Sydney-based private equity firm ROC Partners has joined hands with the New South Wales (NSW) government, and pension fund First State Super in the creation of an $118 million (A$150 million) equity fund for small and medium-sized enterprises (SMEs).
Dubbed ‘GO NSW Equity Fund’, the new vehicle will invest in companies with potential to create new jobs in NSW.
“First State Super will allocate an initial A$100 million and the NSW Government’s Jobs for NSW initiative will add a further A$50 million to the fund,” NSW said in its statement.
“The capital funding invested into the companies could create up to 2,500 new jobs, support growth in regional communities and deliver other positive social impacts,” NSW noted. “A further 2,400 jobs could be created by 2025 through recycled funds.”
John Barilaro, minister for Regional NSW, Small Business and Skills, said instead of launching a loan or grant program, the government was thinking outside the box.
“Any returns or profits generated by our equity stake will go back into the fund to help more businesses,” Barilaro said.
NSW touts itself as Australia’s oldest, largest and most cosmopolitan state with a diverse population of 7.7 million people, and with an economy larger than Hong Kong, Malaysia and Singapore.