Pohutukawa V is modelled on its successful predecessors, Pohutukawa I and Pohutukawa II. Like Pohutukawa I and II, Pohutukawa V will be managed by Direct Capital and will invest pro-rata alongside Direct Capital’s latest institutional fund, Direct Capital V.
The new fund will continue to focus on mid-market private equity growth investments in New Zealand and Australia.
The Offer was made to Wholesale Investors/Eligible Investors and successfully closed on 19 December 2016 with $50 million raised. The offer was significantly oversubscribed.
30 million Shares at an issue price of $1.00 per Share, with provision to issue up to a further 30* million Shares at $1.00 per Share in oversubscriptions. (*subsequently reduced to 20 million Shares)
Shares on Offer:
Each Share comprises one ordinary voting share and 100 non-voting redeemable preference shares in Pohutukawa Private Equity V Limited together with one non-voting preference share in each of the Investment Companies
An initial subscription of $0.03 per Share subscribed for is paid upon application (plus the 1.25% application fee on Committed Capital)
The remaining $0.97 per Share, being the balance up to the Issue Price, is payable in tranches. Calls will be for a minimum of $0.01 per Share and will be subject to at least 30 days advance notice to the investor. The Board will make calls when the Investment Manager requests it to, in conjunction with calls it makes on Direct Capital V.
The proceeds of the initial tranche, and each subsequent call, will be applied to successively pay up in full the non-voting redeemable preference shares in Pohutukawa Private Equity V Limited represented in each Share
2.00% (plus GST) per annum of Committed Capital payable quarterly in advance until all Committed Capital has been called or five calendar years from Closing Date, whichever is earlier. Thereafter, the Management Fee will be 2.00% (plus GST) per annum of Invested Capital. The Management Fee will cover the cost of both the investment and administration management functions
Board of Directors of Pohutukawa Private Equity V Limited
The Board is responsible for overseeing the administration and treasury functions of Pohutukawa V. This role involves all communication with shareholders in Pohutukawa V and managing the flow of funds between the Investment Manager and the shareholders of Pohutukawa V. The Board of Pohutukawa Private Equity V Limited comprises three directors: Neil Craig and Ken Phillip.
Neil Craig is Executive Chairman of Craigs Investment Partners, and Ken Phillip is the Chief Financial Officer of Craigs Investment Partners. They have many years of experience in administrative roles associated with Pohutukawa I and Pohutukawa II. These are funds of $53.0m and $82.5m respectively and were raised by Craigs Investment Partners to specifically invest alongside Direct Capital III and Direct Capital IV, being funds managed by Direct Capital.
Supporting the directors in administration of Pohutukawa V will be Peter Lalor of Craigs Investment Partners, the executive officer for the Fund.
Neil John Craig (Non Executive Chairman)
Neil is the founding principal and Executive Chairman of Craigs Investment Partners, a New Zealand Exchange Participant Firm, a company he has been instrumental in building from a small regionally based sharebroking business in Whakatane to its current position as a leading New Zealand investment advisory firm. Craigs Investment Partners has approximately 500 staff across 18 branches throughout New Zealand. Neil has a broad experience in private equity transactions, stock exchange listings, capital raisings and corporate activity for a wide range of companies. In a personal capacity Neil has been an active private equity investor for many years.
Neil is currently a director of Pohutukawa Private Equity Ltd, the first Pohutukawa fund, Pohutukawa Private Equity II Ltd, Oriens Capital Ltd Kowhai PE Management Ltd, Karaka Management Ltd, Matai Management Ltd and a number of privately held companies.
Kenneth Christopher Phillip (Non Executive Director)
Ken is the Chief Financial Officer of Craigs Investment Partners. Ken joined Craig & Co. in May 1996 as the Financial Accountant and now has responsibilities for the operations of Craigs Investment Partners comprising Accounting and Finance, Settlements, Custodial Operations, Retail Equity and Fixed Income Dealing, Human Resources, and all administrative functions, including the company secretarial role. Ken is a director of a number of subsidiary and associate companies of Craigs Investment Partners including QuayStreet Asset Management Ltd, Craigs Investment Partners Superannuation Management Ltd, Custodial Services Ltd, CIP Cash Management Nominees Ltd and the Pohutukawa Private Equity I & II management companies and the Pohutukawa Private Equity I & II investment companies, and Kowhai PE Management Ltd, Karaka Management Ltd, Matai Management Ltd .
Board of Directors of Investment Companies
The board of directors of each Investment Company will be appointed by Direct Capital V Investment Partners LP as the holder of the ordinary shares in each Investment Company. Direct Capital V Investment Partners LP will utilise its director appointment and voting rights in respect of Investment Companies as may be instructed from time to time by the Investment Manager.