Milford is currently raising its first $150 million stand alone private equity fund (PE Fund). The Milford Active Growth Fund has been successfully investing into private companies since 2010 as part of its investment growth strategy. The new Milford PE Fund will enable wholesale and eligible investors to invest directly into private companies, an asset class traditionally very difficult to access for investors.
As a market participant and a New Zealand owned company, Milford has a significant interest in growing the New Zealand economy and strengthening the listed market.
The value of our share market, the NZX, (measured by market capitalisation) is approximately 50 per cent of NZ’s GDP (Statistics NZ, June 2016). In Australia this ratio is over 90 per cent and in the US approximately 150 per cent. This shows two things, the significant opportunity in NZ outside of listed companies and the potential for the NZX to double in size (over time!).
Private equity investing, when done well, can deliver superior investment returns and diversification from other growth assets such as listed market equities and property investment. It also presents a fertile ground to find and develop companies that should provide the pipeline of NZ share market listings in the future.
The new Milford PE Fund will direct capital into medium-sized companies in NZ, a key driver of economic growth, aiding these organisations’ growth and ultimately aiming to assist them in listing on the NZ share market.
The Milford Active Growth Fund has been investing in private companies since 2010 with early investee companies Orion Healthcare, AFT Pharmaceuticals and Volpara Health Technologies already launched onto the NZX or ASX markets. Given our previous experience in this area, Milford can be a useful partner for companies as they transition from private ownership to public markets.
The PE Fund also aims to grow the value of the NZ share market by striving to revitalise underperforming listed companies in certain situations. This process involves assessing the board and seeking renewal where appropriate while also working with management around the strategy of the business.
We believe mid-sized NZ companies and underperforming listed companies can benefit from an involvement with Milford in terms of investment advice, access to networks, guidance and listed market expertise.
The more strong, successful companies that NZ can develop in private and public markets the more rich and vibrant our economy can become, creating jobs and opportunities for those people in the workforce today and their children.
If you would like to learn more about the Milford Private Equity Fund II, please visit our Fund overview.
Brooke Bone
Investment Director
Important Notes: This is an offer of interest in a limited partnership, Milford Private Equity II LP (Partnership). The offer is available only to persons who qualify as wholesale investors and who do not require disclosure under Part 3 of the Financial Markets Conduct Act 2013. For more information on this click here. This blog is intended to provide general information only. It does not take into account your investment needs or personal circumstances and so is not intended to be viewed as investment or financial advice. Should you require financial advice you should always speak to an Authorised Financial Adviser. Please note past performance is not a guarantee of future returns.