In June 2010 Direct Capital completed the second investment from its Direct Capital IV fund, into well-known real estate services provider, Bayley Corporation Limited.

From its beginnings in 1973 the Bayley family has built the industry’s market leader. Professionally managed and with a long history of profitable growth achieved through its national franchise partners and agency owned network of more than a thousand agents, it’s little wonder the company enjoys the top market share in the commercial and industrial sectors and a large business in residential, rural and lifestyle sectors.

Direct Capital completed a $24 million investment in Transaction Services in January 2010. Operating under the brands Debitsuccess and FFA Paysmart, Transaction Services is the largest third-party recurring payment processing company in Australasia.
 
Transaction Services manages the payment processing function for clients across a wide range of industries that include health and fitness facilities, sports clubs, property management companies, maintenance providers, home service providers, and insurance companies.

Many customers want the flexibility of paying for services by direct debit, but it’s a costly overhead for clubs and businesses to offer. Transaction Services has the technology, infrastructure and systems to provide this service to clients in a cost-effective way, and has been doing so since 1994. Today, the company annually processes more than 13 million transactions on behalf of more than 2,000 clients, from their 500,000 customers in New Zealand and Australia.

Fishpond is one of Australasia's largest online retailers, offering multiple product categories including books, CDs, DVDs, games, toys, and consumer electronics.  Established in 2004, Fishpond operates from its distribution centre in Auckland and employes more than 50 staff.  

Product categories include: books (offering more than 3.3 million titles); CDs and DVDs (with over 310,000 titles); and the addition of new product categories such as games (more than 2,500 video games, consoles and accessories), toys (with popular titles like Lego, National Geographic and Nerf), and an electronics category offering over 1,000 popular consumer electronic gadgets.

Direct Capital acquired a minority shareholding in the company in October 2009 and was attracted to the strength and experience of the management team, led by founder, Daniel Robertson, as well as the significant growth and profitability the company had achieved since its establishment.  Fishpond has doubled its revenues every year since it began and has been profitable every year of operation.     

New Zealand King Salmon is the country’s largest salmon producer supplying both the domestic and export markets.  Based in Nelson and with hatcheries, farms and processing facilities across Marlborough and Canterbury, the company is highly integrated from brood stock management right through to distribution of product through its well-recognised consumer brands, Seasmoke, Regal and Southern Ocean.

In September 2008 Direct Capital invested alongside management to acquire a 45 per cent shareholding in New Zealand King Salmon.

The New Zealand King Salmon Company Limited was formed in 1996 with the privatisation and merger of New Zealand’s two largest salmon companies, Southern Ocean Seafood Limited and Regal Salmon Limited.  The Company is ultimately owned by the Tiong Group, one of the largest private companies in Malaysia with substantial global investments in forestry, property and the media.  New Zealand King Salmon is New Zealand’s largest integrated aquaculture company and the largest global farmer of the premium Chinook species of salmon.  Rich in Omega 3 and other nutrients, salmon is one of the fastest growing protein categories.  The company employs 415 staff and operates six sea-farm sites in Marlborough Sounds, two hatcheries in Waikoropupu Springs and Tentburn; and four processing factories in Nelson.

In August 2008 Direct Capital acquired a 30% interest in one of Australasia’s leading menswear retail chains, Rodd & Gunn Limited. 

Rodd & Gunn has a retail chain of 55 stores and concessions in malls and on high streets including 34 stores across Australia and 21 stores throughout New Zealand.  The retailer has a long-established brand and targets the premium male customer. Following Direct Capital’s investment, managing director Mike Beagley retains a 70% shareholding.

In May 2008 Direct Capital acquired a minority shareholding in Shears & Mac Limited through the merger of Camm 4 and Shears & Mak. Direct Capital’s investment is to provide expansion capital for the company to broaden its services beyond manufacturing to include the associated installation works and to pursue strategic acquisitions.

Shears & Mac is New Zealand’s leading joinery manufacturer and shopfitter.  The company operates out of large modern, automated, purpose-built premises located in Penrose, Auckland.  The company combines the latest CNC machinery along with integated manufacturing software resulting in precision manufacturing and highly efficient operations.
Everything made at Shears & Mac is drawn, componentised, programmed and then CNC machined.  This provides consistently reliable high quality products.  It results in greater accuracy and therefore greater cost efficiency. 

Shears & Mac employs over 100 staff including quantity surveyors, draughtsmen, spray painters, cabinet makers, and carpenters.  The company serves a range of national and international retail, hospitality, and commercial customers, including Gucci, Coffee Club, Crabtree & Evelyn, DFS, Kimberleys, Louis Vuitton, Max Fashions, Mississippi, Mont Blanc, OPSM, Overland Shoes, Pascoes, Stewart Dawsons, Sunglasses Hut, Watches of Switzerland, Gloria Jeans Coffee, and Air New Zealand.

GoBus Limited (‘GoBus’) is a leading provider of public transport services in the Waikato region, providing urban, school and charter/tour bus services. GoBus was formed in 2003 from the amalgamation of four local bus companies ‘Blue Worth’, ‘Simpson’, ‘Hodgson’ and ‘HCB’. The Company now employs 460 people, and operates a fleet of 410 vehicles, 4 workshop facilities and 8 depots around the Waikato region.

Direct Capital’s investment in December 2007 facilitated the replacement of a founding financial investor. Other founding shareholders and the GoBus management team have retained a significant investment in GoBus and continue to manage the company.

The public transport sector has several positive fundamental drivers influencing growth including demographic trends, socio-behavioural trends, and increasing government support and investment. Significant further opportunities to grow GoBus have been identified.

Stratex is one of Australasia's leading suppliers of products that contain paper, foil, and polymers. Stratex has a strong market presence in food packaging, industrial packaging, and building products utilizing a range of coating, laminating, printing, and tray forming technology in Australia and New Zealand. It is well known for its high quality and excellent customer service.

The business has been in existence since 1969 when it originally coated paper for milk powder bags.

Today Stratex has manufacturing facilities in Auckland, Sydney and Melbourne and sales offices in Melbourne and Brisbane.

In 2007 Stratex acquired Trans Tec, a division of Allkotes. Located in Melbourne, Trans Tec specialises in extrusion coatings on light weight materials, making products for use in Thermal laminating and food packaging.

The Auckland factory, in New Zealand, houses state-of-the-art extrusion laminating technology that processes a variety of polymers, foils, and papers that are sourced from throughout the world.

On 1 May 2007 Direct Capital announced that it has partnered with senior management in the succession management buyout of Stratex Limited.

Direct Capital was attracted by the strong market position, capable management and progress made in building a trans-Tasman business.

Triton Hearing Clinics (formerly Professional Hearing Services) is a hearing aid retail business, providing hearing tests and hearing aid fitting services. The first Triton clinic was opened in Hamilton in 1988 by founding audiologists Brett Robertson and John Ho. Triton established its second clinic in Tauranga in 1999, in partnership with audiologist Carey Wright. Three further visiting clinics have been established in Thames, Waihi and Matamata plus a second clinic in Hamilton and Triton is now the leading hearing aid retail business in the Waikato / Bay of Plenty region. In 2007 Triton acquired Canterbury Hearing, with a clinic in Christchurch plus three visiting clinics in Darfield, Amberley and Ashburton. The acquisition represents Triton's entry into the South Island and further clinics are expected to be opened in due course.

Direct Capital has invested in Triton alongside experienced businessmen John Ryder and Howard Bretherton and the founding Triton audiologists. Ryder and Bretherton have been appointed Executive Chairman and Director respectively. Ryder has founded and run a number of successful businesses including Ryman Healthcare, now an NZX40 company with a capitalisation of over $900m. Bretherton was involved in the successful development of Michael Hill Jewellers, which he joined when the business had just 2 stores, rising to Joint Managing Director until 2003. Ryder and Bretherton will lead the expansion and opening of further Triton outlets.

Business
NZP manufactures specialty chemicals (largely pharmaceutical intermediates) for some of the world’s leading pharmaceutical companies, and also produces a range of ingredients used in dietary supplements.

NZP’s core competence is in the manufacture of natural biochemicals (primarily from animal by-products) under Good Manufacturing Practice (GMP) conditions which ensures its products conform to pharmaceutical industry quality assurance standards. Almost all NZP’s revenues are achieved from export markets.

Strategy
Direct Capital acquired a shareholding of 51% with the remaining 49% continuing to be owned by the management and staff of NZP and strategic investor Shin Nippon Yakugyo, a Japanese specialty chemicals business.

Financing for Direct Capital’s acquisition included the capital expenditure funding required by NZP to build a new factory to manufacture glycotherapeutic intermediates (glycotherapeutics are a fast growing category of the global pharmaceuticals market and of increasing significance to NZP’s business). Construction commenced in 2006 on the site of the existing head office and manufacturing plant in Linton near Palmerston North.