Direct Capital, through its Direct Capital VI and Pohutukawa Private Equity VI funds, today announced that it had completed an investment in Hiway Group (“Hiway”). Hiway is the leader across Australasia in the design and delivery of advanced recycling, reuse and road stabilisation solutions for pavements in the capital and maintenance sectors for transportation infrastructure (road, rail, ports, airports, defence, mining and renewables).
Following the investment, Direct Capital will hold a 55% shareholding with the balance held by existing shareholders and management.
Hiway is well known to Direct Capital having been a successful investment in Direct Capital IV. Direct Capital is delighted to be partnering once again with John Boocock (Managing Director), Peter Metcalfe (CEO) and the Hiway management team who have an exceptional track record having grown Hiway into the leading player in recycling, reuse and road stabilisation solutions across Australasia.
For over 30 years, Hiway has built a reputation for being a pioneer of sustainable practices in the industry as the leading provider of in-situ road recycling and environmentally-friendly product innovations. Hiway works collaboratively alongside Government departments/councils, commercial organisations, land developers and main contractors to deliver Australasia’s largest transport infrastructure projects. With significant ongoing investment required to improve the condition of transport infrastructure networks across Australasia there is expected to be strong demand for Hiway’s services going forward.
Direct Capital was attracted to Hiway due to its market leading position in a growing industry, strong management team and track record of growth and innovation. With Direct Capital VI currently being invested and a much larger fund size (relative to DCIV), it is well placed to support Hiway’s future growth.
Hiway CEO, Peter Metcalfe welcomed the partnership with Direct Capital, saying, “The Hiway team are thrilled to be partnering once again with Direct Capital who have been key supporters of Hiway over a number of years. We look forward to working with Direct Capital to continue to build on the success of Hiway as the leading in-situ recycling player in the Australasian infrastructure market.”
The investment represents Direct Capital’s fourth investment from its latest fund, Direct Capital VI, which raised $425 million in March 2020.
About Direct Capital
Direct Capital was established in 1994 and is New Zealand’s largest private equity firm having raised over $1.7 billion in capital for investment into private companies. Direct Capital invests capital on behalf of institutional and intergenerational investors including NZ Super Fund, ACC and the Government Superannuation Fund, along with pension and endowment funds, community trusts and iwi groups.
Direct Capital has partnered with some of New Zealand’s best-known and most successful businesses, including Mondiale VGL, Beca Group, TR Group, AS Colour, Perpetual Guardian, Bayleys Realty Group, Caci Clinics, along with NZX-listed Ryman Healthcare, Scales Corporation and New Zealand King Salmon.