New Zealand private equity firm Knox Investment Partners has reached its target range of NZ$100m ($82m) to NZ$150m ($123m) with its fourth fund. It is still actively fundraising.
Of the capital raised, 23 per cent has come from local institutional investors, 23 per cent from family offices and 54 per cent from high net worth individuals.
According to the firm Fund IV will target the New Zealand and Australian lower mid-market and make between four and six equity investments of NZ$10m ($8m) – NZ$20m ($16m) in companies with enterprise values ranging between NZ$25m ($21m) – NZ$200m ($160m).
Established in 2004, Knox comprises six investment professionals led by former BCG consultant Bret Jackson and former CSFB Private Equity exec Tim Sumner. To date, Knox has achieved a gross IRR of 35 per cent across its previous three funds.
The firm’s management comprises the largest investor across the Knox funds, committing $25m to the latest offering, Knox Fund IV.
“We have seen private equity as an investment class gain the support of local institutional investors, including community/ charitable trusts, church and school trusts. These investors view long term alternative investment options such as private equity as complementary to their listed equity holdings, particularly in the current environment, where stock markets have been relatively low,” said Brigette Arnold, investor relations manager at Knox. “As a result, allocations to private equity are increasing.”
Knox has already invested around 15 per cent of the fund’s capital into its first cornerstone investment, Australian Ariel Mappiung, and supported a bolt-on acquisition of South African land survey business Global Geomatics.
The firm has also added Hugh Fletcher to its advisory committee. He is currently a director at Rubicon, Vector and Insurance Australia.
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