The New Zealand Private Equity and Venture Capital Association (NZVCA) has announced the winner of the NZVCA award that recognises outstanding performance in the private equity industry.
NZVCA Executive Director Colin McKinnon said “An independent industry expert assessed nominations and found examples of innovation, growth, and excellent returns on investment that benefit investors, who are generally local and international superannuation and pension fund members.”
Entries were judged on return to investors and the company's financial performance. The company's contribution to the economy, employment, innovation, consistency and industry competitiveness was also taken into account.
“It’s important to recognise and reward performance” McKinnon said. “Private equity firms strive for sustainable and consistent high-performing returns and the New Zealand industry recognises and celebrates outstanding investment performance.”
“The winner of our 2013 award is an example of the purpose and aim of private equity: to steward companies so that they grow and create value and long-term sustainability through aligning the interests of owners and management. This ultimately delivers improved productivity, creates jobs and contributes to the national economy.”
The winner of the Deal of the Year is Quadrant Private Equity (Quadrant) for their investment in Summerset.
Summerset is the third largest operator and the second largest developer of retirement villages and aged care facilities in New Zealand. Since it was founded in 1994, the Summerset Group has grown consistently to become one of the country's most respected operators in the retirement village and aged care sector.
Summerset is one of the few retirement village operators to provide a continuum of care at its Villages.
Summerset provides a range of living options to over 2,000 residents across New Zealand. The company has a successful track record of developing and completing new villages, with 16 completed or in development from Warkworth to Dunedin. Summerset retirement villages contain independent and assisted living units as well as care facilities, called Care Centres, for those who need more support. The integration of care facilities into Summerset's villages provides residents with the knowledge that care is available for them should their needs change.
Summerset's highly experienced senior management team is led by CEO Norah Barlow who is also the immediate past president of the Retirement Villages Association of New Zealand. Norah was president for six years until her resignation in late 2012.
Quadrant Private Equity Fund No.2 (and Quadrant co-investors) invested total equity funds of NZ$153.3m (A$120.5m) between April 2009 and June 2010 to acquire 98% of Summerset (with management acquiring the remaining 2%) and to fund further growth.
Quadrant partially exited Summerset (selling 30% of its shares) via a successful IPO in November 2011, with a subsequent sell-down of the majority of remaining shares in March and May 2013. As of today, Quadrant retains a 23.15% stake (50 million shares) in Summerset and two board directorship positions.
Quadrant Managing Director Chris Hadley said: “Quadrant’s returns were driven purely by growth in revenues and earnings. We had no acquisition debt on entry to allow additional capacity for Summerset to borrow development debt to fund the future village expansion. The strength of the Summerset brand and business performance ensured that a high quality Chairman was recruited to lead Summerset into its listed company life post IPO. The incoming Chairman, Rob Campbell (chairman of GPG and director of numerous companies including Ports of Auckland) and non-executive director James Ogden (former Country Head for Macquarie Bank and director of The Warehouse Group) brought credible experience and were a clear signal to the market that Summerset was a quality business.
We believe that Summerset demonstrates a text-book investment case study for the private equity industry. Quadrant paid a fair price on acquisition and then contributed additional equity to organically grow the business during a period of subdued economic activity.”
Summerset continues to grow its revenues and earnings and execute on strategic and operating initiatives under the leadership of the management team and the new Board.
The NZVCA awards were announced at the NZVCA 2013 annual conference.
Writen by Global Administrator, 14/03/2016 News