New Zealand’s largest private equity firm, Direct Capital, has announced closure of its seventh fund at its cap of $NZ525 million.
Fundraising was completed in December.
Direct Capital has now raised more than $NZ2.2 billion since it was founded in 1994.
Long-term investors with the firm, Accident Compensation Corporation (ACC), the New Zealand Government Superannuation Fund and sovereign wealth fund New Zealand Superannuation Fund are cornerstone investors in the fund. New cornerstone investors are Rata Foundation and Fisher Funds.
Direct Capital VII will again focus on investing in privately-owned New Zealand mid-market companies selecting businesses where the investment team see potential for a step change in operations to generate a substantial increase in value.
Direct Capital VI, which raised $NZ425 in 2020, was fully invested in six companies: Mondiale VGL, Fusion Specialty Insurance, Hiway Group, Wet & Forget, Bayleys, and Active Refrigeration.
Image: An investment in commercial refrigeration and air conditioning business Active Refrigeration last year was the last from Direct Capital VI.