Fund Announces First Commitment To Private Equity
21 June 2005
NEW ZEALAND SUPERANNUATION FUND ANNOUNCES ITS FIRST COMMITMENT TO PRIVATE EQUITY
The New Zealand Superannuation Fund today announced it has committed $23.75 million to the new AMP Pencarrow Private Equity Fund, its first private equity commitment since it began investing in September 2003.
The $75 million AMP Pencarrow Private Equity Fund will invest in local management buyouts and expansion capital transactions. Other investors include Australian fund of funds investor, Quay Partners, and AMP Life.
In March, the New Zealand Superannuation Fund stated its intention to invest up to $100 million in local private equity funds, or related transactions, over the next three to five years. It also announced the appointment of specialist advisory firm, Quentin Ayers, to review investment opportunities in the New Zealand private equity market.
"The decision to invest in the AMP Pencarrow Fund followed a detailed review by Quentin Ayers," said New Zealand Superannuation Fund chief executive Paul Costello. "The key factor was the manager's track record in this area, which gives us confidence in their future performance."
The AMP Pencarrow Fund aims to be fully invested within five years, with investment commencing in quarter two of 2005/2006.
The value of the New Zealand Superannuation Fund as at 31 May 2005 was $6.4 billion.
Notes for Editors:
About the New Zealand Superannuation Fund:
The New Zealand Superannuation Fund, which commenced investing at the end of September 2003, is designed to partially provide for the future cost of New Zealand superannuation. As at 31 May 2005 the value of the Fund was $6.4 billion. The Fund is expected to grow to around $100 billion by 2020. www.nzsuperfund.co.nz
About AMP Pencarrow Private Equity Fund:
Pencarrow Private Equity is a specialist private equity manager established in 1993. In 1998 AMP Capital and Pencarrow established a joint venture arrangement and since that time have invested $150 million in MBO and expansion capital transactions.
AMP Capital and Pencarrow have considerable experience in such transactions having previously invested in a diverse range of businesses including Hurricane Wire Products, Eskimo Logistics Group, Formway, Donaghys and Wellington Drive Technologies. More recently they partnered with Methven senior management in an MBO of the shower ware manufacturer and in late 2004 floated the company on the NZX.
AMP Capital is one of New Zealand's largest private equity investors. Over the last six years, in partnership with Pencarrow, they have made 20 private equity investments totaling $150 million in local companies. AMP Capital is New Zealand's largest fund manager, with assets of over $10 billion.