Monitor Release 2021
We are delighted to bring you the eighteenth full year edition of the
New Zealand Private Capital Monitor.
This edition of the New Zealand Private Capital Monitor consolidates the
findings from previous surveys and provides a more detailed review of 2020
including commentary on the industry from the New Zealand Private Capital
Association’s Chair.
2020 was another year of record activity, with $2.53 billion of combined
investments and divestments across private equity and venture capital
transactions, weighted heavily towards investment activity. Buy-out activity
in particular showed significant growth on the prior year driven by the EQT
Infrastructure acquisition of Metlifecare.
Total investment activity continued to be strong in 2020 totalling $2,419 million,
a strong increase from 2019, driven by a higher number of investments in 2020
(128) compared to 2019 (77). There was an increase in average transaction
value in 2020 ($18.9 million) compared to 2019 ($14.9 million) whilst still
being significantly higher than the 10 year average of $10.3 million.
Private equity investment excluding venture capital reached $2,292 million,
compared with $1,034 million in 2019 and $824 million in 2018.
Venture and early stage investment in 2020 totalled $127.2m an increase
from $112.2m in 2019.
International investment in software / technology companies continues the
theme seen in recent years.
The commitment to growing New Zealand’s businesses has been clear in
responses to the Monitor, with the continued plans for their investee companies
focussing on growth in exports and new markets, increased capital expenditure
and market acquisitions.
Fund-raising activity in 2020 by New Zealand funds raised over $765 million of
capital and further fundraisings are anticipated for 2021.
New Zealand capital markets showed decreased activity in 2020 with respect to
new listings, however significant capital raises were undertaken by existing public
companies in response to Covid-19. The outlook for future years appears positive
as New Zealand and the global economy recovers from the Covid-19 pandemic,
and portfolio companies assess options for new capital raising.
Private capital is a significant contributor to the New Zealand capital market
eco-system. With a global recovery from Covid-19 still in progress, private equity
and venture capital fund managers can provide much needed expertise and
assistance to founders and managers, as well as additional capital support.
We see private capital continuing to play an important role throughout the
coming year in helping many New Zealand businesses stabilise and grow as the
New Zealand and ultimately global economies return to a sense of normality.
NZ Private Capital promotes the growth story with targeted communications
that feature business owners’ experience working with private equity and venture
capital managers.
Brad Wheeler presents highlights
Read the latest report