Custom Bus
Navigating external market volatility in complex manufacturing
Snapshot
Type of Investment
Turnaround
Industry
Manufacturing
Initial Investment
August 2014
Fund
Allegro Fund II
Investment Status
Exited
In August 2014, Allegro acquired Custom Bus out of administration, partnering with the founding family to rescue the Sydney-based manufacturer aft
Despite these internal achievements, the broader bus market faced severe external headwinds, including unexpected NSW transport budget blowouts and leadership changes that delayed funding for key customers. Because the sub-scale, complex manufacturing business carried a high fixed-cost base, it remained highly vulnerable to these volume fluctuations.
Recognising the ongoing capital requirements and market uncertainty, Allegro sold its majority stake back to the founding family in January 2017.