The Venture Capital Association is predicting the mergers and acquisitions market will benefit from the construction boom in Canterbury and the upswing in the economy this year.
The number of deals doubled in the 12 months to June, and the value of those deals rose by half to $2.3 billion.
Private equity accounted for $884 million worth, or 3%, which is down 1% on the previous year.
Despite that, New Zealand Venture Capital Association executive director Colin McKinnon says the outlook for the private equity market this year is positive.
He says the New Zealand private equity market has been consistent even through the global financial crisis.
Mr McKinnon says investors have confidence in the private equity managers to the extent that there is slightly less than $500 million available for investment at the moment with fund managers in New Zealand.
He says those managers are feeling confident that they will be able to find transactions to invest in over the next two to three years.
Mr McKinnon says for company owners looking to sell, listing on the share market is now a much more attractive option meaning private buyers are having to pay more for their purchases.
