NZ Super Fund to invest $180m in New Zealand SMCs

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New Zealand-based global investment fund the NZ Super Fund announced on December 19 that it will be investing up to $180 million (NZ$260 million) in domestic small-medium sized companies (SMCs) over the next five to 10 years.

NZ Super Fund has set three mandated targets ― to pre-fund universal superannuation in New Zealand, such as NZ$90 million in Direct Capital’s V Fund, NZ$120 million into Pioneer Capital’s III Fund, and up to NZ$50 million into Movac’s IV Fund.

Each fund is expected to invest in between eight and 15 individual companies. It is also seen to benefit different parts of the local private equity market, like direct capital operating at the larger end of the growth spectrum, pioneer targeting mid-market companies seeking international growth, and Movac focused on earlier stage, high growth technology companies.

Also Read: Partners Group acquires stakes in NZ Super’s real estate funds at discount: Report

NZ Super Fund chief investment officer Matt Whineray claims they have been investing in this sector since 2005, with previous investment types delivering net returns of about 15 per cent per annum.

“New Zealand continues to provides attractive investment opportunities in small to medium –sized companies which are high growth, typically internationally focused, and able to benefit from the expertise that these managers can provide,” Whineray said. “External managers are a logical and efficient way for the Fund to get access to the growth opportunities in this sector.”

Whineray added the NZ Super Fund’s in-house New Zealand investment team would continue to focus its efforts on listed equities and larger scale investments, about NZ$100 million or more, along with the fund’s rural and timber holdings.

As of November 30, the NZ Super Fund had NZ$4.9 billion invested locally, including more than $1 billion in the New Zealand share market, and large investments in Kaingaroa Timberlands, Datacom and Kiwibank. The Fund has returned 9.7 per ent per annum since inception in 2003.

Also Read:

New Zealand PE firm Oriens Capital receives $30m for first fund

Swiss fund manager Partners Group to open services hub in Philippines

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.