Which New Zealand companies are taking on new and established rivals?
New Zealand is one of the few countries in the world to have an active public investment bank (PIB), a government-owned investment bank that acts as an intermediary for private equity and other private sector investors to raise funds to invest in New Zealand.
New Zealand has the lowest levels of public sector debt of any OECD country, and the country’s PIB has managed to attract more than $100 billion in private equity funds in recent years.
But there are signs that it may soon need a new source of cash, with some analysts suggesting the country may be ready to raise its public sector borrowing limit by 2023.
“The PIB needs to be looking at raising capital to fund capital expenditure,” said Tim Cripps, managing director of New Zealand Equity Partners.
“There’s also an argument to be made that we should have a higher level of public debt to finance a better public investment, because if you look at the numbers, New Zealand’s debt is not a bad place to be in terms of the number of assets in it.”
But we also need to look at our debt sustainability, because there’s an argument that we need to have more capital to continue to run the public sector.
“And in particular if we’re going to raise capital for public infrastructure, then it’s very important to ensure that there’s sufficient cash to fund that.”
Private equity firm PIMCO is currently exploring whether it could partner with the PIB to take on an equity stake.
“If we have a partner, I’m not sure I want to say we’re in a partnership but I think it would be good to have some of the private equity expertise to get into the business,” Mr Crippson said.
“But at the moment, I would not say that it’s going to be a large amount.”
One of the more unusual PIBs is the One New Zealand PIB, which is a private equity firm based in Auckland.
The firm has been involved in some of New York’s most controversial real estate deals, including the controversial purchase of the Lower East Side property in 2011, and has also been involved with the controversial $4 billion sale of the property known as the One Point in 2013.
But it was not until recently that the company made the move into the New Zealand property market, with its deal to buy the property from New York developer Arup, a deal which saw One New York become one of New England’s biggest property developers.
The One New Kiwis deal with Arup saw it buy the former headquarters of a global shipping firm, the shipping and logistics firm Arup Group.
The deal has also seen the company acquire the majority stake in New York City’s flagship newspaper, The Wall Street Journal. “
Our new One New New Zealand Group is set to expand the Arup group’s infrastructure assets globally, with the goal of increasing One NewNZ’s revenue from $1.5 billion in 2019 to $2.6 billion in 2023.”
The deal has also seen the company acquire the majority stake in New York City’s flagship newspaper, The Wall Street Journal.
It has also bought the New York Times, which was acquired by the New Yorker magazine, in an attempt to take a piece of its publishing portfolio with it to New Zealand, with New York Daily News expected to be sold in 2019.
The New Yorker’s new owners, The Walt Disney Company, are also expected to purchase the newspaper and sell the majority of its assets, including its headquarters.
In New Zealand as a whole, PIMCAP has been the most active PIB in the country, according to data from the Newzoo.
“As one of our first acquisitions, the acquisition of The Wall St Journal is a great example of PIM CAP’s ability to execute in New Zealand,” PIMCap’s chief executive officer, Chris Rundle, said in a statement.
“New Zealand is a very interesting market for PIMCAs to look to.
We have an opportunity to bring together the world’s largest financial services company and leading New Zealand newspaper publisher with the leading newspaper publisher and a leading newspaper brand to build a world-class publishing company in New England.”
Private investment funds are a significant part of the growth of the PIV business in New Zealander New Zealand since its inception.
PIMAC was the first PIV in New South Wales to be granted a licence to invest there in 2015.
Its $15 billion (AU$16 billion) portfolio, which includes two New Zealand banks, has grown to about $40 billion by 2026, according the PIMACC website.
PimCAP has also expanded its New Zealand presence to include the launch of a new private equity fund, the PIP, which will be led by former chief executive of the NZ Banking Group, Andrew Wodak.
The PIP is a joint venture between PIMCA and New Zealand Securities, with a focus