Next Capital was established to capitalise on opportunities in the area of expansion capital and small to mid-market buyouts in Australia and New Zealand, with businesses typically valued between $50-200 million. This segment of the market has been our core focus for over 20 years but often neglected by our private equity peers in robust market conditions. We also believe that smaller companies are able to grow more rapidly than their larger counterparts.
We aim to back investee companies for the medium to long term, rather than seek unsustainable short-term rewards. We will typically take an equity position in a business that can generate value over three to five years, but are prepared to hold investments for up to 10 years if appropriate.
We do not seek to aggressively use debt. In our experience, growth businesses require headroom to expand and the flexibility to take advantage of opportunities as they arise, unencumbered by unsustainable levels of gearing.
By partnering with experienced management as co-owners of the business and rigorously applying proven investment criteria, the expectation is that returns of 25% per annum can be achieved for all stakeholders. Our interests span all industries other than real estate, early-stage financing and natural resources.
We are also recognised as having deep experience operating in Asian growth markets; whether it be sourcing products, establishing manufacturing facilities or market entry for Australasian branded products.