Neu Capital opening doors to private equity

Sydney-based corporate financier Neu Capital has teamed up with professional services firm Grant Thornton on a matchmaking service that connects mid-market Australian companies to private equity.

The collaboration will see the two companies focus on businesses seeking $10m to $200m in debt or equity, bringing together Grant Thornton’s advisory capabilities with Neu Capital’s investor relationships and proprietary market intelligence.

Neu Capital director and co-head of deal execution Cyrus Church said established mid-market businesses faced a different investment environment than the top end of town.

“The investor universe is a lot more diverse, as are the intermediaries (boutique firms and ­accounting firms) involved,” he said.

“These intermediaries don’t necessarily have the skill sets to best serve mid-market companies, so that’s the problem we are solving.”

There are a couple of trends that, according to Mr Church, are in Neu Capital’s favour. Firstly, the big banks are tightening their lending standards, which means mid-tier business need to find ­alternatives.

Meanwhile, there’s a large pool of private capital looking for viable investment options.

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Source: Neu Capital opening doors to private equity – The Australian