NZVCA announce award for Deal of the Year

25 October 2012

NZVCA announce award for Deal of the Year

The New Zealand Private Equity and Venture Capital Association (NZVCA) has announced the winner of the NZVCA award that recognises outstanding performance in the private equity industry.

NZVCA Executive Director Colin McKinnon said “An independent industry expert assessed nominations and found examples of innovation, growth, and excellent returns on investment that benefit investors, who are generally local and international superannuation and pension fund members.”

Entries were judged on return to investors and the company's financial performance. The company's contribution to the economy, employment, innovation, consistency and industry competitiveness was also taken into account.

“It’s important to recognise and reward performance” McKinnon said. “Private equity firms strive for sustainable and consistent high-performing returns and the New Zealand industry recognises and celebrates outstanding investment performance.”

“The winner of our 2012 award is an example of the purpose and aim of private equity: to steward companies so that they grow and create value and long-term sustainability through aligning the interests of owners and management. This ultimately delivers improved productivity, creates jobs and contributes to the national economy.

The winner of the Deal of the Year is Anchorage Capital Partners (Anchorage) for their investment in Burger King New Zealand.

Headquartered in Auckland, Burger King New Zealand is the third largest Burger King franchise in the Asia Pacific region employing approximately 2,300 staff at the time of the Anchorage sale. Burger King is a leading quick service restaurant brand, and the second largest hamburger brand in the world with more than 12,000 restaurants in 76 countries.

Anchorage, together with a highly experienced executive team, developed a ‘back to basics’ turnaround blueprint. Executed initiatives included improvements to supply chain management, labour scheduling, speed of service, and organisational capabilities. Considerable capital was invested in new kitchen equipment, the launch of new menu offerings, the restaurant refurbishment program, and opening new restaurants.

Anchorage Capital Chief Financial Officer Dani Sher said: “Anchorage viewed Burger King New Zealand as a classic turnaround. The investment rationale was based on doing the basics well, improving gross margin and restaurant profitability, leveraging the strong underlying brand and investing in the business. During Anchorage’s investment term the turnaround program resulted in a material change in the quality of the business. Underlying earnings approximately doubled and a range of new growth options were developed providing earnings upside over a sustained period.

We are delighted with the outcome of this investment for the Anchorage investors, Burger King New Zealand management, and employees. The new owners will bring another dimension of opportunity to Burger King New Zealand and we’re confident that it will continue to thrive under their ownership.”

Anchorage achieved a successful sale to The Blackstone Group in November 2011, approximately two years after its initial investment.

The NZVCA awards were announced at the NZVCA 2012 annual conference.

ENDS

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