The NZD53 billion NZ Super Fund is committing NZD100 million to a new investment fund managed by Auckland-based Pioneer Capital.

The fund, Pioneer’s fourth, will invest in New Zealand companies that are seeking international growth in high margin sectors.

The NZ Super Fund’s Head of External Investments and Partnerships Del Hart says high growth, mid-market companies are an important part of the NZ Super Fund’s diversified investment approach, which aims to maximise returns without undue risk to the overall Fund. 

“We look forward to seeing this money put to work by innovative New Zealand businesses with the ambition and capability to succeed offshore.”

Domestically, the NZ Super Fund has been investing in this sector since 2005, with previous investments generally delivering strong net returns above its passive Reference Portfolio benchmark.  

The NZ Super Fund will be a cornerstone investor in Pioneer Capital Partners IV. The total fund size is expected to be in line with that of the NZD260 million Pioneer Capital Partners III fund, and invested across 6 to 8 individual companies.

Pioneer Capital Managing Director Randal Barrett acknowledged the continued support of the NZ Super Fund, which also invested in Pioneer’s second and third funds.

“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.

“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.”

Current and previous Pioneer Capital investments include pet food manufacturer and exporter Natural Pet Food Group, buy now pay later service Laybuy, utility billing software business AgilityCIS, tourism photography solutions provider Magic Memories, and Rockit Global, which produces and markets the world’s first specially bred miniature high-quality apple.

The NZ Super Fund currently has around NZD7 billion invested in New Zealand, with approximately NZD600 million invested in or committed to New Zealand growth capital companies via third-party fund managers.