Private capital activity up in 2024
2024 saw transaction activity rise to $3,765m of combined investments and divestments across private equity and venture capital transactions, weighted towards investment activity (c.74% of total activity).
- Private equity investment excluding venture capital reached $2,182m, compared with $1,501m in 2023 and $2,630m in 2022.
- Mid-market investment activity was broadly in line with prior year with $519.1m in 2024 compared to $541.2m in 2023.
- Venture and early-stage investment in 2024 totalled $587.6m, representing another record year, with an increase over the previous high of $384.4m achieved in 2023.
- Significant transactions included investments in Arvida, HabitHealth, FirstCape and Fusion5.
The New Zealand Private Capital Monitor produced by EY, was released today. It highlights strong mid-market and venture capital investment in New Zealand businesses in 2024.
2024 saw three buy-out transactions, an increase from one transaction in 2023. Buy-out transactions in 2024 included Five V Capital’s investment in HabitHealth, Pacific Equity Partners’ investment in FirstCape and Stonepeak Infrastructure Partners’ investment in Arvida Group.
EY Partner, Brad Wheeler, said: “The growing investment in our venture capital ecology shows its strength and sustainability. Mid-market private equity included a significant return of capital to investors.”
Australia domiciled fund activity included BGH Capital Ltd.’s investment in Fusion5, Anchorage Capital Partner’s investment in ELF, Five V Capital’s investment in OrbitRemit, and Potential Capital’s investment in Storypark.
New Zealand domiciled fund activity had the largest share of the midmarket in 2024, including investments by Castlerock Partners, Direct Capital, Milford Asset Management, Pioneer Capital, Pencarrow Private Equity Management, Rangatira, Simplicity Private Equity Fund, and Waterman Capital.
New Zealand Private Capital Executive Director, Colin McKinnon, said: “Fund managers who participated in the Monitor survey expressed a cautiously optimistic outlook for the next 18 months, although their short-term views are marked by a degree of neutrality. This cautious stance is understandable given the recent disruptions in global trade and geopolitical norms.”
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