INDEPENDENT NEWS

New regional private equity fund attracts over $30 million

Published: Thu 18 Aug 2016 04:38 PM
MEDIA RELEASE
New regional private equity fund Oriens Capital attracts over $30 million ahead of first close
TAURANGA, 17 August, 2016 -- New regionally focused private equity fund Oriens Capital has received commitments in excess of its initial minimum target of $30 million, says Chairman John McDonald. The fund will remain open for additional investment for a short time after its first close on 1 September, and has a maximum fund size of up to $60 million.
The Fund will invest in privately owned businesses in the $10 million-to-$50 million value range. Based in Tauranga, Oriens Capital’s focus on regional companies makes it unique in the New Zealand marketplace.
Disclosed investors include BOP Regional Council investment arm Quayside Holdings, Tauranga Energy Consumer Trust, and Sir Stephen Tindall’s K1W1 fund, together with a number of regional community investment vehicles, iwi investment organisations, and other qualifying investors across the country.
“The combination of best practice fund structure, the investor and manager alignment, and a team with great experience in fund management governance and investment execution, were all factors in attracting the high calibre of investors on our register,” said Mr McDonald.
The experienced management team includes Chief Executive Officer James Beale, Chief Operating Officer Peter Tinholt, and Chief Financial Officer David Bell. All of the management and the majority of the directors are investors in the Fund. Limited Partners will own a pro-rata share in the Fund, together with a pro-rata share in the Investment Manager, assuring an alignment of interests.
Mr Beale said the Fund’s investment strategy would involve a partnership approach with New Zealand regional businesses. The regions had a number of successful businesses across a range of industries, including distribution and logistics, specialist manufacturing, food manufacturing, technology, science and agri-tech, he said.
“We’ve received strong investor support, not just from the Bay of Plenty where we’re based, but from regions across the country. That is already providing a pipeline of potential investments. Utilising our strong regional networks and the skill base of our team, we can provide businesses with access to scarce growth capital and also facilitate ownership succession for private businesses."
Neil Craig, the founder and Chairman of national broking firm Craigs Investment Partners, and a Director of Oriens Capital, said the Fund would offer investors an investment exposure that was differentiated from traditional listed markets. That was an important factor for many investors, given existing valuations and record index levels in many markets, he added.
“As well as providing a financial return for our investors, the Fund will enable expansion and investment to be funded regionally, and create opportunities for additional jobs and growth,” he said.
“The Fund will provide capital for already successful businesses that wish to expand further, or wish to put in place a succession plan to new ownership."
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About Oriens Capital Fund Oriens Capital Fund is a Limited Partnership that will invest primarily in privately owned businesses based in regional New Zealand.
The General Partner is Oriens Capital GP Limited, whilst the Investment Manager of the Fund is Oriens Capital Limited.
Directors of Oriens Capital GP Limited are John McDonald (Chairman), Neil Craig and Michael Smith. The composition of the General Partner board will change, based on the make-up of the three largest Limited Partners.
Directors of Oriens Capital Limited are Neil Craig, Richard Hughes, Colin Groves and John McDonald.
The executive team of Oriens Capital is CEO James Beale, COO Peter Tinholt, and CFO David Bell.
Dallas Fisher and Bob Major will join the directors and the executive team of Oriens Capital on the Investment Committee of the Fund.

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