NZ Super Fund commits $182m across three domestic GPs

The investment will be split between Direct Capital Fund V, Movac Fund IV and Pioneer Capital Fund III, with the GPs receiving NZ$90 million, NZ$50 million and NZ$120 million respectively, according to a release. All three GPs have received NZ Super's support for their previous funds.

NZ Super's commitment is intended to give it exposure different types of New Zealand technology companies: Direct Capital invests in companies at the larger end of the growth capital spectrum, Pioneer supports mid-market companies planning international expansion, and Movac focuses on early stage start-ups. The LP expects each fund to invest in 8-15 companies.

Of the three vehicles being supported, only Movac's has been formally announced. The fund launched in March with a target of NZ$80-100 million and reached a first close of NZ$105 million in November. Other LPs include Ngai Tahu Holdings and New Zealand Venture Investment Fund (NZVIF), which made a NZ$20 million cornerstone investment in the fund in March. Movacs plans to keep the fund open to investment until April 2017.

Direct Capital launched its fourth fund in 2008 and closed the vehicle in 2010 at NZ$325 million. Investments from the fund include New Zealand King Salmon, in which the GP took a 45% stake in 2008 to support its management buy-out. Earlier this year Direct announced it would exit the bulk of its holding in the company's planned NZ$77.5 million IPO.

Pioneer Capital closed its second fund in 2013 at NZ$150 million. NZ Super was a significant contributor to the vehicle, providing NZ$40 million along with other New Zealand institutions, private investors and the Pioneer team.

The domestic investments come after NZ Super sold off its LP positions in three US-based PE funds earlier this year. NZ Super said its exit from Hellman & Friedman VII, JMI Equity Fund VII and HIG Bayside Loan Opportunities Fund II was a move to consolidate its investment profile by shedding some of its smaller commitments and deepening the relationship with other managers.

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• Topics
• Australasia
• LPs
• Fundraising
• New Zealand
• New Zealand Superannuation Fund
• Direct Capital