Raising Equity
Andersen can help if you are looking for capital to support high growth, expand, or finance new projects.
Equity Syndication provides an alternative option for high-quality Kiwi businesses to access private capital to grow or allow existing owners to secure some liquidity in their investments.
While fundamentally similar to equity raising, the equity syndication proportional ownership model reflects changing investor behaviour as it supports private direct investment for wholesale investors–a viable alternative to investing in Private Equity Funds which are attractive because the approach provides direct access to companies with a visible return profile.
The syndications model offers investors a deal-by-deal investment approach where investors choose to participate (or not) after being provided with high-quality due diligence information. This asset class is gaining momentum as investors can select which investments they want to make with better capital utilisation and a lightweight fee structure.
In comparison to other countries only a small percentage of entities in NZ are listed and investors have a limited universe of entities to invest in. Equity syndication delivers a new pipeline of opportunities for investors and provides partial liquidity to businesses looking to fund intergenerational change or growth.
There is a clear gap for investors in the market - finding good businesses with a $2-10m EBITDA to invest in is difficult. Equity syndication addresses the problem of the $10-20m investment range often being below that targeted by Private Equity and above that of an average business buyer.
Equity syndication delivers better proximity to investments for investors as they can have some form of governance or advisory input if desired.
