Deal Summary
New Investment Update
Private Capital Group is pleased to announce that it recently provided senior-secured acquisition debt financing to support the acquisition of Wellington-based, cybersecurity solutions specialist – Scientific Software & Systems Limited (SSS) by Acheron Capital, a Christchurch-based private equity investment firm.
Transaction Highlights
- PCG was mandated as the preferred acquisition debt financing provider, ahead of financing proposals provided by two of NZ’s Big 4 banks, in what represents a significant milestone and validation for NZ direct lending and NZ private debt.
- The transaction is the third for the PCG Diversified New Zealand Private Debt Fund. It provides Fund investors with exposure to the increasingly significant cybersecurity thematic which is a theme not otherwise accessible to investors within NZ public capital markets.
- At the time of investment, the financing has a duration comfortably inside target asset maturity horizons and an IRR which is both above the Fund’s target rate of return and consistent with the current run-rate performance.
- SSS is well positioned for further growth, both organic and through M&A, in the NZ and Australian cybersecurity markets, providing financing add-on opportunities for PCG Fund investors.
About SSS
Founded in 1985, Scientific Software & Systems Limited is a Wellington-based cybersecurity MSSP (Managed Security Service Provider). The SSS client-base of ~300 includes banks, government departments and corporate NZ. Its product solutions form critical components of their customer’s IT infrastructure.
In an increasingly digitised world, cybersecurity is a business-critical product and one of the most important defensive measures. Increasing threat vectors and an expanding attack surface are driving up the number of solutions required per client. The complexity in the threat landscape is increasing the need for security and monitoring services, which many businesses are outsourcing to specialist providers such as SSS.
