New Zealand has recently seen a material increase in the volume of private equity funds under management, and the frequency of New Zealand and off shore-based funds participating in investment transactions. Without doubt, private equity-led transactions will grow in New Zealand in the short to medium term. Simpson Grierson’s Private Equity and Venture Capital Group has international expertise and a depth of experience in all stages of the venture capital and private equity life cycle. Members of the group have worked in the private equity arena of some of the world’s leading international law firms. For you, this means complete confidence that your requirements at all stages of the investment process can be efficiently and effectively achieved according to international best practice.

Our team has advised on the structuring, formation, and on-going funding and management of various private equity funds. Specifically, members of our team have recently acted for:

• New Zealand Venture Investment Fund’s (NZVIF) establishment of early stage funds with private sector managers and co-investors including existing funds, TMT(Direct Capital), BioPacific Ventures, Endeavour i-CAP, No 8 Ventures, iGlobe Treasury, Pioneer and funds under establishment (including Finistere)
• RECT Funds Management’s investment in the BioPacific Ventures investment fund
• University of Auckland's participation in a TransTasman commercialisation fund, involving Monash University, three South Australian universities and two Australian superannuation funds (under establishment)
• NZVIF's proposed establishment of a fund of funds
• NZVIF’s establishment of seed fund arrangements with Ice Angels, Powerhouse, Sparkbox, Upstart, Manawatu Investment Group, Cure Kids and Chrysallis respectively
• AMP Henderson Global’s establishment and public offering of shares in the AMP Private Equity Fund (and entry into sub-management arrangements for portions of the funds with Direct Capital, Pencarrow Private Equity and Caltech (since terminated))

We are experienced in all structures unique to venture capital and private equity investment, including leveraged buyouts and management buyouts (MBOs). Our team's experience includes acting for:

• D.B. Zwirn Asia Investment B.V. in connection with the MBO of Kidicorp Group
• CHAMP Ventures Pty Ltd in its acquisition of the Taura Natural Ingredients business
• Various private equity bidders in connection with bids for EziBuy, Tegel, and Hirepool
• Old Fashioned Foods/Gresham Rabo in its acquisition of Hansells
• CHAMP Ventures on a number of undisclosed transactions
• CVC on its bids for Griffins and Independent Liquor
• PEP, Goldman Sachs and Bain Capital on their pre-IPO bid for Goodman Fielder
• Gresham Rabo Management in its investment in Old Fashioned Foods
• Bank of New Zealand and AMP Capital Investors (senior and mezzanine financiers respectively) in their debt funding associated with PEP’s take-private of Guardian Healthcare Group
• Private equity bidder in relation to final round bids for Tenon
• Lanzatech New Zealand in respect of an investment by US venture capitalist, Khosla Ventures
• iGlobe Treasury Fund (involving New Zealand and Singaporean co-investors and co-managers) on its investments, including in ECONZ Wireless (and subsequent merger and migration to the US), Metacol, Xegen, Virtual Katy, Knowledge Discovery, Wise Giant and Zephyr Technologies
• RECT Funds Management in its co-investment with ANZ Private Equity in Chequer Corporation
• Zeacom Group on various investment rounds, involving AMP, Caltech and JBWere
• Ice Angels, other co-investment partners and NZVIF in 13 investments so far under the seed co-investment programme
• Californian-based Clarity Partners on its initial investments in Woosh and on subsequent rounds of capital raising
• Ice Angels and NZVIF in relation to various investments including investment rounds in Biomatters Databrake, Go Virtual Medical and EquuSys
• Hauraki Private Equity No. 1 Fund (formerly the JBWere New Zealand Private Equity No. 1 Fund) on its investment in Tiri Group (purchaser of the heritage brands companies Masport, Masport Foundries, Paykel, New Zealand Insulators, Pacific Wallcoverings, A & G Price and R H Freeman & Co)
• ANZ Private Equity in its equity and debt participation on a range of MBO and private equity transactions, including: the MBO of Alto Plastics (a plastics packaging manufacturer); the MBO of Motion Industries (an Auckland-based company involved in the import and distribution of bearings, power transmission and related engineering products); its equity investment in Tru Test Corporation (an Auckland-based agritech company); its equity investment in Argent Metals Technology and purchase of the Ford alloy wheel plant; its equity investment in Pacific Print group (an Auckland-based commercial print group); and the MBO of Securimax (an Auckland-based electrical consumer products company)
• The management team in the AMP Capital-backed MBO of Methven Tapmakers from MCK Group
• Bain Capital and another United States private equity investor in their investment in Frucor Beverages

Following initial investment phases, our team provides effective advice on corporate law, governance, and industry-specific issues affecting investee companies and their management.

We offer extensive corporate advisory expertise in managing private equity exit strategies, and executing public offering and trade sale divestments. Recently, members of our team have acted for:

• Fulton Hogan in its divestment of EnviroWaste to Ironbridge Capital
• Pumpkin Patch in its initial public offering, including the sell-down by various foundation and international private equity investors
• Methven in its initial public offering, including the sell-down by various foundation and New Zealand private equity investors
• ANZ Private Equity in its exit from Argent Metals Technology, Alto Plastics and Securimax
• United States private equity investors and members of the management team exiting their investments in the initial public offering by Frucor

Our private equity depth includes a strong specialisation in the venture capital funding of new and high growth companies. We hold a leading market position in venture capital. In particular:

• We were integral in the establishment and implementation of the Government's New Zealand Venture Investment Fund programme, designed to accelerate the development of the venture capital market in New Zealand
• We have experts in all of the key disciplines to assist investors and their managers in maximising value from venture capital investees – particularly in intellectual property, information technology and communications, biotechnology, employment, and international trade
• We recognise the special needs and issues associated with growth businesses, and this is reflected in our innovative approach to charging for our services in this area. Simpson Grierson's "Equifee" scheme enables us to accept equity in an approved high growth business as part payment for legal services provided to that business or its funders

Our legal experience is supplemented by close involvement in relevant industry initiatives and organisations. These include:

• Active membership and participation in the Council of the New Zealand Venture Capital Association (NZVCA) and membership of technology sector industry bodies
• Active membership of the Australian Venture Capital Association
• Being a founding sponsor integral to the establishment of Connect Auckland, a publicly-funded body to facilitate growth of technology companies in the Auckland region
• Sponsorship and provision of services to the Massey "E-Centre"
• Sponsorship of the Power of Angel Investing seminar series
• Sponsorship of NZVCA, and frequent hosting of NZVCA events

• Guide to Venture Capital Term Sheets
• Early Stage Investment Term Sheet Templates