18 April 2018
Pencarrow V Fund closes at hard cap of $250 million
Pencarrow Private Equity has just completed a first and final close on its latest fund, Pencarrow V, at the hard cap of $250 million. The fund closed significantly above its target of $200 million, and is more than double the size of its previous largest fund, Pencarrow IV.
Fund raising was completed in around eight weeks and demand was strong, with the fund significantly oversubscribed. Investors are predominantly New Zealand based, with support from leading New Zealand institutions, iwi, foundations and community trusts as well as private investors. The focus of the fund will be on investing in management buyouts, succession deals and expansion capital opportunities among privately held companies in the mid-market segment in New Zealand.
Pencarrow believes this is an ideal environment to be looking for new investment opportunities. Fund V has already completed its first investment providing expansion capital to a company operating in the food and beverage segment and will announce more detail on that next month.
Pencarrow typically make investments in companies with enterprise values ranging from $20 million to $100 million. There are many quality opportunities in the New Zealand market, especially in companies looking to expand, meaning that the New Zealand private equity opportunity is an attractive one for institutions and private investors.
Target companies for the new fund will have proven business models, profitable track records and will usually require capital to achieve further growth, expand internationally, or assist with ownership succession.
About Pencarrow Private Equity
Pencarrow is New Zealand’s longest established private equity manager, having established its first fund in 1993. Since 1993, Pencarrow has been making and managing private equity investments in businesses in New Zealand. Since inception it has have invested more than $400 million in over 30 companies.
Pencarrow is jointly owned by Nigel Bingham and Rod Gethen. It is focused on investing in and adding value to mid-market businesses in New Zealand, specialising in MBOs and expansion capital for companies across a range of industries.
Investments undertaken by Pencarrow have included Icebreaker, a global leader in merino outdoor apparel, Bell Tea & Coffee, New Zealand’s leading tea and coffee business, Seequent, a global leader in data visualisation and interpretation software for geologists, and Phil & Teds, global designers and marketers of premium infant hard goods.
For more information, visit www.pencarrowpe.co.nz or contact:
Pencarrow Private Equity
Ph: 04 917 0116
Pencarrow Private Equity
Ph: 04 917 0118