NZ Super allocates $31m to Pioneer Capital
The New Zealand Superannuation Fund has committed NZ$40 million ($31 million) to the second fund of Auckland-based private equity firm Pioneer Capital Partners.
Pioneer Capital Partners II (PCP II) will provide expansion capital to privately-owned, small- to medium-sized enterprises (SMEs) looking to expand overseas.
The investment is part of a broader opportunity that NZ Super has identified in providing expansion capital to New Zealand SMEs.
"There is a significant pool of smaller, high-growth companies in New Zealand that can potentially provide attractive investment opportunities to long-term investors such as the fund," Matt Whineray, general manager for investments at NZ Super, said in a statement.
Other New Zealand institutions, private investors and the Pioneer team have also backed PCP II which is expected to reach a hard-cap of NZ$150 million shortly.
"Our investment capital, with a target range of NZ$10-30 million per investment, is primarily designed to fund expansion, which may include acquisitions," said Randal Barrett, managing director at the firm. "It may also provide a bridge to public markets or a change of ownership."
Current Pioneer investments include online retail search provider SLI Systems, healthcare software provider Orion Health and premium beer producer Moa Group.
NZ Super currently has around $3.5 billion invested in New Zealand across all asset classes. Its private equity program is now five years old, having made its earliest commitments to HarbourVest International Private Equity Partners V and the Adams Street Partnership Fund Program.
Previous fund commitments to New Zealand expansion capital include $30 million with Pencarrow Private Equity in 2011 and $30 million with Waterman Capital in 2010.
While NZ Super is active at home, emerging Asia is also becoming an increasingly significant part of NZ Super's private equity exposure. It currently has three relationships in the region - one generalist fund and two real estate funds, covering China and India, respectively.
"We will increasingly use private equity managers where we don't have in house capabilities so I would expect more emphasis on managers for non-Australasian investment, but it depends on what opportunities come down our research pipeline," CIO Fiona Mackenzie told AVCJ.
More on Australasia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.