Investing in New Zealand’s growth
17 Feb 2025
3 MINIn recent years, I’ve seen a growth in the demand for private capital investment in emerging businesses. This is two-fold, as growing companies are looking for the funding they need to fuel growth, and private investors are looking for new, exciting opportunities they can invest in for greater returns and to meet new local and global needs.
But why now, and what are the benefits for these emerging titans, savvy investors and for New Zealand as a whole?
Why now?
In the lead up to Christmas, I met with many businesses who were feeling confident about their ability to deliver their growth ambitions in 2025 and beyond, and private capital played an integral part in this confidence.
Recent research1 shows the allocation to direct investment into private equity has reached 17% of the overall asset allocation for Family Offices across the globe. These alternative assets have higher risks in pursuit of higher returns, low liquidity and long-term horizons.
The volatility of global markets has made these alternatives attractive to investors, but there’s more to it than just risk-and-return.
Investors can provide other benefits
I firmly believe that while the introduction of capital to privately owned business is important for their ambitious growth plans, there is a powerful and softer driver of the investor where they bring their knowledge, network, and governance ability to help the business grow.
One such initiative brings together New Zealand’s most promising businesses and discerning investors is the BNZ Private Capital Forum. One of the successful applicants for the third Private Capital Forum was YY Nation.
“YY Nation is set to become a global disruptor and change maker in the $80 billion sneaker market, revolutionising from what and how sneakers are made. Since the formation in 2019, YY Nation has been at the cutting edge of sustainable bio-based material development for the footwear and fashion industry.
They have recently launched their sneaker line in the US market just over 18 months ago. Using the designs principles of Natural, Zero Carbon, and Performance, YY Nation has produced a superior product that has a high customer adoption rate, targeting a more youthful Gen Z and Millennial consumer. The traction has been phenomenal with some of the most successful retail groups catching on and saying yes to selling and marketing YY Nation.” (Excerpt from YY Nation, BNZ Capital Forum Investor Booklet 2024).
The advantage of home-grown investment
By having local private investors connect with local New Zealand businesses – who are driving for growth and market change – we’re all able to work towards a better New Zealand.
And if/when these products and services hit the global market, these benefits compound.
How to find your next investment opportunity
I am delighted to announce the fourth Private Capital Forum will be held on 30 April 2025, promising to be another milestone in BNZ’s commitment to fostering business growth in New Zealand.
There are certain criteria potential investors will need to meet to attend, so please contact your Private Banker to find out more and to register your interest.
Disclaimer: Any views expressed in this article are the personal views of Linda Sturgess and do not necessarily represent the views of BNZ, or its related entities.
This article is solely for information purposes and is not intended to be financial advice. If you need help, please contact BNZ or your financial adviser. Neither BNZ nor any person involved in this article accepts any liability for any direct or indirect loss or damage arising out of the use of, or reliance on, all or any part of the content.
BNZ is only facilitating the introduction between businesses and potential investors. None of that introduction, or the Private Capital Forum constitute our advising on or recommending an investment opportunity as suitable for either party, or the suitability of the parties themselves. Each party is responsible for making their own investigations as to the suitability of the investment opportunity.
