A consortium, including the Superannuation Fund (NZSF), has bought a majority stake in the country's biggest fertility treatment provider, Fertility Associates.
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The fund has joined New Zealand investment company Pioneer Capital and British-based Comprador Holdings in taking a 70 percent stake in Fertility Associates, for an undisclosed sum, with the firm's medical and management staff holding the balance.
Fertility Associates has about 70 percent of the local market, with a range of clinics and laboratories, and consultancies around the country as well as smaller-scale operations in Malaysia.
NZSF external investments and partnerships head Del Hart said it was pleasing to invest in a well-established and quality local business.
"Our investment in Fertility Associates gives us exposure to the New Zealand healthcare sector and fits with our focus of identifying local businesses where we can add value by investing to help them grow and develop."
Hart said the consortium would be looking to expand Fertility Associates expansion in Malaysia and other selected Asia-Pacific countries.
Fertility Associates was founded in 1987 to provide reproductive support, diagnostic services, and fertility treatments. It said it had assisted in bringing 25,000 babies into the world in New Zealand and 5000 in Malaysia.
The company had been seeking new investors and capital since the start of the year, with pre-sale information pitching it as a business with high margins and strong cashflows. It was estimated to be valued at more than $100 million, with forecasts of revenue of $44m and operating earnings of $14m this year.
Fertility Associates chief executive Alex Price said it had decided on investment from the consortium because it was willing to back growth with capital, and because one of the group - Comprador through one of its investment firms - had experience in the sector.
"The last two years have had their challenges, but the investment does represent an important vote of confidence in Fertility Associates' future."