Business Owners And Employees Share Recovery Ambitions

Getting businesses up and running depends more on owners and employees working together than on Government initiatives, says NZ Private Capital.

NZ Private Capital Executive Director, Colin McKinnon says: “The good news for established business owners is that there are a number of Private Capital Investors investing in growth-oriented, revenue-generating companies in New Zealand. Plus, these funds are also inclined to invest in a broad spectrum of industries and geographies for example, multi-location service companies, franchise operators and manufacturing businesses.”

According to Colin McKinnon: “The Government Budget has a strong focus on people and especially those more vulnerable in the community. Although the budget business initiatives are helpful, ultimately getting businesses back up and running is a priority that will come down to business owners and employees shared ambition and collaboration.”

Around 70% of jobs in New Zealand are with businesses that employ more than 20 people. These businesses generate around 70% of New Zealand’s GDP and are more likely to be exporters and invest in Research & Development.

Mid-market business that employ between 20 and 100 people are critical to the recovery of the economy. Most mid-market businesses will have multiple common owners that may be called upon for new capital to sustain and innovate a business emerging from the effect of the Covid recession.

NZ Private Capital is a not-for-profit industry association committed to developing the venture capital and private equity industry in New Zealand. Its core objectives include the promotion of the industry and the asset class and to develop a world-leading venture capital and private equity environment for the benefit of investors and entrepreneurs in New Zealand.

New Zealand Private Capital aims to foster understanding that private equity and venture capital firms accelerate the ambition of New Zealand business owners through operational improvement and investment performance.

New Zealand is home to many examples of private capital partnering with companies to improve growth and performance, to share expertise and capital. This ultimately delivers improved productivity, creates jobs and contributes to the national economy.

Association members include venture capital and private equity investors, financial organisations, professional advisors, academic organisations and government or quasi-government agencies.

Its activities cover the spectrum of investment in New Zealand private capital including Angel investment, seed and early-stage venture capital through to expansion capital and private equity (including management buyouts and buy-ins).

The association also helps businesses navigate and understand the Private Equity and Venture Capital world. Markets and growth require the free flow of capital and the association provides an important role in linking business owners with investors.

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