid more than 12,000 tonnes of CO2 emissions.

IFM has outlined that it's taken an active approach to support value creation through ESG and sustainability-based actions and its latest deal with Render personified this commitment.

On the new investment, IFM Investors executive director Adrian Kerley said: "Render Networks is well-positioned to capitalise on the connectivity boom that is increasing at pace, as well as the global transition to a net zero economy."

The returns generated through this latest investment and others like it in the growth equity fund will go to IFM investors, the main constituency of which is industry superannuation funds.

Accordingly, IFM Investors' head of private equity Stuart Wardman-Browne commented that the deal will help IFM deliver on its purpose to protect and grow the retirement savings of working people.

Read more: IFM InvestorsRender NetworksAdrian KerleyNBNStuart Wardman-Browne