Media Release
17 August 2008
Fund Signals Confidence In Heartland New Zealand
Business confidence may be plummeting in the cities but a group of successful Hamilton businessmen has given provincial
New Zealand a strong vote of confidence with the launch of a new private equity fund targeting investment opportunities
in the country’s heartland.
The new fund – Central Capital Regional Fund LP - seeks to raise $50 million within the next 12 months to invest
principally in high growth companies based in the Central North Island, outside of metropolitan Auckland and Wellington.
The fund is the brainchild of well-known Hamilton businessmen Gary Mollard and John Birch.
Mr Birch says the pair established the fund to fill a gap they identified in the market for an early to late stage
investor in growth companies that service the primary sector and other heartland industries.
“The primary sector is going through a growth phase. However, many of the companies servicing this sector are now
financially challenged to keep up with their customers and fund their own growth. Additionally, many owners require
additional strategic or operational skills to deliver on the potential available to them,” he explains.
The co-founders believe Central Capital is the first fund in New Zealand focussed specifically on investing in the
country’s rural core.
Both Mr Mollard and Mr Birch have in-depth knowledge of the rural services industry. Mr Mollard is a former managing
director and current director of NDA Engineering, while Mr Birch is a former shareholder and director of McClunie Birch
and chairman and director of the Waikato Innovation Park.
Mr Mollard says the focus on New Zealand’s rural heartland is an opportunity overlooked by most traditional investors.
“The central North Island has a number of strong, attractive businesses across a range of industries; however they have
been under the radar to Wellington, Auckland and Australian-based private equity firms.”
“Central Capital has assembled a group of highly experienced business people who are seeking to capitalise on these
previously overlooked opportunities. Each of us has well-honed investment decision making and operational skills. We’ll
pick our investments carefully then work closely with our portfolio companies to ensure the required growth is
achieved,” outlines Mr Mollard.
The fund is now being raised from high net worth individuals and institutions, with a minimum investment required of
$500,000. Messrs Mollard and Birch will themselves be substantial investors in the Central Capital Regional Fund.
The fund has adopted a Limited Partnership (LP) structure and aims to raise $25 million by early October, rising to a
maximum of $50 million within the next 12 months. It is expected the fund will make eight to twelve investments over the
next 3 to 5 years.
Former banking executive Rory MacGillycuddy has been appointed as the company’s CEO. He says the Central Capital
Regional Fund is unique in that it will join investees and investors who are passionate about the primary sector and
regional industries.
“Central Capital is specifically targeting farmers and rural executives or organisations interested in investing in high
growth businesses that are right in their own backyard, so to speak.
“This means investors get the advantage of backing companies whose operations, products and services they fully
understand. Plus, by putting money into the fund, they receive the added benefit of an equally-passionate, proven team
of operators working on their behalf to maximise their investment,” explains Mr MacGillycuddy.
In addition to Messrs Mollard and Birch, the Investment Committee includes two independent members, Rodger Fisher and
Alton Jamieson.
Mr Fisher, previous Managing Director of Owens Group, is now a consultant and professional director. Rodger is chairman
of WEL Networks Limited, director of Lyttleton Port Company Limited and Tenon Limited (formerly Fletcher Forests
Limited).
Mr Jamieson is former Managing Director of Waste Management NZ Limited where in various senior roles he oversaw
approximately 50 acquisitions. He is a director of Smart Environmental Limited and chairman of NZAX listed The New
Zealand Wine Company.
For more information about the Central Capital Regional Fund, visit www.centralcapital.co.nz.
ends