OVER $1 BILLION RAISED AND COUNTING
Since 1994, Direct Capital has raised more than $1.2 billion for investment in seven funds. Our latest fund, Direct Capital V completed its fundraising in early 2017 and raised $325 million.
Direct Capital invests in the New Zealand and Australia mid-market private company sector and invests in expansion, buy-out and pre-IPO situations. The New Zealand mid-market private company market comprises more than 1500 companies with annual revenues between $30m - $200m. This market is 5-7 times the size of the NZSX listed market and offers a wider range of sectors to invest in.
We typically invest between $10m - $60m of equity into a company and are comfortable with both minority and majority shareholding situations. We aim to invest in a sector’s largest private company. We target a re-valuation multiple of 2-3x every 3 years on each investment.
We believe private company investment provides some significant advantages for investors:
- We achieve an information advantage through completing extensive due diligence on a business before investing
- The investment is negotiated with price and terms that address specific risks
- We invest alongside the owners of a company and have a close alignment of interest
- We appoint a board representative and maintain influence over key strategic issues
Direct Capital has a long-term record of delivering consistent annual net cash returns that exceed 20%.