NBR: Direct Capital on private equity being more friend than foe

Fiona Rotherham, NBR: It’s well-known that New Zealand is a nation of small businesses but less well-known is the size of the private company sector.

Ross George, managing director of private equity investor Direct Capital, says the private company market is at least 10 times bigger than the listed company market in New Zealand although “a lot of people tend to think it’s the other way around.”

NZ Herald: KiwiSavers should surf wave of cash

Brian Gaynor, NZ Herald: New Zealand PE, which has a far more sustainable growth model than the leveraged buyout model that dominates in other countries, has grown rapidly in recent years.

However, the growth could have been far greater if more than a handful of KiwiSaver funds allocated funds to this asset class. Private equity's medium to longer-term investment horizon is ideally suited to KiwiSaver and the domestic PE sector would get a major boost if more KiwiSaver funds invested in this asset class.

NZ Herald Big Read: Who ate all the IPOs?

NZ Herald Big Read: Who ate all the IPOs?

Jamie Gray and Liam Dann, NZ Herald: Local players like Direct Capital - which has more than $1.2 billion invested privately - raise much of their money from investors such as ACC, the NZ Superannuation Fund, pension funds, community trusts, utility trusts, iwi and even religious groups.

Private equity essentially just refers to capital that is not listed on a public exchange.

But as distinct from, say, a family business, private equity typically refers to funds and investors that directly invest in private companies, or engage in buyouts of public companies.