NZ Super to back Pioneer's fourth fund

The overall target is NZ$260 million. Pioneer raised the same amount for its third fund in 2017, with NZ Super contributing NZ$120 million. The sovereign fund invested NZ$40 million in Fund II, which closed at NZ$150 million in 2014. Pioneer’s debut raised NZ$70 million in 2008 with significant government support.

Pioneer’s LP base has historically been dominated by domestic institutions, including a growing contingent of corporations representing the indigenous Maori people. Maori groups are significant landowners in New Zealand and have diversified into PE. They account for almost one-fifth of Pioneer's Fund III corpus.

Pioneer makes deployments of NZ$10-50 million, taking minority or control stakes in companies. The firm looks at about 150 small to medium-sized enterprises a year with a strong focus on export-oriented models. More than 90% of the portfolio’s combined sales have historically come from overseas.

Investee companies include deferred payments services provider Laybuy, utility billing software business AgilityCIS, tourism photography company Magic Memories, and Rockit Global, which produces and markets specially bred miniature snack apples. Pioneer also has a 77% stake in Natural Pet Food Group, which is quickly growing a presence in China’s premium pet food space.

“New Zealand has a wealth of exciting businesses looking to secure the funding necessary to grow, and it’s positive to have large-scale investors ready to back them,” Randal Barrett, a managing director at Pioneer, said in a statement. “Pioneer has built a deep relationship-based pipeline of opportunities in this space. We focus on companies which are high-growth, internationally-focused, and will benefit from the expertise and networks that we are able to provide.”

NZ Super, along with state-run insurance underwriter ACC, has historically represented the bulk of private equity fundraising in New Zealand. The sovereign fund, which uses a reference portfolio instead of a strategic asset allocation model, traditionally sets a base allocation of 80% growth and 20% fixed income. Assets under management currently amount to NZ$53 billion, about NZ$600 million of which is invested in local third-party fund managers.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Australasia
• Fundraising
• Growth
• GPs
• LPs
• Buyout
• New Zealand
• Pioneer Capital
• New Zealand Superannuation Fund