New private equity fund blossoms at Craigs
Pohutukawa II will target investments in private companies in Australia and New Zealand seeking funds for growth, including management transactions and taking stakes in businesses as part of a succession strategy, they said in a statement.
The launch is timed to take advantage of the demand from private companies for funds in the face of a global credit squeeze. Pohutukawa II will allow retail investors to participate in investments alongside institutions involved in Direct Capital IV, that firm's latest private equity fund.
"Private companies require capital to fund growth and working capital needs," said Neil Craig, executive chairman of ABN Amro Craigs. "Pohutukawa II is timed to take advantage of favorable market conditions for private equity investing."
The Direct Capital I and II institutional funds achieved returns of about 23% a year and Direct Capital III is returning an annual 32.6%, based on its performance since inception on September 30, Craig said.
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