New Zealand's Pencarrow reaches final close of $101m on Fund IV

Pencarrow IV, the PE firm's largest fund so far, will focus on buyouts, succession and expansion opportunities in New Zealand's mid-market space. It includes a $30 million cornerstone commitment from the New Zealand Superannuation Fund, alongside investments other domestic institutions and private investors.

"This is an ideal environment to be looking for new investment opportunities," Nigel Bingham, Pencarrow's executive director, said in a statement. "There is considerable opportunity for established, medium-sized New Zealand companies which have weathered the slowdown of the past few years and are now looking to grow their business."

The fund will typically make investments in companies with enterprise values ranging from NZ$20 million to NZ$100 million.

"With the recent recovery in global financial markets, but ongoing uncertainty in Europe and the US, the New Zealand private equity opportunity is an attractive one for institutions and private investors," Bingham said. He added that the successful capital raise showed there was investor confidence in opportunities in privately-held New Zealand companies.

At the AVCJ Australia & New Zealand Forum earlier this month, private equity investors remarked that they saw considerable upside in Australia and New Zealand's lower and mid-market despite there being fewer large deals.

Pencarrow is New Zealand's longest established private equity firm. It recently exited investments Phil & Teds, BJ Ball, CS Company and Home Ideas Centre through its third fund.

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• Topics
• Australasia
• Fundraising
• New Zealand
• Pencarrow Private Equity
• Fundraising