Ray Parker – Investment ethic runs deep in Dunedin
They say ‘still waters run deep’ – and when you talk to Ray Parker from Dunedin-based investment house Parker O’Connor Trust Co. Ltd, you begin to realise just how deep Otago’s investment pool flows.
On the surface things might seem calm and conservative, but wade in a little and you will find people interested in helping new businesses with creative new ideas to succeed.
“Our slogan is: ‘Capital solutions for businesses and investment opportunities for investors’,” Parker says succinctly.
He and his business partner Mike O’Connor, a highly experienced investment director and analyst who has moved south from Wellington, have been steadily developing a pool of investors and a stable of promising companies in need of investment and development.
“There are many informal investment networks in Dunedin – particularly centred around property. Unfortunately for a lot of businesses there are no formal networks for them to seek investment.
“We are a boutique investment bank. We work with clients to find the best solution to the problems they have,” he says.
“If it fits with our investor database we will put together an information memorandum to distribute to the database.”
That database, or investment register of professional investors, has now grown to 700 names.
When they have an investment opportunity ready to present, Parker O’Connor sends out a flyer asking for expressions of interest.
“If they like what they see in the information memorandum they can then decide if they are interested in investing.”
Parker can already point to a number of success stories, including Clocktower Games, a company that is working at the cutting edge of photo real video gaming.
Clocktower Games is headed by Luke Reid, a proven young entrepreneur who left Dunedin’s Logan Park High School at just 15 and then completed his computer science degree at the age of 19.
A decade overseas followed, sufficient time for him to create his own Internet company, Skinkers.com, which attracted the attention of Microsoft, to whom Luke sold a cornerstone shareholding.
“He came back to Dunedin at the age of 27 and decided to settle and he now transacts a global business from here,” says Parker.
“We put a whole business and capitalization strategy (about $2 million) around him. There is an extremely good depth of business expertise on the register,” he adds.
“We realized logistics, distribution and marketing were going to be important so we shoulder-tapped a top local person to manage that.
“A lot of New Zealand businesses suffer from a lack of strategic management so we went to our database for someone with the expertise.”
Not only did that give Clocktower a great platform for success and lend some confidence to investors, that expertise has them on the verge of an on-line distribution deal with one of the largest players in the globe.
“All from little old Dunedin,” says Parker.
Parker says the opportunities they offer are open to anyone with an interest in investing, no matter where they are – subject to compliance with the requirements of the NZ Securities Act and any applicable legislation applying in the country where the investor resides.
“Anyone overseas who wants to invest in Dunedin can be directed onto our investment register,” he says.
“Others who return to Dunedin with reasonably good skills can be fed some contract work on projects or companies we are working with.”
Parker O’Connor is discerning about what they put in front of investors and at this stage the Company tends to carry out about one capital raising per quarter.
“There is capital support and networks for good ideas and good people. Investors don’t invest in products or markets, they invest in people, so the person behind it has to have an excellent track record and be backable,” says Parker.
Much of the capital is driven off the agricultural boom in the south, he explains.
“There is a lot of wealth and a lot of equity looking for an alternative home.”
Parker sees it as being a good fit with Dunedin’s excellent skill base and innovative approach to developing and commercialising new ideas.
“Dunedin is strong in IT innovation, Agribusiness and the services sector,” he says.
“The Internet also means you can foot it with the world’s best without being in New York, Sydney or Auckland. Plus, you can have a better lifestyle and standard of living as well.”
For more information view: www.parkeroconnor.co.nz & www.investmentregister.co.nz