New Zealand's Genesis launches $20m PE fund

Fund II will accept contributions as low as NZ$250 million and will close at the end of October. It has received NZ$6 million in commitments to date, including re-ups from existing investors.

Genesis raised about NZ$12 million for its debut fund in 2016 from a group, including farming businesses, that made contributions of $454,000 on average. Fund I has made four investments to date, including two technology companies and a holiday homes operator. A fifth deal is currently being finalized.

“We’ll typically assess around 50 businesses to identify the one or two that meet our specific criteria,” John Rolleston, chairman of Genesis, said in a statement. “We’re looking for a history of consistent and improving financial performance, a sound economic business model, conservative capital structure; and sustainable competitive advantage.”

Founded in 2015, Genesis claims a competitive advantage as the only private equity firm based on New Zealand’s South Island. Investments typically involve helping companies with succession planning, recapitalization, and expansion, as well as management buyouts.

Although still largely agricultural, New Zealand’s middle market has matured in recent years. There is now a strong focus on technology and sophisticated consumer brands that appeal to global markets. Recent fundraising activity in the country includes a NZ$250 million close for Pencarrow Private Equity’s fifth fund with LP support from an increasingly active community of indigenous tribes.

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• Topics
• Australasia
• Growth
• Fundraising
• New Zealand
• Growth capital
• Genesis Private Equity