PE consortium backs New Zealand fertility business
Pioneer Capital, New Zealand Superannuation Fund, and Comprador Holdings have together acquired a 70% stake in Fertility Associates, a New Zealand-based fertility treatment provider.
Pioneer’s commitment comes from its fourth private equity fund, in which NZ Super is an LP. The vehicle launched earlier this year with a NZ$260 million ($177 million) target. Comprador has experience in the fertility industry from an investment in UK-based The Fertility Partnership made through partner company White Cloud Capital.
The size of the deal was not disclosed. The remaining 30% will continue to be owned by Fertility Associates’ doctors and management team.
Founded in 1987, the company provides reproductive support, diagnostic services, and fertility treatments in New Zealand and Malaysia, having entered the latter market in 2016 through an investment in local player Sunfert. To date, it has facilitated 25,000 births in New Zealand and 5,000 in Malaysia. Part of the investment thesis is expansion into other markets in Asia Pacific.
“The business is supported by demographic changes including people choosing to have children later in life, social infertility and greater social acceptance of assisted reproductive techniques and improved technology,” said Randal Barrett, a managing director at Pioneer, in a statement.
Pioneer makes investments of NZ$10-50 million, taking minority or control stakes in companies. The firm looks at about 150 small to medium-sized enterprises a year with a strong focus on export-oriented models. More than 90% of the portfolio’s combined sales have historically come from overseas.
Other recent private equity activity in the fertility space includes BGH Capital submitting a A$607.3 million ($432 million) take-private bid for Australia-based Virtus Health. The fertility care services provider was owned by Quadrant Private Equity prior to going public in 2013.
Fertility Associates was advised by Cameron Partners, Rothschild & Co, and Dentons Kensington Swan.
More on Australasia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.