Capital Raising & Equity Syndication

Equity Syndication

Equity Syndication provides an alternative option for high-quality Kiwi businesses to access private capital to grow or allow existing owners to secure some liquidity in their investments.

While fundamentally similar to equity raising, the equity syndication proportional ownership model reflects changing investor behavior as it supports private direct investment for wholesale investors.

Equity syndications are a viable alternative to investing in Private Equity Funds and are attractive because the approach provides direct access to companies with a visible return profile.

The syndications model offers investors a deal-by-deal investment approach where investors choose to participate (or not) after being provided with high-quality due diligence information.

This asset class is gaining momentum as investors can select which investments they want to make with better capital utilisation and a lightweight fee structure.

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A New Form of Capital

In comparison to other countries only a small percentage of entities in NZ are listed and investors have a limited universe of entities to invest in. Equity syndication delivers a new pipeline of opportunities for investors and provides partial liquidity to businesses looking to fund intergenerational change or growth.

There is a clear gap for investors in the market - finding good businesses with a $2-10m EBITDA to invest in is difficult. Equity syndication addresses the problem of the $10-20m investment range often being below that targeted by Private Equity and above that of an average business buyer.

Equity syndication delivers better proximity to investments for investors as they can have some form of governance or advisory input if desired.

How We Can Help

Strategic Guidance

Strategic assistance and direction throughout the equity-raising process. Define your business goals, objectives, and financial requirements, and craft a customised strategy to ensure you secure the ideal capital for your venture.

Valuation and Pricing

We'll analyse the financial data, interpret market trends, scrutinise transaction records, and more, all with the aim of providing you with an equitable and enticing valuation for your business. We'll also set a suitable pricing range for your equity offerings.

Preparation of Investment Materials

The perfect package of investment materials showcasing your business. From a comprehensive investment pitch deck to an investment memorandum (IM), taser/flyer, and financial projections.

Investor Identification and Outreach

We're like matchmakers; but for investors and startups. Get your business in front of the right people - no more shouting into the void! Whether it's your industry, growth stage, or investment thesis - we know how to get your proposition noticed by the movers and shakers who can make things happen.

Due Diligence Support

The team is ready to coordinate with your investors, provide the required documents, and keep the communication lines open between parties.

Negotiation and Deal Structuring

We'll get creative in the negotiating room, finding solutions to the issues that are most important to you, from how much equity you're getting for your business to the governance rights of potential investors.

Regulatory Compliance

Our team will guide you through every regulatory filing, ensuring all security laws are followed to a tee, and even providing guidance on any legal obligations or disclosures that might need to be made.

Deal Execution

We'll work alongside your legal team to get things sorted - coordinating documents, managing all the hard stuff, and ensuring every contract is in good shape. Then it's time to close those deals and voila!

Post-Offering Support

We can help you set up and run your Advisory Board, stay in touch with shareholders, report to relevant authorities, and even look out for any extra funding opportunities that come up.

Whether you are looking for capital to support high growth or a business looking to expand or finance new projects, contact us to see how Bellingham Wallace can help.