Photo: RNZ
Big global private equity firms are rebalancing their portfolios in light of geopolitical changes, which could bring more investment to New Zealand.
Deloitte's head of private equity for Asia Pacific Sam Padgett said the region was seeing some global firms shifting investments from Asia to Europe, while Middle East-based firms were shifting away from the United States to Asia.
"So to some extent, they're filling in that void from the North American pull back," Padgett said.
"There's a lot of dry powder - a lot of capital out there looking for investment right now. And in the current geopolitical environment, a market like New Zealand looks relatively appealing as far as lower risk."
He said New Zealand's tech sector was seen as one that had strong global growth potential and with low buy-in prices.
"You could get the same type of startup out of New Zealand for cheaper than you could get it out of San Francisco," Padgett said, adding that investors see New Zealand tech companies as being global companies and scaleable from day one.
Another positive sign for New Zealand was a drop in the number of large investment opportunities available at the top end of the global investment market.
He said big investors were looking to balance their portfolios with low risk, smaller investment opportunities.
"New Zealand is an attractive market in that it's often a bit overlooked I think and in some ways that's what makes it appealing.
"And so, my overall message is I think there's really interesting opportunities (for New Zealand) if you can make it work."
Padgett said New Zealand was a small market where connections and networks matter.
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