Real Estate And Resource Services Win NZ Private Capital Investment Of The Year
Successful investments by two private equity firms in Bayley Corporation and Contract Resources won awards from the New Zealand Private Capital Association as the best deals of the year at its annual conference in Queenstown yesterday (22 October).
‘The NZ Private Capital Investment of Year Awards recognise the private equity and venture capital firms that accelerate the ambition of New Zealand business owners through operational improvement and investment performance,’ says NZ Private Capital Executive Director, Colin McKinnon.
Entries were judged on return to investors and the companies’ financial performance. The companies’ contributions to the economy, employment, innovation, consistency and industry competitiveness were also considered.
Mr McKinnon adds: ‘The winners of our 2020 awards are examples of private capital partnering with companies to improve growth and performance, and to share expertise and to provide capital. This ultimately delivers improved productivity, creates jobs and contributes to the national economy.’
NZ PRIVATE CAPITAL ANNUAL AWARD WINNERS:
INVESTMENT OF THE YEAR up to $150 million
Awarded to Direct Capital for their investment in Bayley Corporation
INVESTMENT OF THE YEAR over $150 million
Awarded to Anchorage Capital Partners for their investment in Contract Resources
Bayleys was founded in 1973 as a three-person real estate company by the late Graham and Pam Bayley and their son John Bayley, using the family home in Pakuranga as their first office.
Today, Bayleys is New Zealand’s largest full-service real estate company with more than 2,000 staff and over 90 offices up and down the country and in the Pacific Islands. Bayleys is a leader in marketing a wide range of property including: residential real estate and project marketing; farms and lifestyle blocks; commercial and industrial sales and leasing; and tourism and business real estate such as hotels and motels. In addition, Bayleys Property Services manages one of the largest commercial and industrial property portfolios in New Zealand whilst also offering market leading services in valuations, advisory and research.
Direct Capital invested alongside the Bayley family in 2010 and has supported the company’s impressive growth over the last 10 years.
Established in 1994, Direct Capital has been at the forefront of developing New Zealand’s private equity industry.
Direct Capital is itself a private company, owned by its executives who understand the issues that business owners think about when considering how to grow their business or facilitate a change of ownership.
Over its 26-year history, Direct Capital has raised $1.7 billion of capital to invest in New Zealand and Australian private companies. Direct Capital is currently investing its latest fund, Direct Capital VI, which raised $425 million in March 2020.
Direct Capital remains invested in Bayley Corporation with a 4.7 per cent shareholding.
Contract Resources was founded in 1989 and has grown to become a market leading provider of critical maintenance services to the oil, gas energy and infrastructure sectors in Australia, New Zealand and the Middle East. CR’s specialised service offering includes catalyst handling, environmental and industrial services and mercury waste treatment. The business delivers its services to the refinery, LNG, petrochemical, renewable energy and resources sectors.
Anchorage Capital Partners (“Anchorage”) acquired CR in October 2017 as a non-core carve-out from ASX-listed Bapcor Holdings following Bapcor’s takeover of Hellaby Holdings. Prior to the acquisition, the business was under an extended period of stress from accelerated growth with limited consistency in contracting principals and poor cost discipline. Under Anchorage ownership, a range of operational improvement initiatives were executed resulting in a tripling of EBITDA. CR was successfully sold to a consortium comprising Viburnum Funds and SCF Partners in December 2019
Anchorage Capital Partners is a specialised private equity firm that focuses on control investments in established businesses with a strong market position or brand which are not performing at their full potential, often as a result of capital constraints, lack of management attention or being a non-core ‘orphan’ in a large corporate.