On 29 July 2022, Oriens Capital Fund 2 LP agreed to an unconditional investment transaction into PMG Group Ltd (PMG). This transaction will see Oriens acquire a minority interest in PMG Group Limited, a new entity that will use debt and equity to acquire the shares of PMG Holdings Limited (“PMG”).
The transaction sees Oriens take a 35% equity stake in PMG (inclusive of third-party co-investment) and Oriens partner, James Beale, join the PMG board. It has also allowed PMG executives and staff to further invest in PMG bringing their combined total equity stake to 65%.
Oriens sees this investment as a unique opportunity to gain exposure to a niche segment of the funds management industry, a sector which offers long-term growth prospects driven by changing demographics and increased savings practices within New Zealand. PMG is well positioned as an unlisted property manager, with a strong reputation and connections and we back the highly capable management team to deliver on its target to grow assets under management.
Scott McKenzie, CEO of PMG commented on the new partnership “we’ve known James and the team at Oriens for quite some time and hold them in high regard. As a local Tauranga private equity firm, who are punching above their weight nationally, Oriens’ values and investment philosophy are a very good natural fit with PMG. We are really looking forward to continuing the next phase of our growth journey together.”
The transaction is due to settle on 24 August 2022 and marks the third investment in Oriens Fund 2.
About PMG
PMG is one of the most established property funds managers in New Zealand, currently managing five unlisted property funds with total assets under management (AUM) of over $900m varying across industrial, office, childcare and large-format retail sectors. As well as four retail funds PMG also manages a wholesale fund and two wholesale joint ventures.
As a property funds manager licenced by the Financial Markets Authority, PMG is responsible for sourcing property investment opportunities, managing financing (equity and debt), management and administration of the funds, as well as managing all tenants and facilities.
PMG is led by Scott McKenzie (CEO) who has developed a capable in-house team of property and investment management professionals across three offices in Tauranga, Auckland and Christchurch.
For more information on PMG see website here