Direct Capital is itself a private company, owned by its executives who have been together since its first fund, which was established in 1994.
We understand the issues that business owners think about when considering how to grow their business or facilitate a change of ownership. Investing in private companies is all we do and it’s all we’ve done for 20 years.
We’ve raised more than $1 billion over that time for investment into private companies and our latest fund, Direct Capital V which completed its fund raising at the end of 2016, has $375 million available to invest through to 2021.
Private companies are the majority of the New Zealand economy and form a significant component of Australia’s economy. New Zealand has more than 1,000 companies with annual revenues that exceed $30 million. These companies represent around 30% of total revenue from all New Zealand registered companies. Less than 100 of those companies are listed on the NZSX, some are owned through co-operative structures and others are subsidiaries of multinationals, but the vast majority are privately owned. But by their nature, access to capital is more restricted for private companies than for listed companies.
Direct Capital was established to provide capital to private companies to:
- continue funding growth and business expansion
- complete an acquisition of a competitor or complementary business
- fund the business through to a public listing
- help business owners facilitate a change of ownership to their management team
We’re not a bank. We invest capital and become shareholders alongside the owners and managers running the business. We work with owners to create long term growth and create shareholder value. It’s a long term partnership and our record is one we’re proud of.