Chapman Tripp has advised private equity firm Waterman Capital in its investment in home food delivery provider My Food Bag announced this week. My Food Bag currently provides more than a million meals to New Zealanders every month.
The team comprised Chapman Tripp partner John Strowger and senior associate Joshua Pringle.
“We are delighted to have acted for Waterman on this transaction, having recently represented Waterman in connection with the sales of Manukau Health and Academic Colleges Group,” Pringle said.
Australasian private equity and venture capital funds delivered a 19% net return for the 12 months ending 31 March 2016, according to data provided by Cambridge Associates. Investors have enjoyed attractive returns driven by strong distributions in excess of $3.0 billion back to investors during the past year. Australasian private equity and venture capital funds have strongly outperformed listed market comparisons through all time horizons, achieving a 600 basis point excess return over the past 15 years. A similar theme of strong returns and record distributions has occurred across global private equity and venture capital markets.
Eugene Snyman, Managing Director at Cambridge Associates, presented the firm’s research findings and performance analysis during the NZVCA Annual Private Equity and Venture Capital Conference held in Queenstown on 20 October.
Eugene Snyman said: “The returns generated by Australasian private equity and venture capital funds demonstrate that investments in this space can add meaningful value to portfolios of long-term investors who are constantly challenged with creating portfolios capable of withstanding volatility while at the same time generate the alpha required to achieve their overall investment objectives. Rigorous investment due diligence, patience and discipline in manger selection continue to be paramount to successfully investing in private equity and venture capital.”
In the analysis by Cambridge Associates, private equity and venture capital investments in New Zealand companies represented diversified sector exposure versus the local listed markets. Private equity and venture capital investments into mid-market New Zealand companies have been particularly strong, generating net returns of 26%.
About Cambridge Associates
Founded in 1973, Cambridge Associates is a provider of independent investment advice and research to institutional investors and private clients worldwide. Today the firm serves over 1,000 global investors and delivers a range of services, including investment consulting, outsourced investment solutions, research and tools (Research Navigatorsm and Benchmark Calculator), and performance monitoring, across asset classes. The firm compiles the performance results for over 5,600 private partnerships and their more than 70,000 portfolio company investments to publish its proprietary private investments benchmarks, of which the Cambridge Associates LLC U.S. Venture Capital Index® and Cambridge Associates LLC U.S. Private Equity Index® are widely considered to be among the standard benchmark statistics for these asset classes. Cambridge Associates has more than 1,100 employees serving its client base globally and maintains offices in Arlington, VA; Boston; Dallas; Menlo Park, CA; San Francisco, CA; London; Singapore; Sydney; and Beijing. Cambridge Associates consists of five global investment consulting affiliates that are all under common ownership and control. For more information about Cambridge Associates, please visit www.cambridgeassociates.com.
The 2016 New Zealand Private Equity and Venture Capital Association (NZVCA) Deal of the Year Award has gone to Waterman Capital for its investment in Academic Colleges Group.
The NZVCA Deal of the Year Award recognises outstanding performance in the private equity industry and was announced at the NZVCA 2016 annual conference in Queenstown today (20 October).
NZVCA Executive Director Colin McKinnon says: `Waterman Capital’s investment in Academic Colleges Group is an example of innovation, growth, and excellent returns on investment that benefited all stakeholders. Through the period of Waterman’s investment revenue and earnings more than doubled through a combination of organic and acquisition growth.’
Entries were judged on return to investors and the company’s financial performance. The company’s contribution to the economy, employment, innovation, consistency and industry competitiveness were also taken into account.
Mr McKinnon adds: ‘the winner of our 2016 award is an example of the purpose and aim of private equity: to partner with management and other shareholders to improve growth and performance, through the sharing of expertise and provision of capital. This ultimately delivers improved productivity, creates jobs and contributes to the national economy.’
Academic Colleges group owns and operates fifteen preschools, schools and tertiary colleges in New Zealand; one in Vietnam and one in Indonesia. It is the largest private school operator in New Zealand and has more than 12,000 students and 1,000 staff.
Waterman invested in Academic Colleges Group in early 2013 and worked with management to execute a number of growth initiatives that included:
The opening of a new school in Tauranga, ACG Tauranga;
Acquisition of the ACG Strathallan College operating entity;
The merger of ACG’s two existing schools in Vietnam creating a high level of revenue and cost synergies;
A significant push into the vocational space, with the establishment of the ACG Tertiary and Careers division, comprised of four separate acquisitions of leading tertiary businesses.
Established in 2004, Waterman Capital is one of New Zealand’s most experienced private equity players. It is currently investing its third fund Waterman Fund 3 LP, a $200 million fund established to invest in mid-market New Zealand companies. Waterman sees its role as channelling both capital and skills to exciting businesses like Academic Colleges Group that exhibit strong potential for growth.
Recent investments by Waterman include:
My Food Bag – NZ’s leading home food delivery provider;
Manuka Health – one of NZ’s largest natural health and manuka honey companies;
Healthcare Holdings –largest private hospital operator in Auckland;
Partners Life – fastest growing NZ Life insurer; and
HealthLink Group the largest provider of clinical messaging services in Australasia.
Colin McKinnon, Executive Director,
New Zealand Private Equity & Venture Capital Association, New Zealand
+64 27 640 6406