New Zealand's Pencarrow closes Fund V at $176m

Fund V represents a substantial increase on its predecessor which closed at NZ$124 million in 2013 after a 17-month fundraise. LPs in the latest vehicle are predominantly domestic institutions, including community trusts, private investors, foundations, and indigenous iwi groups.

“Pencarrow believes this is an ideal environment to be looking for new investment opportunities,” the GP said in a statement. “Fund V has already completed its first investment providing expansion capital to a company operating in the food and beverage segment and will announce more detail on that next month.”

The fund will invest in management buyouts, succession deals, and expansion capital opportunities in local companies with enterprise values in a range of NZ$20-100 million. Much of the deal targeting will emphasize companies with profitable track records looking to expand internationally.

Pencarrow claims to have invested more than NZ$400 million in more than 30 companies since 1993. Recent activity includes an exit of its stake in sport clothing brand Icebreaker to US competitor VF Corporation and the sale of a 100% stake in tea and coffee company BrewGroup to Netherlands-based Jacobs Douwe Egberts.

Private equity fundraising in New Zealand is said to be benefiting from increasing support from Maori tribes, known locally as iwi groups. Middle market opportunity in the country has been more broadly supported by a gradual transition from primary industries to high-value brands that exploit a reputation for environmentalism and health safety.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

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