Pioneer hits $180m hard cap on third New Zealand fund
New Zealand’s Pioneer Capital has hit the hard cap of NZ$260 million ($180 million) on its third growth fund, beating the target of NZ$210 million. It follows the first investment from the new vehicle in Havelock North Fruit.
The GP partners with owners and managers of private businesses with a view to taking them to next level of growth, typically committing NZ$10-50 million per transaction. Fund II closed at NZ$150 million in 2013, with New Zealand Superannuation Fund contributing NZ$40 million. The sovereign investor has re-upped for Fund III, announcing last December that it would commit NZ$120 million.
Of the NZ$900 million in annual revenue generated by the 17 companies Pioneer has backed to date, more than 95% comes from outside of New Zealand. Havelock North Fruit is no exception, selling only 3% of its miniature Rockit apple snacks domestically. The company started with a couple of orchards in Hawke’s Bay but now grows its produce in seven countries and sells them in 22.
Pioneer and fellow New Zealand-based investor Oriens Capital have agreed to buy founder Phil Alison’s stake in Havelock North Fruit, which will be rebranded as Rockit Global. The private equity firms will occupy two seats on the company’s six-person board, which will continue to be chaired by John Loughlin.
Rockit Global has the exclusive international license to grow and market the PremA96 apple variety, sold as Rockit apple snacks. The snacks are prewashed miniature apples – one-and-a-half times the size of a golf ball – with a sweet flavor, thin skin and small core. They also have a long shelf life. Grown in the UK, US, Australia, Belgium, Germany, Italy, France and Spain as well as in New Zealand, tens of thousands of trees will reach maturity over the next few years.
The company shipped 77 containers of fruit from New Zealand last year and earned its maiden profit. Pioneer and Oriens will help Rockit Global continue to develop its business internationally, working with newly appointed CEO Austin Mortimer.
“It is very positive that growth equity investors of this caliber, from outside the pip fruit industry, are recognizing the tremendous potential in Rockit Global and the industry,” Loughlin said in a statement. “The new shareholders have experience in growing New Zealand export businesses. They will contribute governance expertise and additional capital to help the company deliver on its ambitious growth plans.”
Oriens targets companies with enterprise valuations of NZ$10-50 million across food production, agricultural technology and services, specialist manufacturing, transport and logistics, exports, and tourism. Last year, the firm announced it had received NZ$30 million in commitments ahead of the first close on its latest fund, which had an overall target of NZ$60 million.
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