Big Read: Who ate all the IPOs?

Big Read: Who ate all the IPOs?

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.

New Fund Announced - Direct Capital V

Private equity investor Direct Capital is on the hunt for acquisitions after raising $375 million for its latest fund.

Despite private equity typically being associated with high-net worth investors, every New Zealander will have a stake in the buying decisions founder Ross George and his team make.

This capital, like much of the $1.2 billion the company has raised since it started in 1994, has come from New Zealand's biggest institutional investors, George said.