Pencarrow seeks to invest in New Zealand businesses with capable management, attractive market positioning and the potential for superior growth and returns. Pencarrow is mandated to invest in businesses with either their head office or their principal operations based in New Zealand.
Pencarrow has no specific industry focus from which it sources its investments; rather, we look for companies with the following characteristics:
- A track record of positive and growing earnings history;
- Leaders in their industries in NZ having the potential to be globally scalable or having the potential to drive consolidation within their industry;
- Companies with strong points of difference such as design capability, intellectual property or other capabilities that give them a competitive advantage in their market.
As a general rule, Pencarrow does not invest in:
- Start-up, early stage or unprofitable businesses;
- Mining, resources or high-technology related businesses.
Pencarrow today is focused exclusively on private equity. We target mid sized businesses with enterprise values of between $15 million and $100 million. We do not require control but we seek a meaningful investment of at least $10 million.
For each investment that we make, we undertake a rigorous macro environmental, business and financial due diligence process. This process helps us to identify issues and key strategic drivers of the business pre-investment as well as helping us to contribute to the post acquisition performance of the business.
This hands-on approach has given Pencarrow executives significant experience in making investments and acquisitions and in selling investments, assets and businesses.
Pencarrow executives also have significant capital markets experience which can assist with assessing or managing exits.