Today we're celebrating another first, investing in high growth NZ companies unavailable to most New Zealanders.
We're joining with Stephen Tindall and First NZ Capital to invest in the commercial arm of Icehouse, NZ's biggest business incubator. It'll manage funds investing in high growth NZ companies not listed on the stock exchange.
Our investments won't be in start-up companies, as there are plenty of investors already helping them.
But there's a real shortage of bigger investors for companies that succeed in their first few years and want to grow within NZ and offshore. A classic example is Rocket Lab, which struggled to find investors within NZ able to support their growth.
Our investments will be small relative to our overall size (no more than 5% of our growth funds), and they'll be very diversified.
We aren't trying to pick winners here. We want a small stake in as many already successful high growth companies as possible. It helps keep our funds passively managed and diversified, while getting better returns over time.
The investments will increase risk in the growth funds by a small amount, but will not impact your ability to get money in and out, or switch funds.
For those wanting more detail, you can find the press release (here) and a Q&A here.
We're excited to be investing on your behalf in a fast growing, dynamic part of our economy.
Sam and the team at Simplicity