For the Second Quarter of 2026

Note:

The data has been filtered to exclude: (i) real estate transactions; (ii) early stage venture capital transactions where size is stated or estimated to be less than $1.5m; (iii) transactions announced but yet to complete; (iv) liquidation sales; (v) other transactions where applicable.

_{Sources: Mergermarket, CapitalIQ, Eikon, Pitchbook, PwC analysis (1 July 2026)}

After a quieter period, private equity and other financial investors are again closing more transactions in New Zealand.

For founders and business owners, their return means a wider pool of potential buyers and more options for growth, succession and liquidity. The right investor can also provide capital, experience and networks needed to expand into new markets.

From interest to action

Q2 2026 shows that financial investors are becoming more active. Private equity investors were directly involved in six of the 39 New Zealand deals recorded during the quarter. At least eight further Q2 transactions involved PE-backed trade buyers. This compares with an average of approximately four PE deals per quarter over the previous nine quarters. Several additional PE-related transactions have also been announced recently, pointing to continued momentum. 

A growing pool of capital and investors

There is significant capital available to support further activity. Globally, buyout funds hold approximately US$1.3 trillion of uninvested capital. Closer to home, Australian private markets raised A$9 billion in 2025, while New Zealand private capital funds raised approximately NZ$1.9 billion across 2024 and 2025.

The investor universe is also expanding. The number of businesses operating in Australia’s private equity industry is estimated to have increased by nearly 9% to 311 in 2026. Many overseas investors have an Australasian mandate and view New Zealand as a natural extension of the Australian market.

Global investors are also relevant for New Zealand companies, particularly where a business has a strong domestic position or differentiated intellectual property that can be expanded into other international markets.

Not every investor will be the right fit for every company. Investors differ in their sector focus, preferred business size, ownership requirements, investment periods and geographic mandates. 

More than a source of capital

For a business owner, the value of a financial investor is not limited to the amount invested.

New Zealand businesses can have strong products, valuable intellectual property, attractive market positions and experienced management teams, but may lack the resources or capability to execute the next phase of growth alone.

A financial investor may provide:

• experience entering new markets
• access to additional customers, partners and management talent
• support to strengthen systems, governance and organisational capability
• capital and execution support for acquisitions
• expertise, relationships and insights from across its portfolio.

Australian investors can offer a particularly practical pathway into that country. They may help a New Zealand business expand organically through local market knowledge, relationships and management support. They may also provide the capital and M&A capability required to acquire Australian bolt-on businesses and build scale more quickly.

This can shorten the path from a successful New Zealand business to a larger Australasian or global company.

Private equity-backed trade buyers are part of the picture

Financial investors do not always appear on a buyer list under the name of a private equity fund. They may participate through an existing portfolio company or PE-backed platform pursuing acquisitions across New Zealand and Australia. These buyers are particularly relevant in fragmented sectors where there is an opportunity to build scale, expand geographic coverage, add capabilities or create a larger regional platform.

For business owners, a PE-backed trade buyer can combine sector knowledge and an established management team with access to capital and acquisition expertise. They may already understand the market and have a clear plan for integrating and growing the acquired business.

These buyers will assess an opportunity through both a strategic and financial lens. They will consider strategic fit alongside earnings quality, customer concentration, scalability, integration requirements and the potential value of the combined business at a future exit.

A sale does not have to be all or nothing

The broader financial investor universe creates flexibility around transaction structure.

Depending on the business owners' objectives, the options may include:

• a full sale
• a majority sale with retained equity
• a partial sell-down
• growth capital, funding for acquisitions or international expansion
• a staged transition or two-stage exit.

A two-stage exit may suit an owner who wants to reduce personal financial risk while retaining exposure to future growth. The founder sells part of the company, retains an equity interest and typically works alongside the investor to help execute on the agreed growth plan. Additional value is then realised when the retained interest is subsequently sold at a higher value as a result of the executed growth plan. This structure requires clear alignment on governance and mechanics of an eventual exit.

This structure requires clear alignment on governance, management roles, capital structure, dividends and the timing of an eventual exit.

Five questions business owners should ask to optimise transaction outcome

Owners considering a partial or full exit should begin preparing well before launching a transaction.

Preparation creates choice

Trade buyers will remain important participants in New Zealand M&A. However, renewed activity from private equity, PE-backed trade buyers and other financial investors gives business owners more pathways to pursue growth, succession or liquidity.

The best outcomes will come from preparing early, defining the desired outcome and identifying investors whose capital, capability and objectives align with the business.

_{Sources: New Zealand Private Capital Monitor 2026 and 2025; Australian Investment Council, Australian Private Capital Yearbook 2026; Bain & Company, Private Equity Outlook 2026: Gaining Traction; and IBISWorld.}