Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Private Investors Key To NZ’s Future

Private investors are the key to New Zealand’s venture capital future according to the New Zealand Private Capital Association.

Speaking at an end of year review, NZ Private Capital executive director Colin McKinnon says: ` I am excited about the prospects for the venture capital industry. The New Zealand private capital market has strength in both private equity and angel investing. For several years we have talked about the “Gap” in venture capital in this country. Now we have real prospect of filling some of that gap and private investors are the key.

‘We estimate that there is between $1.2 billion and $2.7 billion of dry powder available for New Zealand private equity and venture capital investment over the next few years.’

Mr McKinnon notes that New Zealand is ranked the 8th most attractive market for private equity globally (out of 125 countries), comparable to European markets such as Germany, Switzerland, Denmark and Norway.

Between 2010 and 2019 New Zealand based fund managers raised in excess of $3.0 billion in over two dozen private equity and venture capital funds. The five most active private capital firms have raised three or more funds (on average) and have more than 20 years’ investment experience.

Since 2016 total fund raising has typically exceeded $300 million per year through multiple funds raised, providing adequate scale for an institutional investor seeking to deploy capital.

He comments: ‘We are now at a place to accelerate the ambitions of venture fund managers. There are healthy signs of new funds with prospects, both domestic first-time funds and international funds with NZ market commitments the funds raised in the last 12 months by Blackbird Ventures, Movac and Pacific Channel are exciting developments.’

The deepening of the New Zealand private equity market over the last ten years is also illustrated by an increase in the number and types of limited partners investing in private equity and venture capital funds.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Smelter: Tiwai Deal Gives Time For Managed Transition

Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed to working on a managed transition with the local community,” Grant Robertson said. More>>

ALSO:

Economy: Strong Job Ad Performance In Quarter Four

SEEK Quarterly Employment Report data shows a positive q/q performance with a 19% national growth in jobs advertised during Q4 2020, which includes October, November and December. Comparing quarter 4, 2020, with the same quarter in 2019 shows that job ad volumes are 7% lower...More>>

NIWA: 2020 - NZ’s 7th-warmest Year On Record

The nationwide average temperature for 2020, calculated using stations in NIWA’s seven-station temperature series which began in 1909, was 13.24°C (0.63°C above the 1981–2010 annual average). New Zealand’s hottest year on record remains 2016, when... More>>

Quotable Value New Zealand: Property Market Set To Cool From Sizzling To Warm In 2021

Nostradamus himself could not have predicted the strange series of events that befell our world in 2020 – nor the wild trajectory of New Zealand’s property market, which has gone from “doom and gloom” to “boom and Zoom” in record time. Even ... More>>

PriceSpy: Research Reveals How Shopping Behaviours Have Changed This Christmas

According to a new survey* from PriceSpy , almost 50 per cent of Kiwis are looking to shop locally this Christmas in light of Covid-19; The research also found consumers are changing their shopping habits, with one in seven (14 per cent) getting super-organised ... More>>

Commerce Commission: Noel Leeming Group Warned For Making Delivery Representations Without Reasonable Grounds During COVID-19 Lockdown

Noel Leeming Group has been warned by the Commerce Commission for making delivery representations about two products which, in the Commission’s view, it did not have reasonable grounds for at the time the representations were made. The warning ... More>>