The New Zealand P.E. Market “I’m looking for a hedge against my hedge funds”

The New Zealand P.E. Market “I’m looking for a hedge against my hedge funds”

Key Messages Established, growing and successful market Experienced managers – off-shore and on-shore Less risk than is perceived – diversification, advice New Zealand

Key Drivers To Industry Development 1.Accessible institutions - investors 2.Infrastructure - Advisors - Benign tax environment - Familiar legal environment 3.Portfolio diversification - Manager - Investee 4.Demonstrable success - Manager track record

Investors “I won’t be able to handle your account anymore, as it suddenly appears that you’re a small investor.”

The New Zealand Private Equity Industry Today: Investors Poor representation amongst the New Zealand superannuation funds: Liquidity, J curve, manager selection, no track record Retail: Relatively well developed – Hauraki I and II, Pohutukawa Source: Direct Capital

The New Zealand Private Equity Industry Today: Infrastructure but

Advisors “We’re expecting stocks to rally, but we don’t know which ones and when”

Advisors Onshore1 Offshore2 All 2005

Diversification I meant everything I said last night, especially the part about how diversifying your equity portfolio allows you to participate in growth potential

The New Zealand Private Equity Industry Today: Diversification

Track Record “Very impressive. I’d like to find five thousand more like you.”

The New Zealand Private Equity Industry Today: Track Record New Zealand mid market from inception to 31 March 2005 Source

Track Record – International Comparison

Summary Of Today There is a growing market There are experienced managers There is the ability to diversify There is today the infrastructure to support investors