Murray Capital raises Rakaia Fund

Murray Capital raises Rakaia Fund

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Murray Capital, the private equity arm of Murray + Company, has raised $15 million through its new investment vehicle, the Rakaia Fund.

Having completed its capital raising, the Rakaia Fund is now actively seeking prime investment opportunities in established medium sized New Zealand businesses that meet its criteria.

Justin Murray, managing director of Murray Capital, said that the Rakaia Fund had a preference for export led businesses because the strongest growth prospects were likely to come from accessing international markets.

“Specifically we are interested in businesses that need further capital to grow, require restructuring or could act as the conduit for industry consolidation. As an investor, the Rakaia Fund will provide a business with capital, strategic guidance, financial advice, governance and access to networks both in New Zealand and offshore.

“We are focused on long term value creation for all shareholders of the businesses in which we invest.”

Types of investment could include:
• Expansion capital for internal growth or acquisition;
• Management buy-outs and buy-ins;
• Industry consolidation;
• Succession or replacement capital;
• Recapitalisation of stressed or under-capitalised businesses.

Murray believed there were some excellent opportunities among established regional businesses. The fund would not consider start-ups, or companies involved with unproven technologies.

He said the capital raised for the Rakaia Fund indicated that the market was still supporting sound investment offerings despite the tighter economic environment. The fund also had significant interest from large co-investors who would consider providing additional capital if required.

Rakaia Fund will be managed by Murray Capital, the private equity arm of Murray + Company, which also operates corporate finance and wealth management divisions.

ENDS

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