New Zealand Superannuation Fund, Auckland, committed NZ$40 million (US$30.9 million) to Pioneer Capital, confirmed Matt Whineray, general manager-investments for the NZ$23.2 billion sovereign wealth fund.
That commitment will make New Zealand Superannuation the “cornerstone” investor in Pioneer Capital's fund, which looks to provide between NZ$10 million and NZ$30 million in expansion capital to small to midsize, unlisted businesses in New Zealand expanding overseas, according to a news release Monday from New Zealand Superannuation.
In a telephone interview, Randal Barrett, managing director, Pioneer Capital, said the fund, his company's second, should close in the near future with NZ$150 million in commitments. The NZ$70 million raised for the company's first fund, with the same strategy of providing “growth equity” for firms expanding overseas, has been invested, Mr. Barrett said.
Asked whether New Zealand Superannuation looks to limit the portion of any single private equity fund it accounts for, Mr. Whineray said his team has moved to concentrate its allocations somewhat, in line with its preference for establishing “fewer, deeper” relationships with managers. Although institutional investors often don't want to contribute more than 10% of a single fund, the amount allocated would have been too small on Pioneer's fund to be worth doing, he noted.
