What’s ahead for private equity in 2025?
What’s ahead for private equity in 2025?
New Zealand’s private equity sector continues to evolve with increased appetite from offshore investors.
This is one of the messages delivered by BDO Deal Advisory Partners Andrew Beagley and Daniel Martin, who recently joined business journalist Madison Reidy to discuss the private equity market in New Zealand. Watch their discussion below to learn more about private equity in 2025 and beyond.
Key trends in New Zealand’s private equity market
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Private equity is growing in New Zealand. What has traditionally been a sector with a handful of local players is now getting larger and more competitive.
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Offshore private equity funds are increasingly looking to enter the New Zealand market, thanks largely to its historically good returns.
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When it comes to investment, private equity firms tend to prefer businesses that are asset-light, have stable contractual cash flow and a strong growth story, which typically includes sectors like technology.
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Private equity firms will likely have an enhanced focus on ESG (environmental, social, and governance) when considering investments in 2025, with many firms seeing increased interest from their LPs (limited partners) in this area.
Overall, the private equity sector is seeing positive growth, and we may see an increase in deal activity this year as firms look to expend some of the dry powder they have stored up.
“It’s great for New Zealand’s mid-market ecosystem to have more private equity players in the market. It provides vendors more access to cash, more expertise, and there may be a valuation upside with more money looking to be deployed in the New Zealand market.” - Daniel Martin, BDO Deal Advisory Partner
For more on private equity, and the mid-market, reach out to BDO’s Deal Advisory team. To learn more about the wider M&A and deals market, view our recent article and video here.