Capital Markets: Targeting 'smart capital' NZTE's focus

Quentin Quin says the role of NZTE Capital is to facilitate "financial matchmaking".

Our purpose at New Zealand Trade and Enterprise (NZTE) is to grow companies internationally - bigger, better, faster - for the benefit of the New Zealand economy.

We work to increase New Zealand companies' international success by helping them boost their global reach and build capability. We use our global connections - spread across 38 international offices - and leverage our government imprimatur to help New Zealand companies enter and grow in international markets.

Scaling internationally typically requires a revised perspective on investment needs and capital structures of companies to really materialise these international growth strategies. The role of the NZTE Capital team is to facilitate the financial matchmaking between investor and investee.

Globally there is no shortage of capital, but ultimately we target "smart capital" -- in other words attracting capital which not only funds R&D, technology, facilities, and new talent, but also provides valuable access to new markets, skills and knowledge through the investors' networks. We also target investors who support our value-add exports.

How do we do this?

Through our three-stage Better by Capital programme we help New Zealand companies to understand their capital options (Orientation), improve their investment proposition (Readiness) and ensure companies attract the right capital, from the right providers at the right time (Connections).

During this financial year more than 200 New Zealand companies have participated in the programme. Of these, eight companies have secured deals worth a combined $106.8 million.

In addition to financial outcomes the programme has helped companies to improve their capital savviness, become more pitch-proficient, address governance, factor in sustainable succession planning and re-structure their business models to sustain growth.

Last year the innovative Hawkes Bay based apple grower Havelock North Fruit Company was looking for investment to lease land to increase its production of Rockit apples, a new miniature variety, to support demand across 18 new export markets.

The company used the programme to develop its investment pitch for the inaugural New Zealand Agribusiness Investment Showcase at Mystery Creek Fieldays, hosted by NZTE, ASB and KPMG. This led to an oversubscription for the company's first round of funding, closing at $6.8 million a month later.

In addition we focus on attracting foreign direct investment (FDI) and increasing investment into the regions beyond the four main centres.

We target seven priority sectors where New Zealand has global competitiveness and in sectors that are sustainable -- primary industries, premium food and beverage, specialised manufacturing, infrastructure, oil and gas, ICT/digital and shared services. Since July 2014 inward investment has totalled $756 million enabling existing businesses to continue and improve operations, while providing expansion capital for new ventures.

Working with regional Economic Development Agencies is critical to identifying specific investment opportunities. We have a joint initiative with Spearhead Manawatu to leverage the region's call centre infrastructure. This includes hiring a business originator to promote Manawatu's shared services capability globally to create direct economic benefits, including new jobs for the region.

We are also running a series of investment showcases to present investment deals to international and domestic investors. The series spans from San Francisco to Singapore, Hamilton to Palmerston North, with upcoming showcases on Waiheke Island in June in conjunction with ANZ Bank, and Queenstown in October in conjunction with the Asian Business Angel Forum.

• Quentin Quin is General Manager Capital, New Zealand Trade and Enterprise (NZTE).