Fund Raising For Private Company Market

Direct Capital Track Record Endorsed By Fund Raising For Private Company Market

Direct Capital’s successful fund raising of $200 million for the Direct Capital IV fund was a sign of investor confidence in the New Zealand private company market, says NZVCA executive director Colin McKinnon.

Direct Capital today announced that its Direct Capital IV fund had so far raised $201.5 million in capital from investors in its initial fund raising, and expects to raise around $250 million.

“This indicates that investors are prepared to support growth capital to be invested into the good opportunities which exist in privately-owned New Zealand companies,” Mr McKinnon said.

“Despite the challenges posed by the global economic climate, fund managers that have proven track record are able to attract institutional investors. Mid market growth activity presents good opportunities for those managers with funds to invest.

“Private-owned companies are New Zealand’s largest equity sector and investors can get access to good opportunities through experienced fund managers with good investment records, such as Ross George and his team at Direct Capital. “It is especially pleasing to see that major institutional investors – such as the New Zealand Superannuation Fund, ACC, and some of the pension funds and community trusts – are investing into this area.

“New Zealand private companies need to be able to access growth capital to finance further expansion, which is the focus for funds like Direct Capital. This is good news for the New Zealand economy and the business sector in general,” Mr McKinnon said.

ENDS

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