Why invest in Pohutukawa?

Why invest in Pohutukawa?

Investing WithTo enable retail investors to participate in the New Zealand private equity market Craigs Investment Partners and Direct Capital have established the Pohutukawa Funds - a professionally managed private equity programme for the retail investor.

By pooling capital and engaging an experienced manager, a Fund is able to achieve the financial strength and investment expertise needed to successfully participate in private equity investment.

Individual investors typically do not have the time or the ability to identify or access investment opportunities in unlisted companies, or the resources to evaluate and monitor such investments. When investing with a Fund these roles are performed on behalf of investors in the Fund.

A Fund has the resources to build a diversified portfolio of investee businesses.

Investment through a Fund, enables investment into a much wider range and number of investments, thereby reducing overall risk.

The rationale for investing in Pohutukawa can be broken into five key themes.  First, the current market environment presents appealing investment opportunities for private equity investors. Secondly, in the medium term private equity could benefit from the demand for succession planning.  Thirdly, returns from private equity, over the medium to long term, have outperformed listed equities.  Fourthly, private equity, and Pohutukawa in particular, can invest in a much wider range of investment opportunities outside listed equities, bringing important diversification benefits to portfolio investors.  Finally, as private equity now forms an established and growing part of most institutional investors’ investment portfolios, it is equally appropriate for private investors.

Pohutukawa I

Established in 2004 with committed capital of $53 million. Pohutukawa I  made 12 distinct investments.  There have been 8 liquidity events to date and Pohutukawa I has 4 remaining investments, plus an investment in BioPacificVentures. 

As at 31 December 2015 shareholders in Pohutukawa I who invested $1 per share have received gross distributions of $1.11 per share.

Pohutukawa II

Established in March 2009 with committed capital of $82.5 million. Pohutukawa II has 7 remaining investments following the sale of its shareholding in Transaction Services in 2015. 

As at 31 December 2015 shareholders in Pohutukawa II who invested $0.62 per share have received gross distributions of $0.70 per share.