Investment Strategy

Murray Capital will target investment, through the Rakaia Fund, in medium sized New Zealand businesses, using instruments across the capital spectrum, including ordinary/preferred equity, convertibles and mezzanine/senior debt.

Typical businesses in which we will look to invest will display any or all of the following characteristics:

• Enterprise value in the range of $10-50 million;
• Generate, or have the ability to generate stable profitability and cash flow;
• Strong growth prospects that can be achieved by a strong management team;
• Defendable competitive advantage within a sector;
• Export flair;
• Ability to add value through operational efficiencies; and
• Operate in a fragmented industry.

Transaction types that will be utilised will include:

• Recapitalisation of stressed or under capitalised businesses that have potential to generate strong cash flow and profitability;
• Expansion capital for companies with organic or acquisition growth prospects;
• Management buy-out/buy-in;
• Industry consolidation in fragmented industries;
• Succession or replacement capital; and
• Public to private.