What We Look To Invest In

We seek to invest in privately owned New Zealand businesses with established and proven business models that underpin solid long-term growth prospects and that are ideally demonstrating consistent growth year-on-year.

  

We are sector agnostic, however we do have a preference for businesses that spark a genuine interest with our team.  We also seek to work with great business owners and managers who we will enjoy working with while helping to achieve future business objectives. 

In terms of business size, we are focused on businesses with a current enterprise value (i.e. the value of your business assuming you had no bank debt) of between $5m and $40m, but we would look at businesses where the value sits outside this range - particularly where there are strong growth opportunities (e.g. through acquisition opportunities) or where we could bring in other investors drawn from our existing networks of compatible investment partners. 

 

How We Invest

Our investment model looks to provide equity capital where we typically invest as a significant minority shareholder (anywhere from 10% to 40% by way of example), partnering with existing owners to help drive growth of the business.  That said, we are comfortable with a majority shareholding in some circumstances – and in any event, our approach to partnering does not change regardless of our ownership percentage,

As part of our investment approach, we also look to bring our experience and expertise to the company to provide advice that helps management and/or board decision making.   

In terms of the size of our investment, we are open to investing anywhere from $1m to $10m (with the ability to invest more with the support of investment partners).   

We structure our investment arrangements to provide clarity on how all owners will get paid, both for the time they invest in managing/governing the business but also as a return on their invested capital.  In relation to our investment, this would normally include a combination of an agreed management/advisory fee, appropriate directors’ fees and an agreed dividend policy (which could be no dividends for a period on the basis that we agree all of the profit is reinvested back into the company to support further growth and/or debt repayment).   

We don’t have a set timeframe for exit, we’re more interested in helping grow great businesses for the long-term and we know every situation will be different, so this is something we will discuss with you at the outset and along the journey.