The 2011 private equity deal of the year has been awarded to Pacific Equity Partners, which sold out from Tegel Foods at nearly four times its initial investment.
Poultry producer Tegel was sold to Affinity Equity Partners Funds in May, generating an overall return to PEP Fund investors of 3.9 times their money and an internal rate of return of 101 percent.
Tegel is headquartered in Auckland and has approximately 1,800 full time employees. Exports make up about 10 percent of its revenue, selling value-added products into Australia and other parts of the Asia Pacific region.
The inaugural NZ Venture Capital Association awards were judged by an independent expert, based on return to investors and company financial performance.
Contribution to the economy, employment, innovation, consistency and industry competitiveness were also taken into account.
NZVCA executive director Colin McKinnon said PEP exemplified the aim of private equity – to steward companies through creating value and long-term sustainability.
“Private equity firms strive for sustainable and consistent high-performing returns and the New Zealand industry has matured to the stage where we can celebrate outstanding investment performance," he said.
PEP managing director Anthony Kerwick said: "This was in many ways a classic PEP Fund investment … where we were able to support management to take a good company and turn it into a great one. The new owners will bring another dimension of opportunity to Tegel and we’re confident that it will continue to thrive under their ownership.”
The Tegel investment deal was also awarded the ‘International Retail and Consumer Products Deal of the Year’ by M&A Advisors in the US this year and the AVCAL ‘Best Management Buyout $100m-$500m’.