About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Wednesday, August 27th, 10:30PM
rss
Latest Headlines

AMP eyes up next private capital fund

Thursday, March 22nd 2001, 7:03AM

by Philip Macalister

When it comes to non-traditional investment classes hedge funds are flavour of the month at present, but they're not the most popular.

"Private equity is the most popular form of non-traditional investing," AMP Henderson head of private capital Martin Turner told the IPAC investment conference last week.

Private equity is quite an established sector in New Zealand now and has grown significantly since the first fund, Greenstone, was established in 1993, he says. In that year $25 million was invested compared to nearly $800 million in 1999.

Currently there are 15 firms and 63 professionals working in this area and 81 companies are funded through private equity.

Turner draws a distinction between venture capital and private equity. He says venture capital is the money that is applied to companies for the start up or early stage development of a business. Private equity kicks in when the companies are more established and are looking for capital to expand or for management buy-outs.

He says nearly two-thirds of the private equity money being raised at present is being used for expansion purposes and 19% is going into start-ups, generally in the technology sector.

Last year there was a significant amount of activity in the management buyout sector, with AMP alone providing $50 million for this type of activity.

Turner says the Government is trying to encourage companies like AMP to move in to the earlier stages, or more risky area, of capital provision.

AMP is interested in moving into this area, but not as soon as the Government wants.

He expects AMP will roll out its first venture capital fund in three to five year's time. In the meantime it is looking to establish a second private equity fund late this year or early next year.

Turner says there is a much higher failure rate for companies in the venture capital end of the market, but the returns can be better than in private equity.

"Our focus is on the lower risk end (of the market)," he says.

You can read Philip's blog here: http://www.goodreturns.co.nz/blog/

« BNZ soups up its mortgage trustSovereign takes regulation bull by the horns »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Higher standards imposed on advisers
    “Can I make a plea that in future, whenever the word "standards" is used, the sense in which it being applied is spelled out. In...”
    11 hours ago by Murray Weatherston
  • Advisers must be better than 10 years ago: FSC
    “The more things change the more they stay the same. Good investment advice has always been about serving a clients best...”
    19 hours ago by Wayne Ross
  • FMA eyes terminated funds
    “Why would investors carry losses for what appears to be poor oversight of a subcontractor by a service provider? Very damaging...”
    2 days ago by R1
  • Van Eyk shareholder wants out
    “Unfortunately the future of van Eyk's funds management business (Blueprint) will no doubt impact upon the future of their...”
    3 days ago by Hmmmm
  • KiwiSaver – opportunity, threat or both?
    “NZ Kiwisaver is still very young by international standards. Fees must be lower, as will happen with increased funds, as...”
    4 days ago by vital99
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AMP Home Loans 7.24 5.99 6.39 6.65
AMP Home Loans $200k+ 7.14 5.89 6.29 6.55
AMP Home Loans LVR <80% - - 5.85 6.29
ANZ 6.74 6.05 6.49 6.65
ANZ LVR > 90 6.74 6.55 6.99 7.15
ANZ Special - - 5.99 -
ASB Bank 6.75 6.09 6.40 6.65
ASB Bank Special - - 5.99 -
BankDirect 6.75 6.09 6.99 6.65
BankDirect Special - - 5.99 -
BNZ - Classic - - 5.99 6.25
Lender Flt 1yr 2yr 3yr
BNZ - GlobalPlus 6.74 5.99 6.39 6.59
BNZ - Mortgage One 7.15 - - -
BNZ - Rapid Repay 6.74 - - -
BNZ - Std, FlyBuys 6.74 5.99 6.39 6.59
BNZ - TotalMoney 6.74 - - -
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.45 5.90 6.50 -
Credit Union North 6.45 - - -
Credit Union South 5.75 - - -
eMortgage 6.04 6.15 6.69 7.19
Finance Direct 6.10 6.45 6.69 7.10
Lender Flt 1yr 2yr 3yr
First Credit Union 6.45 - - -
General Finance 5.95 6.25 6.50 7.10
HBS Bank 6.15 5.85 5.99 6.25
HBS Special - - - 5.95
Heartland 6.45 6.75 7.00 7.60
Heretaunga Building Society 6.25 5.85 6.50 -
Housing NZ Corp ▲6.74 ▼5.99 ▼6.19 6.60
HSBC Premier 6.84 5.95 5.95 6.55
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 6.75 5.99 6.39 -
Lender Flt 1yr 2yr 3yr
Kiwibank ▲6.65 5.99 6.39 6.65
Kiwibank - Capped 5.65 6.50 - -
Kiwibank - Offset ▲6.55 - - -
Kiwibank LVR > 80% - - ▼5.89 -
Liberty 5.64 - - -
Napier Building Society 5.80 6.00 6.70 -
Nelson Building Society 6.95 6.15 6.60 -
NZ Home Loans 6.85 6.09 6.40 6.65
Perpetual Trust 7.70 - - -
RESIMAC LVR < 80% 6.59 ▲6.35 ▲6.58 ▼6.77
RESIMAC LVR < 85% - - - -
Lender Flt 1yr 2yr 3yr
RESIMAC LVR < 90% - - - -
RESIMAC LW DOC - - - -
SBS Bank 6.15 5.85 5.99 6.25
SBS Bank Special - - - 5.95
Silver Fern 5.95 6.10 6.55 7.05
Sovereign 6.85 6.09 6.40 6.65
Sovereign Special - - 5.99 -
The Co-operative Bank 6.70 6.00 6.00 6.25
TSB Bank 6.74 6.00 6.19 6.60
TSB Special - - 5.80 -
Wairarapa Building Society 6.20 5.75 5.95 -
Lender Flt 1yr 2yr 3yr
Westpac 6.59 6.09 6.39 6.65
Westpac - Capped rates - 6.74 6.99 -
Westpac - Offset 6.59 - - -
Westpac Special - - 5.99 6.19
Median 6.68 6.03 6.39 6.65

Last updated: 26 August 2014 6:28am

News Quiz

Pathfinder's monthly commentary questions whether world equity markets are in bubble territory given the S&P500 has done what since "the grim days of early 2009"? Their answer is worth reading!

increased 139%

increased 93%

increased 39%

increased 19%

increased 193%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by PHP Developer and eyelovedesign.com