New Zealand's Oriens Capital to close latest fund above $35m

"It is a credit to all involved that the fund has not only been established, but is also going to close well above its $30 million target," John McDonald, chairman of Oriens, said in a statement. "The fact that our investors also own the management entity creates excellent alignment and was a factor in our success."

All of Oriens' management and a majority of its directors are investors in the fund. It reached a first close earlier this year at NZ$30 million, with additional backing from BOP Regional Council investment arm Quayside Holdings, Tauranga Energy Consumer Trust and Sir Stephen Tindall's K1W1 fund. A number of regional community investment vehicles and indigenous investment organizations have also participated.

The fund will focus on mid-market businesses in regional New Zealand 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.

Oriens is expected to announce its first investment from an existing list of prospects in the first half of 2017. It will then aim to make about 6-8 investments across the next five years.

New Zealand is estimated to have more than 33,800 mid-market businesses with annual revenue of NZ$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.

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