A company with United States connections has plans to inject up to US$100 million ($146 million) into the local software sector.
Kiwi Growth Partners, headed by international business consultant Alvin Donovan, has secured financial commitment from US merchant and investment banking company Millennium Capital Quest Corp. It is now on
the hunt for smart local software companies with growth potential.
Donovan, an American-born, Australian citizen who has 20 years' experience as a management consultant in the US and Europe, has been living in New Zealand for three years.
Impressed by the quality of local technology developers, he decided it was time to leverage his international contacts to link New Zealand companies with money and expertise.
The investment group is prepared to invest in companies on a 50/50 basis - matching dollar for dollar the capital they can bring to deal.
Donovan said there was a minimum investment of $1 million. So companies need to have reached a level where they can bring at least $500,000 of their own capital to the table. Apart from that, projects would be considered at any stage of development on a case-by-case basis.
Kiwi Growth Partners is also aiming to bring expertise to its investments and would help fledgling companies with anything from international sales and marketing to human resources and public relations.
Donovan said there were a lot of smart people developing software around the country but many of them did not have the business experience to take their companies to the next level.
Millennium Capital brings plenty of financial muscle to the consortium.
It operates at a number of different levels placing offerings of equity and debt, advising firms on direct public offerings and private placements.
As well as working with management institutes in the US and Europe, Donovan is a successful author of business and marketing books.
www.kiwigrowthpartners.com
What's required
* Investments will be on a 50/50 basis.
* Minimum investment is $1 million.
* Projects will be considered at all stages of development on a case-by-case basis.
