New Zealand’s Maori to gain prominence in private equity

Matthew Slater, CIO at Ngai Tahu Holdings, the largest iwi investment group in dollar terms, expects the country’s tribal wealth base to make more fund commitments in the near term as government settlements related to historical disputes are agreed.  

“Private equity tends to resonate well with iwi investment groups, and broadly, the private equity market has seen an increase in iwi participation post-settlement,” Slater told AVCJ. “There are still some iwi that have yet to settle with the government, so we expect that some of that money will find its way into third-party private managers in the years to come.”

Iwi groups began receiving financial settlements from the government in the 1990s. These related to land disputes that traced back to the 1840s. In recent years, iwi groups have come to be recognized as sophisticated, patient and attuned to regionally-based growth opportunities.

Auckland-based Pioneer Capital closed its third fund last year at NZ$210 million ($152 million), raising almost one-fifth of the corpus from iwi groups, including Ngai Tahu. The fund is currently investing with a strong focus on export-oriented consumer businesses.

“It suits them as an asset class because they’re very long-term investors as well, so they can handle illiquidity,” said Randal Barrett, a managing director at Pioneer. “I would anticipate that all New Zealand private equity funds will wind up with iwi investment in them, and that the 17% we secured in Fund III will soon become the normal level.”

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• Topics
• Australasia
• LPs
• Fundraising
• New Zealand
• Pioneer Capital