Direct Capital today announced that it had completed the sale of its 60% shareholding in Hiway Group. HGL is a recognised pioneer of ground stabilisation in New Zealand.
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.”
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.
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.
Direct Capital is pleased to announce that it has supported the management buyout of Marvel Packers (Marvel) by the current managing director, whose grandfather founded the business more than 80 years ago.
Successful investments by two private equity firms in New Zealand King Salmon and Brew Group won awards from The New Zealand Private Equity and Venture Capital Association (NZVCA) as the best Investment of the year at its annual conference in Queenstown.
BSC Limited, the parent company of Complectus Limited, confirms that it has entered into a re-financing agreement and long-term partnership with local private equity firm Direct Capital. Direct Capital will have an option to convert the loan for 50% of the shares in Complectus at a point in the future.
Direct Capital is pleased to announce that it has invested to acquire a minority shareholding in AS Colour, in partnership with founder and Managing Director Lawrence Railton.
Tim McCready, NZ Herald: Late last year, Direct Capital raised its fifth private equity fund in New Zealand. Since it began in 1994, the firm has raised $1.2 billion, with its latest $375 million fund coming almost exclusively from existing investors in just two months.
Liam Dann, NZ Herald: 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.