The size of the Fund relative to the size of the domestic market makes it difficult for us to find opportunities of sufficient scale to invest in directly. Infrastructure is one sector we see as capable of providing investment opportunities that meet our commercial criteria and allow us to invest in projects that deliver economic and social benefits to the country as a whole. 

New Zealand has a well-recognised infrastructure deficit. The Fund’s long investment horizon, our status as a Crown entity, and our established relationships with peer funds and potential co-investors around the world equip us to play a part in identifying and developing solutions that will reduce that deficit. 

Growth capital 

Through external managers including Direct Capital, Pioneer Capital, and Movac, we invest in smaller local companies with the potential for high growth. These companies often lack long-term equity and skilled investment management, creating opportunities for us to achieve premium returns. 

Ideal Investments

Rural Land 

Since our purchase of an Otago dairy farm in 2010, the Fund has built up a portfolio now valued at more than $800 million. The portfolio, which is managed by FarmRight, includes hops, pipfruit, viticulture, sheep, beef and dairy in both islands.  

Rural land is an under-developed asset class with strong potential for active management. We target scalable investment opportunities in high-yield areas, focusing on vendors who are capital constrained.