M deal value by Private Equity doubles
New Zealand saw private equity’s (PE) contribution to overall merger & acquisition deal value double in FY2015 according to the latest Market Observations report from the New Zealand Private
Equity & Venture Capital Association (NZVCA) and S Capital IQ.
‘PE deals in New Zealand made up 5% of all deals in the year ended 30 June 2015, and contributed 13% of total deal value
for the year. There was a decline in terms of volume but a rise in value from FY2014 to its highest level since 2011,’
says S Capital IQ Vice President, Clive Cooper.
NZVCA Executive Director Colin McKinnon adds: `PE activity tends to contribute a similar percentage of deals in New
Zealand and Australia. However nearly a quarter of transactions in the US and UK involve PE buyers, which suggests that
there is still considerable headroom for PE to invest in the New Zealand market.’
The mid-market (NZ$50m-NZ$250m) showed a large year-over-year increase, with deal volume and value up 72% and 287%
respectively from the historical low in FY2014. Average mid-market transaction size was steady at around $86m. Total
number of M completed in New Zealand in FY2015 dropped by 11% while the value of deals increased by 26% to a five year high of
NZ$8.9b. Total number of private placements decreased by 27% but the total transaction value hiked 56% to NZ$893m from
NZ$573m last year.
ENDS