15 Mar 2013

Private equity firm looks to invest $124m this year

7:08 am on 15 March 2013

A private equity firm is looking to invest $124 million in companies this year.

Pencarrow Private Equity, which has previously invested in BJ Ball and Phil and Teds, raised the money at the end of last year and it is now looking to take stakes in mid-sized privately held companies with values between $20 million - $100 million.

Pencarrow executive director Nigel Bingham says they've been reviewing applications from over 50 businesses since the fund closed, but will only pick between six and nine to invest in.

He says they are interested in businesses with the ability to grow into offshore markets, particularly Australia but also elsewhere.

Mr Bingham says New Zealand has come out of the global financial crisis better than most countries and the equity markets over the last six months are pointing towards a better environment.

He says typically Pencarrow will take a majority stake in a business, and at least one board seat to remain actively involved.

Mr Bingham says Pencarrow has achieved a 20% net return on investors' money throughout the global financial crisis and it hopes to top that in the coming years.