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RNZ News
5 days ago
- Business
- RNZ News
Fisher Funds to invest $300m in New Zealand businesses
Fisher Funds chief investment officer Ashley Gardyne. Photo: Supplied / Fisher Funds KiwiSaver provider Fisher Funds says it will invest up to a billion dollars over the next three to five years in private equity, such as unlisted businesses. It will add private equity to four of its KiwiSaver schemes. Chief investment officer Ashley Gardyne said it should improve the returns for those schemes, and would give investors access to growing businesses at a time when fewer were listing on stock markets. "There's also a broader benefit, as more people push into private markets, more money flows into the real economy and that has a positive impact on New Zealand business formation." He said about $300 million of the $1 billion could be invested in New Zealand businesses. There were about 1000 businesses in the likely target range of being worth $20m and $100m in this country, he said. Fisher Funds would be looking for stable businesses that had been around a long time, in areas of growth. "We'd like the management team to be involved and ultimately be investors alongside us." He said there were liquidity risks with private equity investments but KiwiSaver was a long-term savings vehicle, which aligned with the longer-term nature of private equity. "When you commit to buying a private business, you're often invested for five or seven years. You need to make sure it's only a portion of KiwiSaver funds. In Australia, up to 20 percent of super is in unlisted investments. We'll be starting at a much lower level." It would scale up to 10 percent over the next five years. The benefit for investors would be in higher returns, he said. "If you look at the balance of a 20-year-old, even an extra half-percent over the long term could potentially result in another $100,000 at retirement. Making small changes can have a significant benefit, long-term." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
5 days ago
- Business
- RNZ News
At least one in three businesses are unprepared for sale
ABC managing director Chris Small. Photo: ABC Business Sales / Supplied ABC Business Sales says at least one in three businesses are unprepared for sale, with unrealistic price expectations just one of the issues. ABC managing director Chris Small said investors looking to buy a high-quality business expected to see a well-organised presentation, and were turned-off by disorganised financial reports or missing documentation. "A well-prepared business builds buyer trust and speeds up due diligence," he said, otherwise business confidence drops and the buyer walks away. "It's something that we are constantly educating business owners in New Zealand on but the good thing is these things can be fixed," Small said, adding it would typically take six months to prepare a company for sale. Small said another problem was with owner-run businesses that rely too heavily on the owner. "Businesses that rely too heavily on the owner are viewed as high risk. Buyers want stable operations and clear delegation not key-person reliance." He said owners needed to reduce their day-to-day involvement by delegating responsibilities, to ensure the business can run without them. Price was another issue, particularly where valuations do not match price expectations. "If the asking price is disconnected from commercial reality, serious buyers will walk away even if the business is performing well. "At the end of the day, as we say to every business owner, the market will determine your value." Another issue was a lack of a clear handover plan. "A smooth transition is critical. If there's no defined handover strategy, uncertainty grows and deals become harder to complete." Small said DIY sales processes can also be problematic. "A successful sale needs momentum and an external advisor to drive it," he said, adding the sale process must be managed through tough negotiations in order to keep the deal on track to completion.
RNZ News
15-05-2025
- Business
- RNZ News
Businessman Peter Huljich reveals himself as convicted inside trader
An appeal against conviction was dismissed by the Court of Appeal. Photo: 123RF An Auckland businessman has revealed himself as the person found guilty of insider trading in relation to the sale of shares of a digital donations company Pushpay. Peter Huljich was convicted in 2023 in a case brought by the Financial Markets Authority, but name suppression was not due to expire until Friday. He said he revealed himself early because he wanted to front the issue and his belief in fair and ethical business environment. Huljich, a member of a well known Auckland business family, maintains his innocence and said he was an intermediary in the issue. An appeal against conviction was dismissed by the Court of Appeal and a fine of $100 thousand dollars doubled. He said he intended to seek an appeal to the Supreme Court. More to come...
