New Zealand's Oriens Capital raises $21.8m
New Zealand private equity firm Oriens Capital has received commitments for its debut fund in excess of the vehicle’s first-close target of NZ$30 million ($21.8 million).
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, indigenous investment organizations and other qualifying investors across the country. All of the management and a majority of the directors are also investors. LPs will own a pro-rata share in the fund, together with a pro-rata share in the investment manager.
"We've received strong investor support, not just from the Bay of Plenty where we're based, but from regions across the country," James Beale, CEO of Oriens, said in a statement. "That is already providing a pipeline of potential investments. Utilizing 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."
The vehicle - which will target established domestic companies operating in regional areas - has a maximum size of NZ$60 million. It will invest in companies in a NZ$10-$50 million value range that are seeking to expand or put in place succession plans. Focus sectors will include distribution and logistics, specialist manufacturing, food manufacturing, tourism and agricultural technology.
New Zealand is estimated to have more than 33,800 mid-market businesses with annual revenue of $2-$50 million, representing 29% of total sales and 33% of employment nationally. About 5,000 of these are expected to be put up for sale within the next five years.
The investment extends a spate of fundraising activity in New Zealand in recent months, including a better-than-expected first close of NZ$38 million from the Global from Day One (GD1) Fund II in late May and a $20 million round of commitments towards a Movac growth-stage vehicle targeting NZ$80-100 million. Both funds are expected to help fill New Zealand's stubbornly persistent Series A and B gap.
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