Equity Syndication provides an alternative option for high-quality Kiwi businesses to access private capital to grow or allow existing owners to secure some liquidity in their investments.
While fundamentally similar to equity raising, the equity syndication proportional ownership model reflects changing investor behavior as it supports private direct investment for wholesale investors.
Equity syndications are a viable alternative to investing in Private Equity Funds and are attractive because the approach provides direct access to companies with a visible return profile.
The syndications model offers investors a deal-by-deal investment approach where investors choose to participate (or not) after being provided with high-quality due diligence information.
This asset class is gaining momentum as investors can select which investments they want to make with better capital utilisation and a lightweight fee structure.