NZVIF Welcomes Panel Proposal for Māori-Oriented Fund

NEW ZEALAND VENTURE INVESTMENT FUND
MEDIA STATEMENT

MONDAY 19 NOVEMBER 2012
FOR IMMEDIATE RELEASE

NZVIF Welcomes Panel Proposal for Māori-Oriented Fund

The New Zealand Venture Investment Fund (NZVIF) is welcoming possible discussions with iwi and Māori organisations, fund managers and investors on the shape of a new Māori-orientated investment fund, as recommended by the Māori Economic Development Panel.

NZVIF Chief Executive Franceska Banga said the panel’s report has correctly identified access to investment capital as a major component in terms of building growth companies in the Māori and wider New Zealand economies.

“Overcoming the scarcity of investment capital is one of the biggest challenges facing young companies with high growth prospects,” Ms Banga said.

“NZVIF was established by the government in 2002 to help build a vibrant venture capital market in New Zealand. Since then we have partnered with 22 funds and investment groups to invest around $400 million into more than 120 ventures.

“There is the potential for a Māori-orientated investment fund which focuses on promising companies with a Māori component. We have had discussions with a number of Māori-led entities about opportunities to invest in a Māori-orientated fund, to manage such a fund, or to seek capital from it.

“The panel’s report adds new impetus to such discussions and NZVIF is ready, willing and able to provide advice and appropriate assistance to those interested in such opportunities.

“The key will be to identify credible fund managers with support from investors and a strong source of potential deal-flow in terms of Māori-oriented growth companies.

“There are iwi with considerable pools of capital and strong records of successful investment, particularly in primary-based industries. That provides a starting point for discussions to evaluate the potential for a Māori-orientated investment fund.”

NZVIF’s mandate is to make investment commitments into venture capital and seed funds that are managed by professional venture capital fund managers and experienced angel groups. The fund managers and private investors are fully responsible for making portfolio investment decisions.

NZVIF welcomes informal discussion with prospective venture capital fund managers at any time about potential new fund investment opportunities.

Following initial discussions, if it appears that a new fund investment proposal is a good fit with NZVIF’s investment mandate, NZVIF will then provide further information on its due diligence process and requirements.

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