New Zealand Private Equity and Venture Capital Monitor 2019

New Zealand Private Equity And Venture Capital Monitor 2019-Free PDF

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Executive summary 4,Mid market private equity 6,Venture and early stage capital 8. Buy out private equity 10,Case studies 12,Opinion 14. Outlook 18,Activity summary 20,About the survey 22. 2 New Zealand Private Equity and Venture Capital Monitor 2019. We are delighted to bring you the sixteenth full year edition In 2018 venture capital activity was again driven by a combination. of the EY New Zealand Private Equity and Venture Capital Monitor of local and overseas capital International investment interest in. technology companies remains strong for selected globally. This full year edition of the New Zealand Private Equity and. competitive companies growing from New Zealand, Venture Capital Monitor consolidates the findings from previous. surveys and provides a more detailed review of 2018 including The commitment to growing New Zealand s businesses has been. commentary on the industry from the New Zealand Private clear in responses to the Monitor with the plans for their investee. Equity Venture Capital Association s NZVCA Chair companies focussing on growth in exports and new markets. product development recruitment and R D, 2018 was another year of record activity with 1 7b of.
combined investments and divestments across private Fund raising activity took a pause with New Zealand funds. equity and venture capital transactions Divestment activity deploying capital raised in the previous two years. in particular showed significant growth on the prior year. Consistent with the broader trend in New Zealand capital markets. Total investment activity in 2018 was 1 094 million an there were no Initial Public Offerings sponsored by New Zealand. increase of 218 million from 2017 but still just below fund managers in 2018 The outlook for future years looks better. 2016 s bumper year This is driven by higher average deal as portfolio companies assess options for new capital raising. value in 2018 18 million compared to 2017 13 million. Private capital is a significant contributor to the New Zealand. Private equity investment excluding venture capital reached capital market eco system Private equity and venture capital. 823 9m compared with the 658 7m in 2017 and 1 1bn fund managers provide more than capital They are accelerating. in 2016 ambitions for growth companies, The record level of total venture and early stage investment. Colin McKinnon, of 269 7m was notable for one larger investment round by. Executive Director NZVCA, domestic and international venture firms in Rocket Lab. New Zealand Private Equity and Venture Capital Monitor 2019 3. Executive summary,The year to 31 December 2018 was. characterised by a record level of overall,activity of NZ 1 698 9m an increase.
of 709 3m from 2017 989 6m and,significantly above the average of. 870 2m since the first survey in 2003,Mid market investment activity continued. to be strong in 2018 resulting in 245 0m,in investments albeit down from a high of. 333 7m recorded in 2017 Divestment,activity with disclosed deal values has. increased to 100 8m in 2018 from,62 4m recorded in 2017.
Meanwhile 2018 was a record year for,VC activity Investments have increased. to 269 7m with divestments decreasing,in the period. Buy out activity has continued but at,a lower level than the 2016 peak with. 579 0m of investments and 503 4,divestment activity. Brad Wheeler Colin McKinnon, Partner Transaction Advisory Services Executive Director.
4 New Zealand Private Equity and Venture Capital Monitor 2019. Investments Overall activity summary 2003 to 2018, Total investment value in 2018 was 1 093 6m spread across 2000. The total number of investments with known values remained. stable a marginal decrease from 68 to 62, The total average deal value increased slightly from 12 9m 1500. to 17 6m with VC average deal value increasing from 4 5m. to 6 7m and the buy out average nearly doubling to 193 0m. Mid market investment activity decreased from 333 7m to. 245 0m following a record year in 2017 but remained. NZ million, significantly above the historical average level This decrease. was driven by a lower average investment value 2018 12 9m. 2017 19 6m over a larger number of transactions 2018 19. Total VC investment increased from 217 3m to 269 7m 500. across a similar number of deals 2018 40 2017 48 with. the Rocket Lab capital raise being the standout transaction. Divestments, divestment value in 2018 increased to 605 3m from 0. FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18. 113 6m in 2017 Investment Divestment,Divestment,activity in 2018 was driven predominantly by.
Top end PE divestments including Pacific Equity Partners. divestment of natural health company Manuka Health and. Pencarrow Private Equity s divestment of its shareholding in. activewear brand Icebreaker, New Zealand Private Equity and Venture Capital Monitor 2019 5. Mid market private equity, Mid market private equity investment divestment summary 2003 to 2018. Investment divestment NZ m,Investment,50 Divestment. Average investment,across all periods, FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18. Mid market investment Mid market investments half year split. level of mid market investment from,350 First half.
deals with disclosed values decreased to,Second half. 245 0m from a record level of,333 7m in 2017,average investment value decreased. from 19 6m in 2017 to 12 9m in,2018 a return to the longer term 250. average trend,Mid market,deals exclude any,Investments NZ m. transactions where the target has an,estimated enterprise value over 150m.
as these are categorised as buy out,transactions for the purposes of this 150. FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18. 6 New Zealand Private Equity and Venture Capital Monitor 2019. The Mid Market sector continues to be,a strong performer with more than. 1 9 billion invested in the last decade and,976 million returned to investors to date. Andrew Frankham,NZVCA Chair, Mid market investment Mid market investments domicile. Mid market,investment activity 350 New Zealand,remained buoyant in 2018 driven.
by record levels of investments by Rest of the World. New Zealand domiciled funds including 300,investments by Pioneer Capital. Pencarrow Private Equity Waterman,Capital Milford Private Equity and 250. Oriens Capital,Investments NZ m,was also an increased level of 200. activity from funds outside of Oceania,Mid market divestment 150. Mid market,divestment activity showed,an increase from 2017 100.
Divestment,activity was primarily driven,by transactions by Australian funds. FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18. Mid market divestments half year split,150 First half. Second half,Divestments NZ m, FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18. New Zealand Private Equity and Venture Capital Monitor 2019 7. 8 New Zealand Private Equity and Venture Capital Monitor 2019. Venture and early stage capital, Venture capital investment divestment summary 2003 to 2018. Overview Venture and early stage investment, Since 2009 our survey results for venture Total investment value of disclosed VC activity in New Zealand of 269 7m across.
capital activity have been supplemented 40 deals in 2018 compared to 217 3m across 48 deals in 2017 This represents. by deal information from NZVIF s Young a notable increase in the value of New Zealand VC activity. Company Finance publication This has led, The headline deal was the additional capital raised by Rocket Lab an aerospace. to broader data capture and the inclusion, technology company whilst there was a continuation of smaller scale deals. of early stage investment activity within,consistent with prior years. the VC segment Early stage investment,includes activity of fund managers angel. networks and individuals We have,Venture and early stage investment summary.
included only activity of fund managers, who employ a General Partner Limited 300 First half. Partner structure in our dataset Second half,Fund managers or General Partners 250. manage capital provided by investors,Fund managers have investment. programmes to attract investor s 200,capital prior to deploying the capital. Investments NZ m,Their activity is distinct from angel.
networks that help individuals to invest 150,their own capital usually on a deal by. deal basis,The size of early stage funds varies from. large venture capital funds greater than,50m funds under management to small. and micro VC 2m 10m funds under,management The stage of investment 0. describes the path from seed early stage FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18. to expansion, New Zealand Private Equity and Venture Capital Monitor 2019 9.
2018 saw a shift from seed,start up capital towards early. stage and expansion capital,Stage of investment,Stage of investment FY12. This chart shows the stages of investment FY11,of VC activity in NZ The split of FY10. investments by stage differs in 2018 0 50 100 150 200 250 300. driven by the classification of the Investment value m. Rocket Lab investment round Seed Start up Early stage expansion Expansion. Other Undisclosed Mature Later stage, Venture and early stage capital Venture early stage investments by sector. sector review 100,Technology and IT software remain.
key focus sectors for VC investment,Other sectors obtaining VC funding in. of total VC investments,the year included food beverage and. health biosciences,Venture and early stage capital. divestment,Divestment activity in 2018 was minimal. following a record year in 2017 0, FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18.
Divestment activity presented in this Energy Food Beverage Health Biosciences IT Software. report is limited by the availability Manufacturing Media Comms Other Technology. of information on transaction values,in some cases. Venture early stage divestment summary,VC Divestments NZ m. FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18. First half Second half, 10 New Zealand Private Equity and Venture Capital Monitor 2019. Buy out private equity, Buy out private equity investment divestment summary 2005 to 2018. Investment divestment NZ m,Investment,200 Divestment.
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18. Overview Buy out investment, Buy out transaction are defined as Buy out investments were undertaken. those transactions with an estimated by overseas funds including. enterprise value over 150m,Equity Partners investing in. The observed deal value trends from,Evolution Healthcare. 2005 to date are a result of a small,number of high value transactions in HgCapital s. acquisition of Orion, this segment 2018 saw continued Health s Health Rhapsody business.
buy out investment activity and a return,Capital s investment in Tower. to divestment activity following minimal,divestments in the prior three years. New Zealand Private Equity and Venture Capital Monitor 2019 11. Case studies,Smart Environmental, In July 2017 the Maui Capital Aqua Fund invested in Smart Maui and Smart s shared vision is the creation of a uniquely Kiwi. Environmental alongside Smart s senior management regionally focused industry player of scale in the waste sector. Maui s investment will, Maui Capital works in partnership with successful and like minded. management teams to assist them in executing active growth Enable investment in management capability and leadership. strategies and building great local New Zealand businesses to facilitate the next growth phase. Smart Environmental has been in the Waste Recycling Resource Enable investment in internal process and systems to create. Recovery and Parks industries for over 25 years a scalable platform. Smart is the third largest player in New Zealand s municipal Provide access to fresh and previously unavailable capital. waste management and recycling sector The business has to unlock further organic growth. strong relationships with 15 Councils across more than 20. Facilitate a platform that can partner with like minded. contracts servicing more than 250 000 households Smart also. businesses, has a small but growing commercial waste collections business.
Maui Capital was founded in 2008 by the New Zealand executive. In a fast evolving waste and recycling environment Smart is. team who had previously managed the Hauraki Private Equity. challenging the traditional industry model by concentrating on. No 1 and No 2 Funds for Goldman Sachs JBWere Maui Capital. recycling more of New Zealand s waste stream and reducing. currently operates the Maui Capital Indigo and Aqua Funds with. flows to landfill,combined committed capital of 500 million. Currently the local waste and recycling sector is fragmented. The Maui team has experience in investing in a diverse range. beneath two large operators both of which are privately held. of industries and in businesses of all scales and stages enabling. and offshore owned,active strategies to grow or transform businesses. Private equity investment excluding venture capital reached 823 9m compared with the 658 7m in 2017 and 1 1bn in 2016 The record level of total venture and early stage investment of 269 7m was notable for one larger investment round by domestic and international venture firms in Rocket Lab In 2018 venture capital activity was again driven by a combination of local and overseas capital

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