Source: Radio New Zealand
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Last year’s weak economic conditions coincided with a 35 percent drop in the value of capital investments, along with a 10 percent drop in the number of transactions the year earlier.
NZ Private Capital Monitor indicates there were 276 transactions last year, with $2.5 billion in combined investments and divestments across private equity and venture capital transactions, compared with $3.77b in 2024.
The decrease was driven by a drop in the size and number of large private equity activity deals, with three deals totalling $541m in 2025, compared with three deals totalling $1.66b in 2024.
Total weighted investment activity accounted for about 71 percent of 2025’s total transactions to $1.78b, which represented a 35 percent on 2024’s $2.77 total invested. Divestments fell 27 percent to $723.6m.
Despite the drop, there was an increase in the size and number of mid-market investment activity, as well as a record level of venture capital investment.
“If you look at the trend, particularly you look at the venture capital trend that’s been on a steady progressive increase over the last decade, that’s a very positive trend in the mid market, that market has been steady and continues to grow as well,” NZ Private Capital executive director Colin McKinnon said.
“So the trend is positive, we’re doing good work, we’re growing good companies, and they’re internationally relevant companies that we’re growing, it’s a lot to be positive about.”
The total number of mid-market transactions rose 85 percent to 50, with a total value of $549m, compared with $519m in 2024.
There was a record level of venture and early stage investment activity totalling $687m, which was 17 percent up on 2024’s $587.6m. Most of the investment was focused on IT/software and technology companies.
The findings were based on the transactions of NZ Private Capital Market participants, which included international and domestic fund managers, law, accounting and banking professionals, institutional investors, business angels and government agencies.
“The outlook for the next six months remains neutral as a result of current global macroeconomic factors, with levels of optimism increasing in future years,” McKinnon said.
“Recent global geopolitical events were not reflected in survey responses. However, this activity will undoubtedly have an ongoing impact on financial market risk in the near to medium term, the extent to which is yet to be seen.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
Original source: https://nz.mil-osi.com/2026/05/18/private-capital-investment-remains-resilient-in-the-face-of-uncertainty/