Mid-market and venture capital remained strong in 2023
· Mid-market investment was $541m, an increase from $342m in 2022.
· The average investment transaction value for mid-market was $11m, which remains below the 10-year average trend of $15m.
· Early-stage venture capital investment increased to $384m compared with $319m in 2022.
· The total number of venture capital transactions in 2023 increased to 250 compared to 222 transactions in 2022.
· 2023 saw one buy-out transaction being BGH Capital’s investment in Push Pay, compared to six transactions in the prior year.
· Total investment activity across all investment stages decreased to $1.9b in 2023, down from $2.9b in 2022.
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 2023. Large buy-out activity was quiet with only one transaction compared with six in the previous year.
New Zealand Private Capital Executive Director, Colin McKinnon, said: “The importance to local businesses of investment by mid-market private equity and venture capital cannot be ignored. In the current environment of increased global economic uncertainty, private equity and venture capital fund managers provide much needed expertise and assistance to founders and managers, as well as additional capital support.”
Over the last 10 years, private equity and venture capital funds have invested $13.7b in growing New Zealand companies.
Australia domiciled funds had the largest share of the mid-market this year (the first time since 2015), including Liverpool Partners investment in Mint Innovation, Intellihub Holdings investment in Influx Energy Data (backed by Pacific Equity Partners), and Anchorage Capital Partner’s investment in Access Community Health Ltd.
New Zealand domiciled fund activity included investments by Pioneer Capital, Milford Asset Management, Direct Capital and Oriens Capital.
EY Partner, Brad Wheeler, said: “The outlook for private capital investors has moved to neutral in the short term, but with levels of optimism increasing as we look further out.”
Read the full report here
© Copyright 2024 New Zealand Private Capital Association