Direct Capital raises $525 million for its seventh fund

Direct Capital completed fundraising in December 2024 and is pleased to advise of the commencement of Direct Capital VII, its seventh fund dedicated to investing in privately owned companies in New Zealand and Australia.  The fund investment period is due to commence on 1 April 2025.  Demand was strong, from existing and new investors with the fund closing at the cap of $525 million. 

The commencement of Direct Capital VII brings the total funds raised by Direct Capital to over $2.2 billion in its 30-year history of investment into private companies. 

Direct Capital appreciates the support from our long-term cornerstone investors: Accident Compensation Corporation, Government Superannuation Fund and New Zealand Superannuation Fund; and welcomes Rata Foundation and Fisher Funds as new cornerstone investors in Direct Capital VII.  Direct Capital thanks all of its investors for supporting the fundraising.

Direct Capital VII will focus on companies operating in New Zealand’s mid-market, consistent with the firm’s philosophy throughout its history.  Direct Capital partners with like-minded partnership-based people, operating market-leading privately owned businesses in attractive industries; and invests in situations that create growth, strong dividend flows, and a step change in the business that will lead to a quantum change in value.

Direct Capital’s sixth fund, Direct Capital VI, raised $425 million in 2020 and was fully invested into six portfolio companies: Mondiale VGL, Fusion Specialty Insurance, Hiway Group, Wet & Forget, Bayleys and Active Refrigeration.