Needing a Chaperon?

Happy New financial year! This month we are excited to announce the joint venture between Newbrook and Chaperon as part of this year's next step of growth.

Newbrook as you know focuses on private capital markets with expertise in private equity investment. Chaperon is focused on navigating the banking relationship for medium enterprises and corporate entities.

Chaperon was started by former chief economist of ANZ , Cameron Bagrie and Former head of Corporate-Agri banking at ANZ, Gordon Stuart . The synergies between both companies are evident and knowing Cameron for a while now, I look forward to working together.

What does this mean for clients and investors? - More insights and knowledge! With the combined experience of banking , investment and economics - we plan to help NZ businesses get the best funding possible and provide real-time insights into the economy.

Also this month we interviewed Minister for Regulation David Seymour and we discussed the NZ economy , banking sector and over-sea investment. You can listen on the Market Intel show in the link below.?

We have also closed a few deals and some great opportunities continuing to the surface as SME's battle with higher interest rates and needing a hand with their funding requirements.?

As always if you want to discuss any opportunity feel free to reach out below?

About Newbrook & Chaperon

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Cameron Bagrie?

With 18 years of experience in the banking industry and a background in economics, Cameron brings a unique perspective to Chaperon. He has a passion for improving financial literacy in New Zealand, particularly for kids, and is known for being a straight shooter. As the former Chief Economist at ANZ and current Managing Director of?Bagrie Economics, Cameron is a regular commentator on the economy and helps Chaperon with specific issues such as access to finance.

Dave Armstrong?

With over 10 years of experience in business lending, deal advisory, and investment, Dave is a finance professional with expertise in working capital, cash flow lending, capital raising, property finance, M&A, and valuations.?Dave also acts for a number of high-net wealth individuals on their specialist transactions. This includes private market placement and larger ticket transactions.

Gordon Stuart?

With over 30 years of experience in senior roles at BNZ, NAB London, and ANZ, Gordon has extensive knowledge of corporate finance and restructuring businesses.

He works to enhance strategy, governance oversight, risk management, financial reporting, understanding, and forecasting for numerous SMEs. At Chaperon, Gordon helps customers through refinancing and communicating their journey, and oversees regular reporting to the bank.

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In the market

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Market Intel - David Seymour

?Market Intel is the show which brings you guests working with businesses and investors in the front row.

?Our latest episode of Market Intel is now live. Join us as we talk to?David Seymour?about how we (NZ) attract foreign investment, the banking sector and where the economy is. Market Intel is the show that brings you what's happening from the front row affecting New Zealand SMEs.

Listen Here

?Event Series - Bagrie Economics (Coming Soon)

?To kick off the partnership with Chaperon we are excited to host a series of events with Cameron. The aim is to deliver insights into the NZ economy and what businesses should be looking out for.

?More details to follow as we organise but it will be an in-person networking events across the main centres.

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Economic Insights

Business revenue slowing

Business Sales (Revenue) fell an average of 0.3% y/y in the three months to December, including a sharp 1.9% fall in the month of December. Using the CPI as a proxy for prices, small businesses, in aggregate, have been selling fewer goods and services than a year ago for 13 of the past 14 months.

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This data from Xero is showing us the effects of a slower economy and higher interest rates. On the right hand graph you can see the notable decline based on industry with manufacturing and construction taking a hard hit.

Read More

We haven't seen the real pain yet....

Its only now we are starting to see the real effects of higher interest rates and a slower economy but the worst is yet to come. Looking at the data there is a rising trend of non-performing loans , particularly in businesses loans.?

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Join Cameron Bagrie for a 15-minute Straight Shooting economic update. Hosted 3 times a month on Sunday evenings at 8 pm.

Subscribe

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Deal Highlights

Working Capital Extension

Earlier in the year we were approached by a sizable business that had a major capex programme over the next 12 months. To help with this we developed some in-depth financial modelling for their bank to help understand the effect on cashflow if they were to fund.?

Through this project we help them identify some additional areas of cashflow that could be improved and were able to obtain a $2M approval increase to their facility.?

Sometimes its just having the data for the bank at their finger tips and make it easy for them to run scenarios.

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Convertible Note

This month we also pulled off a new personal record , to raise and close a private investment round in 2 weeks. Our client had a tricky situation with an investor not coming to the party in the 11th hour.?

So through our close networks , we were able to secure and negotiate replacement capital in a very short time frame and now the client can continue on their growth curve.

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Pricing Review

Chaperon was engaged to look at the structure and security requirements of some company loans. They suggested a restructuring that involved repaying two fixed-rate loans. The Bank tried to charge break costs of over $7000. Chaperon stepped in and negotiated on behalf of the client to change the break fee settlement of zero.

Past Deals?

Connolly Gear - Business Acquisition

Our client is a specialist in property management. Newbrook was engaged to help with the acquisition of a larger firm.

We aided in financial modelling, deal advisory and sourcing funds from a major New Zealand bank (Balance sheet only)

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SpaceX - Secondary Sale Purchase

This year we decided to add another string to our bow and gained access to private SpaceX shares.?

Through our nominee structure we were able to syndicate investors to purchase two tranches from a US based private equity firm.

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Sheffield Pie Shop - Business Acquisition

Earlier in the year we helped to facilitate the acquisition of the famous Sheffield Pie shop.?

We ran the full deal including due diligence from our trusted accounting partner and aided in securing finance from a Major New Zealand bank (Balance sheet only)

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Astute Access - Equity Raise

Astute Access is one of our fastest-growing clients. We have been working closely with them for 12 months and secured a second funding round.?

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This company will do some great things and one to certainly watch.

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