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Significant transactions included investments in Arvida, HabitHealth, FirstCape and Fusion5.
Total investment activity increased in 2024 totalling $2,769.1m, compared to $1,886m in 2023, with the total number of deals remaining relatively level in 2024 (307) compared to 2023 (299). The increase in investment activity was primarily driven by the increased number of large buy out transactions in 2024.
Private equity investment, excluding venture capital reached $2,182m, compared with $1,501m in 2023 and $2,630m in 2022.
Venture and early-stage investment in 2024 totalled $587.6m, representing another record year, with an increase over the previous high of $384.4m achieved in 2023.
Investment in IT / software companies continued the theme seen in recent years to extend the access to capital for young companies.
The commitment to growing New Zealand’s businesses has been clear in responses to the Monitor, with focus areas for their investee companies seeing similarities with the prior year. These include focussing on increased headcount, increased R&D spend and the launch of new products.
Fund-raising activity in 2024 by New Zealand funds raised over $1,157m which is a significant increase from the $383m of capital raised in 2023 and further fundraisings are anticipated for 2025.
While 2024 started strongly, the challenging market conditions in NZ and globally dampened the conclusion to the year. The outlook now shows a growing sense of cautious optimism again for 2025 and beyond, despite global instability.
New Zealand capital markets continued to show a low level of activity in 2024 with respect to new listings. The outlook for the next six months remains neutral as a result of current global macro economic factors, with levels of optimism increasing in future years.
Elevated geopolitical uncertainty in the year ahead is expected to see financial markets risk adjust for longer-term trends. Some New Zealand businesses will be impacted by the trade war. Institutional investors’ strategies for their private capital portfolios will be under review. Nevertheless, New Zealand and Australian private equity and venture capital funds have committed capital for investment in growth opportunities. With rising optimism from Monitor respondents, it is likely that 2025 will see an emerging new normal.
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New Zealand Private Capital Monitor 2024
2023 saw deal activity return to pre-COVID-19 levels, with $1.99b of combined investments and divestments across private equity and venture capital transactions, weighted heavily towards investment activity.
The New Zealand Private Capital Monitor 2025 highlights a significant increase in deal activity for 2024, with total investments reaching $3,765m. Fund-raising also surged to over $1,157m, indicating strong support for businesses amid ongoing global economic uncertainties.
