Aussies buy stake in Taranaki tech
Daniel Radcliffe borrowed half of the business' $40,000 starting capital from his parents
A $400 million Australian investment company has snapped up a majority stake in a digital company born on a Taranaki farm.
International Volunteer HQ (IVHQ) creator Daniel Radcliffe, who borrowed half of the business’ starting $40,000 capital from his parents, launched his virtual venture from his family’s Uruti farm in 2007.
The success of the business, which links volunteers with programmes around the world, prompted Sydney-based firm Mercury Capital Investments to obtain majority shares.
It is not known how much the shares were sold for and Radcliffe, who was named Entrepreneur of the Year in 2014, said he could not comment.
However, Mercury - a midmarket private equity firm with AU$400m (NZ$437.21m) in committed capital funds - only invests in businesses with enterprise values of between $50 million to $200 million.
Mercury Capital took on majority shares of a holding company, which now owns IVHQ, while Radcliffe maintains a 20 per cent stake.
Holding company New Zealand Adventure Travel Company Ltd, which became incorporated on November 10 last year, took ownership on December 1.
Mercury Capital’s investment director Christopher Criddle, analyst Samara Insoll and chief executive officer Clark Perkins have been made the newest directors of IVHQ alongside Radcliffe.
Perkins has an extensive professional background with Goldman Sachs having served as the head of merchant banking division, equity analyst and director.
Insoll has also formerly worked with Goldman Sachs.
Both are listed as directors of New Zealand Medical Holdings and New Zealand Pharmacy Holdings, both of which are owned by Mercury Capital under respective holding companies Mercury Medical Holdings and Mercury Pharmacy Holdings.
Mercury Capital invests in businesses ‘‘that are leaders in their industry’’ and ‘‘demonstrate the potential to achieve rapid and sustained growth’’, its website said.
The Australian investment company lists current investments as New Zealand commercial print company Blue Star, New Zealand primary care operator Nirvana Health Group, Australasia’s label printer company Hexagon, and Australia’s Nexus Day Hospitals.
And its prior successful investments include Australian aged care company Estia Health Care, veterinary services group Australia Animal Hospitals, Australian allied health service HealthStrong, and Asia’s leading contract research organisation Novotech.
Perkins, Criddle and Insoll have all been approached for comment.
Radcliffe’s financial win would be the second time within a decade that a Taranaki man has built a successful business from the ground up.
Philip Brown had sold his Tenderlink business for $21.6m to Australasian Fairfax Media Ltd in 2010.
The online tender advertisement company began in Brown’s garage.