Equity partnerships

The increasing amount of capital tied up in a farming business means that traditional family ownership may not remain the main form of land ownership into the future.

Equity Partnerships are an increasingly popular response to this issue – and ANZ is an established leader in the field. We have helped facilitate and finance over two thirds of all rural equity partnerships in New Zealand. If you are considering investing in an Equity Partnership, talk to ANZ’s dedicated team of Equity Partnership specialists.  They can use their extensive knowledge and experience to help you understand the issues you need to consider – and ensure your venture is set up for success from the start.

What is an equity partnership?

Put simply, an equity partnership is just another way to invest in the rural sector. It’s a joint venture between individuals who pool their capital, and possibly skills or resources together, to achieve greater revenue and growth from their investment. The joint venture can be set up in a number of ways and the right structure for one group may be completely different to another. Often one of the partners is employed as the farm manager, known as an equity manager.

What are the benefits of an equity partnership?

  • Gain an ownership interest in a property, which may otherwise be out of reach
  • Gain scale and grow your business faster than perhaps going it alone
  • Reduce individual capital requirements and spread the risk involved with investing in the rural sector
  • Access capital to fund development projects to improve business performance
  • Release equity tied up in your farm for succession and retirement planning purposes
  • Realise the benefits of investing in the rural sector without having to manage a farm.

What are the risks involved in an equity partnership?

An equity partnership is typically a medium to long term investment and participants should weigh up the risks and the benefits involved against their own personality and individual needs. We recommend anyone considering or looking to invest in an equity partnership engages their accountant, solicitor and/or financial adviser as part of their due diligence process which will identify the specific risks (and potential returns) involved.

Many of the risks that exist are the same that apply to the industry generally, be it sheep, beef, dairy, deer farming or growing. Other risks and benefits are related to the structure and process, and the individuals involved.

Current equity partnership opportunities

We currently have a pool of local and international investors with over $160 million looking to invest in equity partnership opportunities. Our strong industry connections across the rural sector also mean we are constantly receiving equity partnership proposals to present to our investor pool. Many of these have been successful and demand for quality investors and quality opportunities is growing.

Find out more

ANZ has a team of dedicated equity partnership specialists situated across the country. To find out more about equity partnerships and how we can help you invest in or establish one, please contact equitypartnerships@anz.com

Alternatively, you can view our ANZ Equity Partnerships brochure (eBook) or download a copy (PDF 562kB), which provides more detail on how these vehicles are structured and what considerations you should be aware of.

National Equity Partnerships Manager

NZ
David Pratt
027 435 6819

Terms and conditions

The information on this page is of a general nature and is not a recommendation, opinion or promotion in relation to any particular equity partnership or type of equity partnership. This information is not personalised advice and does not take into account your particular financial situation or goals. You should not make an investment or structuring decision based solely on this information.

To obtain advice tailored to your particular circumstances, we recommend professional legal and financial advice. ANZ Bank New Zealand Limited and its related companies (and their respective officers, agents and employees) will not be liable for any loss which may be incurred by any person relying on the information in this presentation.

The Disclosure Statement is available free of charge on request. If you seek financial advice from an authorised financial adviser in relation to Equity Partnerships, whether or not that adviser is part of the ANZ network, an authorised financial adviser disclosure statement will be available, on request and free of charge, from that adviser.