Rangatira Investments has capital to grow NZ businesses

Rangatira Investments has capital to grow NZ businesses

Rangatira Investments’ CEO Phil Veal told the company’s Annual Meeting in Wellington today that the company is actively looking for promising New Zealand businesses to invest in.

The majority of Rangatira Investments’ shareholders are non-profit organisations including the J.R. McKenzie Trust (51%), the Outward Bound Trust and Te Omanga Hospice. Rangatira Investments’ dividend payments enable its non-profit shareholders to continue to deliver meaningful social impact.

CEO Phil Veal said “We’re committed to delivering strong, risk-adjusted returns for our investors. Our approach is to invest in middle-market companies in New Zealand to grow great New Zealand businesses. Rangatira Investments has a unique competitive advantage over other private equity options because we have a longer investment timeframe.

“With permanent capital, we prefer to be a long-term cornerstone investor, and like to co-invest with existing business owners and management. Our focus on long-term growth is what drives our 10-year compound average return of 10.7%. A case in point is our investment in Hellers in 2003, which has helped Hellers grow into an iconic New Zealand food company that now employs 575 New Zealanders.”

Highlights within Rangatira Investments’ portfolio over the past year have included Hellers acquiring the Santa Rosa poultry brand, Rainbow’s End attracting a record 400,000 visitors, Tuatara Brewing developing a new micro-brewery & bar, and doubling capacity, and Polynesian Spa achieving 300,000 visitors.

The most recent addition to the portfolio is Bio-Strategy – an established specialist distributor of laboratory instruments and automation technology products for the clinical diagnostic, life science and applied sectors – which was acquired in July.

“We welcome other motivated, ambitious middle-market business owners seeking equity to connect with us to see if we can work together to create the next great New Zealand business,” said Mr Veal.

Rangatira Investments Chairman David Pilkington recapped the company’s FY2015 performance that included a challenging first half followed by a strong second half, which he said bodes well for the current financial year.

“This year’s top-line results included a full year profit after tax of $13.7 million and operating earnings of $9.2 million, up on the previous year’s $8 million. Following a strong second half performance in 2015 and with a solid growth strategy in place, Rangatira is well-positioned to improve on this year’s 5.2% return in the year ahead,” said Mr Pilkington.

ENDS

© Scoop Media