New Zealand's GreenMount seeks $69m for co-investment fund

Ngai Tahu Holdings, the commercial entity of Ngai Tahu, the principal Māori tribe on New Zealand's South Island, has come in as a cornerstone LP. It plans to commit 25% of the target corpus, with the rest to be raised from domestic and overseas investors, Hamish Blackman, CIO of GreenMount Capital, told Mergermarket, AVCJ's sister title.

The firm is also raising a venture capital fund – called New Economy Fund – with a target of NZD 40m. Four investments have already been made out under this strategy, Blackman added.

Blackman was previously a portfolio manager responsible for private equity and venture capital at New Zealand Superannuation Fund (NZ Super). He joined GreenMount late last year to lead its expansion from advisory into investment.

The co-investment fund is intended to work alongside mid-market private equity firms, offering LPs a means of getting exposure to deal flow from managers that might otherwise be inaccessible and providing managers with additional capital and deal origination capacity.

Blackman also highlighted the strategic connection to a Māori community that "has engagements in various aspects." Māori tribes, known as iwi groups, are significant landowners in New Zealand and have emerged as major players in domestic private equity, through direct and third-party commitments.

Formally established in 1998 following a government settlement over land disputes worth NZD 170m, Ngai Tahu Holdings has become the largest investor of its kind. As of June 2020, assets under management (AUM) were NZD 1.5bn as of June 2020, with fund commitments and select direct investments managed under Ngai Tahu Capital.

The co-investment fund will seek to leverage relationships with existing advisory clients, Blackman said, citing Anchorage Capital Partners and Allegro Funds among others. Equity cheques will be in the NZD 5m-NZD 15m range. There is a preference for growth-stage businesses, with enterprise values of NZD 50m-NZD 300m, that can be scaled through M&A and greenfield expansion.

Key themes include energy transition, alternative proteins, circular economy, data and digitisation, automation, and artificial intelligence, according to an investment overview document.

GreenMount Capital currently has three investment professionals, supported by an investment committee. It can also leverage the knowledge and networks of the advisory team, Blackman added.

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• Topics
• Australasia
• GPs
• LPs
• Fundraising
• Venture
• New Zealand
• Co-investment
• Fundraising
• GreenMount Capital