Donaghys Delisting Reflects Record Level Of Market
DONAGHYS DELISTING REFLECTS RECORD LEVEL OF NZ PRIVATE CAPITAL MARKET
Following it's delisting yesterday, Donaghys Limited moves to the private equity market today in a move that reflects the exponential growth of New Zealand's private capital markets over the last year.
The Donaghy's MBO was launched late last year by Donaghys managing director, Ross Callon and AMP Asset Management (AMPAM), and is only the second successful MBO and delisting of a public company in New Zealand. The first was Eastern Equities Corporation in October 1999 and was also backed by AMPAM.
"The latest figures show that New Zealand now accounts for almost a quarter of all the private capital activity in Australasia, whereas 18 months ago it was more like five per cent," said Martin Turner, Head of Private Capital for AMPAM.
"Although private capital is a new asset class here, offshore it is well established as a major form of investment. In 1999 a record US$95.5 billion was invested into private capital in the United States, a sixth consecutive yearly record."
"The private capital markets have been a `late bloomer' in New Zealand, but now appear to be taking off. "
"There were 113 private capital deals in New Zealand and Australia in the September quarter of 1999, with over $A208.35 million being invested. These are record levels of investment and my pick is for this investment activity to continue to build for some time yet."
Late last year AMPAM launched New Zealand's first private capital public offering, the proceeds from which will be invested alongside AMPAM's own funds in a 10 year closed investment. The investment has a minimum commitment of $30,000.
AMPAM commenced private capital operations in New Zealand a year ago. Since then they have invested over $80 million in eight successful transactions. These investments have made AMPAM New Zealand's largest private capital investment manager. Globally, AMPAM has been involved in private capital for over 35 years and currently manages NZ$7.6 billion committed to this asset class.