In this episode of Data Room’s Dealmaker Series, Partner Neil Millar speaks with Simon Kriechbaum from Five V Capital, a private equity fund that recently expanded into New Zealand. The conversation explores how private equity works, what makes it a compelling option for business owners considering an exit, and how Five V Capital approaches partnerships, growth strategies, and long-term value creation. Simon shares insights into the private equity process, common misconceptions, and how business owners can prepare for a successful transaction.

[01:04] Simon explains Five V Capital’s origins, its $3 billion under management, and its four investment strategies, including private equity and permanent capital.

[01:58] Simon defines private equity as a partnership-based investment model focused on growth and eventual exit, typically over a 3–5 year horizon.

[02:53] Neil and Simon discuss how private equity allows founders to de-risk by selling part of their business while staying involved in the next growth phase.

[04:18] Simon outlines the strategic, operational, and structural support Five V provides, including capital structuring, systems upgrades, and market insights.

[07:01] Neil and Simon discuss how founders often make more on their second exit and how private equity differs from trade buyers in approach and flexibility.

[08:51] Simon explains how Five V tailors deals to accommodate different shareholder needs, including generational transitions and staged buy outs.

[11:00] Simon walks through the stages of a typical deal: relationship building, structuring, due diligence, value creation planning, documentation, and execution.

[13:47] Neil and Simon highlight the importance of shareholder agreements in defining the partnership and governance structure post-deal.

[14:37] Simon describes Five V’s hands-on approach, including board participation and early engagement with potential future buyers when preparing to exit.

[16:02] Neil and Simon offer guidance for business owners: build a strong management team, document a growth plan, maintain clean financials and legal contracts, and prepare for due diligence.

[18:26] Simon shares the key attributes Five V seeks in a business: growth potential, market tailwinds, strong margins, low capital intensity, and a compelling value proposition.

[19:49] Case study: Simon discusses Five V’s investment in Orbit Remit, a cross-border payments platform, and how it exemplifies systemic market change and growth opportunity.

[20:16] Simon addresses myths and misconceptions about PE including cutting costs, over-leveraging, and replacing management. 

[22:35] Simon emphasises that private equity is about working together toward shared goals, not opposing sides, and that alignment is key to success.

Information in this episode is accurate as at the date of recording Thursday, 15 May 2025

Please contact Neil Millar or our Corporate M&A team if you need legal advice and guidance on any of the topics discussed in the episode.

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